An expat's view: politics, economics and life in Italy, Britain and other places.
22 September, 2012
USA: the difference
Willard 'Mitt' Romney, in an attempt to rescue what can only be described as a disastrous presidential campaign, has released his tax return.
This shows that on an income of around $14 million he and his wife paid around $2 million in tax, an effective rate of 14%.
What is astonishing for us in Europe is that this has been deemed OK - he has done the right thing.
Here higher income tax levels of 40-55% click in at incomes as low as $50,000 equivalent.
I know the comparison is not exact because there is health and welfare insurance, but it is easy to see how in America there is at least the incentive to work - you get to keep a fair bit of what you have worked for.