A short journey into the debacle that is the current UK government

[mark mywords]

right down to the colour of the adhesive bandages applied in hospital.

except when we get an adhesive bandage applied in hospital it doesnt come with a huge bill
A $336 Band-Aid for a cut finger?
From $629 Band Aids to $5,571 charges for just sitting in a waiting room


I know that the below compares income taxes only and there are many more taxes

The lowest rate (10%) applies to anyone earning between $0 and $9,875
In the UK earnings below £12,570 are zero rated for tax

In the US $9,876 – $40,125 is taxed at 12%
In the UK £12570 - £37,700 is taxed at 22%

So lets say an American earns $40 000
he pays $9875 x 10% = $987 + $3629 = $4616 in tax

lets say that a Brit earns £37700
he pays £24950 x 20% = £5026 in tax

not so very different

 

[sear]

That was my intended point in suggesting hypothetically it could be identical.
Contrasting the two systems may be suited to this forum. I'm not sure either nation's policy can be renegotiated here. Good health keeps me above the fray. That alters only the severity of the impact on me. It doesn't reform the underlying system.

The lowest rate (10%) applies to anyone earning between $0 and $9,875

?
I thought below a set income level the income tax rate was zero%. I think not only was I in that category after I resigned / retired in 1997, but that I wasn't even eligible to file a tax form, independent of whether I also had to write a $check to the U.S. federal treasury.

 

[mark mywords]

I thought below a set income level the income tax rate was zero%. I

021 Federal Income Tax Brackets (Deadline: April 18, 2022 or October 17, 2022)
	Single	Married Filing Jointly	Married Filing Separately	Head of Household
10%	$0 – $9,950	$0 – 19,900	$0 – $9,950	$0 – $14,200
12%	$9,951 – $40,525	$19,901 – $81,050	$9,951 – $40,525	$14,201 – $54,200
22%	$40,526 – $86,375	$81,051 – $172,750	$40,526 – $86,375	$54,201 – $86,350
24%	$86,376 – $164,925	$172,751 – $329,850	$86,376 – $164,925	$86,351 – $164,900
32%	$164,926 – $209,425	$329,851 – $418,850	$164,926 – $209,425	$164,901 – $209,400
35%	$209,426 – $523,600	$418,851 – $628,300	$209,426 – $314,150	$209,401 – $523,600
37%	$523,601+	$628,301+	$314,151+	$523,601+

Federal Income Tax Brackets for Tax Years 2022 and 2023 - SmartAsset

Federal income tax brackets are adjusted every year for inflation. They're slightly higher for Tax Year 2021 than Tax Year 2020. Read on for both tables.

smartasset.com

slightly different to the source I used but they may have been last years figures and of course there may be local income tax to pay in addition

 

[sear]

Thanks m #83
My "zero%" is from personal experience, in 1999 regarding my 1998 financial status. But I suppose we might consider U.S. federal income tax tables a political football. Thanks for the update. Were it not for that I might have forgotten what a spectacular luxury it is to be a quarter century out of date.

 

[mark mywords]

according to the chart below in 1998 -9 you paid at least 15% on every penny you earned!

1999	15.0%	>	$0	15.0%	>	$0	15.0%	>	$0	15.0%	>	$0	Last law to change rates was the Omnibus Budget Reconciliation Act of 1993.
	28.0%	>	$43,050	28.0%	>	$21,525	28.0%	>	$25,750	28.0%	>	$34,550
	31.0%	>	$104,050	31.0%	>	$52,025	31.0%	>	$62,450	31.0%	>	$89,150
	36.0%	>	$158,550	36.0%	>	$79,275	36.0%	>	$130,250	36.0%	>	$144,400
	39.6%	>	$283,150	39.6%	>	$141,575	39.6%	>	$283,150	39.6%	>	$283,150

1998	15.0%	>	$0	15.0%	>	$0	15.0%	>	$0	15.0%	>	$0	Last law to change rates was the Omnibus Budget Reconciliation Act of 1993.
	28.0%	>	$42,350	28.0%	>	$21,175	28.0%	>	$25,350	28.0%	>	$33,950
	31.0%	>	$102,300	31.0%	>	$51,150	31.0%	>	$61,400	31.0%	>	$87,700
	36.0%	>	$155,950	36.0%	>	$77,975	36.0%	>	$128,100	36.0%	>	$142,000
	39.6%	>	$278,450	39.6%	>	$139,225	39.6%	>	$278,450	39.6%	>	$278,450
1997	15.0%	>	$0	15.0%	>	$0	15.0%	>	$0	15.0%	>	$0	Last law to change rates was the Omnibus Budget Reconciliation Act of 1993.
	28.0%	>	$41,200	28.0%	>	$20,600	28.0%	>	$24,650	28.0%	>	$33,050
	31.0%	>	$99,600	31.0%	>	$49,800	31.0%	>	$59,750	31.0%	>	$85,350
	36.0%	>	$151,750	36.0%	>	$75,875	36.0%	>	$124,650	36.0%	>	$138,200
	39.6%	>	$271,050	39.6%	>	$135,525	39.6%	>	$271,050	39.6%	>	$271,050

Historical Federal Individual Income Tax Rates & Brackets, 1862-2021

How do current federal individual income tax rates and brackets compare historically?

taxfoundation.org

1986 was the last year that I can find a zero rated allowance (for the first $3669)
your zero rated allowance might have been for state income tax

 

[sear]

Thanks mm #85.
I don't vividly remember the details.
What I remember most clearly is I'd been filing income tax returns for decades. So 1998 my first year of retirement, would have reached my accountant in 1999. Right or wrong they told me I didn't have to file. I suspect I did not, based on that "advice".

However I also remember getting a scolding about something, and having to pay ~$20K in tax and or penalty. Don't remember the details. I imagine that couldn't have been the same year. So these two events, two different years? No worries. Statute of limitations to the rescue!