UK taxes vs US taxes

[Mr. Big Dog 10,747]

Let's say your total adjusted taxable income is $200,000 = £100,000

Woohoo! with that much income, i wouldn't care about taxes!

Yes you would.

[Trompe le Monde 1,107]

You don't think the extra 10% you're saving here covers your co-pays?

Not if that 10% is paying your state taxes

Then it's about the same for you, I guess - sans the NHS.

Most people in most states would pay 4-6% or so into that extra 10% - so what erekose said is essentially correct.

You are also only talking about income tax abd not considering things like property tax and capital gains tax where the US is not neccessarily more favorable.

[mawilson 2,133]

You don't think the extra 10% you're saving here covers your co-pays?

Not if that 10% is paying your state taxes

Then it's about the same for you, I guess - sans the NHS.

Most people in most states would pay 4-6% or so into that extra 10% - so what erekose said is essentially correct.

You are also only talking about income tax abd not considering things like property tax and capital gains tax where the US is not neccessarily more favorable.

Property tax - maybe (depends on where you live.)

Capital gains tax - no way, Jose.

The first £8,800 of an individual's net gains realised during the tax year is free of CGT.

The excess is taxed as if it were the top slice of income, at the rates that apply to savings

income, namely 10% on the first £2,150, 20% on the next £31,150 and 40% on the balance.

5-percent rate

This capital gains rate applies to taxpayers in the 10-percent or 15-percent income tax

brackets. They will pay a maximum 5-percent long-term gains rate on property held

for more than a year.

15-percent rate

This most widely paid capital gains tax rate applies to long-term investments by individuals

in the 25-percent or higher tax brackets.

Most people in most states would pay 4-6% or so into that extra 10% - so what erekose said is essentially correct.

How so? 4-6% and even 9% is still less than 10%, is it not?

[Trompe le Monde 1,107]

Capital gains tax - no way, Jose.

Not when it comes to selling your house

[Dan J 277]

When you put it all together, including the costs of the benefits that are part of UK taxes. You will probably find that you pay the same if not more here in the US. Unless you make all your money through capital gains, then you will probably be better off.

[mawilson 2,133]

Capital gains tax - no way, Jose.

Not when it comes to selling your house

When you sell your house, only the difference between the selling price

and the adjusted basis is taxable. You can include certain things

in your basis - title fees, legal fees, survey fees and such.

You can also exclude up to $250,000 of the gain on the sale of your main

home if you meet the ownership test, the use test and you didn't exclude

gain from the sale of another home within 2 years of sale.

The gain/loss tax rules in the US seem to be quite fair.

The UK also grants an exemption from CGT for your only or main residence.

[mawilson 2,133]

When you put it all together, including the costs of the benefits that are part of UK taxes. You will probably find that you pay the same if not more here in the US. Unless you make all your money through capital gains, then you will probably be better off.

I make a lot more money here, so even if the taxes were the same (and they're not --

I can legally deduct tens of thousands of dollars here that I couldn't in the UK), I'd still

be better off here.

[no name 1]

I make a lot more money here

Yeah, you've said 479857956965 times, thanks.

[mawilson 2,133]

I make a lot more money here

Yeah, you've said 479857956965 times, thanks.

Just like other people have said 479857956965 times that they used to make a lot more money in the UK, thanks.

[Dan J 277]

When you put it all together, including the costs of the benefits that are part of UK taxes. You will probably find that you pay the same if not more here in the US. Unless you make all your money through capital gains, then you will probably be better off.

I make a lot more money here, so even if the taxes were the same (and they're not --

I can legally deduct tens of thousands of dollars here that I couldn't in the UK), I'd still

be better off here.

That makes you the exception. I really doubt most people would fall into that category.

[Mr. Big Dog 10,747]

Between my employer and myself, my health insurance premiums are $950.00 a month - of which my employer funds a very significant portion but I would arguably see that portion in my compensation if the premiums weren't so fcuking outrageous. That comes, copays and all, to roughly $12,000.00 a year. Not so sure but that might be somewhere in the neighborhood of what we paid in federal income based taxes last year. So, my tax rate would actually be roughly twice what your calculation shows when it is to be meaningfully compared to a tax system that covers health insurance.

[Trompe le Monde 1,107]

The UK also grants an exemption from CGT for your only or main residence.

yes - as in you don't pay it at all. Unlike the US

[mawilson 2,133]

The UK also grants an exemption from CGT for your only or main residence.

yes - as in you don't pay it at all. Unlike the US

How's that fair?

[Mr. Big Dog 10,747]

When you put it all together, including the costs of the benefits that are part of UK taxes. You will probably find that you pay the same if not more here in the US. Unless you make all your money through capital gains, then you will probably be better off.

I make a lot more money here, so even if the taxes were the same (and they're not -- I can legally deduct tens of thousands of dollars here that I couldn't in the UK), I'd still be better off here.

You live in NYC, yes? That explains a good part of why you're making a lot more money. That aside I agree that making increasingly more money is easier here than in Europe. I thought about going back at some point in the past and put that thought to rest rather quickly after talking to my friends and family back home. The US still offers tons of great opportunities.

[Trompe le Monde 1,107]

The US still offers tons of great opportunities.

I would agree with that entirely. I just think mawilson lived in the London of chimney sweeps and oliver twist whilst the rest of us had happy, comfortable existences.

The UK also grants an exemption from CGT for your only or main residence.

yes - as in you don't pay it at all. Unlike the US

How's that fair?

Not a question of being "fair" it's a question of comparable rates of taxation.