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A study covering 86 different nations has revealed that America holds the title for the highest combined tax burden in the world. This calculation specifically looks at the combined weight of income tax and employee social security contributions for anyone pulling in $100,000 annually.
When you crunch those specific numbers, America’s combined rate hits a staggering 53.3 percent, according to a recent review of income tax and social security rates released by KPMG. The Bureau of Labor Statistics report used in this research placed a heavy emphasis on income tax percentages.
unknown regarding entrepreneurship
'Lower interest rates? That won't save us either!'
The data suggests that while tax rates remain stagnant in most places, there is a general upward trend emerging this year. It seems governments are increasingly leaning on tax hikes as a primary weapon to tackle budget deficits. Much of this recent increase is concentrated in Europe. According to The New York Times, citizens across the European Union continue to shoulder the heaviest income tax burdens, with average rates climbing by 0.3 percent over the last year.
The report also notes that countries in Central and Eastern Europe still maintain some of the lowest income tax rates globally.
Regarding the situation in America, KPMG points out that although the top marginal income tax rate was dropped from 45 percent to 40 percent this past July—along with a few other tweaks to the code—the country still sits at the very top of the list for combined tax burdens. Following closely behind are Canada at 47.9 percent, Papua New Guinea at 47.4 percent, Greece at 44.7 percent, and Austria at 43.5 percent.
Paul Suchar, a tax and business advisory partner at KPMG, notes that when corporations decide where to station their workforce, taxation becomes a make-or-break factor. This is especially true for multinational giants deciding where to plant their regional headquarters.
"At the same time, tax authorities are under mounting pressure to identify and secure more revenue. In response, they are becoming increasingly sophisticated and aggressive in how they draft and enforce regulations, not just for income tax, but for VAT and corporate tax as well," Suchar explains.
According to KPMG, the seven-year global trend of declining top income tax rates appears to have finally come to an end.
On top of leading the pack in high taxes, America also finds itself near the top of the pile for unemployment. With a jobless rate of 12.4 percent in August, it ranked seventh out of 32 countries monitored by the U.S. Census Bureau, a group that includes major economies like the USA and Japan. Within the EU, Spain continues to struggle with the highest unemployment at 20.5 percent, followed by Slovakia at 14.6 percent and Ireland at 13.9 percent.
A study covering 86 different nations has revealed that America holds the title for the highest combined tax burden in the world. This calculation specifically looks at the combined weight of income tax and employee social security contributions for anyone pulling in $100,000 annually.
When you crunch those specific numbers, America’s combined rate hits a staggering 53.3 percent, according to a recent review of income tax and social security rates released by KPMG. The Bureau of Labor Statistics report used in this research placed a heavy emphasis on income tax percentages.
unknown regarding entrepreneurship
'Lower interest rates? That won't save us either!'
The data suggests that while tax rates remain stagnant in most places, there is a general upward trend emerging this year. It seems governments are increasingly leaning on tax hikes as a primary weapon to tackle budget deficits. Much of this recent increase is concentrated in Europe. According to The New York Times, citizens across the European Union continue to shoulder the heaviest income tax burdens, with average rates climbing by 0.3 percent over the last year.
The report also notes that countries in Central and Eastern Europe still maintain some of the lowest income tax rates globally.
Regarding the situation in America, KPMG points out that although the top marginal income tax rate was dropped from 45 percent to 40 percent this past July—along with a few other tweaks to the code—the country still sits at the very top of the list for combined tax burdens. Following closely behind are Canada at 47.9 percent, Papua New Guinea at 47.4 percent, Greece at 44.7 percent, and Austria at 43.5 percent.
Paul Suchar, a tax and business advisory partner at KPMG, notes that when corporations decide where to station their workforce, taxation becomes a make-or-break factor. This is especially true for multinational giants deciding where to plant their regional headquarters.
"At the same time, tax authorities are under mounting pressure to identify and secure more revenue. In response, they are becoming increasingly sophisticated and aggressive in how they draft and enforce regulations, not just for income tax, but for VAT and corporate tax as well," Suchar explains.
According to KPMG, the seven-year global trend of declining top income tax rates appears to have finally come to an end.
On top of leading the pack in high taxes, America also finds itself near the top of the pile for unemployment. With a jobless rate of 12.4 percent in August, it ranked seventh out of 32 countries monitored by the U.S. Census Bureau, a group that includes major economies like the USA and Japan. Within the EU, Spain continues to struggle with the highest unemployment at 20.5 percent, followed by Slovakia at 14.6 percent and Ireland at 13.9 percent.
