Sorry, 39.5% + 12.5% = 100% Socialist. You're better off here in the USA.
Really? Comparing apples to apples (highest tax bracket):
Income tax: 35%
Sales tax in California: 8.25%
State income tax: 9%
FICA: 6.2%
E-FICA: 6.2% (paid by your employer on your behalf)
Medicare: 1.45%
Total = 66.1% (59.9% not including E-FICA)
You could argue that the second / hidden 6.2% FICA shouldn't be included since it's paid by your employer, but that's money your employer could be paying you if they didn't have to pay the tax.
vs. 39.5% + 12.5% = 52% for NZ
Except in NZ, the taxes also cover basic medical care. Insurance costs of all kinds are a small fraction of the US costs, and true inflation rates are lower (inflation is another hidden tax). Property taxes are around 0.1%, there are no capital gains on the sale of your home, and there are no inheritance taxes. The government has actually been operating at a net surplus for the last few years.
Yes, both tax rates are very high. I'm philosophically aligned with RP's idea of abolishing the income tax. But until that happens, exactly how am I better off in the USA?
And if 39.5% + 12.5% is 100% socialist, then what is 35% + 8.25% + 9% + 6.2% + 6.2% + 1.45%? Would that be 100% Capitalist? Free market? Democratic? I don't think so.