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In Germany, the employer's contribution to social security is tax-free for the employee and is a fully deductible cost for the employer. Other benefits (compan
by hussong 11y ago
In Germany, the employer's contribution to social security is tax-free for the employee and is a fully deductible cost for the employer.
Other benefits (company car, apartment, fuel etc.) are subject to employee's income tax beyond a certain threshold.
Edit: Taking a step back, there is simply a fundamental difference between taxes and payments to social security / different insurances.
- mikeash 11y agoTaxes are tax deductible? True, but pointless. I think the "fundamental difference" is key. I don't ultimately see any real difference between taking 12.4% of my pay (under $118,500) for Social Security, and taking a variable percentage of my pay for government operations in general. It's money, based on a percentage of what I earn, that goes to the government, i.e. an income tax.