5 ms·

youre generally not supposed to make that much in socialist-ish countries, thats why youre taxed into oblivion after a certain point.

by aliswe 5y ago

iso1210 5y ago
High marginal tax rates in the UK are mainly hit at low wages (when you come off universal credit and get taxed at 75p on the pound, when you're repaying your student loan when you get an extra 9p/pound, when you have two kids and the loan at 50k when you get hit by 69p (about to be 72p) Once you're at say 200k, your marginal rate (as you'll have repaid your loan in the first couple of years) is 45% Someone on $500k in CA will pay $210k in taxes. Someone on $500k (£375k) in the UK will pay $220k (£165k). That's not a massive difference. Sources https://listentotaxman.com/375000 https://listentotaxman.com/375000 https://smartasset.com/taxes/california-tax-calculator https://smartasset.com/taxes/california-tax-calculator
rsj_hn 5y ago
> thats why youre taxed into oblivion after a certain point. Fun Fact: The nordic countries have a fairly flat tax rate (flatter than the U.S.) as well a 25% VAT and a low (20%) corporate tax rate. Most people don't realize this and would howl about regressivity if the U.S. introduced a 25% sales tax and lowered the top bracket to anyone earning more than $59K - which is Sweden's top bracket this year. So "beyond a certain point" for Sweden means "beyond $60K/year income".
- deleted 5y ago
  [deleted]
- huckr 5y ago
  You are right about the corporate tax, but for regular employees Sweden is one of the worst places to be in terms of taxes. Roughly half of the cost to the employer has to be paid in taxes (first withholding tax, then income tax). And then VAT, gas tax, alcohol tax, etc etc.
  - rsj_hn 5y ago
    Yes, I agree that the tax burden is heavy in Sweden. I'm pointing out that with a 25% VAT and a top bracket of $60K, that burden is not nearly as progressive as, say, the U.S., where brackets go from 10% for $10K to 37% for 523K (after deductions). Whereas in Sweden, you pay 32% at $1800 and then 52% at $60K and you stay at 52% (again, after deductions).
    - huckr 5y ago
      Just so that we are clear, the 52% income tax is after 30% has already been paid in withholding tax.
      - rsj_hn 5y ago
        Yes!

youre generally not supposed to make that much in socialist-ish countries, thats why youre taxed into oblivion after a certain point.

by aliswe 5y ago

youre generally not supposed to make that much in socialist-ish countries, thats why youre taxed into oblivion after a certain point.

iso1210 5y ago

High marginal tax rates in the UK are mainly hit at low wages (when you come off universal credit and get taxed at 75p on the pound, when you're repaying your student loan when you get an extra 9p/pound, when you have two kids and the loan at 50k when you get hit by 69p (about to be 72p) Once you're at say 200k, your marginal rate (as you'll have repaid your loan in the first couple of years) is 45% Someone on $500k in CA will pay $210k in taxes. Someone on $500k (£375k) in the UK will pay $220k (£165k). That's not a massive difference. Sources https://listentotaxman.com/375000 https://listentotaxman.com/375000 https://smartasset.com/taxes/california-tax-calculator https://smartasset.com/taxes/california-tax-calculator

rsj_hn 5y ago

> thats why youre taxed into oblivion after a certain point. Fun Fact: The nordic countries have a fairly flat tax rate (flatter than the U.S.) as well a 25% VAT and a low (20%) corporate tax rate. Most people don't realize this and would howl about regressivity if the U.S. introduced a 25% sales tax and lowered the top bracket to anyone earning more than $59K - which is Sweden's top bracket this year. So "beyond a certain point" for Sweden means "beyond $60K/year income".

deleted 5y ago
[deleted]
huckr 5y ago
You are right about the corporate tax, but for regular employees Sweden is one of the worst places to be in terms of taxes. Roughly half of the cost to the employer has to be paid in taxes (first withholding tax, then income tax). And then VAT, gas tax, alcohol tax, etc etc.
- rsj_hn 5y ago
  Yes, I agree that the tax burden is heavy in Sweden. I'm pointing out that with a 25% VAT and a top bracket of $60K, that burden is not nearly as progressive as, say, the U.S., where brackets go from 10% for $10K to 37% for 523K (after deductions). Whereas in Sweden, you pay 32% at $1800 and then 52% at $60K and you stay at 52% (again, after deductions).
  - huckr 5y ago
    Just so that we are clear, the 52% income tax is after 30% has already been paid in withholding tax.
    - rsj_hn 5y ago
      Yes!