Question

How do Tax Rates in the US compare with tax rates overseas?

Answer 1

Income Taxes:In US about 49% tax is charged on the income of the business of US and 40% derived from individual taxpayers. Whereas in foreign countries such as New Zealand,Australia , Denmark it is more than 50%.

Social Programme and Assistance Tax:According to the Tax Policy Center, the U.S imposes less social programme tax than the average of other OECD(Organisation for Economic Co-operation and Development) countries.24% tax is lieved in US as compared to average of 26% in other OECD countries

Excise and Value Added Tax:VAT are imposed in every OECD member country except US. US don't impose VAT taxes.The US imposes very less goods and services tax as compared to the other OECD countries . 17% of tax is imposed in USA compared to an average of 32% in other OECD countries.

Time Consumption in paying tax: The tax structure of US is very complicated and it takes much more time to fill tax in US as compared to other countries.While in america about 15 minute per person is consumed to pay tax while US taxpayers collectively spend about six billion hours in paying tax.

The overall tax charged in US is less as compared to OECD countries. There are 35 countries in OECD. U.S. ranked 32 on a list of 35 member countries of the Organization for Economic Cooperation and Development (OECD).Several European countries tax in excess of 40 percent of GDP. Ireland is one of only four countries with a lesser overall tax burden than the U.S. The others are Korea, Chile, and Mexico.