How Does the US Rank in Taxes?
With the presidential election around the corner, there has been a lot of talk about potential tax changes if Biden wins. How much do other countries depend on taxes to fuel their economy? The chart below shows what percentage taxes make up of each of the OECD economies.
Source: Tax Policy Center
Mix of Taxes
We are taxed in different ways and that mix varies too. Income tax is what we most commonly think of as taxes, but social security, property, and sales tax are the other big categories. Here is how we compare to other countries:
Source: Tax Policy Center
Income Tax Rate for the Highest Earners
For Americans, income tax is still the biggest obligation of the different categories. If you are in the highest tax bracket, here is how your rate compares to the highest earners in other countries. New Zealand, anyone?
Source: Tax Foundation
They say that nothing is certain except death and taxes. During a global pandemic, let’s hope the only thing we have to worry about is taxes.
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