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In the UK you don't pay 45% until 150,000 and only 45% on any amount over 150,000 as it's tiered.
by noir_lord 8y ago
In the UK you don't pay 45% until 150,000 and only 45% on any amount over 150,000 as it's tiered.
- lloyddobbler 8y agoPoint of information - the progressive taxation ("tiered") method from the UK is the same as in the US. You pay in tax bracket A up to $X, then the next tier is taxed at tax bracket B, and so on, and so on.
- zip1234 8y ago20% VAT on everything makes a difference as well although it isn't an income tax
- mFixman 8y agoRaising income tax rates is unpopular, so the UK government adds hidden income taxes that aren't reported anywhere. You need to add 12% to your marginal tax rate before £46500 per year for national insurance payments (and 2% after that), and 20% between £100k and £121k per year for the loss of the standard deduction. The real marginal tax rate for someone making £100k is 62%. Also include 12% employer's NI (which by law isn't included in your salary, but must be paid by your employer), and a nice 20% sales tax levied on everyone except people with a significant amount of savings.