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0 pointsswiftcoder1y ago0 comments

I think the difference in available social services here is also necessary to take into account. Someone laid off in, say, Spain, already has full healthcare provided by the state, and qualifies for an unemployment benefit based on their most recent salary for up to 3 years - this makes for a significantly less precarious position than that same person recently laid off in the US.

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Nasrudith1y ago

I would have expected the opposite to occur because of that - lesser saving rates because they have more robust available social services and don't need emergency reserves.

Fokamul1y ago

And if go eg. Germany. Ridiculously, without kids, it's nearly more beneficial to go on unemployment support there. Since, when working, you blow like 50%+ on taxes.

throwaway20371y ago

50% effective or marginal? During discussions, only effective is useful. According to the PWC page:

https://taxsummaries.pwc.com/germany/individual/taxes-on-per...

Marginal tax rate is 42% on the first EUR after 278K. That would astonishingly high total income in Germany. There might be some remaining solidarity tax from the reunification, but I cannot see how you get to an effective tax rate of 50% on 100K income, which is considered excellent in Germany.

Can you share a worked example how effective tax rate can be above 50%?

ongy1y ago

Kinda useless to reply to a throwaway after 5h but let's see

1. Minor mistake. 42% marginal is at 60k~ish, the 278k number is 45% 2. The effective income tax rate around 100k is in the area of 25%. When there's numbers thrown around above 40% they usually include the 19% sales tax, CO2 tax etc. it's a slightly odd number including government induced cost.

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