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That would be a really regressive change in terms of who pays and how much they pay. There are also very simple tax systems that are not regressive, like the U
by LatteLazy 3y ago
That would be a really regressive change in terms of who pays and how much they pay.
There are also very simple tax systems that are not regressive, like the UK or most of Europe's systems. Just eliminate most deductions and the ones you keep, decouple from taxes. Then 90% of employees can just have their tax deducted at source and not file anything. Like the UK and European systems. All of the big ones are just automated in most places (here in the UK, investment income is taxed at source, allowances for kids are done automatically based on birth record and the tax authority automatically tell employers rates including for those with multiple jobs)
- landemva 3y agoHaving lived and worked in Europe, I submitted yearly tax returns to various countries. The German payroll taxes were particularly troublesome to understand. And the countries had high sales taxes with VAT which causes more paperwork and encourages companies to vertically integrate.
- LatteLazy 3y agoVat is specifically designed NOT to encourage vertical intergration. That's why it is structured the way it is and not paid by companies. I can't comment on the exact details of the German tax system. Here in the UK, I've done 4 tax returns in 22 years of working. All were because I was contracting via a limited company so there was no other way for HMRC to know what was earning. What was the complexity around the German system? I understand they are federal (with state as well as local and federal taxes)...