• jmcs@discuss.tchncs.de
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      2 months ago

      You don’t understand how progressive taxes work. No one is punished for earning more. Even if you reach he maximum rate, the maximum rate is only coming out of your disposable income (unless you are a complete idiot living no only above your means but well above what’s reasonable).

        • jmcs@discuss.tchncs.de
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          2 months ago

          That’s not how it works. The 45% doesn’t apply to your entire income, only to the part above the threshold. For example, if you work in Germany, you only pay 45% on what you earn above €227k, and you’ll always pay 0 taxes for the first €11k.

            • tb_@lemmy.world
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              2 months ago

              I doubt people earning over €227,000 a year have any issues paying for rent, why shouldn’t they get taxed more to bring earnings more in line? That way more money can go to support the lower earning demographics.

                • tb_@lemmy.world
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                  2 months ago

                  No, that is not how it works.

                  There’s a certain cost of living. Housing, food, transport. There’s a certain “floor” you have to earn or you’ll have a miserable time in the world as it is.

                  Once you get above that earnings floor wealth suddenly starts to accumulate. You can get a nicer house, a fancier car, go out to eat and vacation more often. Which is all nice and good, people should be able to do such things, but those are secondary luxuries on top of what you need to live.

                  So instead of taxing everything, say, 50%, the lower brackets are given some slack with reduced taxes.

            • BaldManGoomba@lemmy.world
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              2 months ago

              Portugal $81,199 eur you pay $29,940 in tax. That makes $52,059 take home pay or $4,338 a month average cost of monthly expenses(not including rent)is $ 2572 leaving $1765 leftover over a month. 3br apartment in city is $1,666. Seems doable without even having a second worker in the house. Especially on the higher end of the tax bracket https://www.numbeo.com/cost-of-living/country_result.jsp?country=Portugal#:~:text=A family of four estimated,lower than in United States.

              I am more concerned with Portugal average salary of $33k eur and median being $31k that just isn’t doable

              All the progressive tax systems are fine it sounds like your wages/cost of living sucks. That is the true problem.

                • BaldManGoomba@lemmy.world
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                  2 months ago

                  Median mean 50% of the country make more or less. So 31k is still rough.

                  You said the richer people in the tax bracket was struggling because taxes(at least how I took or understood what you said)

                  I can’t argue your lived experience but this is also how it is in America. Everyone who wants a decent job has to be close to a major city or be related to the rich people in the small towns and things are expensive. I commuted 150 miles a day (241 km) just so I could afford rent with 4 other people in my house. I spent 4 hours on commuting so my days were 12 hours it was exhausting.

                  Either way it isn’t taxes it is businesses paying poorly, bad production or manufacturing for cost of living necessities, and ownership class being ridiculous. Not sure what your politics are but taxes help the poor with health care, roads, and infrastructure. Also keeps the rich from controlling more.

    • Darthjaffacake@lemmy.world
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      2 months ago

      Progressive taxes are a way to make up for the imbalance of poorer people spending a higher proportion of their income on essentials, it’s a fundamental of economics. Although I have heard that the tax brackets in Russia are completely flat (not that that makes it any better).