The Hidden Tax Trap for SaaS Founders in Germany

That's the problem with European way of thinking. Entrepreneurs and start-up founders taking on huge workloads and risk to start a business and create jobs, are automatically demonized as "rich freeloaders exploiting the system", to support this ideologically driven class warfare in hopes of getting more votes, where the ruling elite take 9 pieces of the economical pie, give half of the remaining piece to the middle class, the other half to the lower class and tell them "hey look, those business freeloaders are the reason you only half a piece".

If you want to create new jobs in new emergent industries, which is always gonna be a high risk high reward situation with plenty of failures, you'll have to support the ones taking the risks somehow instead of demonizing them as freeloaders. That's how the EU economy is now only half that of the US, when 20 years ago they were on par.

So then in Europe we end up in the situation where most of the new ventures are coming from entrenched industry players and hereditary wealth with connections to politics who actually exploit the system, instead of ambitious working class people taking a chance at building something like in the US. Basically neo-feudalism.

But aren't they regular income?

Why should one form of income be taxed at a different rate than some other?

Tax rate too high? Sure, agree. Should all income be taxed at same levels? Yes to that too.

But I see why not. Who’s going to work for those who go out of work. It makes less and less sense to start a business in Germany. It all feels like leeching off of people who have the audacity to do something in this country. If you work and become successful, you’ll get leeched off of, if you have no desire to work, no worries, you will get the social net… if you’re German that is. Screw you if you’re an immigrant.

Thing is if a country makes it easy for someone to do their own thing it can cultivate a healthy environment for founders people may not even get that idea.