I’m hoping the policy is where the tax applies to money earned past that exemption, rather than applying to your full income if you pass it, which would have perverse incentives.
In any case, if you got a job as a programmer or engineer, I would think that passing that threshold would be likely, at which point you would have a painful marginal tax rate, considering progressive taxes on both ends.
I know, i know, “but who cares about you if you’re making that much anyway?” Well, the fact that I can’t spread it over a few years of non-work and go into a lower tax bracket, and I’m not guaranteed to continue to make that amount...
(Btw, despite my criticisms, I am taking this idea seriously. I had previously investigated the implications of moving to Singapore, albeit for an engineering rather than service job, which I can’t stand, even at a higher take-home pay.)
I’m hoping the policy is where the tax applies to money earned past that exemption
Seems to be the case; nothing in the links I looked at contradicted it, and one specifically said:
Income above the current exclusion of $91,400 ($182,00 for couples) is taxed at 28 percent up to $171,550 ($208,850 for couples). Above $171,550 are progressive tax brackets that go up to 35 per cent.
My data is ageing, but from family experience, Singapore’s housing-costs are extremely high. 15 years ago, rent at $2400 a month didn’t get you running hot water. YMMV
The ~80k exemption means that I don’t think this is a big issue for the described job categories, which I suspect mostly fall in the 30-60k range.
I’m hoping the policy is where the tax applies to money earned past that exemption, rather than applying to your full income if you pass it, which would have perverse incentives.
In any case, if you got a job as a programmer or engineer, I would think that passing that threshold would be likely, at which point you would have a painful marginal tax rate, considering progressive taxes on both ends.
I know, i know, “but who cares about you if you’re making that much anyway?” Well, the fact that I can’t spread it over a few years of non-work and go into a lower tax bracket, and I’m not guaranteed to continue to make that amount...
(Btw, despite my criticisms, I am taking this idea seriously. I had previously investigated the implications of moving to Singapore, albeit for an engineering rather than service job, which I can’t stand, even at a higher take-home pay.)
Seems to be the case; nothing in the links I looked at contradicted it, and one specifically said:
http://internationalliving.com/2010/04/14-foreign-earned-income/
My data is ageing, but from family experience, Singapore’s housing-costs are extremely high. 15 years ago, rent at $2400 a month didn’t get you running hot water. YMMV