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Here in the UK the bottom rate of tax is 20%, it rises to 40% for income over £40,000 (about $60,000). I would love an income tax rate of 13%! Oh and we curren
by samwillis 14y ago
Here in the UK the bottom rate of tax is 20%, it rises to 40% for income over £40,000 (about $60,000). I would love an income tax rate of 13%!
Oh and we currently have a 50% rate but it's about to drop to 45% for income come over £150,000.
- tadfisher 14y agoWe have federal marginal income tax rates as well.
- dsr_ 14y agoThese are the state income tax rates; Federal income taxes are on top of that. The bottom Federal rate is effectively zero, and tops out at 35% for marginal income over about $380K.
- samwillis 14y agoOk thanks, that makes more sense. Still much lower than us though. I suppose that's what we get for having the NHS.
- vidarh 14y agoThe NHS is funded over the National Insurance, which you're not including. You also need to account for local taxes (e.g. council tax in the UK). But the total tax bills are still not that different, as they are marginal rates for the most part and the threshold where they start are different. The effective rate paid in the UK is still somewhat higher for most earners, but for most people it's not as much as you might think from just looking at the headline rates.
- absconditus 14y agoWe also pay taxes for Social Security and Medicare, which are 6.2% and 1.45% respectively. Most of us pay for at least part of our health insurance premiums as well.
- rajjalan 14y agoBut health care costs for us are a substantial add-on, which I believe you don't have to worry about.