Decision-making in complex systems, particularly within economic frameworks, requires a nuanced understanding of various interconnected factors. A compelling example of this complexity is evident in the design of tax structures and their consequential impact on economic output.

The belief in prosperity with rising wages is counteracted by the fact that the common purchasing power is falling. if the state only tightens one screw, for example the minimum wage, it creates an economic gap.

The modeling below delineates the intricate relationship between progression rates, income, and associated costs for both employees and employers, with a focus on the performance – consumption quotient as a key metric. This quotient represents the delicate balance between performance (income), consumption (living expenses), and, in this case, employer costs. As the progression rate increases, resulting in higher taxes and subsequently augmented employer costs, the performance – consumption quotient becomes a critical indicator.

The results illustrates a declining trend in the quotient, signifying a diminishing purchasing power for individuals due to increased tax burdens. This reduction in disposable income not only impacts individual consumption but also has repercussions for employer stability, potentially hindering investment and growth. Decision-makers navigating this intricate landscape must weigh the need for tax revenue against the imperative of sustaining a healthy economy, ensuring that the tax structure does not unduly impede economic performance and consumption. Achieving this delicate balance is vital for fostering an environment where individuals possess the purchasing power to drive consumption, thereby contributing to a robust overall economic output.

Source: Wages and taxes in germany 2023, "Brutto Netto Rechner" App

Up to a gross annual salary of eur 100,000, the loss of purchasing power increases. the relative increase is up to 21.71%.

Blockchain processes are far more complex and dynamic than simple economic relationships. without proof of the correctness and modeling of the dynamics, decisions in the blockchain should also be made with caution.