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Joined 3 years ago
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Cake day: July 9th, 2023

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  • From the article:

    “This time around, the AP said that the 824.9 million euro fine was calculated as the maximum penalty that’s derived from four percent of a company’s worldwide annual turnover.”

    Annual turnover is revenue, so top line money, before taxes, expenses, etc. They profited a little over $10 billion last year, so a nearly $1 billion fine is a little less than 10% of their profit.

    I wouldn’t call it insignificant - as a percentage of profit, it’s not bad. But when we’re talking about billions, it’s still probably not enough to get them to stop.





  • This is incorrect. People do make over a million, e.g. Sundar Pichai makes $2 million base. The reason the tax is a lower percentage for a millionaire is because the social security tax is capped. You only pay it on the first $184,000 (this increases yearly) that you earn.

    It is important to note social security tax is basically forced retirement savings. In theory, you are funding your own retirement through it (the more you pay in, the more you get out later). This is very different than ordinary income tax, which is not capped (that’s not to say it’s high enough, or that there aren’t ways to hide, defer, or obscure income, and pay less than expected or reasonable).