Quote:
Originally Posted by Adux
In India, If you earn hundred, you save 30, spend 40; Invest 30. We have one of the highest savings ratio's in the world, in some ways too much for our own good.
|
I'm not sure if you understand our tax structure.
The "taxable" income is not the same as gross income, or adjusted gross income. I'm pretty sure the data used in most studies is the "taxable" income. That figure is substantially lower than gross income and adjusted gross income.
If I make $100k gross a year, I might have a taxable income of $45k with various deductions. In this case, my mortgage interest, 401k retirement fund, health insurance, plus any and all personal business losses are all removed from my income before federal tax is applied. Then there are the kids I can claim as dependents and further reduce my tax burden. Adding up all the expenditures, not including retirement fund, I can easily exceed my taxable income while still save 10% toward my retirement.
The lowest 20% of our population might get government subsidies which add up toward their gross consumptions. With all the standard deductions to reduce their tax burden, they appear to make way less than they really do.
Basically what I'm saying is stats are deceiving unless they are put in the proper context.