What does a 75% tax rate look like?

Poq

agrinnall wrote: »

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.

It's a little harder than for me to put it into a spreadsheet; I don't really know the specifics: if French untaxable allowance comes into play (and confuses me), throwing in some average benefits, and any other specific things in Frances tax code (that I'm not familiar with). Also not sure how to lay it all out concerning the progressive tax.

Hence why I'm asking. I can imagine there must be ready-made spreadsheets for this. (At least for the UK?)

Also, please note that I'm not asking you specifically — if you're not interested in the results then feel free to ignore this thread.

Poq

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?

It's pretty uncertain at this point, because there is a progressive tax leading up the million...

I'm trying to calculate the effective tax rate of the total sum — kind of an average (but not really).

John_Pierpoint

13 posts and I have only noticed one that raises the subject of the weekly National Insurance TAX - you can fool most of the people most of the time.

For most people it is the sudden marginal tax rate changes that incentivise their actions, even if it is just the old fallacy that is it is not worth doing overtime in April, as the tax man gets "most" of the benefit.

I believe that France has pretty massive social security taxes to fund (state) early retirement issues - just something to contribute to the high level of (youth) unemployment in France, as the employer picks up most of the tab?

Poq

John_Pierpoint wrote: »

13 posts and I have only noticed one that raises the subject of the weekly National Insurance TAX - you can fool most of the people most of the time.

Huh?

For most people it is the sudden marginal tax rate changes that incentivise their actions, even if it is just the old fallacy that is it is not worth doing overtime in April, as the tax man gets "most" of the benefit.

Any ideas on how to deal with the OP question?

CLAPTON

the calculation is trivial if one knows the tax & social security alowances and the tax bands

but most of us don't know the french system

Poq

OK, so what about the UK system?