Are taxes in USA actually lower than UK/European countries?
Best Answers
Speaking about USA you should consider what state you live in. Some states do not collect income tax. Many states have tax laws that mirror the federal exclusions, allowing either the FEIE or FTC for state tax purposes. read more
Among OECD countries, only Korea, Chile, Mexico, and Ireland collected less than the United States as a percentage of GDP. In many European countries, taxes exceeded 40 percent of GDP. But those countries generally provide more extensive government services than the United States does. read more
Consumption taxes accounted for about a fifth of total U.S. revenue in 2008 (mostly at the state and local level) compared to an OECD average of 32 percent. In other words, the U.S. relies uniquely on personal tax rates to raise revenue -- and we have relatively low personal tax rates. read more
In general, Australians pay slightly more income tax than their equivalent earners in the UK, but the country’s medical levy is far lower than the UK’s national insurance contributions, leaving the total tax burden lower. read more
