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Comment by tomschlick | Hacker News Reader

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tomschlick·

> 50% income tax

Thats insane

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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?

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

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.

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

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