Germans Pay The Highest Income Tax

Last week, the OECD released the latest edition of its "Taxing Wages" report which focuses on the net personal average tax rate in different nations.

As Statista's Niall McCarthy points out, it takes into account income tax and social security contributions paid by employees without family benefits as a share of gross wages.

Last year, the average share of gross wages paid in tax across the OECD was 25.5 percent. There is a considerable difference in tax rates between countries and they are heavily dependent on earnings and family status...

Infographic: Where Workers Pay The Highest Income Tax  | Statista

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A single worker in Germany will face a high combination of income tax and social security payments that will account for just under 40 percent of his or her gross earnings. Despite that, Germans do get something back such as health insurance, pensions, old-age care and unemployment benefits.

In Italy, the break down is 21.7 percent for income tax and 9.5 percent for social security, adding up to 31.2 percent in total.

The U.S. trails with 18.4 percent for income tax and 7.7 percent for social security making for 26.1 percent of gross earnings in total.

Comments

css1971 Four Star Thu, 05/03/2018 - 03:42 Permalink

Income tax is just the start. The numbers quoted in the article arent top tax rates.

In reality it takes around 50%.

Then you have to pay 20% VAT on everything.

So right off the bat you only get to benefit from around 30%. Then there are all the regional and local government taxes. Then there is the reality of inflation which is closer to 8% than the official 2%.

The biggest beneficiaries are the various kinds of social parasites; politicians, bankers, single mothers and now large groups of unskilled immigrants etc.

In reply to by Four Star

Multi css1971 Thu, 05/03/2018 - 03:57 Permalink

For fucks sake Germany!

If  I had to go live in another country, I always tend to think Germany would be a nice place. The Anglo-Saxon sphere is fucked, Whites are going to become a minority in the next decades and these countries will become third world shitholes. Just like the places where the new settlers are coming from.

But Jesus...  that income tax is insane. It is really off-putting. Leave alone the Teutons are hell-bent in flooding their country with street shitters too.

I guess outer space is the only way out. Geeks, hurry up with planetary colonization.

In reply to by css1971

Klassenfeind Cojones Thu, 05/03/2018 - 05:00 Permalink

"I'm quite sure the Dutch figures surpass the German."

Exactly, but most ZH readers probably couldn't find "Holland" on a map, so they needed a catchy title for some clickbait.

The highest income tax bracket in The Netherlands is a whopping 51,95% for every Euro of income you make above €68507: https://financieel.infonu.nl/belasting/182241-inkomstenbelasting-2018-b…

And it's not just the income tax is higher in The Netherlands, but also VAT (21% versus 19% in Germany), car taxes (BPM), fuel taxes and and and and the list goes on. In the Netherlands they will even increase the 'lower' VAT bracket (for essentials like food, medicine etc) from 6% to 9% in 2019! That's a whopping 50% increase! https://www.rtlnieuws.nl/economie/nieuw-kabinet-verhoogt-lage-btw-tarie…

Once again: a poor ZH article full of errors and misleading 'facts.' Has any of the Tyler's ever heard of "less = more?"

Focus more on quality, and less on quantity. (that probably means ditching the "retired Green Beret," "Tom Luongo" and all of the gold/crypto pump&dumpers.)

In reply to by Cojones

Falcon49 mkkby Thu, 05/03/2018 - 05:17 Permalink

Exactly...in Europe you also have the VAT.  For the US, you have the fees collected at all levels of Gov, hidden taxes on services at all levels, State income tax, State/county/local sales tax, property taxes, Fed/State gas tax,......the list can go on and on.  The bottom line is that most people have no idea how much taxes and fees they are really paying...I suspect in excess of 50% of their gross income.  Also, I noticed SS was identified for the US....Was Medicare also included?

In reply to by mkkby

roddy6667 mkkby Thu, 05/03/2018 - 06:11 Permalink

I would guess that America has more taxes hidden in the price of goods and services than most countries. Other countries have a higher standard of living with less income. What makes America so expensive a place to live and work and run a business? The cost of regulations and laws and their enforcement is staggering. Also, the debts run up by every village, town, city, state and the Federal government must be paid in interest payments. 

In reply to by mkkby

brushhog roddy6667 Thu, 05/03/2018 - 08:07 Permalink

Id like to see how these "other" countries can be said to have a higher 'standard of living'. Look at the UK, they've all been disarmed, baby Alfie is dying in a socialist hospital kidnapped from his parents by the socialist government. I have a farmer friend in Sweden, every month or so the government comes on his farm and tells him how he must do everything...all the costs of these demands are on him and they recently decided to take his farm and give it to a mining operation.

People calculating these 'standards of living' arent figuring freedom into the formula I can tell you that.

In reply to by roddy6667

effendi mkkby Thu, 05/03/2018 - 07:21 Permalink

It isn't just the total tax burden. There are many imposts that are not taxes. Mandatory certification, annual retraining fees, licences, imposts, restrictions, work-arounds, regulations, registrations, tags, inspection reports etc etc all cost money. So far this year those non taxes have cost me over $3000 and still 8 months to go.

In reply to by mkkby

philipat css1971 Thu, 05/03/2018 - 05:13 Permalink

What about the Scandinavian countries? As I understand it, the totals there can reach up to 60%?

And yes, on top of that not only 20% VAT but also 80% of the (Very high) gasoline price is also tax. At the end of the day, in Northern Europe, if you factor it all in, there isn't much left over. And most of that goes to service Bank interest on mortgages etc. Completely crazy.

In reply to by css1971

GreatUncle css1971 Thu, 05/03/2018 - 06:34 Permalink

Then fall foul of the system where you lose a 1/3 of your net income and you fall below the Keynes threshold of not having an excess to put back into their economic mechanism.

You are guaranteed to fall into poverty irrespective of taxation if you do not have this excess.

Better to invest today in a suicide vest today in such circumstances just so you do not get the lingering pain of a death by total poverty.

The future is written and no longer avoidable just like all the homeless in the US choosing opiods to deal with this fact or living under a bridge.

 

In reply to by css1971

Bwana css1971 Thu, 05/03/2018 - 12:40 Permalink

You are 100% right on Europe and Germany. However when I look at my US taxes I am paying about 65% to 70% to the Feds, State and Local governments. I'm in California (my last year) where the state tax is the highest. Since I am retiring I have either paid off or eliminated all things that have payments so I have no write-offs. When the gas taxes, property taxes, sales tax, license fees for autos, professional license fees and fees for permits are tallied these little extras add another 20% to the robbery. To my way of thinking the sales tax at 8.75% is the final kick in the nuts from government. After paying all the fees each level of government puts on us and in the event we have anything left over we have to pay the 8.75% to spend what we have left. Unfortunately besides that sales tax almost every consumer product has multiple hidden taxes that are paid by the consumer.

In reply to by css1971

Bwana css1971 Thu, 05/03/2018 - 12:40 Permalink

You are 100% right on Europe and Germany. However when I look at my US taxes I am paying about 65% to 70% to the Feds, State and Local governments. I'm in California (my last year) where the state tax is the highest. Since I am retiring I have either paid off or eliminated all things that have payments so I have no write-offs. When the gas taxes, property taxes, sales tax, license fees for autos, professional license fees and fees for permits are tallied these little extras add another 20% to the robbery. To my way of thinking the sales tax at 8.75% is the final kick in the nuts from government. After paying all the fees each level of government puts on us and in the event we have anything left over we have to pay the 8.75% to spend what we have left. Unfortunately besides that sales tax almost every consumer product has multiple hidden taxes that are paid by the consumer.

In reply to by css1971

BigSwingingJohnson wildbad Thu, 05/03/2018 - 08:28 Permalink

Germany's fastest growth was before WW2 when Hitler got rid of usury (central bank money with interest) for interest-free state money. Same thing with Japan. Is it strange that both Germany and Japan had great economies during state issued interest free money instead of usury, but then had a central bank owed by that super-weathy family that resides in London just after they both where destoryed from WW2??? see A HISTORY OF CENTRAL BANKING by Stephen Mitford Goodson.

 

In reply to by wildbad

Jung Pernicious Gol… Thu, 05/03/2018 - 05:28 Permalink

Not because of damn ISIS but because of refugees flows due to the endless wars created by the fucking USA!

Syrians, Iraqis etc. those who have not been killed (millions by now). It is alright for the US at a convenient distance, but in the EU people have to do something. Americans always have their easy solutions and judgments, but never reflect on their own endless bloody war crimes. Blame the refugees, blame the Muslims, blame anybody....the majority is just like Hillary in that sense: attack the weak ones, the women and a scarf, let's pester them. Cowards!

In reply to by Pernicious Gol…

Joe A Thu, 05/03/2018 - 03:09 Permalink

There is a reason why Germany became more successful in Europe than any other country. First, there was a very positive exchange rate between the D-Mark and the Euro and second there was high income tax (including reunification tax that continued while the reunification was already paid for) plus moderate salary increase demands coming from the unions. The rest of Europe just gave themselves salary increases while the Germans stood still. This not only had positive outcomes for German company profitability and the budget of the country, it also made German companies more competitive. Plus, German banks and financial institutions loaned to everybody that wanted to borrow in order to buy more competitive "Made in Germany".

In the meanwhile, German home ownership is lower than in other European countries because, due to the taxes and lower salary compensations, Germans cannot afford mortgages. The Germans complain about "these lazy Greeks, Spaniards, Italians, etc" but it are they themselves who were cutting themselves short. And that has something to do with their Calvinistic almost masochistic attitudes.

Joe A JimmyRainbow Thu, 05/03/2018 - 05:48 Permalink

Nice one! Indeed, that is what it is all about and the political power of German companies is very big, see dieselgate where German industry even managed to get the European Commission to put a lid on that. The EC's Joint Research Centre already back in 2011/12 knew that something was not right with the emissions.

In reply to by JimmyRainbow

william114085 Joe A Thu, 05/03/2018 - 03:59 Permalink

I don't think Germans can take out 30 year mortgages (I think 15 years is the max).  Also, 30% down is pretty much a minimum.  Maybe things have changed recently.  Also, there is a 6% tax on the purchase of property.  That means a buyer needs a nice chunk of cash to buy a house/apt.

In reply to by Joe A