Comments: Waiting for the bounce


The top marginal personal tax rate in the US is now 35%. This also applies to may small busineses that incorporate but are taxed at the shareholders personal rates. Capital gains tax rates and taxes on dividends are both pegged at 15%. I'm fairly certain that much of the EU has higher rates of taxation. Where does England stand?

For me, I'll take the low cost of capital which has only gotten better in the US thanks to President Bush. Higher investment usually does coorelate to better after after tax returns.

Posted by Gary Bezowsky at December 3, 2003 02:36 AM

The top rate of income tax in the UK is 40%, although it kicks in at a lower income level than in the US. Dividends are taxed as income. Capital gains tax on share disposals is 40%, although there is a tax-free allowance of around $12,000 a year.

Posted by David Smith at December 3, 2003 09:11 PM

It's probably also worth noting that the headline rates don't tell the whole story. The UK system permits much less in the way of deductions than the US.

Posted by Guy Herbert at December 7, 2003 06:22 AM