Reading log #6
Article URL: http://www.forbes.com/sites/kellyphillipserb/2014/04/18/higher-or-lower-how-do-you-think-your-u-s-tax-burden-compares-to-other-countries/
Summary:
In the article, the author compares the tax burdens in the USA and the OECD (Organization for Economic Cooperation and Development) countries over the last few years. Despite paying about a quarter of one’s earnings to the social security taxes and federal income tax, Americans are still ranked on the lower end among the OECD countries. The author notes that there has been tremendous rise in tax burdens in 21 OECD countries since 2010. Additionally, the author points out that the tax wedge for single individuals without children is higher than for households with children in all OECD countries except Mexico and Chile. In Western Europe, high income earners and, childless single workers are the most heavily taxed, with more than half of their income consumed by tax. The article further recommends that anyone interested in comparing taxes in OECD countries should check the PBS interactive calculator. The calculator gives an estimate of the wages after taxes and, a comparison with other taxpayers in the same job group in OECD countries. Overall, the article provides a summarized comparison of tax burdens across the OECD countries.
Opinion:
I strongly agree with the author’s declarations that the overall increase in income taxes has hurt the taxpayer. Similarly, I like the comparison the article gives about the taxes paid by the high income earners and the single childless individuals. I also feel that the cooperation between OECD countries can come up with ways of minimizing the tax burden. It is possible to find solutions to common problems since the OECD countries work together and, share their experiences, especially on tax related issues. The article is beneficial to individuals who seek to know how other citizens from other countries pay taxes.
