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You have to make over $500k to hit 37% and that's a marginal rate so your total effective rate is nowhere near 50% unless you're making several million dollars.
by opencl 7y ago
You have to make over $500k to hit 37% and that's a marginal rate so your total effective rate is nowhere near 50% unless you're making several million dollars.
The Netherlands income tax is also marginal but the 51.75% rate kicks in at €68,507, and the lowest rates are already over 30%.
- malandrew 7y agoOnce you take into account sales tax, property taxes and other taxes that are not income tax, it's probably in excess of 50% much much sooner than $500k.
- Balero 7y agoI don't think it's useful to look from an individual standpoint at taxes aside from income tax. If you keep going you can say you pay 'tax' when you buy something on sales tax, but also on a companies profits which you are contributing to. When you get to this point I think it's ,more useful to look at what proportion of a countries GDP is taken in by the government.
- gamblor956 7y agoSales tax does not apply to most grocery purchases, so you'd have to be eating out or buying lots of stuff for sales tax to become a large percentage of your total tax liability. You must also then compare the 0%-15% US sales tax rates to the 25% Norwegian VAT rates. Property tax rates are in the single digits (or very rarely, the low double digits). And only apply to property owners. Payroll taxes are distinct from income taxes but reduce taxable income so shouldn't be split out separately... So, TLDR: you'd still need to be making more than $300k+ each year for your annual total tax % (all inclusive) to exceed 50%. That puts you in the 0.1% of Americans.