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Old 02-28-2011 | 07:39 AM
  #153  
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Originally Posted by FDXLAG
I am sorry it must not have been you that claimed that the would have to pay german and american taxes it must have been some other fear monger yes vote in an earlier post. But the bottomline is the ALPAPAC supported politicos like to tax rich captains at higher tax rate then middle class FO. Now I am not going to research this so I am doing this from memory. The way the tax system works is the US tax foreign exclusion cuts off at about 100K (if you include rent subsidies). After that you are taxed at your normal rate. Consequently someone pulling down 300K has a much higher effective tax rate than someone making 180K. Throw in all the other taxes FICA, MEDICAID, German Soc sec and who knows what a capt take home would be (perhaps the NC should). I asked the NC to publish a table for loa 1 that had Tax equalization vs no tax equalization rates, never saw one but I digress.

Maybe ALPA can look in their Archives and see how NW worked the tax issues for their Berlin based pilots wouldnt that be the logical tax starting place for a world class union to start negotiations.

Sorry trying to rember my High School German. It should have been Geh mit Gott.
Tax Equalization for dummies (not referencing you...)

With it, in Germany and China, you pay LESS out of your pocket than you would if you did not have it. You would have to pay your US taxes as you listed and also pay ALL of your host country taxes.

If a new hire went to HKG, they MIGHT have a lower tax bill than their "hypothetical" is what i see. Ask any HKG pilot that has been through the process, the tax equalization is a good deal.

good article: Expat Exchange - Tax Advice - Moving Overseas - International Living - International Jobs - Expatriate
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