- Feb 26, 2011
A friend of mine dropped over this evening. She needed some financial advice and the topic turned to tax. She makes about 75,000 year and gets to keep about 43,000 of that. Assuming the spends the rest and assuming she pays 13.5% (just being conservative ) of that spending in vat, this reduces her income by another 6,000 or so. In net terms, she gives almost half of her income to the state. Of course, this is an approximation, but even if its not entirely correct- there are other taxes and fees, she pays for some goods at the higher rate of vat, she has a small mortgage- she still gives more or less half of her income to the state. Is she getting a good deal?