Mallipeep
Apr 27, 2012, 12:25 PM
Im interested in tax systems in various countries.
In my country (Estonia) when employee pays 3000€, the goverment deducts following:
Social security (company) : 736.61€, 24.55%
Unemployment insurance ( company) : 31.25€, 1.04%
Pension fund ( employee) : 44.64€, 1.49%
Unenployment insurance ( employee) : 62.5€, 2.08%
Income tax ( employee) : 416.01, 13.87%
Total money received: 1708.99€ , or 56.97%
My country has flat tax, but "social security insurance" has no cap - hence when compared to germany (progressive tax, but social security insurance cap) - it often balances the total tax burden out at most income levels.
There are two sides in our politics, one who is pushing progressive tax in addition to non-capped social-security-insurance and another who wants to add the social-security-insurance cap without progressive tax - both of these seems excessive to me.
So since i have decent knowledge of only two tax systems ( Estonia & Germany ) i'd like to know about more countries - does every country with progressive income tax also have social-insurance cap - or are there countries with both flat-tax + social-insurance-cap / progressive-tax + no-social-insurance cap.
edit to elaborate on main exemptions in response to second post:
---
In addition there is 20% VAT/sales tax + lot of high ( 50-150% range) taxes on tobacco/gas/alcohol
no VAT exemption for basic foodstuffs/supplies like in many european countries
pension/social-security becomes available at about 65 year old
job-specific exemptions: eligible for pension at earlier age ( 5x-ish) for policemen/firemen and similar jobs
re-invested corporate capital has no income tax, as long as you invest all the money in this country.
- exemption here - a corporation can invest in foreign country tax-free as long as the sum does not exceed what the corporation has invested here initially ( so if you invested 100000€ in estonia, you can re-invest 100.000€ tax-free elsewhere, but no more
In my country (Estonia) when employee pays 3000€, the goverment deducts following:
Social security (company) : 736.61€, 24.55%
Unemployment insurance ( company) : 31.25€, 1.04%
Pension fund ( employee) : 44.64€, 1.49%
Unenployment insurance ( employee) : 62.5€, 2.08%
Income tax ( employee) : 416.01, 13.87%
Total money received: 1708.99€ , or 56.97%
My country has flat tax, but "social security insurance" has no cap - hence when compared to germany (progressive tax, but social security insurance cap) - it often balances the total tax burden out at most income levels.
There are two sides in our politics, one who is pushing progressive tax in addition to non-capped social-security-insurance and another who wants to add the social-security-insurance cap without progressive tax - both of these seems excessive to me.
So since i have decent knowledge of only two tax systems ( Estonia & Germany ) i'd like to know about more countries - does every country with progressive income tax also have social-insurance cap - or are there countries with both flat-tax + social-insurance-cap / progressive-tax + no-social-insurance cap.
edit to elaborate on main exemptions in response to second post:
---
In addition there is 20% VAT/sales tax + lot of high ( 50-150% range) taxes on tobacco/gas/alcohol
no VAT exemption for basic foodstuffs/supplies like in many european countries
pension/social-security becomes available at about 65 year old
job-specific exemptions: eligible for pension at earlier age ( 5x-ish) for policemen/firemen and similar jobs
re-invested corporate capital has no income tax, as long as you invest all the money in this country.
- exemption here - a corporation can invest in foreign country tax-free as long as the sum does not exceed what the corporation has invested here initially ( so if you invested 100000€ in estonia, you can re-invest 100.000€ tax-free elsewhere, but no more