European Tax Rates
Posted by Heather Hurlburt
Just in case you, like me, hear the claims about European business tax rates and want to recall the difference on European personal income tax:
the marginal top rate in most countries rises substantially when considering the all-in rate of taxes on income, to 61% in France and Turkey, 62% in Denmark and Sweden, 65% in Japan and 66% in Belgium. The highest all-in rates for taxpayers in the United States fall in the 40–48% range, depending on the State where they are resident.
The difference there is much, much greater than the difference in business tax rates. If you also add the informal "tax" on American businesses that the requirement they fund health care for their workers at endlessly-escalating rates imposes, I would guess that comes pretty darn close to closing the gap. I'll leave it to others to crunch the total numbers on tax revenues.
American companies have various legal loopholes such as going offshore in order not to pay their fair share of taxes.
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