Thursday, February 1, 2007

It’s that time of the year again

Starting to prepare my income tax declaration.
Most if not all of you go through the same every year, right?
Well, let us take a look at how the thing goes, shall we?
Every month 36% of my income is retained as down payment for income tax, retirement fund (although the best predictions show there will be no retirement fund by the time I get to retire, for the state will be broke way before that), and social security (although we’re loosing most of our social security privileges).
Of course that still leaves me with some 64% of my hard earned money.
Or does it? Health services and products have 5% VAT. Unprocessed basic food 12% VAT. Pretty much everything else has a 21% VAT. Add to that extra taxes on fuel, vehicles, housing (home owners must pay municipal taxes), sanitation and a few other things: it all sums up to about 25% more of my income being handed over to the state in indirect taxes.
Luckily I get to keep 39% of the fruit of my labour, heh?
No wait… some of my expenses are mandatory, like car insurance. These expenses build up to almost 3% of my income.
I’m not quite sure, but I recon this should be pretty much the same feeling as when a streetwalker hands the money over to her pimp protector!