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Getting The Lowest Income Tax Rate

By admin ·
It all depends on where you live... :)

"The sovereign countries with the least income tax are Bahrain and Qatar, where the rate, regardless of income, is nil."

-Guiness Book of World Records.

Thought you'd like to know.

Here's how we stacked up in "Statistical Abstract of the United States: 2003":

Single person without children:

United States 24.3

Australia 23.6%
Austria 28.6
Belgium 41.4
Canada 25.7
Czech Republic 23.7
Denmark 43.1
Finland 31.7
France 26.5
Germany 41.2
Greece 16.5
Hungary 29.1
Ireland 16.4
Italy 28.1
Japan 16.2
Korea 8.7
Luxembourg 22.1
Mexico 3.6
Netherlands 28.7
Norway 28.8
Poland 31.0
Portugal 16.5
Slovak Republic 19.3
Spain 19.2
Sweden 30.4
Switzerland 21.5
Turkey 30.0
United Kingdom 23.3



One-earner family with two children:

United States 11.3

Australia 14.7%
Austria 9.0
Belgium 21.6
Canada 15.1
Czech Republic 3.7
Denmark 30.5
Finland 23.2
France 14.2
Germany 18.6
Greece 17.0
Hungary 7.8
Ireland ?0.8
Italy 12.2
Japan 11.9
Korea 8.1
Luxembourg ?3.6
Mexico 3.6
Netherlands 17.2
Norway 17.9
Poland 25.0
Portugal 5.2
Slovak Republic 3.1
Spain 10.4
Sweden 21.0
Switzerland 8.6
Turkey 30.0
United Kingdom 10.8

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Lies, damn lies and statistics....

by JamesRL In reply to Getting The Lowest Income ...

I was amused when meeting an arch conservative friend of mine who came back from a couple of years in the US(at Harvard). One of the things that suprised him was that while his US federal tax was lower that of Canada, if you combined his Federal, State, municipal taxes, plus other taxes, it was pretty much the same amount of tax he was paying in Canada. Now of course this probably isn't true for every state.

The point is that much like the cost of a car isn't just the sticker price, the taxation rate is more complicated than just the "national" rate. There are income taxes, consumption taxes(sales taxes) - all kinds of taxes.

And then there are services. Included in my Canadian tax rate is my health insurance. In the US, many people have to pay that out of their pocket - is that an apples to apples comparison?

I see Ireland has a -0.8 factor for families with one earner and two children - does that mean the government pays them?

The stats are interesting as far as they go - but many of the countries you list don't have internal states or provinces with taxation powers, so its perhaps not a vaild comparison.

James

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True Lies :)

by admin In reply to Lies, damn lies and stati ...

Yes, but with it being the Income tax time of the year here in the U.S.A. I was curious about how we stacked up considering how many people had something to the effect that ours are the lowest in the world.

This is only Federal here too. Which State you live in can make a huge difference in your total tax burden.

I wanted to post on total tax burden too... but it was beyond me how to get an accurate representation! ~LoL~

Maybe someone else will do it here for me! :)

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Little easier to read and compare here

by awfernald In reply to Getting The Lowest Income ...

Single person without children:

Mexico 3.6
Korea 8.7
Japan 16.2
Ireland 16.4
Greece 16.5
Portugal 16.5
Spain 19.2
Slovak Republic 19.3
Switzerland 21.5
Luxembourg 22.1
United Kingdom 23.3
Australia 23.6
Czech Republic 23.7
United States 24.3
Canada 25.7
France 26.5
Italy 28.1
Austria 28.6
Netherlands 28.7
Norway 28.8
Hungary 29.1
Turkey 30.0
Sweden 30.4
Poland 31.0
Finland 31.7
Germany 41.2
Belgium 41.4
Denmark 43.1

One-earner family with two children:

Luxembourg -3.6
Ireland -0.8
Slovak Republic 3.1
Mexico 3.6
Czech Republic 3.7
Portugal 5.2
Hungary 7.8
Korea 8.1
Switzerland 8.6
Austria 9.0
Spain 10.4
United Kingdom 10.8
United States 11.3
Japan 11.9
Italy 12.2
France 14.2
Australia 14.7
Canada 15.1
Greece 17.0
Netherlands 17.2
Norway 17.9
Germany 18.6
Sweden 21.0
Belgium 21.6
Finland 23.2
Poland 25.0
Turkey 30.0
Denmark 30.5

As others have already pointed out, this total actually varies based upon sales tax, local taxes, etc....

However, speaking particularly about some of the places I have lived....

Japan - My effective tax rate for all taxes (except 3% consumption tax) was about 11%, as married with one child. Also, for our child (and for mom for it seemed like forever after kid was born), health care was pretty much free with a small copay, we paid for the child's birth, but then the city government reimbursed us for about double the total of the birth costs.

Bolivia - Paid 7% + 3%. The 3% was refunded on a dollar for dollar for basis against the consumption tax paid over the previous month. Single/married/kids/no kids, didn't matter.

Texas - I can't remember how much I paid in federal, but I'm thinking it was about 18%, no state or local taxes, relatively low property taxes, 7.25% sales tax. Married with two children.

New York City - Salary a little bit higher than in Japan, paid out over 40% in taxes, same married with one child.

Kansas - Jeez, I'm glad I'm poor now. Married with three kids, effective 0% income tax rate at both state and federal (actually, would come out to about -35%), but property taxes eat you alive here.

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