Originally Posted by MartinSE
(Post 2084960)
In Sweden, MOST (not all) people pay only local tax which ranges between 29.08 and 35.15 per cent depending on municipality, on their annual income. In addition earners above a certain income threshold set by the Tax Agency also pay 20 per cent state tax.
The Swedish tax system includes a so-called basic deduction, a sum that is exempt from the taxable income. The sum differs depending on whether a person is under or over 65, see link above.
So, if you make less than the basic deduction you pay no taxes, sort of like here.
And for the VAT, the standard VAT rate for goods and services in Sweden is 25 per cent, but there are reduced rates of 12 per cent for foodstuffs and 6 percent for books, newspapers, passenger transport within Sweden.
So, lets take the high road, and say citizens in Sweden pay 55% (35% local and 20% state). On top some pay as much as 25% VAT. Kind of a "sales" tax which is sort of like sales tax here. Which runs depending on state between 8% and 12%(?) not sure.
Now, Federal tax rate goes from 0% to 35%, state tax rates vary, CA is highest at 12%, then 9000 local jurisdictions have local income tax up to 3%. So, add those up and your get 50% income tax max for US Citizens. (Let's not quibble over the 40,000 pages of Federal tax code and all the possible infinite variety of marginal rates).
Two things pop out in Sweden you pay more VATG than we pay in sales tax. Agreed.
Second using the highest rates, in the US and Sweden, in Sweden you would pay 55% income tax, and in the US you pay 50%. For that 5% you get Universal healthcare - well, not just you EVERYONE. You (everyone) also gets unemployment compensation, which benefit consists of two parts: a basic unemployment insurance and a voluntary income related benefit. If you retire you are covered by their state run pension plan, which unlike private pension plans in the US which trend to go bankrupt leaving workers holding the bag.
Anyway it goes on and on. The bottom line, Sweden pays MORE taxes, but if you include Heath Insurance in the US, we actually pay a LOT more than they do. And it covers everyone, not like here with 30 million Americans uninsured for healthcare, and vastly more under insured because of massive deductibles and not covered issues. And let's not go into how much better their healthcare outcomes are.
I am not sure what you point of bring up Sweden, but they are far better off than US citizen both in what they pay, and what they get for what they pay.
At least that is my humble opinion.
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