Re:The euro has tumbled near parity to the US dollar
by cactus2093 on Tuesday July 12, 2022 @01:53PM
(#32073485)
If you count social security and medicaid taxes the $400k couple is paying 36% and the 600k couple is paying 40%.
So yeah it's not the majority of people in the Bay Area paying 40% but if both spouses are working at big tech companies and they're more than a few years into their career then they will likely be somewhere in this range and paying close to 40%
Re:The euro has tumbled near parity to the US dollar
by mercutio2 on Wednesday July 13, 2022 @12:51PM
(#32085336)
I don't know how I managed to use a calculator that didn't include FICA, but for a single earner that barely changes the analysis.
A single earner (again, with the unusual state of no deductions) has to make $690k to reach 40%.
For a dual-high-income earner households I concede 40% effective isn't going to be uncommon.
At $600k, it's 37% effective tax rate (again, with zero deductions).
You have to make $817k, with zero deductions, before you'll pay 40% effective tax rate in California.
None of this includes sales tax, which is 10-11% depending on municipality in California. Europe's lowest VAT is 17% in Luxembourg.
It is not my impression that "a lot of people" in tech are making that much, even by the extreme standards of the Bay Area these days.