Re:“I’m in the US – what if I just ignore the EU VAT changes?”
by TimSAstro on Thursday December 18, 2014 @11:19AM
(#8767967)
Minor correction on income tax:
0-10K: Untaxed,
10-40K: 20%,
40K+: 40%,
[ Parent
| on HN ]
Re:“I’m in the US – what if I just ignore the EU VAT changes?”
by pja on Thursday December 18, 2014 @02:03PM
(#8769008)
No, because I'm including National Insurance (both employers and employees) under income taxes. Employers NI is 14% of headline salary, so the effective tax rate for high earners is more like 50% than 40%. Meanwhile middle income people pay 12% NI on top of their income tax and 14% employers national insurance so the real rate of tax on the cost to their employer is about 40%.
Go do the sums & you'll see. Like I said, the reality is much more complicated, but the figures I gave are roughly in the right ballpark.