3 ms·

Cities in the US can be very steep too. I have a ~50 sq meter apartment that runs ~€3000 in Boston. When I lived in Germany, my salary was about half what it is

Cities in the US can be very steep too. I have a ~50 sq meter apartment that runs ~€3000 in Boston. When I lived in Germany, my salary was about half what it is here in the States. Taxes are much lower, my effective tax rate is closer to ~25% (state and local) than the 42% in Germany plus the 5% Soli.

foepys 5y ago
You only pay 42% for anything above 57,000€. Germany does have progressive income tax.
- 2ion 5y ago
  Literally every "skilled immigrant" is supposedly earning 57k or more. Everything else is a strategic move to keep salaries low. So, evey skilled migrant looking to work harder and more is going to get taxed almost half of that effort plus social constributions (up to the limit) and soli (still exists). There are tax-free allowances like in night shift bonuses, but those apply not to most workers. The base tax exempted income is much too low as well. Should be at least double the current 10k or so.
  - foepys 5y ago
    No, you don't understand progressive taxation. You pay 0% on your first 10,000€, then a few percent for the next 12,000€ and so on. In 2021 in Germany for an income of 60,000€ you need to pay 11,735€ income tax, roughly 19.5%. there is also no soli tax anymore unless you are earning a top-2% income.
    - 2ion 5y ago
      I understand very well as I'm German. Anybody who is usefully skillful and economically useful will be earning north of 57k. Anybody who is all that and earning less than the equivalent German is a means to keep salaries low. There is an oversupply of cheap labour fuelling the Niedriglohnsektor already. That also means that high-performing individuals with an already appropriately high base income will be paying 42% on any € pay increase, which is not a good incentive to make people work more and/or more stressful and/or more highly skilled jobs /in Germany/. Why here, if you can be highly skilled and high earning in Switzerland and be able to achieve a multiple of net income and get a better pension system to boot?

foepys 5y ago

You only pay 42% for anything above 57,000€. Germany does have progressive income tax.

2ion 5y ago
Literally every "skilled immigrant" is supposedly earning 57k or more. Everything else is a strategic move to keep salaries low. So, evey skilled migrant looking to work harder and more is going to get taxed almost half of that effort plus social constributions (up to the limit) and soli (still exists). There are tax-free allowances like in night shift bonuses, but those apply not to most workers. The base tax exempted income is much too low as well. Should be at least double the current 10k or so.
- foepys 5y ago
  No, you don't understand progressive taxation. You pay 0% on your first 10,000€, then a few percent for the next 12,000€ and so on. In 2021 in Germany for an income of 60,000€ you need to pay 11,735€ income tax, roughly 19.5%. there is also no soli tax anymore unless you are earning a top-2% income.
  - 2ion 5y ago
    I understand very well as I'm German. Anybody who is usefully skillful and economically useful will be earning north of 57k. Anybody who is all that and earning less than the equivalent German is a means to keep salaries low. There is an oversupply of cheap labour fuelling the Niedriglohnsektor already. That also means that high-performing individuals with an already appropriately high base income will be paying 42% on any € pay increase, which is not a good incentive to make people work more and/or more stressful and/or more highly skilled jobs /in Germany/. Why here, if you can be highly skilled and high earning in Switzerland and be able to achieve a multiple of net income and get a better pension system to boot?