Edit: I was curious what the answer might be and couldn't find much. One source calculates the tax burden to be about 53% of income.
Edit: I was curious what the answer might be and couldn't find much. One source calculates the tax burden to be about 53% of income.
The link you provided is the web page of the interest group I mentioned. They will literally try any trick in the book to get that number up, including adding a bunch of things that aren't even taxes, a boatload of things they call "quasi-taxes" with numbers presumably pulled from their ass, and adding expenses your employer incurs only to subtract them again immediately. Anything to get that percentage number up.
But even they don't even call the resulting number "tax burden" - that'd be transparently stupid. They more generally call it a "burden ratio" (Belastungsquote).
Just to give you an idea of how ridiculous their calculations are: If my wages are 90k in Germany, they do their calculations as if I earned ~105k just so they can immediately subtract the entire 15k again and call it a burden (for expenses my employer pays on my behalf). Does this still sound like something you can easily compare one country to the next and draw useful conclusions from? Of course not. In the next country it might come from an interest group with a different goal, a government calculation, or a Fox News writer.
> You have to add in all the other taxes as well. For example VAT, gasoline, and property taxes are significant. That's generally what tax freedom day is meant to mean - when an average citizen is done paying all taxes.
What you're trying to get at - hopefully because the alternative is a nonsense number with no purpose other than being a fun fact supporting a discussion about degrees of individual autonomy in modern societies - is called discretionary income, and it's only meaningful when adjusted for cost of living and compared across similar living situations.
Aren't you talking about social contributions that your employer is forced by law to pay on your behalf? You realize that if this was not in place, those money would go directly to you since your salary is whole sum your employer is paying towards your employment? Doesn't seem you grok it fully from your words.
I am not claiming if its good or bad (dramatic global financial changes will test viability of all these systems rather well in upcoming years, I'd expect many people will be unhappy when their naive views hit reality of numbers). I am outside of such system, in mostly private social system in Switzerland (aka I save for myself, mostly) and wouldn't want it any other way.
In any case, the resulting individual "burden" is meaningless if you don't also quantify individual benefit. As an extreme example, imagine a country in which your income taxes pay for things such as transportation credits usable on gas, public transport and roads, while the neighboring country has mostly private toll roads and low taxes. Another example is health insurance. In Germany it is pretty nearly mandatory with most having some form of insurance, and total spending per citizen is around $9,000. In the US more than 90% are insured and spending is higher, but within the same ballpark.
What does the raw tax/burden tell you here in an international comparison? Fuck all. It's at best usable as a prompt for a philosophical discussion about autonomy, but often merely used for masturbation or making dishonest arguments designed to go over well in establishments specializing in alcoholic beverages - like those of a certain interest group.
Obviously yes, and obviously no. Just as we don't add the price of groceries or rent to wages unless the employer subsidizes those in which case obviously yes we must.
> What does the raw tax/burden tell you here in an international comparison?
It tells you how expensive it is to live there, relatively speaking. Obviously (as you note) that's only half of the discussion just as an expensive appliance might or might not be worth the premium to any particular individual. But you're wrong to dismiss it out of hand as you do. Just as it's disingenuous to dismiss the benefits of (for example) universal healthcare it is also disingenuous to attempt to derail discussion that focuses directly on total cost or effective tax burden or what have you.
What you are dismissing as a "nonsense number" of an "interest group" I would consider one of the most accurate and easily understood quantifications of total cost.
It's meaningless to say "Germans pay X, Americans pay Y" if the two receive completely different benefits in exchange for those rates.
Furthermore, the point that the German system would be paying to individuals if not to the government is somewhat disingenuous. There are a few options.
1. The government doesn't do it, so private options do at some cost
2. There's some government-private hybrid
3. It's not done at all
An example would be parental leave. In the US, it largely doesn't exist to the European extent. Employers don't offer it. You can't buy insurance for it. It just doesn't exist. That's something Germans are getting for existing in the German system.I'm not sure what point you were trying to make with parental leave as an example. I completely agree with what you wrote but don't see it being at odds with anything said previously.
I think we all know that Germans enjoy substantially more free at point of service public services than those in the US let alone those living in a developing country. Obviously that costs something. Yet when someone brings up the price tag you get a bunch of partisan screeching about how prices are meaningless.
Prices _aren't_ meaningless. The US military (for example) is absurdly expensive. There are lots of things received as a result of that expenditure. Regardless, the relative cost is high and that's not meaningless to point out given that everyone involved in the discussion has at least some conception that there are important differences in the downstream impact.