U.S. Has Most Progressive Tax System For OECD-24

Mark Perry
updated | Author's Website
B. Percentage shares of richest 10%
1. Share of taxes of the richest 10%2. Share of market income of the richest 10%3. Ratio of shares for richest 10%  (1/2)
Australia36.828.61.29
Austria28.526.11.1
Belgium25.427.10.94
Canada35.829.31.22
Czech Republic34.329.41.17
Denmark26.225.71.02
Finland32.326.91.2
France2825.51.1
Germany31.229.21.07
Iceland21.6240.9
Ireland39.130.91.26
Italy42.235.81.18
Japan28.528.11.01
Korea27.423.41.17
Luxembourg30.326.41.15
Netherlands35.227.51.28
New Zealand35.930.31.19
Norway27.428.90.95
Poland28.333.90.84
Slovak Republic32281.14
Sweden26.726.61
Switzerland20.923.50.89
United Kingdom38.632.31.2
United States45.133.51.35
OECD-2431.628.41.11
The table above is from Scott Hodge at The Tax Foundation and shows:
“The share of taxes paid by the richest 10 percent of households, the share of all market income earned by that group, and the ratio of what that 10 percent of households pays in taxes versus what they earn as a share of the nation’s income.
The table then adjusts for the underlying allocation of income by showing the ratio of income taxes paid to the share of income earned by the top decile in each country. The ratio for U.S. households is 1.35, far greater than the ratio of taxes to income in any other country. Even in the three countries with a comparable distribution of income, the ratio of taxes to income was less, 1.18 in Italy, 0.84 in Poland, and 1.20 in the U.K.
Interestingly, countries with top personal income tax rates that are higher than in the U.S., such as Germany, France, or Sweden, have ratios that are closer to 1 to 1. Meaning, the share of the tax burden paid by the richest decile in those countries is roughly equal to their share of the nation’s income. By contrast, we prefer to have the wealthiest households in this country pay a share of the tax burden that is one-third greater than their share of the nation’s income.”

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