In which countries do high earners pay the most tax? And where do average earners pay the most?
Income tax has been a political hot potato for decades.
In 1966 The Beatles released their song Taxman as a protest against the 95% "supertax" rate introduced by Harold Wilson's Labour government, which the band had to pay. The top rate of tax in the UK is less than half that now but it's still a source of controversy.
In France, President Francois Hollande's election campaign promise to tax salaries above one million euros (£830,000) at 75% was - not surprisingly - met with howls of protest by the rich, who Hollande once said he "didn't like". His policy was struck down by the courts in 2012 who ruled it unconstitutional but he amended it so that the employer became liable to pay it.
To put this in context, the football club Paris Saint-Germain have to pay nearly 35m euros (£29m) to the government on star striker Zlatan Ibrahimovic's net annual salary of 11m euros.
http://www.bbc.co.uk/news/magazine-26327114
Taxing problem
Taxing problem
“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.”
Re: Taxing problem
A "high earner" domiciled and working in either New York City or California will probably pay close to 2/3 of his gross income in total taxes, when one includes Federal income taxes, real estate taxes (largely school-related), state and local income taxes, FICA, gas taxes, sales taxes, and taxes related to investments.
It is not surprising that wealthy and high-earning Boomers are heading to Florida and Texas. They can potentially save millions.
It is not surprising that wealthy and high-earning Boomers are heading to Florida and Texas. They can potentially save millions.
Re: Taxing problem
And that's a choice each of us has to make; do we relocate to areas we'd rather not live (my apologies to those in Florida or Texas) to save taxes, or stay where we are and pay for the "privilege" of living there (good schools, cultural events, mass transit, etc.). Most of the places I'd like to live are, unfortunately, high tax areas. It makes retirement planning a bitch, but c'est la vie.
Re: Taxing problem
And in Texas and Florida, they have two huge advantages most states do not. In Texas, it's oil money. In Florida, they have tourists and part-time residents paying lots of taxes, and a large older population that doesn't need the more expensive state/local public services (i.e., schools). Every where else has difficult choices and trade offs.
Re: Taxing problem
dgs49 wrote:A "high earner" domiciled and working in either New York City or California will probably pay close to 2/3 of his gross income in total taxes, when one includes Federal income taxes, real estate taxes (largely school-related), state and local income taxes, FICA, gas taxes, sales taxes, and taxes related to investments.
It is not surprising that wealthy and high-earning Boomers are heading to Florida and Texas. They can potentially save millions.
Right, the point of being rich is that you can't live in a nice place because it costs too much.
Really? Does that make logical sense to you? Being rich means sacrificing happiness so when you die the pile will be bigger?
Y'know if rich people REALLY wanted to save money they'd move into poor neighborhoods!
yrs,
rubato