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Forum Help Do govt employees pay taxes ? (Little Upsilon)

Do govt employees pay taxes ? (Little Upsilon)

J
J Cuesta (Little Upsilon)
17 Jul 2010 06:20 Link
Hello

Do govt employees pay taxes if i am running a zero corporate tax country ?

thanks in advance

j cuesta
L
Lolosaurus (Fearless Blue)
17 Jul 2010 23:15 Link
Corporate tax rate is separate from income tax. About 50% of all worker salaries is reabsorbed by the country through income tax and health/education contributions.

So, yeah.
J
J Cuesta
18 Jul 2010 13:53 Link
ok thanks alot just out of curiosity where does the othe 50% go ? Vacations at the beach...?
L
Lolosaurus (Little Upsilon)
18 Jul 2010 22:21 Link
Some of it goes to the country's investment fund. Workers pay money into the investment fund each month and the amount they pay is higher in countries with higher income.

I think it also influences consumer spending. Countries with higher incomes buy more consumer goods (household products, cars, vacation, etc) per capita.

I've noticed also that the average value of houses is higher in countries with more income. The rest of consumer income is probably gobbled up by mortgage payments. (You can find this info on your finance index page, toward the bottom)
J
J Cuesta (Little Upsilon)
19 Jul 2010 02:06 Link
thanks once again