The highest marginal tax rate for income earners is over 50%. And it takes effect at much lower incomes than other comparable countries.
In Australia? The highest marginal tax rate is 45%, and due to the nature of progressive taxation unless you have an absurdly high income most of the income of even high earners is taxed at a lower rate. Source: I am in the top tax bracket and until recently did my own taxes
DavidDoesLemmy@aussie.zone 5 days ago
CoolThingAboutMe@aussie.zone 4 days ago
75000/255000 = 30%
This is disproving your 58% claim above
DavidDoesLemmy@aussie.zone 4 days ago
You’re confusing effective tax rate with marginal tax rate.
DavidDoesLemmy@aussie.zone 5 days ago
45% income tax, plus 2% Medicare levy, plus the incremental tax added as you move from no div 293 to full div 293. Plus you’re paying 10% GST on the things you buy. When you add all these together, earning an extra $100 can net you less than $50. You can see it when you play around with paycalculator.com.au
DavidDoesLemmy@aussie.zone 5 days ago
58.57% tax rate per my calculations. That’s not including GST.
HalfEarthMedic@slrpnk.net 5 days ago
I’m not going to spend my afternoon doing calculations to prove my point as what is required is doing the same calculations for other nations, the number you’re quoting is not what is meant by marginal tax rate for a start but the linked article provides the context needed.
Again, I have been in the top tax bracket for around a decade and have never paid more than 40% of my taxable income in tax without an accountant
Australia has lower sales taxes, lower income taxes, no requirement for private or employee provided health insurance. It is straightforwardly untrue that Australia is high taxing. Even if it were true then the level of public services provided would make it worthwhile.
Maybe the top tax rate kicks in lower but the tax free threshold is also higher than in most countries which is the correct balance.
DavidDoesLemmy@aussie.zone 5 days ago
Marginal tax rate is the tax rate you pay on each additional dollar earnt. The fact that the Australian government hides some of the taxes doesn’t mean you don’t pay them or that they’re not part of the marginal tax rate.