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Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by jandrese on Saturday September 26, 2020 @05:43PM (#24602402)
Your tax rate is actually around 57% because you forgot to include your medical insurance of around 11% at that salary for a family of 5. Roughly $2,000/month. If you are comparing tax rates with first world countries you need to include your health insurance costs or the results will be skewed.

Luckily with a salary in the top 2% nationally you can afford insurance. The same can not be said of people who are not rich.

Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by jonas21 on Sunday September 27, 2020 @02:54AM (#24604766)
I agree that health care is very expensive, but you may be overestimating a bit... I looked up some plans on California's exchange for a hypothetical family of 5, and all except for the "platinum" tier were between $1200/mo and $1600/mo -- so 6% to 9% in this particular example.

With a lower income, the percentage would increase -- but only up to a point since a family of 5 starts qualifying for ACA subsidies if their income is less than $120K.

The subsidies make a big difference -- 84% of people who purchase insurance through the exchanges receive a subsidy and the average monthly cost of a plan after taking subsidies into account is $145 (vs $595 without) [1].

[1] https://www.healthinsurance.org/obamacare/will-you-receive-a...

Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by ibeckermayer on Saturday September 26, 2020 @06:44PM (#24602757)
Why would you choose family of 5 as your point of reference? That’s very uncommon in tech-California.
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by gamblor956 on Saturday September 26, 2020 @11:26PM (#24603993)
Your math is bad, and you're using a nonstandard set of numbers.

Generally in CA, and most of the US, you would receive health insurance through your employer, and the bulk of your medical insurance premiums are non-taxable subsidies by the employer.

Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by jandrese on Sunday September 27, 2020 @12:09AM (#24604163)
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by gamblor956 on Sunday September 27, 2020 @07:18PM (#24611042)
Like I said, your math is bad. You're using numbers from individual plans, not employer-sponsored plans. As individual plans are entirely separate pools from the employer-sponsored plan pools, the numbers aren't even remotely similar.
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by jandrese on Sunday September 27, 2020 @08:23PM (#24611523)
In all other first world countries it doesn't matter if you are self employed or work for a big company. Your healthcare is the same.
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by AdrianB1 on Saturday September 26, 2020 @08:14PM (#24603189)
Is the health insurance cost a percentage of your income? I thought it is a fixed amount based on what the insurance is covering.
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by jandrese on Sunday September 27, 2020 @12:15AM (#24604187)
It's harder on the poor. The percentage figures will vary based on your income level. Luckily the OP chose an income level in the top 2% of all Americans which made it a somewhat reasonable level.

This was also an individual plan bought on a healthcare exchange. Large employers have a stronger negotiating position and can get somewhat better rates, but in the end you're still basically paying a tax and it is disingenuous to compare tax rates with countries that provide socialized healthcare with their taxes and not include the cost of healthcare coverage in the States.

Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by AdrianB1 on Sunday September 27, 2020 @08:33AM (#24606172)
It is not fair to compare taxes between countries with and without healthcare, but it is almost impossible to compare otherwise. For example USA has huge prices and excellent services compared to almost any other country, in my country (Romania, Europe) the socialized healthcare is so bad many people have a private insurance, I have 2 private insurances through my employer and I still pay out of the pocket about half of everything I get (100% of dental care is out of the pocket, most consultations are covered by the private plan, most treatments are out of the pocket).
Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats by jcrawfordor on Saturday September 26, 2020 @11:12PM (#24603929)
Little bit of both. It's a fixed rate, but a lot of employers use a "tier" system where the rate depends on your income.