As a result my earlier conclusion was also wrong: current petrol prices are at their lowest value of the past 2.5 years.
This joyous situation will be short-tempered, however, as the federal government has annouced it will re-introduce the cliquet system of fuel taxation. When prices decrease, tax will only be decreased for half the amount of the price decrease. As an example: when an amount of petrol costs 100 euros today, increases with 10 euros and later decreases again with 10, the cliquet system will ensure that you're paying 105 euros instead of 100.
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2 comments:
Hey Bert,
Your marginal tax rate isn't 50% - it's 63%. You're ignoring social security taxes :-)
Indeed, I did forget social security (RSZ in Dutch), which is around 13% of gross income. However, as far as I know it's not classified as a tax but more as a mandatory contribution of sorts (what's the difference anyway). The theory goes that it is something I can get back when I need it (eg when I'm ill or pensioned); whereas tax money you never see again ever, as it is waisted on bureaucracy.
Income tax is calculated against your taxable income, which is gross income minus that social security thingy. And that income tax is around 30% for me at the moment.
Also, due to the progressive nature of our tax system, any additional income, above what I'm earning now, gets taxed at 50% because in 2007 I've just entered the highest tax scale.
So, out of my gross income, I loose 13% social security and about 30% of the remainder. That makes for a total loss of approximately 39%.
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