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This doesn't sound right. A full analysis would be quite complex and time consuming but the UK seems much higher to me from checking some quick online calculato

by jstx1 5y ago

This doesn't sound right. A full analysis would be quite complex and time consuming but the UK seems much higher to me from checking some quick online calculators and comparing it to California let alone a state with lower or no state income tax. And keep in mind that in the UK you also contribute around 12% to National Insurance on top of the existing tax rates (https://www.gov.uk/income-tax-rates https://www.gov.uk/income-tax-rates). This is a calculator for take-home pay in the UK - https://listentotaxman.com/ https://listentotaxman.com/. Maybe some US people can share how it compares to the taxes they pay.

foldr 5y ago
The UK tax calculator you linked to includes NI. I’ve worked in both countries (DC and MA in the US) and the percentage of my pay that I kept was about the same as in the UK - especially if you include health insurance in the equation.
- jstx1 5y ago
  Yes, like I said - it calculates take-home pay. I specifically mentioned NI because it's easy to forget about it if you only look up the tax brackets.
  - foldr 5y ago
    There's not much difference with California, as far as I can see. I used https://smartasset.com/taxes/california-tax-calculator#uV2HgkEBKN https://smartasset.com/taxes/california-tax-calculator#uV2Hg... to compare a $100,000 salary in California to £80,000 in the UK. You get to keep approximately 70% of your pay in both cases (and that's ignoring health insurance costs). Taxes are a bit higher in the UK, especially once you get up to higher pay brackets. However, there seems to be a persistent myth on HN that the UK has much higher taxes than the US. (Perhaps it just gets lumped in with the rest of Europe in people's minds?) Another poster mentions VAT. It's worth noting that unlike with a sales tax, VAT does not apply to every purchase. But certainly it does make some things more expensive in the UK than in the US.
    - KaiserPro 5y ago
      > and that's ignoring health insurance costs which is a huge chunk of change in the US to get comprehensive cover similar to the UK which is included in general taxation.
zz865 5y ago
I've worked in both and most taxes in NYC were higher than London, but VAT means its probably the same. The biggest difference is in the US you get very little for it except 13 aircraft carriers where the UK you get a decent safety net and free healthcare. Its very complicated * Property taxes in many states of the USA are so high most of the world are shocked when they hear about them * I didn't even pay NYC city tax which pushes income taxes over 50% in top brackets * VAT in UK is much higher than the random sales taxes in the US. * There are two UK National Insurance taxes - there is one the employer pays that most people dont even know about

by jstx1 5y ago

foldr 5y ago

The UK tax calculator you linked to includes NI. I’ve worked in both countries (DC and MA in the US) and the percentage of my pay that I kept was about the same as in the UK - especially if you include health insurance in the equation.

jstx1 5y ago
Yes, like I said - it calculates take-home pay. I specifically mentioned NI because it's easy to forget about it if you only look up the tax brackets.
- foldr 5y ago
  There's not much difference with California, as far as I can see. I used https://smartasset.com/taxes/california-tax-calculator#uV2HgkEBKN https://smartasset.com/taxes/california-tax-calculator#uV2Hg... to compare a $100,000 salary in California to £80,000 in the UK. You get to keep approximately 70% of your pay in both cases (and that's ignoring health insurance costs). Taxes are a bit higher in the UK, especially once you get up to higher pay brackets. However, there seems to be a persistent myth on HN that the UK has much higher taxes than the US. (Perhaps it just gets lumped in with the rest of Europe in people's minds?) Another poster mentions VAT. It's worth noting that unlike with a sales tax, VAT does not apply to every purchase. But certainly it does make some things more expensive in the UK than in the US.
  - KaiserPro 5y ago
    > and that's ignoring health insurance costs which is a huge chunk of change in the US to get comprehensive cover similar to the UK which is included in general taxation.

zz865 5y ago

I've worked in both and most taxes in NYC were higher than London, but VAT means its probably the same. The biggest difference is in the US you get very little for it except 13 aircraft carriers where the UK you get a decent safety net and free healthcare. Its very complicated * Property taxes in many states of the USA are so high most of the world are shocked when they hear about them * I didn't even pay NYC city tax which pushes income taxes over 50% in top brackets * VAT in UK is much higher than the random sales taxes in the US. * There are two UK National Insurance taxes - there is one the employer pays that most people dont even know about