US vs. New Zealand Tax Rates

Let's look at tax rates in the US vs. New Zealand, comparing apples to apples (highest tax bracket).  Here are the US rates:

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)

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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% income + 12.5% VAT = 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 think the income tax should be abolished in both countries. But until that happens, NZ doesn't look too bad.