2023-08-04 08:05:02
– Wages increase, taxes even more
The actual salary increase leads to higher pay scale brackets. With “hot” progression, taxes increase disproportionately.
Posted today at 10:05 amUpdated 1 hour ago
The effect of progressivity does not manifest itself on extremely high incomes, but on medium-high incomes.
Getty Images/Westend61
Who says salary increase says tax increase. Income taxes are progressive — the higher the income, the higher the tax rate. As everyone knows, inflation leads to a cold progression: although the purchasing power of income does not increase, the tax burden increases, because one moves to a higher tax rate. To avoid this, the cold progression is automatically compensated each year.
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