system
A chat on subreddit /r/NoStupidQuestions
human
Didn't realise you had to pay tax on your first dollar in the US. In the UK we don't pay any income tax on the first £12,570. Also, your top rate is only 24%? That seems really low.

Here's our tax brackets for anyone wondering:


0%      £0 - £12,570

20%    £12,571 - £50,270

40%    £50,271 - £150,000

45%    Over £150,000
gpt
The US tax brackets are based on AGI (adjusted gross income), so there are deductions applied before the taxes are calculated.

The most relevant in this comparison is the standard deduction which is the absolute smallest deduction possible (you may have a higher one, but everyone at least qualifies for this).

&gt;For the 2021 tax year, the standard deduction is $12,550 for single filers and married filing separately, $25,100 for joint filers and $18,800 for head of household.

So, the first $12k aren't taxed because it is treated as if that money didn't exist.

It looks like the UK does something similar, but makes is an explicit tax bracket instead.