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In which OECD countries do the rich pay a "fair share" of taxes?

I've heard people say that we should be more like Europe, tax the rich at a higher rate, make them pay their "fair share". Okay, so which countries exactly are the progressive utopias these liberals are talking about? As a percentage of total taxes collected, which countries ask the most of their richest citizens? Who has the most progressive system that America can model itself after? I've included a chart to help make sure we're all comparing apples to apples in our analysis. http://www.taxfoundation.org/blog/show/27134.html

6 Answers

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  • Anonymous
    10 years ago
    Favorite Answer

    You mean the same rates as everyone else?

    Russia has a flat tax. Every other country forces the rich to pay more than their fair share.

  • ?
    Lv 7
    10 years ago

    This is only because the top 1-2% in this country have been allowed to become so dynastically wealthy, and the top 10% have the majority of the wealth in this country. If the top 10% receives 2/3's of all income, who do you think would be paying most of the taxes?

    Further, look up what percentage of income (including capital gains income) that a top 1-2% income is actually paying, as opposed to the lower 98%.

    Are you even capable of thinking something through? Or do you just mindlessly grab onto whatever some right-wing site feeds you.

    Level the field, go back to a sound trade policy (with real tariff's) and re-implement high top marginal tax rates as we had for 4 decades when the economy was strong. The rich will still be rich, but we might actually have a strong middle class again to pick up more of the slack.... and make it a little more difficult for right-wing shills to spin the explanation of numbers to their ignorant followers.

    Source(s): Figures don't lie, but liars can figure. - Mark Twain (apparently talking about your source here)
  • 10 years ago

    Your chart is the whole point of the matter. When you allow a small group to take most of the income, your society is not promoting its general welfare. This colossal maldistribution of wealth is why the collapse of our financial system brought down the investment banks on Wall Street and nearly crippled the global financial system.

    Gallup's Global Wellbeing survey this year showed countries with the highest percentage of people thriving have high marginal tax rates (over 50%).

    Country... Top Marginal Rate ... Percent of Population Thriving

    Denmark... 62.8 ... 72

    Belgium... 59.5 ... 69

    Sweden... 56.5 ... 69

    Other countries have learned a valuable lesson.

    {As to wealth, no citizen should be rich enough to be able to buy another, and none poor enough to be forced to sell himself….If, then, you wish to give stability to the State, bring the two extremes as near together as possible; tolerate neither rich people nor beggars. These two conditions, naturally inseparable, are equally fatal to the general welfare} - Jean-Jacques Rousseau, "The Social Contract" (1762)

  • 10 years ago

    Our own country used to have a system where the rich paid their fair share of taxes. From 1936 through 1980 highest tax rate was never lower than 70%. During most of this time our economy was growing and the middle class life continued to improve steadily. From 1980 forward rates on the highest earners fell and now it is down to 35%. During those years the economy has collapsed and the middle class has continually shrunk while the percent of poor people continued to increase.

    Coincidentally for the same period of time, Republicans held the presidency for 20 of the 30 years. We truly don't have to look at European countries, just look at the USA during the time of progress and improving lifestyle for average Americans.

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  • 10 years ago

    I would like to see an analysis that focuses on the top 2% of income earners, which is the group that is currently under discussion concerning taxes. It would be even more interesting to see the results of an analysis of the top 1% or the top .5%. As we know, in this country, the super rich are leaving even the rich behind.

    Edit: Cantankerous’ analysis above goes to the heart of what is the matter with the analysis presented in that chart. It is misleading.

  • 10 years ago

    The chart that someone else created has a major flaw that slipped by your beginners eyes. It doesn't show the tax rates that the rich actually pay on most of their income. OOPS. Capital gains and inheritence taxes which are appallingly low are glaringly missing from your example.

    The chart says "Share of Taxes of the riches decile" but the fine print in the article shows that is a lie. It is not the taxes they actually pay, but it's only the taxes they pay on the TOPMOST portion of their SALARY EARNINGS, which is a tiny percentage of rich american's income.

    This chart is so misleading it should come with a picture of Sarah Palin on it.

    QUESTION FAIL. CHART FAIL. USING SOMEONE ELSE'S DATA FAIL.

    There is no such thing as a liberal utopia, but to answer your question seriously, Germany does an excellent job of keeping its middle class strong with a social safety net, national healthcare and pension programs, and reasonable taxes on the upper income earners.

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