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Comment by jusssi | Hacker News Reader

Most Euro countries have capital gains tax rate that's mostly flat and significantly under 50%. By the time the progressive income tax rate starts to exceed the near-flat capital gains tax rate, people start finding ways of converting their income to capital gains.

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Not many people can actually do that no

GP must think the maximum tax rate is reached at 5 million euro a year. In most Euro countries you're at 45% (combining both social security and income tax) at around 50k/year. Or actually close to 60% taxed if you count the 33% paid by the company in social security tax that is somewhat hidden to the employee.

In the well known tax haven where I live, Finland (sum of taxes and employee part of pension and other social security, 2020. YMMV due to municipalities setting different rates, deductions etc):

  30% at 50k
  40% at 100k
  49.5% at 250k
  52% at 500k
  53.5% at 1000k

I have these handy in a spreadsheet I use to calculate.. things. (Nope, not making enough yet for special arrangements to make sense. edit: aside from the commonly used tricks my current employer already provides)

Capital gains is 30%-34%.

https://en.m.wikipedia.org/wiki/Tax_rates_in_Europe#/media/F...

The average in Belgium is around 45k, in Germany 47k, France is ~40k. So aside from Belgium if by close to 60% you actually mean close to 50% then yeah you’re right…

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