Tax (ugh)

[hhuberla]

So I'm a bit closer to making the move to the US.

When trying to figure out a salary package from a UK salary to the US I have no idea what sort of taxation I would face. In the UK it's pretty simple - there is only really 'state' income tax. I know it's a bit more difficult in the US.

If I go I'll be staying around Chicago, IL. What would the different federal, state, etc. taxes come out to (as a percentage), assuming what is in the UK the top income tax rate bracket.

Thanks
H

[Bevdeforges]

For what it's worth, the IRS has set up a "withholding calculator" here 2009 Withholding Calculator that might be of interest to you. It's supposed to calculate how much you should have withheld from your paycheck in order to cover your Federal tax obligation at year end.

In the US, you can play around a bit with your withholding, depending on your circumstances. Some folks prefer getting a big refund after filing their taxes, while others prefer to minimize withholding during the year (there are some risks to that approach). But this calculator will at least give you some idea of what sorts of things affect your final tax bill.

Illinois does have a state tax, but it's pretty simple - 3% of net income (which is usually pretty close to net income figure you figure for Federal income taxes). You might want to take a look at the Illinois tax site for individuals Individuals

Don't let the number of taxes throw you - only a few are applicable to each individual - but the site will give you some idea of what you'll be facing.
Cheers,
Bev

[sanjeev555]

Originally Posted by hhuberla

So I'm a bit closer to making the move to the US.

When trying to figure out a salary package from a UK salary to the US I have no idea what sort of taxation I would face. In the UK it's pretty simple - there is only really 'state' income tax. I know it's a bit more difficult in the US.

If I go I'll be staying around Chicago, IL. What would the different federal, state, etc. taxes come out to (as a percentage), assuming what is in the UK the top income tax rate bracket.

Thanks
H

Chicago is a great place to live. I lived there for around 5 years myself. Don't know if you would like the winters though, as they can get really harsh...But in the summers, its one of the best cities around

Good luck with your move.

[Zoom]

How much will you be paying in taxes? Interesting question considering there's a lot of things that are basically taxes that don't call themselves taxes. Here's the official list -

FEDERAL TAXES - 15%/28%/31% - depends on amount you earn. Super rich get out of it and pay maybe 4% or something.... What is super Rich? Millions PER YEAR and above. USA has 700 BILLIONAIRES !!! that's with a B, not a M......

STATE TAX (for ILL.) - BEV already answered that

SALES TAX (kind of like VAT in Europe) in California it's ALMOST 10%

PROPERTY TAX - You own a House? You pay big time taxes on it...

On top of what I just listed there's taxes on Gasoline, Cigarettes (I don't smoke but I believe they are VERY high - already included in the price which goes up at an INSANE rate. I have friends who smoke and I hear about it, LOUDLY)

OK, one more thing, HERE'S THE KICKER - You don't get anything back for your tax money (well, except constant war somewhere on the planet. Not my thing and don't feel like paying for it). There's NO UNIVERSAL HEALTH CARE till you hit 65. All schooling for your kids (besides HORRIBLE public schools) cost you tons of money. Our public schools are PATHETIC. Only 11% of High School Grads on a recent test knew GEORGE WASHINGTON was the first president of the USA !!! Only 11% knew that a Senatorial term was 6 years long - let me put it straight - the kids aren't alright but they ARE stupid. I can go on and on.

Why does anyone wanna come here, nothing but Guns, constant war, and ignorance..... You want sun? get a second home/apt in Greece or Portugal or the Red Sea in Egypt ($40,000 USD gets you on the beach. I was there about 5 years ago, one of the prettiest places on earth. Hurghada - I KNOW the spelling is wrong. Go for it, America is on it's death bed.....

[Fatbrit]

Originally Posted by Zoom

Go for it, America is on it's death bed.....

I do hope not!

[Bevdeforges]

Sales tax in California may be almost 10%, but VAT in France is almost 20%. (And, in fact, in the EU there is a minimum VAT of 15% in all countries.)

Taxes on cigarettes and gasoline in most of Europe make Americans look like wusses for whining about what they pay. Top income tax rates have come down a bit here, but still are generally higher than in the US - and in some countries (like France) there is an annual wealth tax that has driven most of the wealthy folks to emmigrate somewhere else.

Everyone moans about the schools going downhill. Everyone moans about corrupt politicians wasting tax money. There is no paradise on earth.
Cheers,
Bev

[Zoom]

I'm SCREAMING !!! Dear Bev, you know better !!! (and you and Fatbrit are my 2 favs on here. Anybody that has no desire to return is someone I can respect). OK, we pay less taxes ON PAPER but that's not the full story. What you get back is somewhat important, right? As you KNOW we get back sh*t. Top 4 things the Fed tax "buys" US citizens with THEIR tax money (off the top of my head, may be in the wrong order slightly)

#1. Social Security/Medicare/Medical - gotta make it to 65 or be HORRIBLY poor (if not you get ZIP)

#2. Wars - from Vietnam (maybe Korea) to Iraq we have been at CONSTANT WAR - check it out.

Reagan's Secret Central/South American - "Iran Contra" War, Clinton's Somolia/Bosnia, Daddy Bush - Iraq #1, for Kuwait (thumbs up guys) + PANAMA and whatever else they put in his "Daddy Bowl" - can't remember, it's late, I've been up all night working. "W" came up with some wacky new ones - Iraq #2, SHOCK AND AWE? Besides oil and whatever what was/is that all about 7 years on ??

Obama seems stuck, now 100% "in the bubble", and not strong enough to take charge - this guy, who I voted for, is no MLK (who was ready to die for his beliefs and as we know....) but Obama's speech in Cairo was a nice "Baby Step" (about time) Obama is juggling Wars (Military Industrialized Complex might toss him even 2 more countries soon) !! ...and we can talk of Iran - let's not forget the CIA/UK lead 1953 Iranian Coup D' Etat which deposed the Democratically elected P.M. Mosaddeq and installed the ruthless Shah of Iran - Mohammed Reza Pahlavi. This created the "blowback" that was significant enough to open the door to the Iranian Revolution in 1979 which, of course, brought us Ayatollah Khomeini and the overtaking of the US Embassy in Tehran. Operation AJAX it was called and all about Oil (as usual) and Profits - who gets them. OK, enough about constant war, you see my point. This stuff costs beaucoup bucks and BEAUCOUP lives !! BTW, we still owe Iran an apology, that was a LONG time ago - hand Obama the mic someone.....

#3. Interest on BORROWING 2 Billion a day to support the war in Iraq. From what I know, this money comes mainly from China so we have zero leverage with them over ANY issue (since they "feed the monkey"). And I thought the USA hated Communism, all those missiles pointed at the long gone USSR, say what? Too bad there wasn't any Wal Mart around back in the day to find some slave labor, things could have been different, a few less Billion on nukes... Oh well, it's ONLY money......

#4 Social Programs for the poor, sick, uneducated, etc. Every society has them. Do you want to be Humane or evil, it's up to each country. I know which way the USA bends......

So, there's your top 4. Now, having a small apartment in Paris and living there part time (not enough lately I must say. Since the US Dollar has gone south at super sonic speed against the Euro these last few) I have a good idea what the French get for their tax money (starting with having the #1 Health Care in the world year after year according to the WORLD HEALTH ORGANIZATION - W.H.O. . USA is in 36th, 38th place? Bravo.....) What the French do for their children and schooling. Paris Metro is best underground in the world IMO. TGV is the best and one of the fastest train systems in the world. You ever "Sample" Amtrak say between LA and SF - bahahahaha what a 40 to 60 mile per hour joke !!! AIRFRANCE, people complain, I love it. Try our "Aeroflots" (American, Delta, United, Northwest, etc) to experience true "Horror Story" (as Alex in "Clockwork Orange" would say)

OK, my stomach is getting uneasy. So now that we have looked at what both countries GET BACK from their taxes - what, where, and how much - our taxes are MUCH HIGHER when you factor in "return". See, nothing is as it seems. Zoom

PS. "I know of no more valuable commodity than INFORMATION" Gordon Gekko to Bud Fox - WALL STREET (Oliver Stone)

"Greed is Good" Gordon Gekko to Share Holders - WALL STREET (Oliver Stone)

[hhuberla]

I think most countries feel that they are 'taxed to death'. I think from what I've seen the US taxes as a little lower than the UK.

What do we give:
- In the UK most the upper rate (not talking millionaires here) is 40%.
- On top of that 1% for National Insurance
- Sales Tax (VAT) is currently at 15%
- Fuel (for driving) is taxed at over 100%. For agricultural or non-road use it's lower.
- Tax on Tobacco and Alcohol is one of the highest in the world.
- There is almost nothing you can claim back on, eg: property taxes, interest, etc (unless you're renting which is considered an additional income and taxed some more)
- Any other gains are taxed as capital gains (18% at the moment)

What do we get?
- We also get to take part in a war. (on a lesser scale to be fair though)
- Corrupt politicians claiming ludicrous 'expenses' (and getting away with it).
- An unelected head of state.
- An abused social care system (teenagers falling pregnant without being with a partner to claim housing benefits, etc)
- Oh, and a healthcare system (which, if it was that good would put private medical insurance out of business - which is far from the case).

Dont get me wrong - I'm not bitter at all but I think you need to expect some animosity when it comes to taxes. There's always two sides to the argument.

H