Taxes are to high!
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That's not far off what you'd pay in Canada, though our sales tax is nearly double that.
Edit: as a straight up single income no deductions for anything at all (aka me)
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@Dashrender sure, that's if you're converting like for like currency at an exchange rate today. live here and that isn't the best way to compare what we're discussing. Look at the US and UK minimum wage, the US is only 8% higher. £40k is more similar to $43k.
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@larsen161 said:
@Dashrender sure, that's if you're converting like for like currency at an exchange rate today. live here and that isn't the best way to compare what we're discussing. Look at the US and UK minimum wage, the US is only 8% higher. £40k is more similar to $43k.
When I worked for a major bank, they were willing to give me a promotion but with the promotion my $200,000 US salary would become a £45,000 one. Um.... not comparable
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@scottalanmiller said:
@larsen161 said:
@Dashrender sure, that's if you're converting like for like currency at an exchange rate today. live here and that isn't the best way to compare what we're discussing. Look at the US and UK minimum wage, the US is only 8% higher. £40k is more similar to $43k.
When I worked for a major bank, they were willing to give me a promotion but with the promotion my $200,000 US salary would become a £45,000 one. Um.... not comparable
Psst - I think you left a zero off
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@Dashrender said:
@scottalanmiller said:
@larsen161 said:
@Dashrender sure, that's if you're converting like for like currency at an exchange rate today. live here and that isn't the best way to compare what we're discussing. Look at the US and UK minimum wage, the US is only 8% higher. £40k is more similar to $43k.
When I worked for a major bank, they were willing to give me a promotion but with the promotion my $200,000 US salary would become a £45,000 one. Um.... not comparable
Psst - I think you left a zero off
Nope, they expected me to drop from $200K to £45K in exchange for an official "Senior VP" title.
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@scottalanmiller said:
@Dashrender said:
@scottalanmiller said:
@larsen161 said:
@Dashrender sure, that's if you're converting like for like currency at an exchange rate today. live here and that isn't the best way to compare what we're discussing. Look at the US and UK minimum wage, the US is only 8% higher. £40k is more similar to $43k.
When I worked for a major bank, they were willing to give me a promotion but with the promotion my $200,000 US salary would become a £45,000 one. Um.... not comparable
Psst - I think you left a zero off
Nope, they expected me to drop from $200K to £45K in exchange for an official "Senior VP" title.
I was kidding, I know you didn't.. clearly someone was just high that day.
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I should clarify as we have a sliding scale:
30k salary, $26,184 take home
40k salary, $34,122
50k salary, $41,481
60k salary, $48,511
100k salary, $75,294
200k, $131,858
500k, $294,458
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@MattSpeller said:
I should clarify as we have a sliding scale:
30k salary, $26,184 take home
40k salary, $34,122
50k salary, $41,481
60k salary, $48,511
100k salary, $75,294
200k, $131,858
500k, $294,458
Yeah, you take home WAY more than we do.
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@scottalanmiller said:
Yeah, you take home WAY more than we do.
If you have kids, RRSP, those can hugely alter your taxes (give you back $$$$$$$)
Also remember that our sales taxes are eye watering, 13% on average for most provinces.
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@MattSpeller said:
@scottalanmiller said:
Yeah, you take home WAY more than we do.
If you have kids, RRSP, those can hugely alter your taxes (give you back $$$$$$$)
Also remember that our sales taxes are eye watering, 13% on average for most provinces.
It's like 13% in Las Vegas..
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@MattSpeller said:
Also remember that our sales taxes are eye watering, 13% on average for most provinces.
That's not that high. Lower than in Europe and only 4-5% higher than the US. I'd take that any day compared to the income tax difference! That's nothing. Just back ground noise in the big tax picture.
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@MattSpeller said:
If you have kids, RRSP, those can hugely alter your taxes (give you back $$$$$$$)
Yeah, I used to make $200K and have a take home of like $96K, with kids! Then 8.25% sales tax on top of that, which isn't bad, but isn't good.
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@scottalanmiller said:
@MattSpeller said:
If you have kids, RRSP, those can hugely alter your taxes (give you back $$$$$$$)
Yeah, I used to make $200K and have a take home of like $96K, with kids! Then 8.25% sales tax on top of that, which isn't bad, but isn't good.
Is that after health insurance or just taxes? How did you have 52% rate??!?!?!!!
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@johnhooks said:
No one would think that's reasonable. Around here, you can figure around 80% is take home, until the next tax bracket.
Unless you plan on making triple what you make now, the "next" nominal bracket is the 28% one. And that rate is only for the money made after that threshold. I'm deep into that bracket.
Let's break down what someone should be seeing in a paycheck. To make this simple, let's assume state income tax out of the equation, because they vary from flat 3.75% in Illinois, a progressive scheme of up to 5.25% in Oklahoma to 0% in Texas. We will also assume you work for a company, so standard W2 wages and we will assume they are cheap ass bastards who went "hurr durr obamacare" and refuse to offer health insurance. Medicare is 1.45% flat, no matter how much you make. FICA is 6.2% up to $118K, then it's nothing. Federal taxes are a progressive tax system, from 10% up to 39.6%. Consult your local tax professional for more info.
If you are making $40K flat, single, taking the standard deduction, your AGI would be ~34K. $2480 would go to SS, $580 would go to Medicare. The 34K would put you in the 15% tax bracket, 10% up to $9K then 15% on the rest, $3716, for $4638 total. If you set up your W4 correctly, you should have ~$620 a week net on $769 gross, or 19%.
These calculations change with your situation. I make a lot more than $40K, my tax deduction is 24% per paycheck with an effective rate of around 19% after all my deductions and such.
If you ever hear people quoting some crazy numbers on taxes, always break it down on them to find out exactly what they are getting. You will find that most people are talking out their ass.
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@Jason said:
I don't think you can count all deducations since some of those you opt into. Mine would be really high with all the Retirmenet, Company stocks etc I do.
I Pay 18% in State Income Taxes and 28% in Federal so 46% of my pay goes to taxes.
Do you live in NYC? That's the only place that would come even close to the local taxes, and that's only 16%. And to get in at 28% effective rate you would be talking about a pretty high level nominal tax rate. So, you making half a mil?
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@scottalanmiller I didn't say $200k was comparable to £45k. what i'm saying is that someone earning £40k and $40k isn't going to have a standard of living very much different from each other in their respective counties. a £28k role which is the equivalent of $40k would only pay 21% tax - there's not much difference.
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@larsen161 said:
@scottalanmiller I didn't say $200k was comparable to £45k. what i'm saying is that someone earning £40k and $40k isn't going to have a standard of living very much different from each other in their respective counties. a £28k role which is the equivalent of $40k would only pay 21% tax - there's not much difference.
I'm just saying that a US company claimed that that was enough to be a "raise".
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@scottalanmiller even back when it was $2:£1 that just doesn't make sense. i'm not sure how any company could have considered that acceptable.
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@larsen161 said:
@scottalanmiller even back when it was $2:£1 that just doesn't make sense. i'm not sure how any company could have considered that acceptable.
They try all the normal tactics ... "Well you know the cost of living is SO much lower, it's like twice as much money right there!"
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@Dashrender said:
@MattSpeller said:
@scottalanmiller said:
Yeah, you take home WAY more than we do.
If you have kids, RRSP, those can hugely alter your taxes (give you back $$$$$$$)
Also remember that our sales taxes are eye watering, 13% on average for most provinces.
It's like 13% in Las Vegas..
http://tax.nv.gov/uploadedFiles/taxnvgov/Content/TaxLibrary/TPI-01.07 Sales Tax Map_07-01-12.pdf
8.1% in Clark County with no city sales taxes in Nevada.
Highest sales tax in the US is in Chicago at 10.45%, 6.25% to the state, 1.75% to Cook County, 1.25% to the city itself and another 1% for Illinois DOT. They also have a very generous non-taxable bracket, unlike Texas which is 8.25% no matter what.
