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On 16-8-2009 12:51, Warp wrote:
> clipka <ano### [at] anonymous org> wrote:
>> I make, say, 10000 quids which I have to tax at 20%, leaving me with
>> 8000 quids.
>
>> Or I make, say, 20000 quids which I have to tax at 25%, leaving me with
>> 15000 quids.
>
>> So is there any incentive for me to make more money? Seems to me like
>> there is indeed...
>
> But if in the neighbor country your 20000 "quids" get taxed bu 20%, you
> get to keep 16000.
>
> But I'm not talking about such low difference. I'm talking about someone
> earning eg. 100000 and getting taxed 50%, while in the neighbour country
> he would be taxed eg. 20%.
Tax is a feedback system. In general in every (western) country the
person with a median income earns enough to live comfortably. So if the
tax is higher, the income is higher or the cost of living is lower.
Hence I assume that either you earn more (before tax) for the same
amount of work or you don't spend as much on housing as someone in that
20% neighbouring country.
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