4 ms·

Tax rates at the higher taxed states in the US (like California) are actually not lower than in western europe while still not providing you with all the servic

by ido 4y ago

Tax rates at the higher taxed states in the US (like California) are actually not lower than in western europe while still not providing you with all the services western european governments do.

I_AM_A_SMURF 4y ago
For high earners it's still higher in EU, about 50% vs 40% but yeah it's not that significant.
- hef19898 4y ago
  Be aware that those 50% in the EU usually include social security, unemployment, health care and taxes, not just taxes on your salary. Also, it's less than 50% in praxis, 50% are just easier to calculate in your head.
  - pedrosorio 4y ago
    Those 40% in California also include: - Medicare (65+ healthcare), social security (retirement) - California taxes: disability, unemployment, and for low income people, Medi-Cal covers healthcare as well
seibelj 4y ago
I live in Massachusetts, and somehow we actually have fairly low taxation (5.25% flat tax) despite our reputation and being deep blue politically. I average about 30% total taxation in a high tax bracket. If I was trying to avoid taxes on real wealth I would move to Florida for 6 months and do the other 6 in Boston (as have many friends of mine). Why people keep paying California / NYC tax rates in software dev jobs makes no sense anymore.
- nerdponx 4y ago
  I think MA is probably the state with the best "bang for buck" in terms of what the government provides per dollar of taxes paid. NY is comparatively insulting to reside in, because the government is so wasteful/corrupt there and is therefore capable of providing so much less (not to mention its legendary ability to stall legislation indefinitely).
- TulliusCicero 4y ago
  Meanwhile WA has no state income tax at all, so it's even better for high earners. Advantages for the bay area are its weather and much larger tech ecosystem. Main advantage for NYC is being a 'real' big city with all that entails (night life, better transit/walkability, other urban amenities).

by ido 4y ago

Tax rates at the higher taxed states in the US (like California) are actually not lower than in western europe while still not providing you with all the services western european governments do.

I_AM_A_SMURF 4y ago

For high earners it's still higher in EU, about 50% vs 40% but yeah it's not that significant.

hef19898 4y ago
Be aware that those 50% in the EU usually include social security, unemployment, health care and taxes, not just taxes on your salary. Also, it's less than 50% in praxis, 50% are just easier to calculate in your head.
- pedrosorio 4y ago
  Those 40% in California also include: - Medicare (65+ healthcare), social security (retirement) - California taxes: disability, unemployment, and for low income people, Medi-Cal covers healthcare as well

seibelj 4y ago

I live in Massachusetts, and somehow we actually have fairly low taxation (5.25% flat tax) despite our reputation and being deep blue politically. I average about 30% total taxation in a high tax bracket. If I was trying to avoid taxes on real wealth I would move to Florida for 6 months and do the other 6 in Boston (as have many friends of mine). Why people keep paying California / NYC tax rates in software dev jobs makes no sense anymore.

nerdponx 4y ago
I think MA is probably the state with the best "bang for buck" in terms of what the government provides per dollar of taxes paid. NY is comparatively insulting to reside in, because the government is so wasteful/corrupt there and is therefore capable of providing so much less (not to mention its legendary ability to stall legislation indefinitely).
TulliusCicero 4y ago
Meanwhile WA has no state income tax at all, so it's even better for high earners. Advantages for the bay area are its weather and much larger tech ecosystem. Main advantage for NYC is being a 'real' big city with all that entails (night life, better transit/walkability, other urban amenities).