Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?
🤔
Many EU countries have a “VAT” and like feel like this is kinda targeting poor people. Like, for the rich, this is insignificant, for poorer people, a (example) 20% tax would be a huge burden. Why do they do this?
🤔
How’s income taxation?
Here in Estonia we have 22% income tax if you earn enough, but also there’s a 33% tax on the employer’s side + some tiny ones on both sides. 22% sounds completely fine except your pre-tax income is NOT what your employer pays for you, they pay a significant extra. Which is still coming out of your salary in the end, because your employer has to offer you a lower pretax income lol
We get a tax free allowance of £12,570 annually, and then it’s banded from there: Income from £12571 to £14876 is taxed at 19% Income from £14877 to £26562 is taxed at 20% From £26523 to £43662 is taxed at 21% From £43663 to £75000 it’s 42% £75001 to £125140 it’s 45% And anything north of that is 48%
This is calculated on income after any deductions from pay are made, like national insurance contributions, pension scheme payment, salary sacrifice schemes, student loan repayments and so on.