César Vidal claims paying 9% in US taxes: would be 50% in Spain
Nine euros for every hundred. That is the percentage César Vidal says he paid in taxes on his income in the United States, compared to the 50% that, according to his own calculation, would have been withheld here for the same earnings. In a social media post, he calls the Spanish tax system an "immense robbery" and places public aid recipients at the top of "plunderers." The comparison seems direct. The core issue has many more facets.
And not all play in the same direction. The 9% refers to the federal bracket and leaves out figures that have no exact equivalent in Spain: state and local taxes, real estate property tax, and health insurance premiums. In the thread, it is estimated, without concrete data, that such insurance costs around $800 or $900 monthly for a self-employed person with no dependents, plus copays for any serious episode. Another resident claims to pay 37%. With those numbers, the effective rate changes depending on who and where.
What is left out of the 9% calculation
The US fiscal structure distributes the burden across three layers that rarely appear together in a quick comparison. The federal tax is only the first. Added to it are state and local taxes, and a real estate property bill that, according to the thread, can multiply the Spanish IBI (property tax) by ten in certain counties. Vidal also does not mention, according to several circulating calculations, the healthcare burden associated with employment.
In consumption, the difference exists and is measurable: much of basic foodstuffs bear no VAT in the US, and textiles and footwear are taxed at reduced rates to the point that many tourists do not claim refunds. Here, toothpaste, diapers, or clothing go through the 21%. Corporate rates are also read differently: some point to a corporate tax around 20% and a maximum US IRPF (income tax) bracket not so far from the Spanish one, although applicable to much higher incomes.
Healthcare: 8% of GDP vs 19%
The healthcare axis runs through the entire comparison. One participant argues that Spanish healthcare costs around 8% of GDP, in line with the European average, and that US healthcare approaches 19%; in both cases, they add, the money comes from citizens' pockets. The difference lies in the route: here via taxes, there via premium and copay.
The testimony of a Spanish doctor practicing in the US describes the mechanism: insurance is deducted from payroll, so its contracting depends on the employer and the worker, and Medicare and Medicaid act as a safety net for those who do not reach certain minimums. The same forum user recounts that a relative with acute lower back pain was treated within two days with an MRI and a surgery proposal.
US debt and the printing machine
The printing press. This summarizes the structural advantage: a world reserve currency, eleven aircraft carriers to protect it, and a central bank that issues. Official federal debt exceeds $30 trillion. According to Mitch Feierstein, author of Planet Ponzi, the real figure would exceed $200 trillion, because Pentagon spending is not audited, public healthcare is not counted as federal debt, and state and county debt is excluded from the calculation. No one knows how many dollars are in circulation, it is argued.
Another participant replies that the US publishes quarterly audits and a year-end close, and that Spain is more indebted as a percentage of GDP than the country that issues the currency in which half the world finances itself.
Is Spanish tax pressure high or just the effort?
Here is the nuance often missing from headlines. According to one participant, Spanish tax pressure sits at the European average and what spikes is individual fiscal effort. The cause is arithmetic, they continue: a smaller active population and the highest unemployment rate in the region concentrate the cost of sustaining spending on fewer shoulders. The result, adds another, is a salaried worker with €3,000 gross who receives €1,500 net and then pays VAT on every purchase.
A freelancer describes the same squeeze from another angle: fixed quota before invoicing, VAT, withholdings, fees, and paperwork, in a system where, in their view, the partner who contributes nothing to the business takes almost half of the revenue. The complaint is not just about rates, but about structure.
Comparisons: Zug, Zurich, and inheritance tax
In the Swiss canton of Zug, a rate around 16% is cited for €100,000; in Zurich, around 20%. These are the examples repeated when asked which country improves on the Spanish rate. In Asia, some declare paying near 10% in China, with a generous tax-free threshold.
Another figure appears at the end: inheritance tax. In Spain, between non-relatives, the rate exceeds 80%; the US federal estate tax, however, applies above very high thresholds. Article 31 of the Constitution prohibits the tax system from having a confiscatory scope, and that opens the field for interpretation.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication.
Read the full discussion (201 replies).