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There's also federal tax, which is around 25%. You then pay state tax on top. I moved to the US from the UK, and the total tax is roughly the same.

vinay427 10y ago
The major tax difference in the UK from my understanding is the 20% standard VAT, which is obviously much higher than any sales tax in the US.
- bogomipz 10y ago
  Yes there's no VAT in the US but when you add up all the "soft taxes" - toll roads, hotel tax, unemployment tax(unique in that you pay tax on money have already paid tax on) not to mention the other quasi/hidden taxes and fees like the following: gas tax, cell phone tax, electricity and natural gas, cable tv and alcohol the lack of a VAT in the US doesn't account for much.
  - vinay427 10y ago
    Please see the various links I found below, in case you're not aware of comparable taxes in the UK. In addition, my state doesn't have toll roads (only a few major bridges are tolled) or congestion charges like parts of London. Your point on unemployment tax is duly taken, however. Gas tax: https://en.wikipedia.org/wiki/Fuel_tax#United_Kingdom https://en.wikipedia.org/wiki/Fuel_tax#United_Kingdom EDIT: To put that into perspective, the tax in the UK of "£2.19 per U.S. gallon" is far more than a gallon of gas costs most Americans right now. In addition, there's a 20% VAT on the gas price AND the duty, so Britons are being taxed at 20% on that duty. VAT applies to hotels: "The exceptions are the UK and Slovakia where VAT stands at 20% for all goods and services including hotel accommodation" (https://www.instituteofhospitality.org/Publications/Insight_e-newsletter/2011-news/june-issue-2011/Why-is-uk-hotel-vat-so-high https://www.instituteofhospitality.org/Publications/Insight_...) Toll roads: https://www.gov.uk/uk-toll-roads https://www.gov.uk/uk-toll-roads Electricity tax on certain usage levels: "The Climate Change Levy is a p/kWh tax on certain electricity use. Exempt supplies include domestic supplies and supplies using less than the de minimis threshold of 1,000 kWh / month" (https://en.wikipedia.org/wiki/Electricity_billing_in_the_UK https://en.wikipedia.org/wiki/Electricity_billing_in_the_UK) TV licencing fee that I seem to always hear British taxpayers complaining about: "Since 1 April 2010 the annual licence fee has been £145.50 for colour and £49.00 for black and white." (https://en.wikipedia.org/wiki/Television_licensing_in_the_United_Kingdom https://en.wikipedia.org/wiki/Television_licensing_in_the_Un...) Alcohol and tobacco taxes: https://www.gov.uk/tax-on-shopping/alcohol-tobacco https://www.gov.uk/tax-on-shopping/alcohol-tobacco
bogomipz 10y ago
Well federal can be as high as 28%. The US likes to point at various "socialist" countries in Europe but when you talk to someone from the UK or some of the Nordic countries you realize the difference is nominal. The difference is that you get health care and affordable university for those taxes on the other side of the Atlantic.

vinay427 10y ago

The major tax difference in the UK from my understanding is the 20% standard VAT, which is obviously much higher than any sales tax in the US.

bogomipz 10y ago
Yes there's no VAT in the US but when you add up all the "soft taxes" - toll roads, hotel tax, unemployment tax(unique in that you pay tax on money have already paid tax on) not to mention the other quasi/hidden taxes and fees like the following: gas tax, cell phone tax, electricity and natural gas, cable tv and alcohol the lack of a VAT in the US doesn't account for much.
- vinay427 10y ago
  Please see the various links I found below, in case you're not aware of comparable taxes in the UK. In addition, my state doesn't have toll roads (only a few major bridges are tolled) or congestion charges like parts of London. Your point on unemployment tax is duly taken, however. Gas tax: https://en.wikipedia.org/wiki/Fuel_tax#United_Kingdom https://en.wikipedia.org/wiki/Fuel_tax#United_Kingdom EDIT: To put that into perspective, the tax in the UK of "£2.19 per U.S. gallon" is far more than a gallon of gas costs most Americans right now. In addition, there's a 20% VAT on the gas price AND the duty, so Britons are being taxed at 20% on that duty. VAT applies to hotels: "The exceptions are the UK and Slovakia where VAT stands at 20% for all goods and services including hotel accommodation" (https://www.instituteofhospitality.org/Publications/Insight_e-newsletter/2011-news/june-issue-2011/Why-is-uk-hotel-vat-so-high https://www.instituteofhospitality.org/Publications/Insight_...) Toll roads: https://www.gov.uk/uk-toll-roads https://www.gov.uk/uk-toll-roads Electricity tax on certain usage levels: "The Climate Change Levy is a p/kWh tax on certain electricity use. Exempt supplies include domestic supplies and supplies using less than the de minimis threshold of 1,000 kWh / month" (https://en.wikipedia.org/wiki/Electricity_billing_in_the_UK https://en.wikipedia.org/wiki/Electricity_billing_in_the_UK) TV licencing fee that I seem to always hear British taxpayers complaining about: "Since 1 April 2010 the annual licence fee has been £145.50 for colour and £49.00 for black and white." (https://en.wikipedia.org/wiki/Television_licensing_in_the_United_Kingdom https://en.wikipedia.org/wiki/Television_licensing_in_the_Un...) Alcohol and tobacco taxes: https://www.gov.uk/tax-on-shopping/alcohol-tobacco https://www.gov.uk/tax-on-shopping/alcohol-tobacco

bogomipz 10y ago

Well federal can be as high as 28%. The US likes to point at various "socialist" countries in Europe but when you talk to someone from the UK or some of the Nordic countries you realize the difference is nominal. The difference is that you get health care and affordable university for those taxes on the other side of the Atlantic.