I was playing around with tax calculators between the USA and the UK to see what the difference is.
If you make $50,000 in the US, that’s roughly $38,000 after tax (may vary by state). I get that people contribute to 401ks and health plans but imma keep it simple.
The equivalent of $50,000 in the U.K. is 38,618 pounds. That’s roughly 29,796 pounds after UK taxes are taken out which is equivalates back to $38,577 in US dollars. The UK workers makes roughly the same post tax earnings in terms of purchasing power as the US worker.
If you jump the salary to $150,000, the US worker has roughly $100,700 after tax (may vary by state). The U.K. worker ($115,854 is the British Pound equivalent of $150,000) has 72,557 pounds after tax which is roughly equivalent to $93,900 in US dollars on a post tax basis. It’s $7,000 more than the US person had to pay but in the scheme of things it’s not a big deal.
Why is it that the British pay a comparable tax rate to us but they have various social services that we don’t in America