Am I remembering correctly.. wasn't there was a time when our top Federal income tax bracket was 90%? Reckon we'll be heading back in that direction in the near future...
We also have Sales Tax, Property Tax, other "taxes" which are named as user fees. The total tax take is quite a hosing.
I find that VERY hard to believe. Please do supply some proof. Some of what I pay over here (Netherlands) : 1. Income tax 52% ( see http://www.worldwide-tax.com/ ) 2. A new hummer H2 car (just an example) over here costs ⬠109.600 (about $170,000). More than 60% of that is tax. ( http://www.leasecentrum.nl/leaseautos/overzicht/autotypes.asp?id=70 ) 3. I pay about 400 euro healthcare insurance (dependant on income) 4. Gasoline, like said, is about 6.05 euro/gallon (= $9.65/gallon). More than half of that is tax. 5. Standard VAT on anything I buy: 19% 6. 100 eur/month city tax 7. 25-60% tax on leaving money to somebody after your death 8. 6% tax on buying a house Please supply some more detailed info about that 60% in NYC, i really find that hard to believe. Anyway, summed up, i think I pay about 70%-75% tax on every euro i make.
I don't live in New York, but OP's estimate is in the ball park... 35% Federal Income Tax 15.3% Social Security if self employed, 7.65% if employed (employer pays the other 7.65%) 8.5% (?) State Income Tax 2.9% Medicare Tax.. Whatever the "actual number", it's still quite a hosing... and we're not getting national health care.
You pay 'tax' over there in the form of rent, which is unbelievable steep. But of course, if you make good money moving to Monaco would be a great choice. However, it's VERY, VERY hard to get into that country, since it's so small, they let only a few people in every year.
Excellent Commentary, Luckybastard Luckybastard wrote.... LOOOOL you dont' have a clue what you're talking about. Compare it to Europe, man, we can only DREAM about a low tax heaven like the US. I, for instance, pay 52% income tax, pay 1.70 euro (!) for one liter of gasoline (everything above 0.60 is tax), pay 3x more for a brand new car than you pay in the US (difference = tax). When I'd die and would want to leave money to a good friend, she/he has to pay up to 60% tax on that. Get with the program, US = tax haven. But then again, EVERY body over here is insured for healthcare, EVERYBODY is insured of money, even if you can't work or whatever, you'll still get 1000 eur/month, we have way less pollution, better roads, lower crime, better police force, better and more affordable education etc, so i do see where the money is going. Still, as a trader, I'd personally rather live in the US, because that 52% income tax DOES hurt ............................................................................................. Remember that is why the people left Europe to the USA....the US is certainly going back to the Euro equation it seems..... The Euro model is certainly heavy tax model....and at times in the past the higher rate in the US has been 70%..... ................................................................................................. This is not rocket science..... The US needs to wipe the slate clean...and get it right the next time....and for that matter all countries should shift to an even consumption tax only system...... This would create the productive side of the equation..... Just look at what Wall Street has turned into.....from noninterest nonobligatory loans to a police policing the police incestual corporate government cesspool run by a sophisticated country club membership..... The exchanges should just form their computerbanks elsewhere and tell this incestual country club group to FO.....Boilerplate the entrances....minimze all entry costs......screw those who want to live off of others productivity.... Traders could care less where the servers are ......... It is already happening..... ............................................................................................... The US is going to turn the ship around.....They are one rowdy bunch when things get serious.....It's getting time to get serious.....
I've only made around 60k the last few years self employed, and I paid around 40%, not counting all the other taxes I pay when I spend money. To top it all off the gov passed a law crushing my industry so now I am out of work and moving my family back in with my parents so we can survive while I learn to trade prop.
Oh I forgot the $800 a month health insurance, because i made too much to qualify for any government help.