a thoughtful web.
Share good ideas and conversation.   Login or Take a Tour!
comment by kleinbl00
kleinbl00  ·  1757 days ago  ·  link  ·    ·  parent  ·  post: Liam Stack: Here’s What We Know About the ‘Panama Papers’

    It turns out that rich Americans have less need for tax havens than their comrades elsewhere. “People in other countries pay a lot more in taxes than we do,” says international tax expert Lee Sheppard, contributing editor at Tax Analysts. “In other countries, nearly every rich person has a tax haven bank account. Proportionately, the United States doesn't have as large a problem.”

    The top federal income tax rate in the United States is 39.6%, with a threshold of about $415,000 in income for a single filer. In much of Europe, the top rate is a few points higher—but it kicks in at much lower income levels. As for investment income, the capital gains rate in the U.S. is 20%, and 15% on the type of investment known as “carried interest.” In a few investor-friendly European countries—Switzerland, Luxembourg, the Netherlands—the capital gains rate is 0. But in most of Europe it ranges from 15% to 42%. And few countries have as many generous tax deductions as the United States.


Seen through one lens, this whole scandal basically boils down to "World shocked to learn that rich people pay American tax rates."

Kaius  ·  1756 days ago  ·  link  ·  

/spits coffee

    The top federal income tax rate in the United States is 39.6%, with a threshold of about $415,000 in income for a single filer.

/Stares at paycheck

40% tax for everything over 42K... Damn!

EDIT: some quick maths shows that someone earning 100K would take home 12K more per year if they lived in the US.

kleinbl00  ·  1756 days ago  ·  link  ·  

What's really going to bake your noodle is a concept called "maximum taxable earnings."

If you make up to $118,500 a year, you pay 7.6% of your earnings to social security. If you make 118,600 a year, you pay 7.6% of 118,500.

If you make $118,500,000.00 a year, you pay 7.6% of $118,500.00.

When you hear about social security going bankrupt?

Yeah, pretty easy fix.

Kaius  ·  1756 days ago  ·  link  ·  

Check out our USC http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/universal_social_charge.html

Which is 8% of your gross salary if you earn 100K before they take the other 21/42% PAYE tax. Essentially half your salary goes to tax...

It makes for interesting conversations when my US based co-workers make the occasional gripe about salary or cost of living, my heart bleeds for them.

War  ·  1757 days ago  ·  link  ·  

I was wondering if you could lead me to literature on this part:

    And there are certainly a lot of American corporations that use tax havens to minimize tax liabilities, a different sort of problem.

I never thought of the argument like that and it makes sense the tax code really does favor the rich , so why ship off your money when you can just pay very little and look completely legit. I'm definitely on the boat with this slipping under the radar.

kleinbl00  ·  1756 days ago  ·  link  ·  

phew literature? I mean... there's some words there.

The classic place to start?

And keep in mind that's ten years before Citizens United.

War  ·  1756 days ago  ·  link  ·  

Thanks for that!