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Comment by bitL | Hacker News Reader

When you realize your take home in Germany is higher than in San Francisco in absolute numbers despite 50% income tax... Mindblowing.

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I moved from Australia (with ~50% top marginal tax rate) to the US (where everything's all about "low" taxes and getting nothing for them except funding dumb wars) and my take home pay was higher in Australia.

Let's not even get started on the underfunded schools, crime, etc, etc. To send your kid to a decent school in SF costs 25k+/year per kid.

Most people move out of the city after one kid.

> 50% income tax

Thats insane

It depends. Bear in mind those taxes include a public health system and public education among other things.

50% That's about the same as American blue states. Remember to include state, city, medicare, social security and property taxes. Add healthcare and I'm pushing 55%

Actually it's more from employer's side - there are taxes employer pays that you don't see in your brutto income from which you pay 50% yourself.

Yep same in US. Social Security and Medicare are also paid by employer and most states have payroll taxes.

They aren't 50%, highest tax bracket is 45% over 250001 EUR or 294440 USD.

https://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax

Church tax could be another 9% if you are a member of a church.

Compare to the US where top tax rate is 39.6% + 12.3% = 51.9% in California.

>> 50% income tax

> Thats insane

It's 45%, and it's for the bracket above 254.447€ as a single. I make decent money in SF, and made decent money in Germany. My effective taxe rate is about the same.

When you put it like that. But a big chunk of that is (I presume) mandatory pensions payments? So just a little insane?

45% is the ceiling bracket for income insurance, then there's pension insurance (~9.x%) capped at ~70k income, unemployement (1.5%) also capped at 70k, solidarity surcharge (up to 5.5%, basically redistribution between parts of Germany). Health insurance is separate again (up to %7 capped at 50k).

But with that you have free education including college, health insurance without deductibles & co-payments, continued payment in case of loss of work, kinda somewhat decent-ish retirment money.

Also healthcare. Though taxes are certainly higher; you absolutely have to consider 19% VAT vs. 8%? if at all sales tax and other taxes.

It's the price of civlization for all, not just the lucky few.

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