Guest Post by Willis Eschenbach
I’ve been wondering how the Europeans can possibly afford to pay for all of the public benefits as well as putting big money into all kinds of renewable schemes. Where are the megabucks for the renewables coming from?
Today I came across an interesting article entitled “The Death Of Europe” written by a Swede. In it he commented that in Sweden, “Average workers pay (a higher percentage of) taxes than you do if you make $400,000 here in the United States.”
I looked at that and said “Really?” That just didn’t seem possible.
So as is my habit, I went and got the information and to my great surprise …
… he’s right!
Makes me proud to be an American. Now we just gotta cut spending … and please, read the link above about how Europe died. Wise folks learn from the mistakes of other countries …
In any case, speaking of other countries (you like the segue?), on Tuesday I’m flying to Brisbane, Australia. One week on a farm north of there with old friends. Then on the 19th, from there to two weeks in Pacific Harbour in Fiji, lovely Fiji where I lived and worked for nine years. Hey, the waves aren’t going to surf themselves!
Then at the start of April it’s onward for a week in the Solomon Islands, where I lived and worked for eight years. Likely spend most of my time in Gizo, Western Province. Population of maybe 8,000, third largest city in the Solos … it’s a sleepy country.
And where is Gizo when it’s at home, you may ask? Here are the three stops on my bon voyage—Brisbane, Fiji, and Gizo in the Solomon Islands.
Solomons is malaria city. I had it four times. Zero stars, would not recommend. Take the preventative medicine, sleep under the net, use mosquito repellent, hope for the best …
If you’re a climate scientist in one of those areas, whether amateur or professional, gimme a shout.
Then back home again. During my peregrinations I’ll likely post sporadically on my blog, “Skating Under The Ice“. And in the meantime, leave the weapons at the door, play fair, no eye gouging, and remember:
When you comment, please quote the exact words you’re referring to.
Best to each and to all,
w.
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In the US, if a married couple has a Gross Adjusted Income of $1 million, of which $500,000 is the required minimum distribution from IRAs, and the rest is mostly qualified long term dividends taxed at 15%, then your tax rate is about 16.5%, if you give away $500,000 to 503 c charities.
I assume this analysis is of *income* taxes. Sadly, this gives a very incomplete picture of the overall situation. You can’t get a complete understanding of climate by measuring one variable.
And you can’t get a complete picture of taxation without considering the *total* tax burden; income taxes (federal, state and local) property taxes, sales or value added taxes, sin taxes (like gasoline, alcohol and tobacco) and whatever other creative taxes our legislators are able to come up with (cellphones, utilities, hotel rooms, plastic bottles, yada yada).
In my case, with a modest income, my property taxes are 90% of my federal income tax. So the federal income tax rate is a very poor representation of my overall tax burden.
“Freedom” is pretty expensive, but it is the way to go, if possible.
G’day Willis:
In Brisbane can you collect some first-hand accounts of the recent “cyclone”.
I get two ‘headlines’ emails a day from the Sydney Morning Herald – for, days predicting disaster. Then I looked at “earth – nullschool”, Mean Sea Level Pressure. Over several days, 981 to 988, then after reaching the mainland, 1008. I think SMH overdid it somewhat.
Specific areas of interest: the suburb of Fairfield, did the river rise over its banks; and the City Markets at Rocklea, did they get flooded? (I spent a bunch of formative years in Tennyson, between those two. Just curious as to what the current younger generations think on the subject.)
Have a great trip…..
Australia taxes are as high as Sweden
Above 200,000AUD (125,000USD) you are paying 48% base plus 2.5% medicare so it is above 50%
You get nothing in retirement as you have earned to much
Australia is a welfare state where the non working class live in luxury at the expense of the working poor
If you add on GST Australia jumps to 60% add on other items such as stamp duty etc and it is probably closer to 70%
As well as other taxes besides income tax (property, state, sales tax & VAT etc.) should also consider medical costs.
They all seemed like a good idea at the time until they added up to a housing shortage and rental crisis for the young and recently arrived-
Half cost of new house goes to tax, report
I wonder, Willis, do you get free medical treatment for that tax money in the US? Free education? Social benefits for all in need?
Mind you, a 400.000 USD income is pretty high for Sweden. The average annual wage is around 60.000 USD, for which you probably pay something like 28% in taxes. In Norway, the average annual wage is around 65.000 USD followed by 28% tax. Those taxes include state and local taxes.
And the include free medical care, free education through university level for all our kids, social benefits for those in need. And yes, some subsidies for stuff like renewables.
Oh yes, we do have challenges in Europe. But we have no want for the US system, regardless who is your president.
Nice photo of “The Slot”.
Hey Willis.
Your Methods section is kind of lite on details and the citation of data sources kind of fuzzy.
“DATA: US and Swedish Tax Departments”
Have a wonderful trip.
“… he’s right!”
I want to comment on the graph, and that’s the text that immediately precedes the graph.
You have a graph that shows US Federal income tax payments. It looks like you’ve calculated the amount paid based on the cumulative marginal rates. So I’m assuming the graph for Sweden shows Swedish national taxes.
Does Sweden have taxes at other jurisdictional levels? Here in South Carolina I also pay 7% on my Federal adjusted gross income (technically it’s scaled to income, but a couple hits the top bracket at $15,000). And then both the Swede and I would pay sales taxes. Do they have property taxes? I expect they have higher gas taxes. As a self-employed person I also pay 15.3% FICA taxes (added to the numbers in the graph.
It gets really hard to make comparisons like this without comparing specific situations. I make well under $400k, but as best I can tell about 50% of my income goes to taxes of one form or another.
Anyway, I think especially for readers who aren’t here in the USA it would be helpful to point out that these are just national income taxes and don’t include mandatory payroll taxes (social security).
First of all, thank you very much, Willis, for your article about the “Earth thermostat” from a few years ago, which appears to be confirmed in the winter of 2024 and also this northern winter when one looks at the temperature trends (DMI) north of 80° latitude, which are likely, among other things, a result of increased meridional flow due to larger temperature gradients.
The heat energy escaping into space in this way is to be many times greater than what some believe can be achieved in terms of temperature reduction through decarbonization.
The worst robbed by the state are probably the Germans, who, starting at $75,000 per year, pay the highest tax rate (42%) for every additional euro earned, plus 19% VAT on everything they buy with their remaining money, and of course, property tax. Up to an income of approximately €60,000 per year, they are required to pay 18% of their income for healthcare and social security contributions. However, this contribution is deducted from taxable earnings.
Willis, hope you see this. Sulphur from ships appears to cause lightning. Would love to hear what you think.
https://theconversation.com/the-world-regulated-sulfur-in-ship-fuels-and-the-lightning-stopped-249445