Aug 23, 2014
xfatman- regarding your assertion that German car companies are more profitable because corporate tax rates are lower in Germany.... You are incorrect. The German corporate tax rate averages 30%, while the US rate is 15-35%. Additionally, German citizens pay 0-45% income tax, with no ability to shelter off-shore income, while in the US, combined federal, state and local income taxes range from 0-56%. Additionally, Germany has a Value Added Tax (similar to our sales tax) of 19%, except food is only taxed at 7%. Germans also pay an additional 19% of income toward a combination of mandatory health insurance, unemployment insurance and pension.