Is The U.S. Really a Low-Tax Country?

Lowest,Level,Of,Tax,Concept,,Knob.,3d,Rendering

Many U.S. taxpayers feel that our country’s taxes are too high, no matter which economic class you’re in. Likewise, regardless of which side of the political world you rest, most people would agree that the U.S. tax system needs some serious upgrading, and not just some fine-tuning. However, it appears that compared to many of the other developed countries in the world, the U.S. is actually on the low end of the tax scale.

According to the Organization for Economic Cooperation and Development, some of the most recent numbers show that about 30 other developed economies have higher taxes than the United States. In 2014, the U.S. government collected 26 percent of the gross domestic product revenue, which was way below the average of the rest of the world, which is 34.4 percent.

Of the 30 countries included in the report, there were only three economies that had a smaller tax percentage than the United States: South Korea, Chile and Mexico. Denmark leads the list with the highest percentage; a whopping 50.9 percent, and France, Italy, the U.K. and Germany were all over 30 or even 40 percent as well.

So why do U.S. taxpayers complain so much about taxes, if the country is actually towards the bottom of the list? It’s because the U.S. is the only country on the list that doesn’t use a Value Added Tax, or VAT. A VAT helps supplement revenue from other sources, which raises nearly 7 percent of the GDP in these countries. The U.S., on the other hand, has to count on other taxes to supplement its revenue because it does not have a VAT. And that won’t likely change any time soon.

Posted in
Reducing Risk With a Diversified Portfolio; how diversification reduces risk

Reducing Risk With a Diversified Portfolio

Reducing Risk With a Diversified Portfolio Have you been worried about the stock market’s recent volatility? You’re not alone. The stock market in March was a roller-coaster ride that served as a reminder to investors that the market’s ups and downs can be a little dizzying. But a volatile market should not leave you feeling…

Are You Defining Items in QuickBooks Correctly?

[vc_row][vc_column][vc_column_text] Create item records in QuickBooks carefully, and QuickBooks will return the favor by running useful, accurate reports.   Figure 1: Clearly-defined items result in precise reports. Obviously, you’re using QuickBooks because you buy and/or sell products and/or services. You want to know at least weekly — if not daily — what’s selling and what’s…

Five Tips for Recently Married or Divorced Taxpayers with a Name Change

Saving Money for College: Education Credits

Saving Money for College: Education Credits Education credits are tax credits available for qualified education expenses paid by the taxpayer in the furthering of their education. Qualified education expenses are defined as an expense paid during the tax year for tuition and fees required by an eligible educational institution for student enrollment and attendance. Room…

Thinking About Giving up Your U.S. Citizenship? Think Twice

Thinking About Giving up Your U.S. Citizenship? Think Twice

Thinking About Giving up Your U.S. Citizenship? Think Twice While not a lot of people ever entertain the thought of giving up their U.S. citizenship, there are more people every year that are making that choice. Among them are several wealthier people whose main reason for renouncing is to escape the country’s overloaded tax system;…