4 ms·
The VAT in Australia is 10% while the average sales tax in the US is 5%, so that's an extra $5,000 in your example. Also, the payroll tax is over 5%, no matter
by joshuaheard 10y ago
The VAT in Australia is 10% while the average sales tax in the US is 5%, so that's an extra $5,000 in your example. Also, the payroll tax is over 5%, no matter who pays it (taxes are paid by people, not "employers"), so that's another $2,000. So Australians pay roughly 10% more in taxes.
- nodamage 10y agoIf you're going to count the employer side of the payroll tax, you have to do so for the US too. Total payroll tax in the US is 15.3% (of which the employee pays half and the employer pays half). So go ahead and double that payroll tax to $15,300. VAT is based on spending, so you can't assume that $5k is actually being spent on VAT. Besides, many cities in the US tack on their own sales tax and it gets close to 10% anyway (Seattle is 9.6%, Los Angeles is 9.5%, San Francisco is 8.75%)