Interestingly enough, I wrote above about this as well but with the opposite sentiment. The Spitzensteuersatz of 42% is applicable for income from 57k€ onwards. That's hardly rich and hardly deserving of so much tax. Meanwhile I could earn millions through investments and dividends and would only pay 25% capital gains tax. Also, 25% sounds ridiculously low when you add up the income tax, social contributions, sales tax, capital gains tax etc. Not to forget yes the 7%/14% you pay for health insurance. Or you have cherry-picked a family of 4 with one person earning 45k€ a year and drawing the most Kindergeld possible.