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They’re saying that the tax rate is not like the US where you pay x% on the first $y dollars and so on… but rather you pay x% on your entire income for the year
by gymbeaux 3y ago
They’re saying that the tax rate is not like the US where you pay x% on the first $y dollars and so on… but rather you pay x% on your entire income for the year. So if at $100k the tax goes from 15% to 20%, and I get a raise from $99k to $100k, I actually net less after the increased taxes than if I just stayed at $99k.
- BrandoElFollito 3y agoIt does not work that way at all - nowhere in Europe. You have ranges, say from 0 to 100 you pay 10%, then for the amount above 100 up to 200, you pay 20%, then for the amount above 200 to 300 you pay 30% and so on (the numbers are all made up). So when you get a raise from 100 to 150, you pay 10% on 100 (10) and 20% on 50 (10), so a total of 20. You get a net 150-20 = 130. If it was the way it was described it would be insane. There are also cases where the tax is flat and the same no matter the amount (usually not for salaried people)
- gymbeaux 3y agoThat doesn’t surprise me, I was just translating what the other guy was saying!
- BrandoElFollito 3y agoYes thanks - I was not sure I got OP's comment right.