No, you need to count VAT that employee pays when they buy stuff. There's a difference of that sort between Oregon and Washington states in US: Oregon has no V

No, you need to count VAT that employee pays when they buy stuff. There's a difference of that sort between Oregon and Washington states in US: Oregon has no VAT, but has state income tax (on top of federal) and WA has 10% VAT but no state income tax. In the end they come out approximately the same tax load. E.g. taking Germany and Standard 19% VAT and the 86,4K/200K you mentioned you get about 95.4K left for prices before VAT (e.g. you can only buy 95,4 x 1K EUR (as seen in countries without VAT) iPads), which is already >50% in total tax. Now you remember you started with 215K EUR at the company and you get ~55% total tax.