If you want to be successful, the smart thing is not just to understand the economy of your own country but know how the rest of the economies are growing and how they are affecting the global economy.
The socialist countries, most of them levy high income tax on their citizens and as a result are able to provide health care, schooling and other basic facilities free of cost. Let us find out how much these countries tax and for what reasons, starting with the country at number one position:
1. Belgium (42%)
In Belgium progressive tax system is followed. Citizens who earn more pay more. People in the top tax bracket are to pay 50% of their income excluding social security. And for social security they are taxed 13.07% of the income. However you can still deduct certain business expenses and social contributions from your taxes. So aren’t many of you delighted that you are not in Belgium and not paying the highest income tax being levied by any country. Let us proceed to number two.
2. Germany (39.70%)
Again, a country following the progressive tax system. Individuals in the top bracket are taxed 39.07%. Few other things that are taxed here are capital gains, employment wages, savings /investments. What you will find really odd is that Germany even has a church tax of 8% to 9%. But the benefits that are provided are far reaching. Free tuitions are provided and tax payers are insured in which a certain percentage of their pay is put towards insurance.
3. Denmark (36.1%)
Third on the list is Denmark. Here the average citizen pays 45% in tax. Again a progressive system, the maximum an individual will pay is 55%. Some of it breaks down as $ 155 for social security, 27% on dividends, 5% for healthcare and 22.5% to 27.8% in municipal tax. Church tax exists but is a little low at .43% to 1.4% and is voluntary. Like other systems, charitable donations can be a tax deduction.
4. Austria (34.9%)
Last but not the least on the list is Austria with 34.9%. Earners in the top bracket are taxed at 34.9%. If this tax is combined with all other tax forms, tax would get as high as 55%. Other tax forms include capital gains, earning on investment being taxed at 27.5%. Tax payers pay around 18% for social security. As with other economies specific work expenses business expenses and child expenses can be tax deductible. One thing unique about this economy is the tax credits that are provided which is simple money that can be subtracted from your overall tax payment. These credits can be gained by updating your appliance to a more efficient version or simply by reducing your total cost of housing. These credits are provided based on work, children and income factors.
These four European countries have the highest tax rates in the world based on an international survey. All these demonstrate systems with the highest percentage in taxable income. Now as you know you are smart enough!
