scot47

NHS and free healthcare ?

Pulaski

v high taxes.

My health insurance plus copays/deductibles is less than the tax I save working in the US compared to the UK.

dunroving

Just out of interest, do you use an online tool to calculate/compare this? There are so many different stealth taxes in both countries that I find it difficult to get a clear picture:

Income tax allowance (now £10k in the UK)
"National" (Federal) income tax
Local (state) income tax
Sales tax/VAT
Property tax/council tax
Big-ticket purchase tax (esp. stamp duty in the UK - can't recall there being anything similar in the US)

Pulaski

No, and in fairness I haven't checked in several years, but income tax rates have declined in the US, but NI has gone up in the UK. I was losing about 35% of my gross pay in the UK to statutory deductions in the US, about 25%, INCLUDING health insurance, and state income tax.

My property tax in the US is about 10% more (at current exchange rates) than I was paying 13 years ago in London, so I suspect as of today, that is "about a wash", and could be a saving to me.

US sales taxes are obviously a lot less than VAT in the UK, not least because in NC, at least, and until a few weeks ago, only the purchase of tangible goods was subject to sales tax. The tax has just been expanded to cover sports, concert, and cinema tickets. The rate of sales tax is only about 7% too.

So while I don't know the overall numbers for comparison, I DO know that there is nothing in the US that offsets my substantial saving in "statutory payroll deductions" including health insurance and costs), because the two most likely areas (property tax and sales tax), are "a wash" and substantial additional savings!

The scope for further tweaking the comparison are almost endless, for example if I had moved from my 700sqft terrace housed to something more suitable for a family, my UK council tax would have increased substantially, so I could make an argument that I am saving on property tax too.

I don't get the UK's personal allowance, but then I get to deduct mortgage interest and a few other things, so the net effect is not that great (and is mostly embedded in my big picture observation that deductions went from 35%. to 25%).

civilservant

Ah Pulaski, now I know where you live It's something I've wondered off and on for a few months now

Pulaski

It's not the first time I've posted state-specific data.

http://britishexpats.com/forum/showp...66&postcount=4

civilservant

First time I've seen it though

Bink

I can't speak for Pulaski though I seem to recall we have a very similar view on this.
I too figure I'm much better off than the UK even taking into account health insurance.

For me, I included everything above except sales tax/VAT and stamp duty. Sales tax is generally <10% versus VAT of 20% and stamp duty I would say is balanced out by much higher realtor fees here 6% versus 1.5%. I also included healthcare premiums as well as all deductions from payslip (PAYE and NI in UK and federal tax, SS contributions, Medicaid and healthcare in US).

The complicated thing is personal circumstances. The US system, in my opinion, heavily favors middle to high income single household earners and starts to get really beneficial when you itemize deductions.

I reckoned even comparing everything I was still 10-15% better off in the US and that's without taking into account how much further my money goes on items like houses (I'm talking specifically about Houston as that's where I live and therefore the comparison I made).

Bink

So apparently I took longer to write that than I realized!

dunroving

Thanks both, those are two helpful explanations.

I tried to do the figures recently to figure out would I be better off back in the US or staying in the UK (as I had a job interview lined up there). That was why I was interested how Mr P was figuring out his US vs. UK tax situation.

For me, at my career stage, the major advantage of the UK is related to tax treatment of pensions (25% of pension pot can be drawn as tax-free cash). Also, as I am currently (and will continue to) paying pretty much all of my taxable salary into my pension, income tax is a non-issue.

Final salary pension also pretty much beats defied contribution retirement scheme any day.

Sorry, OT but just wanted to tie a bow on the sub-discussion.

scrubbedexpat099

Holiday - see other thread.

Sally Redux

BBC News vs. Fox.

civilservant

Ruth16

I can't think anything living in the US that I miss from the UK , if I did it would be available here anyhow,

hoffage123

My sister-in-law lives in NC (I think near Charlotte).

Right - everyone to Pulaski's house for a cuppa! Mine is Yorkshire (obviously )

... Getting back on topic - I haven't been yet, but things I am thinking about include the aforementioned Yorkshire Tea. I live just outside the Lakes (so I will miss the natural beauty of that) ... umm.

Let's see - people. I will miss certain family and friends, but am used to moving around so that should be ok. I won't miss the chavviness that seems to be an increasing problem in Lancaster, the extreme lack of opportunities in my desired field. I won't miss the stoic British attitude of 'know your place' and 'don't aim high just be happy you have a job even a crappy one' that I get in my current workplace.

I will miss the banter, and will have to get used to adjusting my humour for the American ear. Umm. That's it really.

Hoffage