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Subject: Re: US and French taxes--what's wrong with this picture? Posted on: Sun, 06 Jan 2008 22:48:07 -0700

On Sun, 06 Jan 2008 21:39:36 -0500, Viking
wrote:

>We pay 60% of our income in taxes in the US,

Not unless you have a pretty high income.

>and another 15% to our agent, which leaves us 25%.

Agent? And you're answer is wrong to the extent that your agent's
fees are deductible, so in the 60% bracket you'd really only be
losing 6% to the agent.

>Now for a back-of-the-envelope calculation. If we moved to France,
>we'd have to convert that $ into EU, which cuts it down by about 25%
>in purchasing power, meaning we'd only have 18.75% of our income left,
>effectively.

OK.

>And according to a book I've been reading ("Living, Studying, and
>Working in France"), any income from the US is taxable without
>deductions.

I'm pretty sure you could deduct your agent's fees. Although you
don't say what kind of agent.

>And French taxes can go as high as 50% or so. And another
>20% is added to that for social security.

Oh. You left out your own US Social Security contribution. What
is it now? 14%

>So that would theoretically leave us with 5.625% of our US-earned
>income to live on in France.

>That can't be right.

Sure it could.

>Any help from people who've faced this problem?

Anyone remember when Swedish film director Ingmar Bergman left
Sweden because his income taxes in Sweden had gone up to 106% of
his income?

--
************* DAVE HATUNEN (hatunen@cox.net) *************
* Tucson Arizona, out where the cacti grow *
* My typos & mispellings are intentional copyright traps *