[tzs]

> In my opinion the real problem is that the german tax system incentivises working less instead of more, as the marginal tax increases even for hours worked beyond the 40h work week -> the more you work the less you keep per hour.

Unless the marginal tax goes over 100% don't you still earn more total by working more?

[xethos]

Parent stated you earn less per hour, not in total. Tax rate stays below 100%, but increases as you earn more

[tzs]

Yes, but they also stated that this incentivizes working less instead of working more. Generally if you earn more by working more that is incentive to work more not less so I wanted clarification.

[lotsofpulp]

Each additional of unit of time you work in a given period of time is one less unit of time for something else.

For example, regardless of taxes, working 8 hours can mean you have dinner with your family. Working 12 hours means more money, but missing dinner with family so the additional 4 hours would need to be compensated more than the first 8.

Taxes would be similar. If setup the tax rate so high, say 90% for the amount of income one would earn for the average wage beyond 8 hours, then there wouldn’t be much reason to give up your leisure time.

Kind of related to this concept:

https://en.wikipedia.org/wiki/Marginal_utility

[recursivegirth]

This is a common misunderstanding in the United States, as well.