Economics, Pethokoukis, Taxes and Spending

On taxes, European Left should point to US as a redistributive paradise

Image Credit: Shutterstock

Image Credit: Shutterstock

Just how progressive is the US income tax code compared to those of other advanced economies? AEI’s Kevin Hassett:

1. This year (see the chart above) the highest earners will face a marginal tax rate of 40.8% — almost three times as high as that of a worker making $30,000. As of 2011, only four countries had a more progressive federal income-tax schedule by this measure: Finland, Germany, France, and the Netherlands.
2. An OECD study in 2008 found that the wealthiest 10% of Americans paid 45.1% of taxes (including direct taxes, such as income and payroll taxes, national and local, but excluding sales and other indirect taxes), compared with the OECD average of 31.6% and wealthy Americans paid more than the wealthy in any other OECD country even if one takes into account their share of total national income.

Hassett adds that if you include the regressive value-added taxes EU residents pay, the US tax code would look even more progressive by comparison.

One thought on “On taxes, European Left should point to US as a redistributive paradise

  1. That’s OK Jim, we’re redistributing our tax dollars over to Europe too…

    Ex-Im Bank Funds Green Jobs Overseas
    Bill Richardson sits on Ex-Im Bank committee, board of loan-recipient Spain’s Abengoa

    The U.S. Export-Import Bank recently steered hundreds of millions of dollars in federal loans to Spanish green energy conglomerate Abengoa, which happens to share an advisory board member with the bank.

    The Ex-Im Bank approved a $78.6 million direct loan to Spain-based Abengoa in December. It also approved a $73.6 million direct loan to a wind farm in Uruguay, which is owned by Abengoa.

    Former Democratic New Mexico Gov. Bill Richardson sits on both the Abengoa International Advisory Board and is currently listed on the Ex-Im bank’s website as a member of the advisory committee that helps guide bank policy.

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