4 ms·

Are you saying that if you made $124,999 you owe $0, but if you made $125,000 you owe $18,750? Or do you only owe on the amount above $125k you made?

eru 5y ago
> Are you saying that if you made $124,999 you owe $0, but if you made $125,000 you owe $18,750? Just in general: almost no sane tax system works like this. There are sometimes some nooks and crannies of insanity in some parts of a tax system, but seldom in something as mainstream as income tax brackets.
- pdabbadabba 5y ago
  I agree, as a general matter. Then again, the sibling comment immediately below, from someone apparently familiar with the Albanian system, seems to say that it does work this way in Albania.
  - eru 5y ago
    Yes, that was a bit weird! Though I assume that almost everyone will register expenses, so in practice it's not nearly as awful. Reminds me a bit of when Greece required everyone to collect receipts to get the first portion of their income tax free. The idea was to indirectly force businesses to actually ring up purchases properly.
- core-utility 5y ago
  Thanks, I'm only familiar with the US workings and wasn't sure if maybe Albania was different.
  - InCityDreams 5y ago
    ..and don't forget, that as an American, if you lived in Albania (or anywhere else in the world!), you would still have to pay US taxes. To the best of my knowledge, no other country does this.
ddorian43 5y ago
> you owe $18,750 Yes, assuming you haven't registered any expenses. 15% of total profit (revenue-expenses=profit).
- sputr 5y ago
  Ah, the Balkans :). Slovenia has a "sole proprietorship" system that's fantastic for IT professionals since it has standardized costs, which means in the end you pay 4% tax on any income up to 150k€. But you also pay FIXED "social contributions" (aka. tax) for pension and healthcare since you, as an "s.p." are considered to have a minimal pay... no matter how much money you make. This is a little under 500€/month. This is due the first month you register your business. This leads to a reducing effective tax rate - the more you make, the less you pay. We also have no way of doing business if you can't afford the ~500€/month tax. As far as the government is concerned, everyone starting a small business just "magically" starts making enough money from month 1. Watching ex-communists (who are still in power) trying to work this whole capitalism thing is hilarious sometimes.
  - jonp888 5y ago
    Germany is no different. Everyone is required to have health insurance(since not treating the uninsured is not an option in a humane socitey), and as a sole proprietor you must pay for that health insurance even if you earn very little. I am not sure why you expect the state to subsidise the health insurance of people who voluntarily put themselves in the position of working for an employer(themselves) that can't afford to pay them. Anyone starting a business has to get together starting capital for the costs of the business itself, plus the costs of necessary employees up until the company starts earning money. This is one of those costs.
    - vidarh 5y ago
      A number of countries make employer contributions to health insurance entirely a percentage of salary, sometimes with a lower threshold before payments (be it employer or employee contributions) kick in at all.
    - 5y ago

eru 5y ago

> Are you saying that if you made $124,999 you owe $0, but if you made $125,000 you owe $18,750? Just in general: almost no sane tax system works like this. There are sometimes some nooks and crannies of insanity in some parts of a tax system, but seldom in something as mainstream as income tax brackets.

pdabbadabba 5y ago
I agree, as a general matter. Then again, the sibling comment immediately below, from someone apparently familiar with the Albanian system, seems to say that it does work this way in Albania.
- eru 5y ago
  Yes, that was a bit weird! Though I assume that almost everyone will register expenses, so in practice it's not nearly as awful. Reminds me a bit of when Greece required everyone to collect receipts to get the first portion of their income tax free. The idea was to indirectly force businesses to actually ring up purchases properly.
core-utility 5y ago
Thanks, I'm only familiar with the US workings and wasn't sure if maybe Albania was different.
- InCityDreams 5y ago
  ..and don't forget, that as an American, if you lived in Albania (or anywhere else in the world!), you would still have to pay US taxes. To the best of my knowledge, no other country does this.

ddorian43 5y ago

> you owe $18,750 Yes, assuming you haven't registered any expenses. 15% of total profit (revenue-expenses=profit).

sputr 5y ago
Ah, the Balkans :). Slovenia has a "sole proprietorship" system that's fantastic for IT professionals since it has standardized costs, which means in the end you pay 4% tax on any income up to 150k€. But you also pay FIXED "social contributions" (aka. tax) for pension and healthcare since you, as an "s.p." are considered to have a minimal pay... no matter how much money you make. This is a little under 500€/month. This is due the first month you register your business. This leads to a reducing effective tax rate - the more you make, the less you pay. We also have no way of doing business if you can't afford the ~500€/month tax. As far as the government is concerned, everyone starting a small business just "magically" starts making enough money from month 1. Watching ex-communists (who are still in power) trying to work this whole capitalism thing is hilarious sometimes.
- jonp888 5y ago
  Germany is no different. Everyone is required to have health insurance(since not treating the uninsured is not an option in a humane socitey), and as a sole proprietor you must pay for that health insurance even if you earn very little. I am not sure why you expect the state to subsidise the health insurance of people who voluntarily put themselves in the position of working for an employer(themselves) that can't afford to pay them. Anyone starting a business has to get together starting capital for the costs of the business itself, plus the costs of necessary employees up until the company starts earning money. This is one of those costs.
  - vidarh 5y ago
    A number of countries make employer contributions to health insurance entirely a percentage of salary, sometimes with a lower threshold before payments (be it employer or employee contributions) kick in at all.
  - 5y ago