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Daily Archives: July 27th, 2017


Today at 6:43 AM


Complaints about taxes are rampant possibly due to political rantings for and against. Understanding what we actually pay in taxes in comparison to other countries hopefully will make it clear that we are not doing enough for ourselves. The business community is more at fault for our low taxes and our inability to achieve parity in healthcare. The countries that have a “universal healthcare system” have a higher tax rate than we have. This tax rate enables many systems to work as they should in a democracy. Our problem is that we have ignored the truth in what our elected officials do and have done. They push lower taxes as a safe platform rather than explain what taxes actually pay for. Our job as voters is to understand that our demands for lower taxes results in the election of less than stellar representatives and less than stellar governing. Without taxes noting can be done by any governing body from  local to the Federal level. Our job as voters is to understand what these taxes pay for starting with pay of elected officials. MA

Here’s how much Americans pay in taxes compared to the rest of the world
Ian Salisbury, MONEY
16h 8,526

tax comparison Courtesy

Denmark has a much higher tax burden than the US. Nelson L./Flickr

As the Republicans in Washington prepare to dig into the coming round of budget negotiations, their top priorities will include an systemic overhaul for U.S. taxes, which President Trump has characterized as “just about the highest in the world.”
But how much do Americans really pay compared with other nations? It may be less than you think.
A research paper published this week by the Federal Reserve Bank of Chicago includes the above chart, highlighting the tax burdens of all 35 OECD countries as of 2014.
With a tax burden of 25% — a measurement that includes income, property, and various other taxes — the U.S. is near the very bottom, well below the overall average of 34%. It ranks below all the measured countries except Korea, Chile, and Mexico.
Courtesy of Federal Reserve of Chicago
Trump and other Republicans are right about one aspect of U.S. taxes, however. When it comes to taxing corporate profits, the U.S. does indeed have one of the highest nominal maximum rates in the world, at 35%.
The new study’s authors looked in particular at how the U.S. tax regime stacks up against Germany’s — a nation they chose because its economy resembles that of the U.S., and because Trump has said Germany’s trade surplus with the U.S gives it an upper hand economically.
And U.S. corporations are in fact paying higher income taxes than German ones. As it happens, deductions and other tax strategies mean relatively few U.S. corporations actually get stuck paying the maximum nominal 35% rate, instead paying about 20% on average. But that is still higher than the comparable 15% effective rate that German corporations pay, according to the Chicago Fed estimates.
The high U.S. nominal corporate tax rate could indeed be a problem for the economy, since it encourages U.S. corporations to shift their operations overseas to keep tax bills low — something Trump and other Republicans have repeatedly called out.
All the same, those the federal corporate income tax represents a relative small part of the U.S. overall tax picture, according the Chicago Fed study — accounting for less than 10% of overall tax revenue.
Read the original article on MONEY. Copyright 2017. Follow MONEY on Twitter.

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