European Tax Rates

[Oldgrunt]

I just received this email from a friend. This came from the UK so I can not verify the information. However, jjust reading it scares the pants off me!





Subject: A Britt on European Tax Rates -

This from my friend Bill Stewart who lives in London.
Hi John,
just to confirm 13 years of a labour government in the UK has bankrupted this once great country and we will be paying this debt back over the next 10 years-- do not let this happen to the USA
Bill
Note: The VAT tax in the table is the national sales tax that Europeans pay.
Current European tax Rates
United Kingdom
Income Tax: 50%
VAT: 17.5% TOTAL: 67.5%
France
Income Tax: 40%
VAT: 19.6% TOTAL: 59.6%

Greece
Income Tax: 40%
VAT: 25% TOTAL: 65%

Spain
Income Tax: 45%
VAT: 16% TOTAL: 61%

Portugal
Income Tax: 42%
VAT: 20% TOTAL: 62%

Sweden
Income Tax: 55%
VAT: 25% TOTAL: 80%

Norway
Income Tax: 54.3%
VAT: 25% TOTAL: 79.3%

Netherlands
Income Tax: 52%
VAT: 19% TOTAL: 71%

Denmark
I! ncome Tax: 58%
VAT: 25% TOTAL: 83%

Finland
Income Tax: 53%
VAT: 22% TOTAL: 75%
If you've started to wonder what the real costs of socialism are going to be - once the full program in these United States hits your wallet, take a look at the table. As you digest these mind-boggling figures, keep in mind that in spite of these astronomical tax rates, these countries are still not financing their social welfare programs exclusively from tax revenues! They are deeply mired in public debt of gargantuan proportions. Greece has reached the point where its debt is so huge it is in imminent danger of defaulting. That is the reason the European economic community has intervened to bail them out. If you're following the financial news, you know Spain and Portugal are right behind Greece .

The United States is now heading right down the same path. The VAT tax in the table is the national sales tax that Europeans pay. Stay tuned because that is exactly what you can expect to see the administration proposing after the fall elections. The initial percentage in the United States isn't going to be anywhere near the outrageous numbers you now see in Europe. Guess what. the current outrageous numbers in Europe didn't start out as outrageous either. They started out as minuscule - right around the 1% or 2% where they will start out in the United States. Magically, however, they ran up over the years to where they are now. Expect the same thing here.

It is the very notion that with hard work and perseverance, anybody can get ahead economically here in the USA. Do you think that can ever happen with tax rates between 60% and 80%? Think again. With the government taking that percentage of your money,! your life will be exactly like life in Europe... You will never be able to buy a home. You will never buy a car. You will never send your children to college. Let's not shuffle the battle cry of the socialists under the rug either. It's always the same cry. Equalize income. Spread the wealth to the poor (whoever they are). Level the economic playing field. Accomplish that and everything will be rosy.

It's time to take a really hard look at reality. Greece is a perfect example. Despite the socialism system that has ruled this country for decades, with a 65% tax rate, they are drowning in public debt, would have defaulted without hundreds of billions in bailout money from the EU, and still. . . 20% of their population lives in poverty. What has all that socialism money bought, besides ultimate power for the politicians running the show? Do you think these people are "free"? They're not.
They are slaves to their economic "system."
Instead of spreading the wealth around, spread this info around. It might wake up some people.
If you agree with this, forward it, if you do not agree with it, read it again.

[fuhr52]

Yep we are headed in the same direction. Both political parties are pushing the socialism agenda. Sometimes up front, sometimes behind closed doors. The winners are the political leaders with money and power. The losers are the woking class being taxed to death. History has taught us that socialism NEVER works for long. Once the non producers out number the producers it's over. Yet there are still people that think they can make it work. The voters in this country had better wake up and soon. The grasshoppers are begining to out number the ants.

[Tim Coble]

Did a quick look and current VAT in the UK is 20%. The 50% income tax rate is for those making over $237,000. Not much better for the those make over $57,000, that rate is 40%.

Its a scary thought.

[Phillip Gain]

Your friend in the UK is not giving you accurate information. Nor are your calculations mathematically correct.

Just using the UK income taxes as an example. The 50% as quoted in your post is the maximum rate - applied to persons making more than GBP 150,000 (about US$300,000). The actual spread of tax rates is from 10% to 50%, according to income, with exemption amounts for those making under GBP 100,000.

By contrast, the US income taxes top off at 35%, applied to most people making just over $379,000. Below that, it is a sliding scale from 10% to 33%, with exemptions allowed.

It is not correct to add VAT to percentage of income tax, to get a total. Income tax is calculated based on, well, income. VAT is based on the cost of goods or services purchased. Simply adding them together presumes that you spend 100% of your income on goods and services taxed at the standard rate - which is NOT TRUE of anyone really. (More on this below..)

Standard VAT in the UK is 20%, but there are exceptions:

Reduced rate: For example children's car seats and gas and electricity for your home, you pay a reduced rate of 5 per cent.

Zero rate: There are some goods on which you don't pay any VAT, like basic food items; books, newspapers and magazines; children's clothes; some goods provided in special circumstances - for example, equipment for disabled people.

While the USA does not have a Federal VAT, there are instead state and local income taxes, along with sales taxes, and yet additional taxes on things like alcohol, gasoline, tobacco, and the like. These of course vary from state to state. But in many cases, they add up to JUST as much as the European VAT, if not more.

It's important for one to have facts straight, before just chunking numbers together for purposes of political propaganda.

[Tucker's Mom]

In Australia my eldest son is paying $54,550 plus 45c for each $1 over $180,000. He is earning more than this amount, so is his wife. So their take-home pay is not really that much after the $54 1/2K they are earning. Take into account the cost of living in Melbourne. Food is very high and is also taxed apart from fresh meat and vegetables. I don't like going home much... :((((

[Oldgrunt]

Phillip: As I said, I received the information through email and could not verify the accuracy. In any event, taxes of any kind scare the hell out of me!

[walt629]

Everyone needs to get behind the Fair Tax then none of this will be a worry for us.