UK taxes vs US taxes

[no name 1]

If you have enough deductions to make it worth itemizing, otherwise it most people only take the standard deduction.

I have a very good accountant (for my freelance jobs) & paid NYC city/state taxes for 7 years. I never had enough deductions to make it work.

[mawilson 2,133]

true - but you can put up to 7k UKP tax free in an ISA which can be invested in stocks and shares and deliver some pretty tasty returns

And here you have IRAs (up to $4k tax free - or $8k if married) as well as 401(k)'s.

also - federal short-term capital gains on stocks and shares is 35% in the US. In the UK it is 10%. Long term capital gains in the US is 15% - if you are not in the upper income tax band in the UK it is 10%

Actually, that's not true. Short-term capital gains are taxed at the same rate as

regular income. If you're in the 35% tax bracket, then it's 35%, but to be in the

35% tax bracket, your taxable income has to be over $300,000.

[Trompe le Monde 1,107]

true - but you can put up to 7k UKP tax free in an ISA which can be invested in stocks and shares and deliver some pretty tasty returns

And here you have IRAs (up to $4k tax free - or $8k if married) as well as 401(k)'s.

Yes, the difference being these are not retirement funds and your money isn't locked in. I have a private pension in the UK (like an IRA) - when I was still there the goverment was actually money paying into it in the form of tax relief.

[mawilson 2,133]

Didn't you hear? We only include things that make the magic theory work!

Why stop at health insurance? Why not include other things that are more expensive in the UK?

Cars, car insurance, gas, public transportation costs?

How about electronics? CDs, DVDs? iPods? Big-screen TVs? Computers?

Obviously, 10% is not enough to convince you - how much is enough? 20%? 50%? Is 100% still cheaper in the UK?

[Ban Hammer 13,340]

If you have enough deductions to make it worth itemizing, otherwise it most people only take the standard deduction.

I have a very good accountant (for my freelance jobs) & paid NYC city/state taxes for 7 years. I never had enough deductions to make it work.

buy a house, that usually works

[Trompe le Monde 1,107]

Actually, that's not true. Short-term capital gains are taxed at the same rate as

regular income. If you're in the 35% tax bracket, then it's 35%, but to be in the

35% tax bracket, your taxable income has to be over $300,000.

I meant to say up to 35% - so 22% if you are earning $45k

[Otto 83]

When did the UK become a taxation benchmark?

[mawilson 2,133]

I have a very good accountant (for my freelance jobs) & paid NYC city/state taxes for 7 years. I never had enough deductions to make it work.

All you need is a mortgage - the interest alone will exceed the standard deduction.

When did the UK become a taxation benchmark?

The UK has one of the lowest (if not THE lowest) tax rates in Europe.

[Trompe le Monde 1,107]

Obviously, 10% is not enough to convince you - how much is enough? 20%? 50%? Is 100% still cheaper in the UK?

It's not an argument about the cost of consumer goods it's an argument about taxes.

Everyone talks about how terribly high taxes are there and experience (as a percentage of one's income) just doesn't bear it out, especially after you include health insurance premiums.

[mawilson 2,133]

It's not an argument about the cost of consumer goods it's an argument about taxes.

Precisely, it's about taxes and taxes alone. Why does everyone keep wanting to

include the costs of health insurance?

Anyway, I have employer-sponsored health insurance here and it doesn't cost me

a penny.

[Dan J 277]

It's not an argument about the cost of consumer goods it's an argument about taxes.

Precisely, it's about taxes and taxes alone. Why does everyone keep wanting to

include the costs of health insurance?

Anyway, I have employer-sponsored health insurance here and it doesn't cost me

a penny.

Because you include the national health insurance tax from the UK.

[mawilson 2,133]

It's not an argument about the cost of consumer goods it's an argument about taxes.

Precisely, it's about taxes and taxes alone. Why does everyone keep wanting to

include the costs of health insurance?

Anyway, I have employer-sponsored health insurance here and it doesn't cost me

a penny.

Because you include the national health insurance tax from the UK.

National Insurance tax, not National Health Insurance.

It's the equivalent of the Social Security tax here.

[Trumplestiltskin 5,791]

Where did I factor into this?

[Trompe le Monde 1,107]

I thought it was because you said taxes in the UK weren't that different to the US. The I realized it was mawilson hisself

http://www.visajourney.com/forums/index.ph...t&p=1157934

[Trumplestiltskin 5,791]

It's not an argument about the cost of consumer goods it's an argument about taxes.

Precisely, it's about taxes and taxes alone. Why does everyone keep wanting to

include the costs of health insurance?

Anyway, I have employer-sponsored health insurance here and it doesn't cost me

a penny.

That would make you (you personally) better off, but I can't really say the same.