International Comparisons of the US Tax Rates to other Countries tax rates. (Who pays more?)

The Cato Institute ^ | FR Post April 17, 2002 | Cato Institute Publication

[vannrox]

International Comparisons of Income tax rates.

Top Personal Income tax Rates.

Since the United States cut income tax rates in 1981 and 1986, dozens of other nations have followed suit with their own tax rate reductions. The average top individual income tax rate for the G-7 major economies has been cut 18 percentage points since 1980. The average tax rate reduction for a larger group of 37 industrial countries is 21 percentage points.

Top Corporate Income Tax Rates, 1986-2000

In parallel with personal income tax rate reductions, countries around the world have been reducing corporate income tax rates in recent years. The average corporate tax rate cut across 24 industrial countries since 1986 is 10 percentage points.

But WHERE does all the money go?

Federal Spending as a Percent of GDP, 1960-2002 (Fiscal year outlays)

There has been a vast shift in federal spending priorities since the late 1960s when defense spending and non-defense spending, other than interest, were of about the same magnitude. Today, non-defense spending is four and one-half times larger than federal spending on defense. Both defense and nondefense spending are up sharply in the last couple of years.

[vannrox]

Hummmmm....

[Born to Conserve]

God bless Ronald Reagan and Margaret Thatcher.

[Whispering Smith]

Top income tax rate comparisons are worthless. What percentage of the produced wealth of a nation do taxes take is a the question. An approach might be to determine a weighted average income tax rate plus weighted average payroll tax rate plus weighted average excise and tariff tax rates.

[ch.man]

I can see that Switzerland rates pretty well!!...

[Fish out of Water]

index bump

[Wright is right!]

Unfortunately, Switzerland's Corp Tax Rate is the only one mentioned. They were left out of the personal tax rate table.

Switzerland can be a fairly expensive place to live, but the real problem for ex-pats is getting a resident visa. Switzerland makes a determination (as do many countries) as to how much value you will be to Switzerland as a resident. If you will be a business owner, for example, such investment is a plus. You must also prove that you will not be dependent upon the state as a resident.

As for getting Swiss citizenship, most ex-pats can flat forget about it. Among the requirements is the ability to pass an exhaustive written test about the country, its history and its civics system administered in either French, German, or one of the local dialects. You must also show some Swiss lineage, if I'm not mistaken.

Michael

[aShepard]

weighted average income tax rate plus weighted average payroll tax rate plus weighted average excise and tariff tax rates.

Yeah, that is the way to measure to overall effective tax take.

Could you take total gov't spending, plus or minus deficit or surplus as the numerator, and GDP as the denominater?

Gov't accounting is so weird that probably the result is incalcuable.

[DoughtyOne]

Let's not kid ourselves.  These rates don't reflect all manner of other methods of taxation.  State sales tax, state income tax, phone tax, alcohol tax, cigarette tax,  gas tax, tax on other utilities, special government surcharges and on and on and on...

I heard something on FoxNews today that made me laugh.  Here it is:

It is becoming harder and harder to support our government in the style to which it has become accustomed.

Spending goes up every year, while our darling leaders court us with talk of tax cuts and other dreams of fantasy.  Every $40 billion dollar increase in the DOE budget will be paid for by Mr. US taxpayer sooner or later.  That holds true with every single budget increase.  Tax cuts?  Don't make me hurl...

[ancient_geezer]

These rates don't reflect all manner of other methods of taxation.  State sales tax, state income tax, phone tax, alcohol tax, cigarette tax,  gas tax, tax on other utilities, special government surcharges and on and on and on

How true!

We must . . . End Tax Slavery Now; Nov '97
by Jarret B. Wollstein

HOW MUCH DO YOU REALLY PAY?

     According to the Tax Foundation, in 1994 the average American paid 22.4% of his or her income in federal taxes, plus 11.8% in state and local taxes - 34.2% total.

     But that's just the beginning! Dr. James Payne of the University of California found that in addition to direct taxes we also pay huge, hidden taxes including:

• Compliance costs - record keeping, monies spent on tax planning, computers and software purchased to fulfill IRS requirements, etc.
• Enforcement costs - IRS audits, field investigations, service center corrections, criminal investigations, litigation, and forced collections.
• Emotional, moral and cultural costs - families forced onto welfare, time and creative energy lost figuring out how to avoid taxes, etc.

     For every $1 we pay in direct taxes, we spend an additional $0.65 in compliance costs. And even that figure doesn't include the cost of import duties, license fees and other government regulations. For a typical U.S. family, the real cost of taxes and regulations is at least:

Federal taxes              22.4% of income
State & local taxes      11.8%
Compliance costs        22.2%
Regulatory costs         12.7%

More than 70% of your income is now consumed as a consequence of all levels of government & government regulation.

[DoughtyOne]

I'm not sure what that figure is, but I am sure it would send us gaging if we knew.