TAX SURVEY: Is the grass greener?
Guest
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TAX SURVEY: Is the grass greener?
Since we have lots of nationalities on here, I thought we could do a quick comparison of taxes... overall deductions including compulsory state social security schemes in US$ please. Approximate figures are good. Here goes for the UK and the Netherlands
UK
Salary
0 - 6000 tax free
6000 - 9000 20% (10% income tax + 10% social security)
9000 - 37000 32% (22% income tax + 10% social security)
37000 - 44000 22%
44000+ 40%
Sales Tax/VAT/GST
17.5% usually included in price
Netherlands
Salary
0 - 3000 tax free
3000 - 9000 35.75% (29.55% income tax, 6.2% social security)
9000 - 21000 37.05% (29.55% income tax, 7.5% social security)
21000 - 45000 50%
45000 + 60%
Sales Tax/VAT/GST
19% usually included in price
UK
Salary
0 - 6000 tax free
6000 - 9000 20% (10% income tax + 10% social security)
9000 - 37000 32% (22% income tax + 10% social security)
37000 - 44000 22%
44000+ 40%
Sales Tax/VAT/GST
17.5% usually included in price
Netherlands
Salary
0 - 3000 tax free
3000 - 9000 35.75% (29.55% income tax, 6.2% social security)
9000 - 21000 37.05% (29.55% income tax, 7.5% social security)
21000 - 45000 50%
45000 + 60%
Sales Tax/VAT/GST
19% usually included in price
Guest
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Super info for seekers of greener pastures, (like myself)so keep it coming!
Here in the Caymans we have no direct taxation, the only deductions are for health insurance and mandatory pension scheme.
Cost of living is very high due to the indirect taxation system (sort of like a VAT, already included in the purchase prize of goods)
I still like the system though, because you only pay tax on what you spend.
Here in the Caymans we have no direct taxation, the only deductions are for health insurance and mandatory pension scheme.
Cost of living is very high due to the indirect taxation system (sort of like a VAT, already included in the purchase prize of goods)
I still like the system though, because you only pay tax on what you spend.
Guest
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Well, here in the USA one cannot (in my opinion) really say what the tax rate is.
Sure, we have a graduated (Marxist)tax scheme based on income, but with deductions for home mortgage interest and other business and work related write-offs, capital losses, depreciations etc its virtually impossible to know how much tax one pays untill the end of the year when you compute your taxes and send in the form (and sometimes a hefty check).
Add to that the fact that some States have an additional income tax and some do not. Texas, for example, has a State sales tax of 5% on non-food items, and each city has an additional 2 to 3.5 % additional sales tax. Then there is the school tax that real estate owners must pay, and the other property taxes, some of which may be deducted from the Federal taxes....way too complicated.
Suffice it to say that two guys, with identical incomes, may be literally thousands of dollars apart in the taxes they each pay. One may be single. The other, married with children. One may have incurred capital losses and the other did not. One may own a home and the other might be renting an apartment. There are quite literally thousands of permutations in the basic formula.
The good news is that I filled my Speed Triple with gas yesterday, and only paid $1.40 per gallon (about sixty cents of which are taxes!)
Sure, we have a graduated (Marxist)tax scheme based on income, but with deductions for home mortgage interest and other business and work related write-offs, capital losses, depreciations etc its virtually impossible to know how much tax one pays untill the end of the year when you compute your taxes and send in the form (and sometimes a hefty check).
Add to that the fact that some States have an additional income tax and some do not. Texas, for example, has a State sales tax of 5% on non-food items, and each city has an additional 2 to 3.5 % additional sales tax. Then there is the school tax that real estate owners must pay, and the other property taxes, some of which may be deducted from the Federal taxes....way too complicated.
Suffice it to say that two guys, with identical incomes, may be literally thousands of dollars apart in the taxes they each pay. One may be single. The other, married with children. One may have incurred capital losses and the other did not. One may own a home and the other might be renting an apartment. There are quite literally thousands of permutations in the basic formula.
The good news is that I filled my Speed Triple with gas yesterday, and only paid $1.40 per gallon (about sixty cents of which are taxes!)
Guest
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Mach overspeed,
It's the same in the UK, although we're not allowed to deduct mortgage payments anymore
On top of the figures given above we also have to pay the following 'stealth taxes':
4% of any insurance premium
1% - 4% of the cost of a house on purchase
1% of the value of a house per year
~US$250 pa car registration fee
~US$150 pa to own a TV (pays for the BBC)
alcohol and tobacco have big duties
fuel has a huge tax on it (80% of the retail cost is tax)
Overall the government takes about 38% of every dollar earned here in tax, compared to less than 30% in the US. The UK is much lower than in Europe, though, where often 45% - 55% of every dollar earned goes to the government!!! Ouch!!!
[This message has been edited by foghorn (edited 24 March 2001).]
It's the same in the UK, although we're not allowed to deduct mortgage payments anymore
On top of the figures given above we also have to pay the following 'stealth taxes':4% of any insurance premium
1% - 4% of the cost of a house on purchase
1% of the value of a house per year
~US$250 pa car registration fee
~US$150 pa to own a TV (pays for the BBC)
alcohol and tobacco have big duties
fuel has a huge tax on it (80% of the retail cost is tax)
Overall the government takes about 38% of every dollar earned here in tax, compared to less than 30% in the US. The UK is much lower than in Europe, though, where often 45% - 55% of every dollar earned goes to the government!!! Ouch!!!
[This message has been edited by foghorn (edited 24 March 2001).]
Guest
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Man that sounds downright scary. 40% and more?
I'm thinking that with the new administration that we may finally get some tax relief. Of course the socialists here are fighting that tooth and toenail! If I were them I would fight it too. Their power is directly proportional to the money they can steal fron us.
For years I have advocated the abolition of the income tax, to be replaced with a federal sales tax of 5% on everything except food, clothing and shelter. Everyone pays it, no exceptions. Individuals, corporations, churches, whatever. In that way the HUGE underground economy here in the States would be taxed, same as everyone else. Another benefit would be the elimination of all the damn paperwork!
I'm thinking that with the new administration that we may finally get some tax relief. Of course the socialists here are fighting that tooth and toenail! If I were them I would fight it too. Their power is directly proportional to the money they can steal fron us.
For years I have advocated the abolition of the income tax, to be replaced with a federal sales tax of 5% on everything except food, clothing and shelter. Everyone pays it, no exceptions. Individuals, corporations, churches, whatever. In that way the HUGE underground economy here in the States would be taxed, same as everyone else. Another benefit would be the elimination of all the damn paperwork!
