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by DZittersteyn
2904 days ago
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The highest tax rate in the Netherlands is 51,95% (Note that this only covers anything you make over ~70k+ a year, 0-20k is taxed ~35%, and 20-70 is taxed 40%). Then you pay 6-21% VAT over anything you buy, so yeah, in some scenarios you definitely lose >50% of your gross income to taxes. https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/... |
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Which means that you'd need an income over 480k a year to get an effective tax rate >50%.
I hope I calculated that correctly: http://www.wolframalpha.com/input/?i=solve+((x-70)*0.5195%2B...
> Then you pay 6-21% VAT over anything you buy, so yeah, in some scenarios you definitely lose >50% of your gross income to taxes.
If you count VAT, you'd also need to take into account all the benefits you get in return from the state.