Quote:
Originally Posted by Elmago99
Lastly, regarding this issue of Taxes, please explain this to me. Milan pay a player €5 Million per year, and they must then pay €5 Million in taxes to the government?? That doesn't even make any sense, and I don't know why anyone in Italy would ever tolerate that... Every worker you hire you have to pay that salary in taxes to the government? For what? Who could afford to run a business in Italy then?
I'm very confused as I've heard people say this on the boards many times, but it makes zero sense. So let's just say Milan pays €40 Million per year to their players, they must also spend that same amount in taxes. That doesn't sound like an incentive for businesses to hire workers, it actually sounds completely retarted. Hope someone can explain this...thanks
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It is like that in most of the European countries (at least in the western European countries, don't know the situation for each country) ... The only difference is the % of tax.
In France for example, if you have a 2000€ salary, you are actually given 1540€, so you have a 460€ tax to pay (it's automatically done, the people receive the 1540€, so it's a 23% tax). I don't think it's 50% for all people in Italy, it's probably a special regime for football or more generally sport players and I think it must work the same way in France too, I'm not sure.
This money taken during all your working life is used for the retirement system, social security, etc ... So that's not that stupid ...