Relative Taxation of Single People in Major Economies
Here’s the source (Click on the link to Table 1, which is a PDF).
Here’s the Table:
Points:
- The table picks up federal income taxes and government retirement programs, and shows the average tax burden. For the US, the table shows the impact of income taxes plus both the employee and employer payments to Social Security and Medicare.
- To emphasize that these are averages, a very high income-earner in the US will normally pay at least 38% of all of his or her earned income to Uncle Sam (federal tax at 35% and Medicare tax of 2.90% [1.45% employer, 1.45% employee]), with no exemptions or deductions, all of which phase out at the highest income levels. On top of that, add the roughly $11,700 combined employer and employee payments into Social Security (12.4% of the first $94,200 earned).
- The US is in the lower end of the taxation scale, with a higher tax burden than 7 countries and a lower burden than the rest.
- Is it any wonder that Old Europe’s economic growth is so sluggish, with tax burdens of 45% or more in France, Belgium, Germany, Italy, Austria, and Sweden?
Stay turned for the married table.
