Q: Take a look at this table of German tax rates (taken from http://www.worldwide-tax.com/germany/germany_tax.asp) Tax % Tax Base (EUR) 0% Up to 7,664 15% 7,665-52,152 42% 52,153-250,000 45% 250,001 and over Does this mean that if someone has an income of 50,000 they are left with 0.85x50,000 = 42,500 but if the income is 55,000 they only get 0.48x55,000 = 23,1000? Doesn't make sense.. could someone explain it please?
A: No, It is a step function. A person making 50K will have 0+(50000-7664)*.15=6350, or takes home 43650. 55 will have 0+(52152-7665)*.15+(55000-52153)*.42=$7870 take home 44282.