Quote:
Originally posted by john_cramer
Is the Swedish tax climate that loose? I thought you had marginal rates as high as 90%? Could you share with us the basic structure?
|
Nope, taxes are generally around 34% for normal middle class growing to around 50% for very high incomes.
It's all in the definition. I'll brake it down:
Assume I earn 3000$ a month. My employer will have to pay 32% of 3000$ for social security, so my brutto cost for employer would be around 4000$. Of that 3000$ I would need to pay 36% in taxes (depending on where i live), leaving me 1920$ in my pocket on the end of each month. When I go out to buy a tire for my car, I'll pay 25% VAT on that.
Company that sold me the tire owns goverment that 25% VAT or it can quit scores with VAT it payed to it's suppliers. They have to pay their employes and bills. What is left is profit and is taxed 30%. That's about it. There are intricate tax technicalities but you get the picture.
So in the way, effective taxation is high depending on how you count.