What does a 75% tax rate look like?

Poq

The media (BBC included) are making it seem like French people making over something like €1 million (I forget the exact number) will be "taxed at 75%".

In other words, making it look like they'd be receiving €250,000, and paying €750,000 in taxes. Not true! They're not mentioning that it's a progressive tax, where only earnings over that which will be taxed at that rate.

What does the real life tax rate actually look like for the following annual incomes:

a) €20,000
b) €30,000
c) €50,000
d) €100,000
e) €200,000
f) €500,000
g) €1,000,000 (pretend that proposed 75% rate takes effect)
h) €2,000,000 (pretend that proposed 75% rate takes effect)
i) €10,000,000 (pretend that proposed 75% rate takes effect)

(Of course there may be benefits depending on size of household, as well as maybe something like the personal untaxable allowance? But just to get some rough figures going...)

Not sure if this is up to date, but here's a table of France's progressive tax brackets, or see a table on Wikipedia here.

Is there a tool to calculate these sort of things for France or taxes in general?

I remember doing some manual calculations about UK's tax rates, and even though the high one is something like 40%, the actual rate came down to being less, only somewhat higher to what most people in the UK pay.

CLAPTON

Poq wrote: »

The media (BBC included) are making it seem like French people making over €1 million will be "taxed at 75%" — in other words, making it look like they'd be receiving €250,000, and paying €750,000 in taxes.

They're not mentioning that it's a progressive tax, and what it actually constitutes. They don't mention that it's the earnings over that which will be taxed at that.

What does this kind of rate actually look like for the following annual incomes:

a) €20,000
b) €30,000
c) €50,000
d) €100,000
e) €200,000
f) €500,000
g) €1,000,000
h) €2,000,000
i) €10,000,000

Is there a tool to calculate these sort of things for France or taxes in general?

I remember doing some manual calculations about UK's tax rates, and even though the high one is something like 40%, the actual rate came down to being less, only somewhat higher to what most people in the UK pay.

no idea about france but in the UK the marginal government take below 42,475 is 32% and above that 42% until you hit the 52% marginal rate

Poq

CLAPTON wrote: »

no idea about france but in the UK the marginal government take below 42,475 is 32% and above that 42% until you hit the 52% marginal rate

Thanks, but what does that look like in those actual figures?

I mean total money that a person can expect to see for each of the salaries, and what true percentage is that?

There must be a tool for calculating that? Or a ready-made spreadsheet?

CKhalvashi

Poq wrote: »

Thanks, but what does that look like in those actual figures?

Here for the UK

I'll ask my accountant and work it out in the morning, as she's in tomorrow and deals with my Swiss tax return and Georgian tax, too.

CK

Poq

CKhalvashi wrote: »

Here for the UK

I'll ask my accountant and work it out in the morning, as she's in tomorrow and deals with my Swiss tax return and Georgian tax, too.

CK

Thanks! Let us know.

By the way, your link is broken.

sonusonu1426

Poq wrote: »

Thanks! Let us know.

By the way, your link is broken.

yes the link is not working

agrinnall

I don't really understand why you're asking us, why don't you just put the figures into a spreadsheet and let it work out the answers for you? I'm not interested in the results (don't live in France or earn a million euros) so I'm not doing it for you.

zygurat789

Why don't you ask someone earning minimum wage with two children?
On overtime they pay 20% tax, 13.8% national insurance and have their tax credits reduced by 41p for each £1, that makes 74.8%. Will that do?

malcumms7898

So you mean if the 75% tax rate kicks in at €1m and someone earns €2m, they will only receive €1.25m? Or would it be €500k?

zygurat789

malcumms7898 wrote: »

So you mean if the 75% tax rate kicks in at €1m and someone earns €2m, they will only receive €1.25m? Or would it be €500k?

That would be 250,000 of the second million.

Poq

zygurat789 wrote: »

Why don't you ask someone earning minimum wage with two children?
On overtime they pay 20% tax, 13.8% national insurance and have their tax credits reduced by 41p for each £1, that makes 74.8%. Will that do?

Are you saying they pay 75% of their earnings in taxes?