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Sales tax (VAT) in most European countries is around 20%. The top rate of income tax is typically 50% or more. That's just what it costs to have decent public s
by jdietrich 6y ago
Sales tax (VAT) in most European countries is around 20%. The top rate of income tax is typically 50% or more. That's just what it costs to have decent public services.
https://en.wikipedia.org/wiki/European_Union_value_added_tax#VAT_rates https://en.wikipedia.org/wiki/European_Union_value_added_tax...
- nsnick 6y agoWe pay 50% income tax in California and don’t have any decent public services.
- rconti 6y agoNo argument there! But 50% + 8.6% sales tax vs 50% + 20% VAT is definitely a difference. Of course, the area under the curve matters, too. I have no insight into what effective tax rates people are paying in 50% top-bracket tax countries in Europe. As a double-income no kids couple in Silicon Valley, I think we're still paying something like 18% effective tax rate federally.