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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.

http://finance.yahoo.com/news/panama-papers-why-no-americans-193702690.html

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!