Neeum Zawan schrieb:
>> 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.
> 
>     Is that really how it works where you're at?
> 
>     Over here, for example, the first 10,000 will be taxed at 20%. The 
> 25% rate only applies for the amounts exceeding, say, 10,000 - not on 
> the whole salary.

It doesn't really make a difference: The approach you describe can also 
be modelled as a tax rate on the total income gradually increasing as 
the total income increases.

Actually, in Germany some precomputed table is used, which specifies the 
overall tax rate to be paid for a total income between X and Y quids. 
I'm not sure though how these tables are computed in the first place - 
they may be generated based on the approach you describe.

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