Who pays for the European Welfare State?

Dec 2018
4,894
1,340
New England
Who pays for the European Welfare State? It's not the rich, folks. It's the middle class. There's a good breakdown in the WSJ this week (paywall, Opinion | The Middle Class Always Pays). The really stunning thing is how regressive the European tax structures are; they need to be, because the middle class is where the real money is.

From the article (emphasis added):

"Start with the [European] income tax. Most European governments tax most household income more heavily than Washington does because they impose their highest marginal rates on lower levels of income. Germany’s second-highest marginal income-tax rate of 42% kicks in for married households earning around €112,000 ($124,000). An American couple with that income pays a marginal rate of only 22% and would need to earn $612,350 before paying the top marginal rate of 37%.​
Sweden’s top marginal income-tax rate of about 55% applies to earnings as low as $47,000, and in the U.K. the second-highest rate of 40% hits taxpayers earning £50,000 ($64,000). By this standard America’s income tax is highly progressive. The U.S. top marginal rate applies only to taxpayers whose wages are 9.3 times the average wage. In Belgium the top marginal rate ensnares workers earning 1.1 times the average, and in the Netherlands 1.4 times."​


If you don't think the Progressives are coming after your wallet, statistically speaking, you're almost certainly wrong.
 
May 2019
472
270
California
Who pays for the European Welfare State? It's not the rich, folks. It's the middle class. There's a good breakdown in the WSJ this week (paywall, Opinion | The Middle Class Always Pays). The really stunning thing is how regressive the European tax structures are; they need to be, because the middle class is where the real money is.

From the article (emphasis added):

"Start with the [European] income tax. Most European governments tax most household income more heavily than Washington does because they impose their highest marginal rates on lower levels of income. Germany’s second-highest marginal income-tax rate of 42% kicks in for married households earning around €112,000 ($124,000). An American couple with that income pays a marginal rate of only 22% and would need to earn $612,350 before paying the top marginal rate of 37%.​
Sweden’s top marginal income-tax rate of about 55% applies to earnings as low as $47,000, and in the U.K. the second-highest rate of 40% hits taxpayers earning £50,000 ($64,000). By this standard America’s income tax is highly progressive. The U.S. top marginal rate applies only to taxpayers whose wages are 9.3 times the average wage. In Belgium the top marginal rate ensnares workers earning 1.1 times the average, and in the Netherlands 1.4 times."​


If you don't think the Progressives are coming after your wallet, statistically speaking, you're almost certainly wrong.
Everyone is coming after your wallet, Einstein.

You don't seem very familiar with something even THAT basic.
 
Apr 2015
2,178
2,478
Stockport, Cheshire. UK
It should be noted that in the UK tax system the first £12,500 pounds ( $16,200) of income is completely free of income tax.
 
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Dec 2018
4,894
1,340
New England
It should be noted that in the UK tax system the first £12,500 pounds ( $16,200) of income is completely free of income tax.
Then it quickly escalates to a point where the average earner pays over 40%. In the US, nearly half of all filers pay no income tax.
 

RNG

Forum Staff
Apr 2013
40,276
28,131
La La Land North
Then it quickly escalates to a point where the average earner pays over 40%. In the US, nearly half of all filers pay no income tax.
Which IMO is a big mistake. People should have some skin in the game. If you pay zero federal income tax, you are more apt to accept the stupid things the feds spend money on.

Canada's tax free amount is about $US10,000. The UK amount is about $US16,000.
 
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Dec 2018
4,894
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New England
Which IMO is a big mistake. People should have some skin in the game. If you pay zero federal income tax, you are more apt to accept the stupid things the feds spend money on.

Canada's tax free amount is about $US10,000. The UK amount is about $US16,000.
I couldn't agree with you more.
 
Nov 2018
5,547
3,017
Rocky Mountains
Who pays for the European Welfare State? It's not the rich, folks. It's the middle class. There's a good breakdown in the WSJ this week (paywall, Opinion | The Middle Class Always Pays). The really stunning thing is how regressive the European tax structures are; they need to be, because the middle class is where the real money is.

From the article (emphasis added):

"Start with the [European] income tax. Most European governments tax most household income more heavily than Washington does because they impose their highest marginal rates on lower levels of income. Germany’s second-highest marginal income-tax rate of 42% kicks in for married households earning around €112,000 ($124,000). An American couple with that income pays a marginal rate of only 22% and would need to earn $612,350 before paying the top marginal rate of 37%.​
Sweden’s top marginal income-tax rate of about 55% applies to earnings as low as $47,000, and in the U.K. the second-highest rate of 40% hits taxpayers earning £50,000 ($64,000). By this standard America’s income tax is highly progressive. The U.S. top marginal rate applies only to taxpayers whose wages are 9.3 times the average wage. In Belgium the top marginal rate ensnares workers earning 1.1 times the average, and in the Netherlands 1.4 times."​


If you don't think the Progressives are coming after your wallet, statistically speaking, you're almost certainly wrong.
Actually, I think that conservatives are stealing the wealth of society for private benefit. We hear relentlessly that taxes are too high and need to be cut. Of course, that tax cut goes primarily to the wealthy. It is all about where value is placed in society. In America, we think that people who are wealthy are "better" than those with less wealth-- they must be more intelligent, work harder, and are more imaginative. Of course, inherited wealth and good fortune are never really factored into this value system. Actually, @NatMorton should be more concerned with the destruction that the wealthy are producing on society than whining about "social" programs which raise the standard of living more broadly.