um, dude, our VAT is 20%. We pay more like 50-70% in taxes depending on the income.
Oh, and there is a mineral oil tax which is added to the prize of gasoline and then the VAT comes on top of it.
There is also a tax when you buy a car , depending on its fuel efficiency, and yes, a VAT of 20% is added on top.
Ja, das ist ganz quatsch! We have similar taxes for certain products depending on where we lives–though not nearly as high.
To tell you the truth I don’t think most Americans really know how much they pay in taxes becasue the laws change every year. Is there an equivalent to the IRS in Austria?
Yes, the “Finanzamt” but I am not nearly impressed with them as I am with the social security institutions.
If you forget to pay them, they run to court to have your firm declared bancrupt after around 4-6 weeks.
I think most people are not even aware that realistically they get only a small percentage of what they helped produce, since the government collects a lot of money before they even get a paycheck.
So if you cost your employer 4000$, 2000 is your money before taxes and whatever is left “after” taxes will be taxed again with indirect taxes.
I think it is fair to say that if you get to keep 20% of what you contributed, it is quite a lot and you need that to stay strong and healthy to be taxed again in the next month.
Ladies and Gentlemen, we are beasts of burden.
I need to get drunk now.
How do people afford to live? Or are they paid above the cost of living to account for taxes? Or does this mean that there is just less money to buy needless shit?