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Good example is UK. As a specialist you would be in area of 40% effective tax rate, but going over 50% is not uncommon (after IR35 changes some workers have to
by varispeed 6y ago
Good example is UK. As a specialist you would be in area of 40% effective tax rate, but going over 50% is not uncommon (after IR35 changes some workers have to pay employer's NI) plus there are other taxes like council tax or high VAT.
- distances 6y agoI would think a specialist paying 40% in taxes has already escaped poverty? That's my confusion here, poverty suggests such a low income that progressive taxation shouldn't really affect yet.
- varispeed 6y agoThe thing is that the costs of living are so high in cities that offer such pay, you can hardly save anything and if you started with 0, it will take decades to have some security. Sure you make a lot of money, but you are still essentially living paycheck to paycheck. My definition of poor is someone who doesn't have their own home or flat, savings that let them withstand at least a year of unemployment without having to use state benefits and so on.