What do I actually pay taxes for?

Don't you ask yourself that sometimes? Most of you won't be able to answer this question easily. The topic of taxes is very extensive and can probably (already do) fill many books. Here I will try to give you a brief and concise overview of what is really being done with the money you have earned.

Just as most people, perhaps you too, have learned from an early age: it is shared. The federal, state and local governments may share the large pot of taxes among themselves. But not that you could say that this happens arbitrarily, our law has set precise limits and rules here on how everything relating to tax revenue should be carried out.

For example, there are taxes that actually flow exclusively to the federal government. Others on the other hand
belong to the states or even the municipalities alone. With regard to Community taxes
As I said before, it is shared. Federal and state governments benefit from these taxes
communally. The exact ratio and who gets how much of what is again
governed by our laws.

They are the largest tax revenue and account for just under two thirds of the total
Revenue from. They are divided into:

Community taxes

• Corporate income tax, income tax — 50% federal government, 50% states, 0% municipalities
• Income and payroll tax — 42.5% federal government, 42.5% states, 15% municipalities
• Withholding tax — 44% federal government, 44% states, 12% municipalities
• Sales tax — 51.5% federal government, 46.3% states, 2.2% municipalities (as of 2016, the figures are adjusted annually as part of state tax equalization)

Which probably makes you ask what the federal government alone is now entitled to?

federal taxes

Federal taxes include, for example,

• Coffee tax
• electricity tax
• Motor vehicle tax
• Tobacco tax
• Solidarity surcharge — energy tax
• and much more

State taxes

As a result of the fact that the individual states do not receive as many taxes as the federal government, the list is already shorter here:

• Fire protection tax beer tax
• Race betting and lottery tax Inheritance tax Real estate transfer tax

Local taxes

Now you see that the list again includes more taxes than that of the federal states or the federal government, but this is also often smaller income from municipalities, some of which are not only allowed to keep these taxes but are also allowed to collect them independently, thanks to the self-government right guaranteed to them by law. But as the saying goes, “Small cattle also make crap”:

• Business tax
• real estate tax
• Dog tax (occasionally also a horse tax)
• Hunting and fishing tax (some federal states)
• Second residence tax (some cities)
• Bed tax (tourist tax) (some cities)
• slot machine tax
• Beverage tax
• Card tax
• Sex tax (some municipalities)

You may be aware of some taxes here, but it should be noted that here
Some income is rather low compared to, for example, motor vehicle income
tax. Of course, not everyone here is affected by every tax. Meaning do you have
No dog - you don't have to pay dog tax, and vice versa.

But what happens to your income now? Where does your money go in the form of taxes?

As you can read above, the topic is very extensive and here too I can only give an abbreviated answer.
The federal government, which is at the top of the ranking, also cares accordingly
and the “big” topics. That means your taxes are included here in the social
insurance (social and pension insurance, unemployment insurance),
Defence, economic development, transport and research invested.

Revenue from federal taxes is invested, for example, in police, health, culture and education. Although this may also vary in terms of distribution depending on the federal state. And last but not least, the communities. These of course have the “smallest” sphere of activity in comparison. Accordingly, here, as a result of your taxes paid, local

Improved, maintained and maintained conditions such as green spaces, public transport, construction of schools and kindergartens, building permits, supply of electricity and water, sewerage and garbage collection.

Your CrewLife team