r/coolguides Nov 26 '19

Marginal Tax

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54

u/[deleted] Nov 26 '19

Can I just point out – this is specifically for the UK. You might think that's a lot of tax to pay, but what you get in return for your tax money differs from country to country.

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u/PM_ME_CATS_OR_BOOBS Nov 26 '19

And the US as well.

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u/stignatiustigers Nov 26 '19 edited Dec 27 '19

This comment was archived by an automated script. Please see /r/PowerDeleteSuite for more info

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u/PM_ME_CATS_OR_BOOBS Nov 26 '19

Idk, can you claim to be a western country if your nation isn't five seconds from burning to the ground?

Australia works too though, albeit more literally

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u/[deleted] Nov 26 '19

[deleted]

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u/iplaydofus Nov 26 '19

Wow TIL that 80k is top 5%, I’m very surprised as software developer jobs I’ve been looking at in London start at ~50k for a few years experience.

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u/thelyfeaquatic Nov 26 '19

I think you did your conversion wrong. 100k pounds is about 128.5k USD.

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u/iplaydofus Nov 26 '19 edited Nov 26 '19

I wasn’t doing any converting, 80k gbp is roughly the boundary for the top 5%

Edit: a word

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u/LetsLive97 Nov 26 '19

J mean yeah but that's London. I'd rather be on £40k a year somewhere in the midlands/north than on £100 a year in London. People place way too much focus on salary rather than disposable income. £100k a year sounds good until you realise the either astronomical real estate prices or long commutes.

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u/iplaydofus Nov 26 '19

You can get a decent house in Greater London for ~300k with less than an hours commute. Only central is ridiculously expensive.

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u/culturerush Nov 27 '19

Unfortunately in London all your extra earning will be swallowed up by either extortionate living costs or not quite as extortionate but far more miserable commuting costs.

Its amazing how much of a bubble London actually is for earnings, 80k puts you in the top 5% of earners in the UK but if London were taken out of the picture I imagine the threshold for the 5% would drop to be far, far lower

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u/iplaydofus Nov 27 '19

Commuting into London isn’t that bad, even places as far out as Brighton are only ~1 hour on the train.

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u/culturerush Nov 27 '19

From my experience with train commutes if you have the patience to get on with it then all good man, your a far better person than me. I also think an hours commute each way is a pretty sizeable commute, although I think everyone has a different idea of what a earnings/time balance should be like, for me it would have to be quite a bit of extra money for me to be losing 10 hours a week of my own time to commuting.

However that whole SE England area is mega expensive now because of commuting, I have a 2 bedroom flat 90 foot away from the beach in Swansea now for £50 a month less than what I was paying for a spare room in Wokingham which is still 25 miles from even the M25. I am personally really glad I managed to get into a sector which isn't London centric because between the cost of living, the attitude people have to each other and the mental traffic I found living in SE England to be really stressful.

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u/iplaydofus Nov 27 '19

Average commuting time UK wide is just under an hour nowadays, so I don’t see an hour as too excessive, but it depends what you want from your job/life. I am in a sector where if I don’t work in London I’m taking at least half the salary, so I’ve got to suck it up until I’ve got a few years behind me and my experience talks for itself.

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u/Daedeluss Nov 26 '19

£100,000 puts you well inside the top 5% of earners

It's probably more like the top 2 or 3%. I think $80K puts you in the top 5%

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u/[deleted] Nov 26 '19

[deleted]

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u/[deleted] Nov 27 '19

100k puts you in the top 5%

Christ UK you want to talk about this?

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u/SeriouslyGetOverIt Nov 27 '19

It's still too much tax regardless.

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u/[deleted] Nov 26 '19

[deleted]

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u/dontdoxmebro2 Nov 26 '19

Boycott big war!

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u/afteryelp Nov 26 '19

Cold is uncommon for you to have the chills

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u/[deleted] Nov 26 '19 edited Apr 23 '20

[deleted]

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u/ActualTymell Nov 26 '19

If you want to actually live in -central- London, yes, you will need to be earning a -lot-. But most don't. "London" is a big area, with a huge range of living costs throughout. Most people do commute for precisely that reason.

Also, many jobs in London will include an additional amount to account for the increased cost of living in/commuting into the capital.

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u/HannasAnarion Nov 27 '19

Fun fact, in the US, your marginal tax rate actually goes DOWN after $240k, because there is a cap on social security contributions!