Quote:
Originally Posted by CaptainYooh
Taxes in Finland are astronomical. My friend told me that while he and his wife both work, they pay over 60% in total income taxes, plus VAT, plus local sales taxes. His after-tax earnings are less than 20% of what they make and they are all spent on basic stuff.
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This is an extreme example.
Your friend is essentially the biggest loser of the Finnish taxation system, getting a big salary but probably no other incentives and unable to set up a company through which he could sell his services to his employer.
Rich people generally only pay the capital gains tax, which is 30-34%, plus tax evasion is rampant in higher incomes. Lots of people in the private sector who pull high salaries also have various means to avoid the income tax. (Lawyers being a prototypical example here in Finland.)
I drive a cab and pay around total 28% income tax, which I don't think is too bad.