Monday, August 07, 2006

Cost of Living

So, we are paying our taxes this month in Singapore. It is a big bite, but only because we don't withhold. Jeff worked 9 months last year, I worked the whole year. Because I work from home as an independent contractor and have the Far Flung Craft business, we are able to deduct business expenses for the business, which does help reduce our overall taxable income. That being said, taxes in Singapore are low. Really low.

In the US, we would be in the higher tax bracket based on our jobs. So far we still don't pay any US Tax (don't even get me started on the fact that US Citizens are about the only ones in the world subject to double taxation on income earned overseas....) but let me tell you what we paid this year.

Our total tax bill...less than 5.5% of our income. Unbeleiveable.

For this, we get semi-socialized medicine. Jeff's total hospital bill for surgery on his foot and an overnight stay was $500 US. We were NOT insured. That is TOTAL cost.

We have a high standard of living with all of the things we could need.

We have an effective and clean public transportation system that is inexpensive

We have access to public education for our children, if we chose to use it, for little cost.

We have a safe and clean environment in which to raise our family.

Even when you add in the cost of my child's private education and you assume that we would not pay for that in the US, our "Tax" is still less than 19%. Big issue will come when Kiera attends the American school if we can still claim that the cost of living is better here.

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