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Just one note: 45% is the top marginal tax rate. No one is actually taxed such that they lose 45% of their income through personal income taxes. The effective (
by brianchu 14y ago
Just one note: 45% is the top marginal tax rate. No one is actually taxed such that they lose 45% of their income through personal income taxes. The effective (average) tax rate will be much, much less.
EDIT: not to mention lower taxes due to deductions, capital gains, legal tax shelters.
- melvinmt 14y agoAt 100 million, it'll be closer to 45% than any other bracket.
- StavrosK 14y agoTaxes on that would probably be about 44,850,000.
- randomchars 14y agoDo you pay taxes after the whole income or just (income -expenses)?
- StavrosK 14y agoIt depends, corporations pay on just profits, so income - expenses. The original poster was talking as if the 100m was pure profit, though. Also, I'm not German, but this is how the tax system works in Greece, the UK and many other countries.
- yaix 14y agoAt 100m you will have a good tax advisor who sets up a network of companies and foundations across Europe and gets your tax rate down to less than half of that rate. If not, get a different tax guy.