On Sun, 06 Jan 2008 22:48:07 -0700, Hatunen wrote:
>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.
Well, that's all taxes, fed, state, local (including property tax).
>>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.
Agent takes 15% before we see anything; yes, we deduct agent costs,
but since we only get 85% in any case, we're not saving any tax there.
>>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.
Well, agent fees are a legit deduction, but since they're taken by the
agent before we see anything, that doesn't create any tax saving.
>>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%
15% (for self-employed people, as we are); was included in the 60% I
mentioned earlier.
>
>>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.
Yipe!!!
>>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?
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