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No, it adds up to almost 50% of your wage. People who make millions of dollars (freelancers, company shareholders, etc) pay capital gains taxes of 25%. High ear

No, it adds up to almost 50% of your wage. People who make millions of dollars (freelancers, company shareholders, etc) pay capital gains taxes of 25%. High earning people have capital, not a wage, either by way of company shares or asset payouts. They pay a tiny bit more tax and no social obligations You forget that the 42% band kicks in at 68000 (up until 280k) not 10k from the median wage. You pay this with 1.2% of the median wage, when in the distant past (around 1960) you had 42% at 15 times the median wage. They never changed these bands to adjust for inflation.

gambiting 1y ago
>> People who make millions of dollars (freelancers, company shareholders, etc) pay capital gains taxes of 25%. High earning people have capital, not a wage, either by way of company shares or asset payouts. They pay a tiny bit more tax and no social obligations Yes, obviously - it works the same way here. You just said that "anywhere in Germany" you will pay 50% of your income in taxes, so I'm asking if your average worker actually pays that, or even a high earning IT worker/lawyer/doctor, or just somone who takes home millions in pay(not capital gains) so that the averages catch up. >>You forget that the 42% band kicks in at 68000 (up until 280k) not 10k from the median wage. I didn't forget, but like I said 3 comments earlier - your average will work out closer to 30% not 50%(I'd guess) because you only pay it on anything above the threshold, not on your entire income. Again, Germany seems very generous here - in the UK you start paying 40% once you cross £50k/pa.
- selfmodruntime 1y ago
  > You just said that "anywhere in Germany" you will pay 50% of your income in taxes, so I'm asking if your average worker actually pays that I earn about 60k (the government pays me, so you can look this up) and that is my effective rate of tax.
deleted 1y ago
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gambiting 1y ago

>> People who make millions of dollars (freelancers, company shareholders, etc) pay capital gains taxes of 25%. High earning people have capital, not a wage, either by way of company shares or asset payouts. They pay a tiny bit more tax and no social obligations Yes, obviously - it works the same way here. You just said that "anywhere in Germany" you will pay 50% of your income in taxes, so I'm asking if your average worker actually pays that, or even a high earning IT worker/lawyer/doctor, or just somone who takes home millions in pay(not capital gains) so that the averages catch up. >>You forget that the 42% band kicks in at 68000 (up until 280k) not 10k from the median wage. I didn't forget, but like I said 3 comments earlier - your average will work out closer to 30% not 50%(I'd guess) because you only pay it on anything above the threshold, not on your entire income. Again, Germany seems very generous here - in the UK you start paying 40% once you cross £50k/pa.

selfmodruntime 1y ago
> You just said that "anywhere in Germany" you will pay 50% of your income in taxes, so I'm asking if your average worker actually pays that I earn about 60k (the government pays me, so you can look this up) and that is my effective rate of tax.

deleted 1y ago

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