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by alimw 3418 days ago
> 1. We are taxed on income heavily in the US.

I was surprised at this so I looked it up. From the article [1] it looks as if income tax in the US is lower than in most of Europe. But yes, higher than Russia, Saudi Arabia or Mexico.

[1] http://www.bbc.co.uk/news/magazine-26327114

2 comments

To be fair, though, that tax includes the health care. At least in Norway, anyway, and many countries on the list.

And to me, it makes a huge difference. Some folks in the midwest pay about as much per month on health insurance as they do on rent: It isn't a minor expense. Even with employer-subsidized insurance, it is easily a few hundred per month, plus they have to pay the deductible before it kicks in. $5,000 after the monthly fee when you make 50k per year is quite the expectation. (the deductible is 10% of your income at that point).

There are a couple issues with that article.

1. "For each country, they calculated how much a high earner on a salary of $400,000..."

That number is way higher than programmer salaries. Most programmers are high earners but not that high.

2. It assumes a constant salary amount in any country, but this isn't reality.

If someone makes $250k as a programmer in the US, it might equate to $100k–125k in another country. US tax rates are tiered (see "Marginal Tax Rate" at [1]), so someone that makes $250k pays more than double the taxes of $125k.

[1]: https://en.wikipedia.org/wiki/Income_tax_in_the_United_State...

If you scroll down a bit further, you should find that both your points are addressed in the second set of figures. US tax rates looking even lower there.
These percentages are misleading because they don't paint the full picture. Especially considering insurance and rent.

It's a very apples to oranges comparison.