Damn, you are actually right. Just did a deep dive into Wikipedia and it turns out that I misinterpreted the curves showing the tax percentage depending on the income completely wrong during my whole life. It doesn’t show the tax percentage to be applied to your earnings, but you have to integrate over the curve from 0 to your income…
that’s very unusual! based on your instance I thought you lived in Germany, which definitely has a progressive tax system as I just described
Damn, you are actually right. Just did a deep dive into Wikipedia and it turns out that I misinterpreted the curves showing the tax percentage depending on the income completely wrong during my whole life. It doesn’t show the tax percentage to be applied to your earnings, but you have to integrate over the curve from 0 to your income…
TIL…