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by Heliosmaster 2045 days ago
it's exactly like the freelancer tax brackets in Italy. Everybody jumping through hoops (and or not declaring stuff) to remain under the threshold of 60k/year (was 30k/year). Otherwise tax rate doubles.
3 comments

In Germany we have "cold progression", so stacking tax brackets. If you earn 35.000€ it's something like (random numbers):

0-9000€ [0%] -> 0€

9000-20.000€ [10%] -> 1100€

20.000-40.000€ [15%] -> 3000€

Total = 4400€

So if you're in the 15% bracket you pay 4400€ which is actually 12.5% in total, and not 5250€ (15%) as some people seem to believe.

Same in the US I believe.
Really? It's not progressive [1]? This page suggests it is: https://taxsummaries.pwc.com/italy/individual/taxes-on-perso... (Yes, this is a foreign third party so may be wrong; I can't read Italian.)

[1] https://en.wikipedia.org/wiki/Progressive_tax (See the Computation section for how the higher rates only apply to the higher portions of a person's income, with their lower portions taxed less.)

He's talking about freelance people. This link is for employees.
Oh. I'm surprised that makes a difference.
Same in Argentina, sadly :-(

I would like if there is any solution to this other than to apply the same percentage to all income.

This is fixed in most countries by creating brackets that stack. See: https://en.wikipedia.org/wiki/Progressive_tax

You'd pay let's say 15% over the first 30k, and then 30% over the remainder.