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To: Olog-hai
Germany’s highest corporate tax rate is still lower than that of the USA (29.83% compared to 39.62%). (Germany lowered its average corporate tax rate back in 2006, too.) So lecturing on taxes is a bit hypocritical on der Spiegel’s part.

The highest federal corporate tax rate in the US is 35% not 39.62%. The Germans depend heavily on exports to fuel their economy. It only makes sense to lower the tax burden on their corporations to make them competitive globally. Germany is the world's second largest exporter.

But this isn't about corporate tax rates. It is about the level of taxation on individuals in Germany. They are among the most heavily taxed people in the world. Its average tax rate, including social security contributions, is 50.9 percent, as compared to 29.4 percent for America, which has one of the lowest rates in the world.

And then there is the VAT, fees on everything from the number of TVs and radios you have to garbage collection, etc. Every service seems to be taxed.

I have lived in Germany and my wife is German. I have been going to Germany almost every year for the past 40 years. The Germans are paying for their welfare state, but the US is not. Our people want the benefits of the welfare state but don't want to pay the bill.

28 posted on 01/05/2013 6:57:04 AM PST by kabar
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To: kabar

I hope you aren’t buying all of their propaganda. Germany with its manufacturing sector can maintain a degree of financial strength, but they need the European Union to be a captive export market as well as to regulate them through their proxies in Brussels. The only way they have been able to get this far is to have the USA act as world policeman. It’s impossible to pay for a welfare state indefinitely, no matter what, either way.

I cited the highest corporate tax rates, not the average, incidentally. The USA’s corporate tax rate is the highest in the world; that’s why jobs have been fleeing.


29 posted on 01/05/2013 7:02:24 AM PST by Olog-hai
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