Is it REALLY cheaper in the US.....
#1
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Joined: Aug 2006
Posts: 7
Is it REALLY cheaper in the US.....
I arrived in the US 10 years ago, twenty-something and single. Couldn't believe how cheap it was to live the life compared to living in Blighty. That however was when I only had myself to think about. 10 years on I'm thirty-something, married (to an American), with a kid and step-kid.
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK), now that I have an awareness of what it costs to raise a family in the US I'm thinking that perhaps the difference isn't so wide after all......that 10% difference starts slimming down pretty quickly when you run through the necessary extras that you shell out for (health insurance for family, extortionate property taxes, the daunting cost of putting two kids through college ($150K each at the last count)......
So here's my question ; there's a commonly held perception that it's way cheaper to live in the US because of the wonderfully low taxes - but when you add it all up and take into account all those extras that back home are either free or at least way cheaper, is the difference for real???
All feedback would be appreciated. Am I remembering Blighty through rose tinted glasses or am I seeing through the American dream?
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK), now that I have an awareness of what it costs to raise a family in the US I'm thinking that perhaps the difference isn't so wide after all......that 10% difference starts slimming down pretty quickly when you run through the necessary extras that you shell out for (health insurance for family, extortionate property taxes, the daunting cost of putting two kids through college ($150K each at the last count)......
So here's my question ; there's a commonly held perception that it's way cheaper to live in the US because of the wonderfully low taxes - but when you add it all up and take into account all those extras that back home are either free or at least way cheaper, is the difference for real???
All feedback would be appreciated. Am I remembering Blighty through rose tinted glasses or am I seeing through the American dream?
#2
Banned
Joined: Aug 2006
Location: lincoln soon to be spain
Posts: 42
Re: Is it REALLY cheaper in the US.....
Originally Posted by texasmackem
I arrived in the US 10 years ago, twenty-something and single. Couldn't believe how cheap it was to live the life compared to living in Blighty. That however was when I only had myself to think about. 10 years on I'm thirty-something, married (to an American), with a kid and step-kid.
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK), now that I have an awareness of what it costs to raise a family in the US I'm thinking that perhaps the difference isn't so wide after all......that 10% difference starts slimming down pretty quickly when you run through the necessary extras that you shell out for (health insurance for family, extortionate property taxes, the daunting cost of putting two kids through college ($150K each at the last count)......
So here's my question ; there's a commonly held perception that it's way cheaper to live in the US because of the wonderfully low taxes - but when you add it all up and take into account all those extras that back home are either free or at least way cheaper, is the difference for real???
All feedback would be appreciated. Am I remembering Blighty through rose tinted glasses or am I seeing through the American dream?
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK), now that I have an awareness of what it costs to raise a family in the US I'm thinking that perhaps the difference isn't so wide after all......that 10% difference starts slimming down pretty quickly when you run through the necessary extras that you shell out for (health insurance for family, extortionate property taxes, the daunting cost of putting two kids through college ($150K each at the last count)......
So here's my question ; there's a commonly held perception that it's way cheaper to live in the US because of the wonderfully low taxes - but when you add it all up and take into account all those extras that back home are either free or at least way cheaper, is the difference for real???
All feedback would be appreciated. Am I remembering Blighty through rose tinted glasses or am I seeing through the American dream?
We are moving to spain soon and to be honest england does not offer a lot anymore i do love home and my family however with the day to day running fo this country more people are leaving so my answer would be maybe you have got them glasses on, in this country it is rip off all the time i would rather be skint and work my bottomof just to have a healthy lifestyle and for my children to not be bought up in fear, as this country seems to be going downhill constantly, however at the end of the day it is your life and you have to make the choice i know that im leaving a coountry that is slowly destroying my faith in britain.
good luck with whatever you decided
#3
Re: Is it REALLY cheaper in the US.....
Originally Posted by texasmackem
...
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK),
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK),
The UK base rate is 22% for the first £33,300 and then 40% for anything earned above that. You'd need to be earning around £250,000 p/a to be paying 38% income tax.
That same £250,000 is about $370,000 which would be taxed at 35% in the US. Not that much in it and if you take into account the state tax, you end up paying more than you would in the UK. I'm guessing you're in Texas, so don't have to worry about state tax, but you're in the minority.
UK tax rates
US tax rates
#4
Re: Is it REALLY cheaper in the US.....
Some things are and some things aren't. Generally it works out pretty close to the same. Except I do think you get more house and land for your money in the States than the UK, but the houses are built better here in the UK.
What I have found is taxes work out pretty close to the same when you compare Federal, State, Property & Sales taxes to Income taxes, council taxes and VAT.
Gas is cheaper in the States. Groceries close to the same, maybe a little cheaper in the States at lease where we were living. Housing is cheaper for the most part in the States unless you are living in NYC, SF or LA and a few others where the markets are just out of control. Utilities are close to the same.............except water is more expensive here in the UK. Phone, satelitte tv, and internet are about the same. Clothing is about the same and I do think the States have better quality clothes for the money but the cheaper brands are comparable.
I know for a fact that DIY stuff is much cheaper in the States since we have just about finished redoing our house in the UK and the prices are much steeper.
Gardening supplies and plants are also more expensive here in the UK.
For the most part though.......I think it all works out pretty close when comparing overall epense between the two countries.
What I have found is taxes work out pretty close to the same when you compare Federal, State, Property & Sales taxes to Income taxes, council taxes and VAT.
Gas is cheaper in the States. Groceries close to the same, maybe a little cheaper in the States at lease where we were living. Housing is cheaper for the most part in the States unless you are living in NYC, SF or LA and a few others where the markets are just out of control. Utilities are close to the same.............except water is more expensive here in the UK. Phone, satelitte tv, and internet are about the same. Clothing is about the same and I do think the States have better quality clothes for the money but the cheaper brands are comparable.
I know for a fact that DIY stuff is much cheaper in the States since we have just about finished redoing our house in the UK and the prices are much steeper.
Gardening supplies and plants are also more expensive here in the UK.
For the most part though.......I think it all works out pretty close when comparing overall epense between the two countries.
#5
Re: Is it REALLY cheaper in the US.....
Originally Posted by Scout
Some things are and some things aren't. Generally it works out pretty close to the same. Except I do think you get more house and land for your money in the States than the UK, but the houses are built better here in the UK.
What I have found is taxes work out pretty close to the same when you compare Federal, State, Property & Sales taxes to Income taxes, council taxes and VAT.
Gas is cheaper in the States. Groceries close to the same, maybe a little cheaper in the States at lease where we were living. Housing is cheaper for the most part in the States unless you are living in NYC, SF or LA and a few others where the markets are just out of control. Utilities are close to the same.............except water is more expensive here in the UK. Phone, satelitte tv, and internet are about the same. Clothing is about the same and I do think the States have better quality clothes for the money but the cheaper brands are comparable.
I know for a fact that DIY stuff is much cheaper in the States since we have just about finished redoing our house in the UK and the prices are much steeper.
Gardening supplies and plants are also more expensive here in the UK.
For the most part though.......I think it all works out pretty close when comparing overall epense between the two countries.
What I have found is taxes work out pretty close to the same when you compare Federal, State, Property & Sales taxes to Income taxes, council taxes and VAT.
Gas is cheaper in the States. Groceries close to the same, maybe a little cheaper in the States at lease where we were living. Housing is cheaper for the most part in the States unless you are living in NYC, SF or LA and a few others where the markets are just out of control. Utilities are close to the same.............except water is more expensive here in the UK. Phone, satelitte tv, and internet are about the same. Clothing is about the same and I do think the States have better quality clothes for the money but the cheaper brands are comparable.
I know for a fact that DIY stuff is much cheaper in the States since we have just about finished redoing our house in the UK and the prices are much steeper.
Gardening supplies and plants are also more expensive here in the UK.
For the most part though.......I think it all works out pretty close when comparing overall epense between the two countries.
Having a bigger houses is all very well, but they're made of wood, have no foundation and you'll be lucky if they last the term of your mortgage.
#6
Re: Is it REALLY cheaper in the US.....
a few things not mentioned here. I do think travel is cheaper here in the UK. Also coming from Florida I have noticed the small things like not having to buy my pets flea meds and heartworm meds; all summer having my windows open and not relying on gas or electric for temp control; not paying health insurance has made a big difference, also car insurance at least in our case has been much cheaper. Food I think adds up to about the same, some things cheaper here, some cheaper there. Houses are high here, but not that bad here in the midlands comparable to Florida. They are better built here though. Petrol is way more expensive here, but we dont drive as far or as often. All in all we do better here but thats all down to areas in some respects also.
#7
long live thefinest range
Joined: Jul 2006
Location: Higham Ferrers, Northants to Spokane Washington and back again!!
Posts: 445
Re: Is it REALLY cheaper in the US.....
Originally Posted by texasmackem
I arrived in the US 10 years ago, twenty-something and single. Couldn't believe how cheap it was to live the life compared to living in Blighty. That however was when I only had myself to think about. 10 years on I'm thirty-something, married (to an American), with a kid and step-kid.
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK), now that I have an awareness of what it costs to raise a family in the US I'm thinking that perhaps the difference isn't so wide after all......that 10% difference starts slimming down pretty quickly when you run through the necessary extras that you shell out for (health insurance for family, extortionate property taxes, the daunting cost of putting two kids through college ($150K each at the last count)......
So here's my question ; there's a commonly held perception that it's way cheaper to live in the US because of the wonderfully low taxes - but when you add it all up and take into account all those extras that back home are either free or at least way cheaper, is the difference for real???
All feedback would be appreciated. Am I remembering Blighty through rose tinted glasses or am I seeing through the American dream?
Although income tax rates in the US are significantly lower than the UK (I pay 28% in the US and would pay 38% in the UK), now that I have an awareness of what it costs to raise a family in the US I'm thinking that perhaps the difference isn't so wide after all......that 10% difference starts slimming down pretty quickly when you run through the necessary extras that you shell out for (health insurance for family, extortionate property taxes, the daunting cost of putting two kids through college ($150K each at the last count)......
So here's my question ; there's a commonly held perception that it's way cheaper to live in the US because of the wonderfully low taxes - but when you add it all up and take into account all those extras that back home are either free or at least way cheaper, is the difference for real???
All feedback would be appreciated. Am I remembering Blighty through rose tinted glasses or am I seeing through the American dream?
I have had friends form the Uk just recently visit and they couldn't get over how things were the same price here, and it was only cheaper because they'd bought pounds to spend. I think the key is once you are earning dollars it's not so great.
I also think that the US is cheaper for bars and eating out as well as electronics and Cd's and stuff like that (in other words the priorities you want as a newly married) . I don't think it's any cheaper (in fact I think in most cases it's more) for 'grown up' boring stuff like utilities (I second the notion that you pay more because you have to heat and cool and houses are bigger) insurance (health car et al) and property taxes. At the end of the day these are the things I can't avoid paying.
I've defiantly revised the rip off Britain way of thinking!
#8
BE Forum Addict
Joined: Mar 2003
Location: Florida
Posts: 1,296
Re: Is it REALLY cheaper in the US.....
No I don't think living in the States is cheaper than UK. I've been here 15 years and have always said that if we had this wage in UK we'd be rich- not so here. Even when we first came out and prices in the shops were cheaper- the hidden cost of living (that the tourist doesn't see) was way above and beyond living in the UK. Just electricity alone- we spent more in 1 month in the Summer here than we did in six months back home. The houses are bigger, but then we had a big old house in UK too, and cheaper (in every respect tho- wouldn't fancy our chances in a strong hurricane in this house, LOL). I don't see taxes being cheaper- throw in the social security and medicare and its comparable to UK- plus there are many stealth taxes and of course the big rip-off, property taxes every year- and to think I moaned about stamp duty, ha.
All insurances are dearer here and health insurance- well say no more. Bread , potatoes, milk, fruit, veg - all the staples are more expensive in Florida than home in Wales (even Florida oranges are cheaper in Sainsburys than they are here in FL- work that one out!). Gas is cheaper than petrol, but you spend MUCH more on gas because of the distances and gas guzzling cars.
I see a huge difference on what my friends' grown up children in UK are able to afford and what my grown up kids can do here. But then with all their wages are eaten up just keeping their heads above water- especially with young children, health care costs alone cripple them- something brits don't have to think about.
Bottom line - our friends in UK have not only kept pace with us, and had far more holidays! they have all been able to retire comfortably over there...years before we can, despite the higher wage here. Also I compare my 75 yr old Mum- she lives very well and is in fact better off now than she ever has been on her pensions- she could NOT survive on that money here. She'd be joining the over 70s workforce at the local publix bagging groceries just to pay for her prescriptions, if she lived here. Even though its a worry her being so far away- I thank god she's living in UK at her age.
All insurances are dearer here and health insurance- well say no more. Bread , potatoes, milk, fruit, veg - all the staples are more expensive in Florida than home in Wales (even Florida oranges are cheaper in Sainsburys than they are here in FL- work that one out!). Gas is cheaper than petrol, but you spend MUCH more on gas because of the distances and gas guzzling cars.
I see a huge difference on what my friends' grown up children in UK are able to afford and what my grown up kids can do here. But then with all their wages are eaten up just keeping their heads above water- especially with young children, health care costs alone cripple them- something brits don't have to think about.
Bottom line - our friends in UK have not only kept pace with us, and had far more holidays! they have all been able to retire comfortably over there...years before we can, despite the higher wage here. Also I compare my 75 yr old Mum- she lives very well and is in fact better off now than she ever has been on her pensions- she could NOT survive on that money here. She'd be joining the over 70s workforce at the local publix bagging groceries just to pay for her prescriptions, if she lived here. Even though its a worry her being so far away- I thank god she's living in UK at her age.
#9
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Joined: Jul 2006
Location: Spokane, Washington from Rushden, Northants
Posts: 348
Re: Is it REALLY cheaper in the US.....
Pah - I am independantly wealthy and do not have to bother myself with such trivial matters as taxes and expenses. My "people" do that for me. I sold cobble stones to the Chinese claiming them to be the "stones of eternal life".
#10
Re: Is it REALLY cheaper in the US.....
One thing that helps to create the illusion of the US being cheaper is your salary.
You're likely to get paid a fair bit more over here for doing the same or similar job you did in the UK.
You're likely to get paid a fair bit more over here for doing the same or similar job you did in the UK.
#11
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Joined: Aug 2006
Posts: 7
Re: Is it REALLY cheaper in the US.....
Originally Posted by Hilda Ogden
Pah - I am independantly wealthy and do not have to bother myself with such trivial matters as taxes and expenses. My "people" do that for me. I sold cobble stones to the Chinese claiming them to be the "stones of eternal life".
#12
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Joined: Mar 2003
Location: Florida
Posts: 1,296
Re: Is it REALLY cheaper in the US.....
Originally Posted by Hilda Ogden
Pah - I am independantly wealthy and do not have to bother myself with such trivial matters as taxes and expenses. My "people" do that for me. I sold cobble stones to the Chinese claiming them to be the "stones of eternal life".
So THAT's what you were hiding under your head scarf all those years ...
#13
Re: Is it REALLY cheaper in the US.....
Originally Posted by Taffyles
No I don't think living in the States is cheaper than UK. I've been here 15 years and have always said that if we had this wage in UK we'd be rich- not so here. Even when we first came out and prices in the shops were cheaper- the hidden cost of living (that the tourist doesn't see) was way above and beyond living in the UK. Just electricity alone- we spent more in 1 month in the Summer here than we did in six months back home. The houses are bigger, but then we had a big old house in UK too, and cheaper (in every respect tho- wouldn't fancy our chances in a strong hurricane in this house, LOL). I don't see taxes being cheaper- throw in the social security and medicare and its comparable to UK- plus there are many stealth taxes and of course the big rip-off, property taxes every year- and to think I moaned about stamp duty, ha.
All insurances are dearer here and health insurance- well say no more. Bread , potatoes, milk, fruit, veg - all the staples are more expensive in Florida than home in Wales (even Florida oranges are cheaper in Sainsburys than they are here in FL- work that one out!). Gas is cheaper than petrol, but you spend MUCH more on gas because of the distances and gas guzzling cars.
All insurances are dearer here and health insurance- well say no more. Bread , potatoes, milk, fruit, veg - all the staples are more expensive in Florida than home in Wales (even Florida oranges are cheaper in Sainsburys than they are here in FL- work that one out!). Gas is cheaper than petrol, but you spend MUCH more on gas because of the distances and gas guzzling cars.
I agree...swings and roundabouts.