5 ms·

Tax rate for income > 60K Euro is 45%. On top of that VAT (IVA) current standard rate is 21% in Spain. Add on some other taxes (property tax, municipal taxes, I

Tax rate for income > 60K Euro is 45%. On top of that VAT (IVA) current standard rate is 21% in Spain. Add on some other taxes (property tax, municipal taxes, IVTM, etc) and seems pretty high to me.

mkl95 4y ago
It's worse when you consider basic foundations of the system such as healthcare have been declining for a while. What are they even doing with all that money?
- alex7734 4y ago
  The same thing every government does: pocketing it or spending it in whatever they think will give them the most votes or influence.
reocha 4y ago
Earning 60k a year still leaves you with net 41k. To get close to loosing 50% of your income to taxes you have to earn over 1mil (disregarding VAT). Furthermore one must take into account the average salary in Spain is lower than most other European countries.
- oceanplexian 4y ago
  It's not 50%, it's actually far higher. Governments hide taxes from workers by taxing the employer. Individuals might think their taxes are low, but that money comes from somewhere, and it manifests in lower wages, less competition, and offshoring. The true tax is called the "Tax Wedge". That's one of the reasons someone in Spain who makes 60k a year would be making 100k in the USA.
  - manuelabeledo 4y ago
    Companies don't pay taxes for their employees, that's some bs. They pay part of their social security cost, which absolutely happens in the US as well.
    - Am4TIfIsER0ppos 4y ago
      To whom do they pay that "social security"?
      - manuelabeledo 4y ago
        Let me rephrase: there are no taxes paid for mere employment; instead, taxation for social security is shared between employer and employee. Saying that governments “hide taxes from workers by taxing the employer” is inaccurate at best. Taxation is shared, and there aren’t dedicated taxes for employers.
        jokethrowaway 4y ago
        The net effect is that the average Joe reads his payslip and just see his share of social insurance contribution - and then complains that his employer his paying him too little, without knowing how much social insurance his employer is paying. Hiding seems appropriate.
        Am4TIfIsER0ppos 4y ago
        If it costs an employer 100k to employ a person then that person should receive 100k.
        manuelabeledo 4y ago
        You meant to say that employees should be paying 13% in social security, instead of the current 6.5% + 6.5% model.
        Am4TIfIsER0ppos 4y ago
        No I mean employees should be able to spend their salary on whatever they like. Whether that is a pension/investment/savings or a flashy car is up to them.
        4y ago
  - vkou 4y ago
    In the US, employers are also taxed, to the tune of an additional 7.65% in SS and Medicare taxes, with another 7.65% in employee SS and Medicare taxes (Something that never seems to get mentioned in discussions of US tax rates...), and another two or three percent in unemployment insurance taxes. On top of all that, between the employer and the employee, another $10,000-$25,000/year gets spent on medical insurance. Between all of that, that $100,000 in the US gets eaten up pretty quickly. If you live in, say, Wisconsin, your take-home will be between ~$57,000 and ~$45,000, depending on the number of family members you have on your health insurance plan. You'll also get to enjoy another 5% in sales tax, and 1.65%/year in property tax. So yeah, if you just look at the income tax rate, the US looks great. But when you account for all the other nickel-and-diming, you'll see that the net take-home for middle-class people is not so different. If you're upper-middle-class, making over $200,000, the US system starts getting skewed in your favor (Because of caps on SS, Medicare, because insurance costs are a flat fee, etc.)
  - reocha 4y ago
    In return, the spanish get functioning infastructure, good trains, a decent public healthcare system, partial paid sick leave, 16 weeks maternaty leave full pay and half decent unemployment benefits.
    - ipaddr 4y ago
      Would you support 100% of wages go to taxes allowing the system to provide everything to citizens? That would allow the citizens to pick whatever job suits them because wages would be decoupled from there lives.
      - reocha 4y ago
        I believe basic requirements to live should be provided to citizens, (housing, food, water, travel, education etc) this can be done through taxation on wages or in a much easier (and just) fashion via a corporation tax. If this is done through the state or through some alternative anarchistic method I don't particularly care. We live in an age of ridiculous abundance, the fact people still die on the streets, die of starvation or die to to lack of healthcare is a crime against humanity. “I am, somehow, less interested in the weight and convolutions of Einstein’s brain than in the near certainty that people of equal talent have lived and died in cotton fields and sweatshops.” - Stephen Jay Gould
  - ClumsyPilot 4y ago
    > manifests in lower wages, less competition, and offshoring Switzerland has some of the highest taxes and highest wages in the world. Afghanistan has some of the lowest taxes in the world. Clearly you must consider what you get for your money. Countries without functional police force, court system and IP protection don't tend to be popular with business
- miki_tyler 4y ago
  60*0.55 = 33k

Tax rate for income > 60K Euro is 45%. On top of that VAT (IVA) current standard rate is 21% in Spain. Add on some other taxes (property tax, municipal taxes, IVTM, etc) and seems pretty high to me.

mkl95 4y ago

It's worse when you consider basic foundations of the system such as healthcare have been declining for a while. What are they even doing with all that money?

alex7734 4y ago
The same thing every government does: pocketing it or spending it in whatever they think will give them the most votes or influence.

reocha 4y ago

Earning 60k a year still leaves you with net 41k. To get close to loosing 50% of your income to taxes you have to earn over 1mil (disregarding VAT). Furthermore one must take into account the average salary in Spain is lower than most other European countries.

oceanplexian 4y ago
It's not 50%, it's actually far higher. Governments hide taxes from workers by taxing the employer. Individuals might think their taxes are low, but that money comes from somewhere, and it manifests in lower wages, less competition, and offshoring. The true tax is called the "Tax Wedge". That's one of the reasons someone in Spain who makes 60k a year would be making 100k in the USA.
- manuelabeledo 4y ago
  Companies don't pay taxes for their employees, that's some bs. They pay part of their social security cost, which absolutely happens in the US as well.
  - Am4TIfIsER0ppos 4y ago
    To whom do they pay that "social security"?
    - manuelabeledo 4y ago
      Let me rephrase: there are no taxes paid for mere employment; instead, taxation for social security is shared between employer and employee. Saying that governments “hide taxes from workers by taxing the employer” is inaccurate at best. Taxation is shared, and there aren’t dedicated taxes for employers.
      - jokethrowaway 4y ago
        The net effect is that the average Joe reads his payslip and just see his share of social insurance contribution - and then complains that his employer his paying him too little, without knowing how much social insurance his employer is paying. Hiding seems appropriate.
      - Am4TIfIsER0ppos 4y ago
        If it costs an employer 100k to employ a person then that person should receive 100k.
        manuelabeledo 4y ago
        You meant to say that employees should be paying 13% in social security, instead of the current 6.5% + 6.5% model.
        Am4TIfIsER0ppos 4y ago
        No I mean employees should be able to spend their salary on whatever they like. Whether that is a pension/investment/savings or a flashy car is up to them.
        4y ago
- vkou 4y ago
  In the US, employers are also taxed, to the tune of an additional 7.65% in SS and Medicare taxes, with another 7.65% in employee SS and Medicare taxes (Something that never seems to get mentioned in discussions of US tax rates...), and another two or three percent in unemployment insurance taxes. On top of all that, between the employer and the employee, another $10,000-$25,000/year gets spent on medical insurance. Between all of that, that $100,000 in the US gets eaten up pretty quickly. If you live in, say, Wisconsin, your take-home will be between ~$57,000 and ~$45,000, depending on the number of family members you have on your health insurance plan. You'll also get to enjoy another 5% in sales tax, and 1.65%/year in property tax. So yeah, if you just look at the income tax rate, the US looks great. But when you account for all the other nickel-and-diming, you'll see that the net take-home for middle-class people is not so different. If you're upper-middle-class, making over $200,000, the US system starts getting skewed in your favor (Because of caps on SS, Medicare, because insurance costs are a flat fee, etc.)
- reocha 4y ago
  In return, the spanish get functioning infastructure, good trains, a decent public healthcare system, partial paid sick leave, 16 weeks maternaty leave full pay and half decent unemployment benefits.
  - ipaddr 4y ago
    Would you support 100% of wages go to taxes allowing the system to provide everything to citizens? That would allow the citizens to pick whatever job suits them because wages would be decoupled from there lives.
    - reocha 4y ago
      I believe basic requirements to live should be provided to citizens, (housing, food, water, travel, education etc) this can be done through taxation on wages or in a much easier (and just) fashion via a corporation tax. If this is done through the state or through some alternative anarchistic method I don't particularly care. We live in an age of ridiculous abundance, the fact people still die on the streets, die of starvation or die to to lack of healthcare is a crime against humanity. “I am, somehow, less interested in the weight and convolutions of Einstein’s brain than in the near certainty that people of equal talent have lived and died in cotton fields and sweatshops.” - Stephen Jay Gould
- ClumsyPilot 4y ago
  > manifests in lower wages, less competition, and offshoring Switzerland has some of the highest taxes and highest wages in the world. Afghanistan has some of the lowest taxes in the world. Clearly you must consider what you get for your money. Countries without functional police force, court system and IP protection don't tend to be popular with business
miki_tyler 4y ago
60*0.55 = 33k