Quote:
Originally Posted by ISiddiqui
So the two charts literally say effective tax rate for those making $100k (USD) and $300k (USD).
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For countries like Belgium and Italy, 100K is already over the max rate. So, it makes sense there isn't a big difference. But compare 50K to 150K and you would see a big difference. But if you look at France or the Netherlands, you go from paying 42% and 40% at 100K to 54% and 48% at the 300K gross. These are extremely high flat rates compared to the US at either level. Someone who makes 100K in the US pays under 20% after deductions. I'm not sure people understand the massive difference between paying 19-20K in taxes and 40K in taxes for a 100K job. If you are paying that much in taxes, you better not have to pay anything for health care, college, day care, etc. The reality is if people want European options, they could pay the extra 20K that would go into taxes to get supplemental health insurance (tax free, but most people wouldn't need it with employer subsidized plans), a college fund for your kids (tax free), a retirement account (tax free) and the best day care out there (also tax free). What's nice is we have the option to make that call. In Europe, that decision is taken from you and you get little future benefits from all that money.