Liv wrote:I'd gladly give up 40% of my income to live abroad and have the benefits of doing so.
You don't have to.
While Joe the Plumbnuts is right that the marginal income tax rate in France is higher (40% compared with 35% in the USA) that is not the average tax paid.
Let's take for an example Bubba, a head of household earning $100,000 US and compare it to Jean-Pierre earning the equivalent 73,800 €
- income tax.gif (12.11 KiB) Viewed 105 times
Jean-Pierre pays no tax on the first 5,875€ and only 5.5% on the next 5,875€, after that it's 14%, then 30% and finally 40%.
He pays a net 17,058 € (US $23,000) or 23% of his income.
Bubba starts paying 10% tax immediately. He never hits the top bracket and tops out in the 25% bracket.
He pays a net $19,848 or 20% of his income.
Of course Bubba (or his employer) has to pay for health care insurance. If that costs more than $3,262 per yer he's behind Jean-Pierre. I believe the average premium for a family is $6,328.
It is true in the US the more you earn the more income you retain. Conversely if you earn less you retain more in France.
Simplistic, since it doesn't take differences in tax deductions into account, but a reminder that the details are important.
So Liv, unless you earn over $100,000 you would be better off in France. Cheap wine too.