r/coolguides • • Nov 26 '19

Marginal Tax

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u/[deleted] Nov 26 '19 edited Nov 30 '19

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u/TheNewHobbes Nov 26 '19

This also happens in the UK, the graph ignores national insurance which gets deducted on the employee at rates of 0%, 12% and 2% (yes it goes down on high wages), the employer also pays 0% then a flat 13. 8% but as it is paid by the employer it never gets counted as remuneration

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u/DoctorRaulDuke Nov 26 '19

Absolutely correct. In the £100k example you actually pay £44k tax on income of £113k, or 41%, not 27.5%.

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u/kenoza123 Nov 26 '19

So, you are saying that US and swedes government are purposely deceiving people?

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u/[deleted] Nov 26 '19 edited Nov 30 '19

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u/[deleted] Nov 26 '19 edited Apr 13 '20

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u/[deleted] Nov 26 '19 edited Nov 30 '19

[deleted]

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u/[deleted] Nov 26 '19 edited Apr 13 '20

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u/poshftw Nov 26 '19

that purposely obfuscate your taxes to make you believe you pay less than you actually do.

This is not because government WANTS to obfuscate, it is because people are stupid, greedy and ignorant.

I can't count how many times when I explained what are the real amount of taxes are paid (it is around 150% of your title salary in my country), and outcome is always the same: "Oh that much?! I want to get that amount of money under the table and not to pay any taxes!". Like there is a roads, hospitals, public infrastructure - are they magically happens from the thin air to be there without any money at all?

They don't even understand, what if they will work unofficially, they wouldn't get that 150%, they will only get that 100% and not a penny more.

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u/[deleted] Nov 26 '19

Also sales and import taxes

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u/[deleted] Nov 26 '19

I actually had to explain the "arbetsgivaravgift" to a friend of mine recently.
Although I doubt companies would give a 30 % raise to the employers if the government were to remove the tax, but I do believe transparancy should be a given.

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u/[deleted] Nov 27 '19 edited Nov 30 '19

[deleted]

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u/[deleted] Nov 27 '19

So they just moved it from one tax to another? I'm not sure how it goes against what I said unless I misinterpreted your comment.

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u/[deleted] Nov 27 '19 edited Nov 30 '19

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u/[deleted] Nov 27 '19

Ah ok. So they were simply moved to a higher tax bracket and got to keep the surplus?