Quote:
Originally Posted by BigCashCrew
It looks like anyone who makes over £34,600 gets taxed 40%. Compare that to the highest tax bracket in the US which is 35% if you earn $336,551 and above.
£34,600.00 is $46,853.63 is USD. In the USA you would only pay 25% taxes on that. We have 2 more tax brackets before you get to the highest bracket of 35%. Looks like you have to pay more taxes.
Tax Bracket In the USA.
* 10%: from $0 to $7,550
* 15%: from $7,551 to $30,650
* 25%: from $30,651 to $74,200
* 28%: from $74,201 to $154,800
* 33%: from $154,801 to $336,550
* 35%: $336,551 and above
Tax Bracket In the UK
Taxable Bands table Taxable Bands Allowances 2007-08 (£)
Starting rate 10% 0 - 2,230
Basic rate 22% 2,231 - 34,600
Higher rate 40% over 34,600
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Your math is horrible or your quite misinformed between pounds and the euro.
£35,000 = $70,000 US dollars.
In addition you live in one of the few states with no state income tax, but in the majority of US states, you have to add roughly 9% more to your federal taxes paid to get your true cost of taxes paid in income taxes. So your 25% is really 34% so 6% lower in actual paid income tax. Now you still have to pay for your health insurance and like a lot of Americans, copays and deductibles on top of that and fees for prescriptions and such.
Factor that in and I think your even if not paying more considering that if you make $5k more you pay an extra 3% in federal taxes.