It’s a bit of a complicated situation and I wouldn’t go into much detail, but basically, they live in Italy, but one of their job is (work from home) in another country. They are taxed by the other country, then taxed by Italy as well.
After that, Italy fined them on some bullshit grounds and forced them to pay a ridiculous sum of money. Needless to say, they never attempted to skirt or evade taxes or anything. They worked their ass off and the country said “fuck you in particular” because Italy.
I specifically remember them telling me that, despite being half Italian, they wanted to live in Italy because they love the country and have friends and family here, but now they don’t know what to do. It’s heartbreaking seeing how our country treats its citizens, then our politicians going on TV and lamenting the fact that young people choose to go live elsewhere. Italy as a country doesn’t see you as a citizen to protect, it just wants to squeeze you dry and leave you for dead.
mnemonicmonkeys@sh.itjust.works 8 months ago
That’s still not how progressive tax systems work. In your example, it’s the first 20k is taxed 23%, then the next 32k is taxed 25%, then the next 50k is taxed 35%.
So if you made 52k in a year, the first 20k yields 4.6k in taxes, then the remaining 32k yields 8k in taxes. Leading to a total of 12.6k in taxes, or an effective rate of ~24.2%
TroublesomeTalker@feddit.uk 8 months ago
When the scores are settled sure, doesn’t mean there’s not mechanisms in any particular country that make this harder. Work two Jobs in the UK without carefully sorting PAYE and one of those will be collected at 40% emergency rates. You get it back eventually, but if you are paying transport, meals and other expenses to attend the second job I can see how it could get close to nothing. You get most of it back later, but that doesn’t help marginalized people trying to earn extra right now.