Higher Earners Say U.S. Taxes are Too High, How Do They Compare?
That said, part of the discrepancy is likely due to the fact that federal income taxes really are higher for those in higher income ranges under the Obama administration’s tax policy. “Higher-income people are the obvious target, because we have seen the trend of much higher incomes among [them],” said Peter Diamond, a Nobel Prize winning economist from MIT, to The Wall Street Journal. He also noted that in the long-term, “we’ve seen a trend of declining tax rates on higher income people.”
Still, some, such as Jeffrey Miron, economist at Harvard, told The Wall Street Journal that when it comes to the tax burden on high-incomer individuals, “Potentially it is too high,” and notes that “That can have serious costs for economic activity.” Still, while the split between high income and low income Americans may highlight tax differences in America, a new tax calculator from PBS NewsHour allows you to examine just how much you’d be paying as a citizen of another country. For one of Gallup’s high earners, with a $75,000 yearly salary, based on an average tax rate, you’d pay about $1,088 per week in the U.S. That’s less than in fifteen other nations, which include Australia, Canada, Japan, and the United Kingdom. However, it’s also more than in eighteen; you’d pay less in such countries as France, Germany, Greece, and Italy.
Someone making $29,000, on the low end of wage earners in America, pays about $421 a week in taxes, more then seventeen other developed nations, and less than sixteen. That said, it’s worth noting that some other countries feel differently about tax dollars because of the uses they are put to. For some countries, services such as education, transportation, and social needs are much more funded by tax dollars, whereas the U.S. tax dollar puts approximately 2 cents towards education, and 1.4 cents towards transportation — based on information from the National Priorities Project.
More From Wall St. Cheat Sheet:
- 4 Strategies for a Tax-Efficient Retirement
- Are Your Taxes Too High?
- This is How Washington, D.C., Spends Your Tax Dollars
Follow Anthea Mitchell on Twitter @AntheaWSCS