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by v2ikesibul 2959 days ago
Personal income is taxed at 20% and collected by the central government no matter what. Half of that is then transferred to the municipality you're registered in. Personal income tax makes up approximately half of a municipality's budget and covers far more than only transport-related expenses.

Such scheme incentivizes municipalities to compete with other municipalities and offer their residents all kinds of benefits ranging from childcare to public transport to keep them registered there.