New York and California steal (at least) half too.
At least in Europe you get something for your taxes (okay, except maybe Germany).
At least in Europe you get something for your taxes (okay, except maybe Germany).
On an income of $200k in California, for example, your tax rate is something like 8% (marginal). If you total it up with federal taxes, it's something like a 27% tax rate.
You do get something for that, but it is surprising (to me anyway) for example how similar the percentages of GDP spent on social welfare are between the blue U.S. states and Australia, and how much more the Australians seem to get for the money.
Most social welfare programs that people can get in NY are niche. You generally have to meet certain demographic requirements. It also takes years of paperwork and waiting to get into anything if you aren't a single/battered mother.
I paid well over 40% of my income in taxes and had no hope of ever accumulating any assets or meaningful retirement and zero safety net if anything went south for me. My friends in Denmark and Sweden only paid a little bit more for what is effectively a cradle-to-grave nanny state. And they all manage to own their apartments.
That said, income tax is not the only kind of tax. In the US, federated government entities mean a mesh of taxes accumulate. Income tax + Payroll Tax + Social Security + Medicare + Property Tax + Sales Tax aggregate. CA and NY are a little higher than other competing states, but not by much.
So, after $185k, while you've probably already paid 7% ($14k prop) on your home, and probably another 1% (2k sales), leading to what could be considered 50.75% tax.