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European marginal tax rates that high kick in at a way lower income, resulting in a far higher tax burden on the middle class. France is 41% at 78k EUR. UK is
by refurb 3y ago
European marginal tax rates that high kick in at a way lower income, resulting in a far higher tax burden on the middle class.
France is 41% at 78k EUR. UK is 40% at 37k GBP, Netherlands is 50% at 73k EUR.
Then add on top the VAT which is high teens.
You’d need to earn over $200,000 to get to a >40% marginal rate in CA, with the standard deduction and SALT it’s probably closer to $300,000.
Europe taxes the middle class at those higher rates to raise enough income for all those social programs. You couldn’t fund those sort of social programs in CA relying solely on taxes the top 5%
- olddustytrail 3y agoThat's incorrect for the UK, though the gov page is confusingly worded. The basic rate is applied to £37,700 of income but you have to add the tax allowance of £12,570 onto that, so the 40% rate kicks in at £50,270. Edit: plus it's not exactly the UK since Scotland has different tax rates and services but I think it's confusing enough already.
- infinityio 3y agoto summarise this - in practice, a person earning £50,270 under 1257L is paying 24% of their income as tax. Ever £1 they earn above this value is taxed at 40% up to £125k (although there are also some losses of benefits at £100k)