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CH's income tax is graduated and can only be estimated as a function of which canton and community you live in. I live in Zürich city in canton Zürich. I can'
by matttproud 9y ago
CH's income tax is graduated and can only be estimated as a function of which canton and community you live in. I live in Zürich city in canton Zürich. I can't recall exactly what the figure works out to be, but it is nothing compared to taxes I would pay were I still living in the United States (hint: as an American abroad, I am a citizen of two countries on the planet who tax their citizens working and domiciled abroad). I get partial tax credit (it's basically double taxation; don't let anyone tell you otherwise).
I estimate my CH tax averages to 20 percent my gross income, which is pathetically low by European standards, and before any of my fellow U.S. countrymen balk at this, consider that we have a working and efficient society here. It is mostly free market with some degree of state-run business. Where the state runs something, it runs it typically better than the private or public sector does in the U.S. All of this is to say, comparing taxes between the two is apples and oranges.
Another consideration: there are stupid voters here like anywhere else; but after they burn their hands on the metaphorical stove once, they recognize their mistakes and attempt to correct. I would give this country a higher social durability rating than any part of the United States. Not having the whole mythology of predestined preeminice shoved down their throats helps.
Last I checked when living in the U.S., my average tax was about 30-something percent when combining federal and state.
CH also has a yearly tax of wealth (property, stock, bank assets, etc.), but it is effectively so miniscule that it remains unnoticed for ordinary people. For me, it would be 0.1 percent on total wealth per annum.
Tax rate is orthogonal to the effectiveness of society, governance, and civil society. A starve-the-beast mentality injures all three of these. Sorry. I hate to put it so bluntly and bust anyone's bubble. You get what you believe in and pay for.
- joe66 9y agoYup keeping comparing a country, with a population less than most metros in the US and draw whatever conclusions on tax policy you want that fit the narrative in your head. Getting ridiculous around here.
- matttproud 9y agoChances are this alpine nation is a little more similar to places many of us are familiar with. CH: - 8 million people - 41’285 km2 - $700 billion GDP - 25% foreigners (Zürich exceeds 30%) - Powerful Local Governments (26 Kantone - each managing local immigration quotas) - Minor Ocean Access (Rhein port in Basel; they have a large merchant marine) - Majority of residents are renters — independent of wealth. S.F. Bay Area: - 8 million people - 7,384 Km2 - $780 billion GDP - 37% foreigners - Powerful Local Governments (NIMBY) - Major Ocean Access - Majority of residents are renters — independent of wealth. Try overlaying CH onto the Bay Area. It's pretty shocking: http://overlapmaps.com/index.php http://overlapmaps.com/index.php I lived in S.F. before moving to CH. I always keep the magnitude of these similarities in mind when reflecting on the lost opportunities and potential within the Bay Area. From an efficacy and infrastructure capitalization perspective, they are light years apart (Spoiler alert: CH is in better shape).
- afsina 9y agoThanks for the detailed explanation. But still, the previous commentator's "Florida is just low-tax." does not hold at least percentage wise. However, when I searched the tax ration they say there is a 40% income tax in Switzerland. What is wrong here?
- matttproud 9y agoNote what I remarked about the taxes being a precise function of where you live in the country and income level. I wouldn't be surprised if someone in the Romandie (French region of CH) experienced a top total (local+regional+national) marginal rate of the amount you cite. This is not very easily Googleable in English. If you speak one of the national languages, the official government calculators and tax schedules can give you the information canonically.
- bogomipz 9y ago>"I estimate my CH tax averages to 20 percent my gross income, which is pathetically low by European standards, and before any of my fellow U.S. countrymen balk at this ..." Why would a fellow US countrymen balk at this? Aren't taxes there much higher? You have a federal tax, a state tax and sometimes a local city tax, closer to the 30% you mentioned. Its interesting to me that tax rates are a function of the canton, is there no federal tax then? Do you wind up paying net 20% in taxes then after the partial credit or is the 20% just the Swiss part of your total tax obligations?
- seanmcdirmid 9y agoCH income taxes are much lower than the USA, even when local income taxes are considered (canton tax is the only significant part, federal government in CH is not dominant). Americans living in CH who make more than $100k (very common) have to leverage the foreign housing deduction to avoid extra USA taxes. CH VAT on the other hand is high...it's not like Switzerland doesn't have taxes. They are just different.
- matttproud 9y agoCH VAT is cheap compared to it's neighboring countries! Heck, let's not kid ourselves about sales taxes in the U.S.; they are not necessarily cheap!
- seanmcdirmid 9y agoSwiss consumer prices are super high except for cars, gas, and cigarettes compared to neighboring countries (France/Germany).
- bogomipz 9y agoThanks, so overall as a US expat in Zurich you wind up keeping more of your income than you would on the equivalent salary in the US? Is that correct?
- seanmcdirmid 9y ago