Quote:
Originally Posted by pocketkangaroo
You pay 40% for most middle class people. In the US, it's about 25% for the same person. In fact, we don't have a rate over 35%.
So if you make $100,000 a year, you'll pay around 28% in the US and 40% in the UK. That's a difference in $12,000 a year, and $1000 a month. You can easily provide the best health insurance for your family for under that.
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Wrong. I know it seems easy to just look at the top marginal tax rate and think that 28% or 40% of the income is paid in tax, but it's not the way it works. Tax brackets are tiered systems. By making that assumption you are way off the mark.
In the US if you earn US$100,000 you'll pay US$22,331 + state income tax.
In the UK you'll pay US$26,952 -
a US$4621 difference..
Which is basically the same amount as the state income tax on average. So the AVERAGE person on 100k in the US pays the EXACT SAME amount as the average person in the UK. If you live in a minority of states with no income tax you save $4621.. giving you $385 a month insurance. Not the best.
The American tax system only really works better for the well off. While there is no real difference at 100k.. at 200k that 40% would have really eaten into it if you were in the UK. Of course you're only talking about 1% of people here. Not the vast majority.