In the US, someone earning $155,000 USD (Equivalent to 125k GBP) will also be paying 6.2% in social security taxes, 1.45% in medicare taxes, and then another 6.2% in social security taxes (employer's portion)[1], and 1.45% in medicare taxes (employer's portion). Added to the rest of their marginal tax rate, they'd be seeing a rate of 22 + 15.3 = 37.3%.
Of course, they won't actually get health insurance for it, which will cost a family ~$20,000/year. That's about 6-13% of your paycheck that could have been going into your wallet.
Also, don't forget your state income taxes, which will scrape another 0-7-12%.
All-in-all, Americans pay ~26% of their GDP in taxes. People in the UK pay... ~27% (Edit - it's actually closer to 33%) of their GDP in taxes. [2] 'Americans pay less taxes' is largely a meme with no basis in reality.
[1] Just because that gets subtracted from a different line item on your W-2 doesn't mean that you shouldn't count it.
[2] This is the only meaningful apples to apples comparison of overall tax burdens. And it makes the US look really bad, because that 26% won't even get you healthcare. Or cheap university tuition. It does get you 11 carrier fleet strike groups, and 5,500 nuclear weapons, though.
Of course, they won't actually get health insurance for it, which will cost a family ~$20,000/year. That's about 6-13% of your paycheck that could have been going into your wallet.
Also, don't forget your state income taxes, which will scrape another 0-7-12%.
All-in-all, Americans pay ~26% of their GDP in taxes. People in the UK pay... ~27% (Edit - it's actually closer to 33%) of their GDP in taxes. [2] 'Americans pay less taxes' is largely a meme with no basis in reality.
[1] Just because that gets subtracted from a different line item on your W-2 doesn't mean that you shouldn't count it.
[2] This is the only meaningful apples to apples comparison of overall tax burdens. And it makes the US look really bad, because that 26% won't even get you healthcare. Or cheap university tuition. It does get you 11 carrier fleet strike groups, and 5,500 nuclear weapons, though.