12 Countries With The Highest & Lowest Tax Rates

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Canada

Seemingly everyone has an opinion about taxes. As one of the largest economic and political issues of any country, the subject of how high taxes are (and upon which segment of society they predominantly fall) can be counted on to engender heated debates among politicians, academics, and ordinary citizens.

However, beneath all the heated rhetoric and opinions are hard facts and numbers. Certain tax rates in certain countries correlate with certain outcomes, regardless of whether these are acknowledged by various strains of financial opinion.

Today, Business Pundit takes an honest look at twelve countries – six with the highest tax rates, and six with the lowest – and examines other facets of those economies with an eye toward possible correlations. Naturally, there are several different ways to assess the income tax burden a nation imposes – the lowest rate of income tax in a country, the highest rate, income tax on corporations, and the like.

Depending on who is being taxed (say, someone making $10,000 per year vs. someone making $100,000), a nation’s income tax structure can look very different. For the sake of using one uniform measure, our article uses marginal income taxes on average income workers in a given country.

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  • Nicholas

    I’m sorry. This article is just incorrect.

    Is it meant to read High & Low, instead of Highest & Lowest?

    Please retract the article or change it. It is very misleading.

  • 4liberty

    This is total b.s. Read the link below it explains what ” marginal taxes” are. And that they don’t include sales tax and star tax.
    We are taxed more than any county overall and don’t let anti American propiganda convince you otherwise.

    http://www.econlib.org/library/Enc/MarginalTaxRates.html

  • Jim Jones

    Fascinating list. I would like to see how cost of living factors in, but nonetheless.
    http://jimasks.me/is-the-primary-purpose-of-the-prison-system-to-punish-criminals-or-rehabilitate-them

  • Phil

    Being a tax accountant in the USA, I can very safely say that the highest marginal tax rate in the USA is NOT 27%.

    It is actually 35% soon to be 39.6%. Very misleading article.

  • Steve

    How can Switzerland and the USA both have the 7th highest GDP per capita?

  • Alexander Burns

    Misleading title, selective sampling and no consideration of services provided.

  • Alex

    “the economic vitality and high standards of living in the U.S. speak for themselves.” – Say what?

    “The United States boasts the 7th highest GPD per capita in the world” – Just the 7th?

    “the United States and its relatively low tax rates offer the best of both worlds — reasonable social safety nets,” – social safety nets?

    “and extraordinary economic capacity stemming from essentially free market policies.” – yeah, like being laid off without any social safety net to speak off.

    By the way, some of the lowest income taxes are in Russia. I believe it’s like 13% flat.

  • Tony

    Sorry, but New Zealand has relatively low tax rates. Probably lower than the States too:

    http://www.ird.govt.nz/how-to/taxrates-codes/itaxsalaryandwage-incometaxrates.html

  • Daniel Parker

    Not sure how I was paying 48% tax in Canada and 19% tax in USA makes Canada a low tax area. This article is B.S at it’s very best.

  • Alex

    “All told, London continues to offer one of the higher standards of living in the world, owing in part to its relatively low taxes and focus on economic growth.” – I bet it’s cheap to live there, too.

  • CK

    Singapore has lower tax rates than all the ‘LOWEST’ you have listed. Their maximum is 20%.
    -CK

  • Daniel

    Did the author actually conduct any kind of research?
    This article might be accurate if he’s limiting the scope of the comparison to countries in Europe & North America only. Has he compared tax rates of countries such as Singapore or Hong Kong?

  • anony

    you guys need to check out HK’s tax rate

  • The author has pretty much selected top GDP/Per Capita nations for comparison, a relatively misleading note on highest vs. lowest taxed nation.

    Perhaps the statement above should be inserted first.

  • Tony

    “All told, London continues to offer one of the higher standards of living in the world, owing in part to its relatively low taxes and focus on economic growth.” – I bet it’s cheap to live there, too.

    Bwahahahaha…Ummm, it’s the 2nd most expensive city to live in.

  • Tokidoki

    This post is incredibly superficial, uses a very selective sample, data are WRONG and comments from various non homogeneous sources incoherently “copied and pasted” end up in risible conclusions. It does not even mention other taxes, sometime very important to expats, like capital gains. Singapore=0%, Hong Kong=0%, Switzerland=0%, Germany (shares held >1 year)=0%, Italy=flat 12.5%…sorry for you if you reside in the supposedly low tax countries of US, Australia, Canada (unless you have an immigrant trust) and UK (unless you are non domiciled)

  • Sam

    What a bunch of poop. Highest tax rate in US in 35%. And the tax rate in UK tops at 50%…

  • This list fails, even if you are doing “industrialized” or first world countries.

    The lowest tax rate above pales in comparison to the 15% Salaries Only tax leveled in Hong Kong (technically its own jurisdiction)- this is even lower than Singapore’s 20%.

    Do some research next time guys.

  • Ron

    No question, there were a couple errors in this article. (The USA and Switzerland can’t BOTH have the 7th highest GDP – come on now!) However, many of these comments are just splitting hairs without adding anything meaningful to the discussion.

    For instance:

    “Being a tax accountant in the USA, I can very safely say that the highest marginal tax rate in the USA is NOT 27%.It is actually 35% soon to be 39.6%. Very misleading article.”

    True, 27% isn’t the highest, but the author didn’t say it was the highest. It says 27% is the rate assessed on *average income workers*. Reading comprehension goes a long way!

    Or how about this guy:

    “Not sure how I was paying 48% tax in Canada and 19% tax in USA makes Canada a low tax area. This article is B.S at it’s very best.”

    Again, the author is clearly citing the rates assessed to *average* income workers in these nations. The fact that you personally got taxed at 48% in Canada doesn’t make the article “B.S. at its very best” – read what it actually said.

    Finally, this comment:

    “This is total b.s. Read the link below it explains what ” marginal taxes” are. And that they don’t include sales tax and star tax.”

    Did the author claim to be discussing sales or star taxes? No. Now, one could argue that those taxes ought to be discussed in an article like this, but it was more or less clear from the outset that *income* taxes were being discussed, not sales taxes, so it’s not as if the author claimed marginal tax rates included sales or star taxes and then deceived you because they don’t include them.

    All in all, I understand some criticism here regarding purely factual mistakes, but this article is nowhere near as bad as some of these commenters allege. The author should’ve clarified that marginal rates on average income workers were being used as the basis for the piece, and a good deal of the complainers should’ve paid attention before complaining.

  • Nice to see that there are other countries ahead of mine (Croatia) that have higher taxes…

  • Richard DeHavillande

    Interesting article as far as it goes but what would be more interesting is overall tax burdens and cost of living.

  • Anoni

    In Québec/Canada we pay a max of 52% past 50K or about annual income and sales taxes combined federal + provincial mount to 12.88%.

    Not the cheapest please to live.

  • Dave

    Phil says, “Being a tax accountant in the USA, I can very safely say that the highest marginal tax rate in the USA is NOT 27%. It is actually 35% soon to be 39.6%. Very misleading article.”

    Being literate, I can very safely say that the article did not state that the highest marginal tax rate in the USA is 27%. It said that the “average” worker’s marginal tax rate is 27%. That’s a pretty big oversight for a tax accountant to make.

    In any case, this article is indeed worthless because it does not consider the total taxation of the people, which in the United States comes primarily through inflation. In a single lifetime, inflation has stolen 93% of the purchasing power of the dollar. It punishes savers and anyone who owns dollar-backed equities like US stocks, bonds, and CDs.

    In my personal experience, I’ve estimated that inflation adds another 40% tax of my income. And the longer I save money (in order to make a big purchase like a house), the worse that rate becomes.

  • Dan

    Maybe the UK has a marginal tax rate of 32%, but the universal healthcare the article is boasting of is funded in part by the additional, mandatory tax known as “National Insurance”, currently 12.5%. No, the UK is not cheap.

  • John Doe

    Erm, how about countries with NO tax.

    E.g: Brunei, Middle Eastern Countries.

    Funny thing, all the countries listed above are so called “white” countries, except Japan.

  • Alex

    I am not a tax accountant and can’t comment on that part. However, this article is not purely factual. It contains all sorts of conclusions and implications about standards of living, social safety nets, economic viability and all that based on marginal tax rates. I believe it presents an overall misleading picture. I live in Boston, USA and make decent money and pay big taxes. Not to mention, school loans and health care out of pocket expenses that run in hundreds of dollars a month. One of my biggest fears is to lose my job and leave my two children without insurance. The cost of leaving needs to be factoed in, too.

  • Ron

    So the article is misleading in general… because of student loans that you pesronally took on and because the U.S. doesn’t have universal healthcare? Sounds more like gripes you have with the country than the factual basis of the article.

    You’re right – an article that sweepingly accounts for income taxes on every possible income level, sales taxes, corporate taxes, inflation, cost of living, national debt, fiat currency, presence or absence of government healthcare and all the innumerable factors that go into a country’s standard of living…. and definitively ranks the highest and lowest tax nations… would be cool. It would also be long enough to fill a scholarly paper in an academic journal. It looks like for brevity and consistency’s sake the author chose median income tax rates on average income workers. You’re free to disagree with that choice, but it’s lame and childish to call it “B.S.” and “misleading” especially when A) many of you didn’t even fully read what you are complaining about and B) the author didn’t claim to incorporate many of the things you bash the article for not incorporating.

    Hell, the title says “tax rates.”

  • Adam

    What a piece of garbage by the author of this article. Canada has ‘struggled’ in the economic depression? Really? Canada was the first G7 country to exit recession, has not had a single bank failure OR even a need to bail out banks. Our unemployment rate has been relatively steady and is much lower than the US. This in spite of the fact that 85% of our trade is with the US, which had a massive economic failure.

  • smith

    HK has a flat rate ~17% and no sales tax, except for hotels and booze imports.

  • Alex

    “So the article is misleading in general… because of student loans that you pesronally took on and because the U.S. doesn’t have universal healthcare?”

    What do you call it? It clearly suggests that if a tax rate is low the country will be economically viable with a high standard of living and social safety nets. That’s propaganda and as all propaganda it is misleading.

  • Ron

    It doesn’t suggest that at all. It says that the U.S. has relatively low income tax rates on average income workers, a high standard of living (supported by highest income per hour worked statistics) and reasonable safety nets like Social Security, Medicare, etc. The article doesn’t say there is necessarily a *causal relationship* between those things… it simply states that they co-exist with each other. So how is it propaganda if everything actually stated (as opposed to implied by you) is incontestably true?

  • Alex

    If it had said there was a causal relationship it would have been a lie. I am not saying it is lying, it just simply serves up certain cherry picked information in a context of a “research” article on low taxation. The purpose is pretty transparent – to propagate low taxation. Plus, contrary to what you say, such words as “reasonable” social safety nets and “high” standards of living may definitely be disputed. Just because Mexicans, South Americans and Haitians trip all over themselves to come here does not mean it is freaking heaven over here. I am from the former USSR, by the way, and this article reminds me of how BS was being fed there about that country. It paints a rosy picture without acknowledging any negative sides whatsoever.

  • Ron

    I see your point, but can you tell me where heaven on earth is? That’s sort of a straw man argument. Of course the U.S. isn’t perfect. But if your argument is that millions of people who leave the countries of their birth, their families, their cultural heritage and whatever other ties they have to come here aren’t evidence of something desirable about the United States then you are sticking your head in the sand. Pointing out this obvious fact shouldn’t be conflated with claiming the U.S. is perfect.

    As for the alleged bias of the article. I don’t see it as being propaganda. It acknowledges several shortcomings of the low-tax nations, including Japan’s high debt, reduced growth forecasts for Canada and how the unemployment rate in several high-tax countries is currently lower than the U.S. It isn’t like the author described each country in two dimensional “this country is great, this country sucks” terms depending on how high the taxes are. Isn’t it possible that maybe (just maybe) countries with lower taxes often DO have higher standards of living and more economic growth? Or is the malign intent of the author the only possible explanation for the picture that emerged?

  • Alex

    People come here because this country offers a vastly better standrard of living than in many other countries. That is undisputed. However, whether that automatically qualifies as a “high” standard of living I am not so sure. Perhaps I misread the article, but it is consistent with certain ideological movement in this country that equates lower taxes with all those goodies described in the article.

  • Ron

    I agree with you that the article perhaps bit off a bigger question than it could chew in the space allotted for it. More factors would have to be considered for a truly definitive ranking. Regarding high standards of living, an economist might ask: “high compared to what?” Sure, we can always imagine something better than the actual alternatives in the real world. The U.S. is hardly perfect and isn’t better economically than every other country in every possible way. My only point was that if we’re comparing it to many of the countries that have confronted us throughout human history and many that exist today, it offers people a pretty good deal. I could give you my own laundry list of things it needs to do better, and we might agree on more of them than you’d expect.

  • Alex

    Here is an example. George Will writes today in WP: “Under him, Indiana property taxes have been cut 30 percent, and for the first time Standard & Poor’s has raised the state’s credit rating to AAA.” Ok both statements may be literally true, but why are they in the same sentence? I did a quick search and here is what I found:

    “These ratings reaffirm that Indiana is in far better fiscal shape than many other states because we continue to carefully manage our spending and maintain a reserve,” said Ryan Kitchell, director of the Office of Management and Budget.

    Ok so there is more to the story than cutting taxes? Or not? Just disclose all relevant facts and let readers decide.

  • Ron

    That’s a good point. In fact, one of my biggest gripes with Ronald Reagan (whom I like in general) was that he cut taxes without also cutting spending and exercising fiscal discipline. You need both to get prosperity without deficits. However, it’s also true that if the article simply mentioned careful spending and ignored the low taxes, it would also be incomplete. So you’re right, both sides of that story need to be told.

  • Dee

    You, Mr. Author, have no clue what you are talking about.
    The bit about Italy tastes of stupid so strong I had to get a drink of water.

    a) Naturally, this segment of the population is not participating in economic growth by having their own homes or apartments, utility bills, and the like.

    Yeee-es, economic growth is based on paying more rents, more bills, and taking mortgages. Let’s all move out of our parents’ place and create more debt. Are you mad ?

    b) The case could be made that overly generous government benefits have softened the population’s will to work.

    There are no overly generous government benefits. In fact you seem to misunderstand what you yourself quote, which says that people can’t afford to move out of their parents’ home, which is what made the government “toy with the option of a tax incentive”.

    I know this is the internet, but garbage is garbage.

    Regards

  • Delaware & Nevada help keep the US on the bottom 5 list. Depending on what state you’re in, you could actually be on the top 5.

  • pissed off american

    I dont think the usa goverment gets it….the more they raise taxes the more the people start talking about a revolution i hear it all the time people are sick of politicians in the white house…if i could i would surrender my citizenship and ask to be deported before the revolution starts i have no respect 4 uncle sam the dishonest goverment in the world this country is on a path of self-destruction and im not going down with it im out of here as soon as it starts kiss my white american ass olamna i can go on on but whats the point………………… have a great day

  • Dani

    This only considers western countries right? I would imagine that developing countries have lower taxes…

  • broke stick

    This article does not get specific enough about a few things in some other countries, including the USA. I saw another related article showing the USA having the 14th highest tax rate among industrialized countries. However, this article fails to mention that almost everybody in the US has an adjusted tax rate that is based on what you paid in taxes after you filed a return. No matter how rich you are, your adjusted tax in the USA is between 16.5 and 19 percent. But I would guess that if the US keeps losing jobs to China and other countries who employ children to do the work for little or no pay, the US will cease to be regarded as an industrialized country.

  • mark salek

    THE CZECH REPUBLIC HAS THE LOWEST PERSONAL AND CORPORATE TAX RATE IN EUROPE. YOU DON’T EVEN LIST THEM. SO MUCH FOR RESEARCH.

  • Ken

    On the day I was born they began to:

    Tax my earth. Tax my birth. Tax the land you say I own. Tax the home I think I own. Tax the door. Tax the walkway to that door. Penalize more taxes to that home should I repair some stone. Tax the right to own, a fee to roam, for it’s not long to have that home.

    Tax my bed. Tax my table, at which I am fed. Tax me deep for I need not sleep. Tax my car. Tax the fuels of my anger, for you have taxed all others so to add employment for your brothers.

    Tax my cat. Tax my dog. Tax my shoes. Tax my coat with no regret. You have managed to tax my goat. Tax the young. Tax the tired. Tax the cold, for all those taxes wont grow old. Tax my tea, there’s no plea no voice for joy, only a speechless ploy. Go ahead and squeeze me for much much more.

    Tax my truck. Tax the plates I place upon that truck. Tax it heavy, just like a mule. Tax it equal to the load It carries , no need to enter school., but teach me that taxes are the rule. Tax you must, don’t pass an attempt to attach another tax to say you must, so now comes the time to tax my ass.

    Tax my work. Tax my new blue jeans I wore to work. Tax my pay, and allow no time to play. Allow me to work all day for taxes are all I need to pay. I have no time to spend one dime from all the taxes you say are mine. Remove from my paycheck, and send me back what you cannot spend, I will accept this abuse, for what’s the use ? You will give those taxes you say are mine to the wealthy so they stay healthy.

    Tax my tobacco, along with the sins of my drink. Tax the smell of my cigars, and the beer I burp, and should I cry, have no fear to tax my tears. Tax me in a blink, should I decide to think. I hate to play, so make me pay. More taxes are here to stay. Tax the short. Tax the tall. Tax us all, and don’t throw sticks, tax the sick, no matter if they cry tell them taxes never die.

    Tax the old. It will be bold. I’ve been told I too am growing old. Those few hours I now work, still new taxes are un-corked. I need no place to land, as it stands I was sent a fax, my work was given the ax. Should I holler and scream, and lose some steam, don’t arrest I need some rest. Don’t place me in a cage, just blame it on my age.

    Tax any and all I have, then let me know that you wont be done, as you have taxed me to the bone. Then when all is said and done, tax my coffin, and to satisfy your crave, by all means tax my grave.

    Tax the sod in which I am laid. Place these words upon my tomb, “ Taxes carted my dumb ass here, and I no longer have the time to play nor means to pay.” I am gone, it’s not long to max the tax on my death, so I leave you this request. You a need a tomb for taxes, as the rich are rich enough and the poor are poor enough, and your voices not loud enough. When your voices are un-employed, work may be the least of your worries. You will need to work – work – work more hours as they will not relax the tax, so my last advice is to take ex-lax . THEY WILL NOT LET YOU PASS, YOU TOO WILL TAKE IT IN THE ASS!

    What do Politicians, hot air and taxes have in common? Politicians are full of hot air and taxes always rise. Do you know the difference between the acronyms of IRS and KGB? Only the spelling.

    Sincerely;

    Kenneth E. Sanders

  • Daniel Hughes

    This is the least researched article I have ever seen, totally misleading and innacurate.

  • The czech republic has the lowest corporate and personal income tax in europe. 15 % flat tax individuals and 19% corporate. VAT is 19% consistant with most european countries. The are the “Detroit” of europe with 5 automobile manufacturing companies producing cars.

  • I certainly hope that our intrepid business pundit was being tung-in-cheek in his paragraph on Switzerland when he quoted Times Online:

    “Contrary to general assumptions, the Times explains, Switzerland has found a way to maintain a high standard of living alongside an extremely low personal income tax rate.”

    It is “generally assumed” that high tax rates are necessary for the people to maintain a high standard of living? Is that a typo, or is the Times Online on drugs?

    And then Business Week: “Switzerland’s low tax rates have not stopped it from having some of the leading universities in the world, a highly educated work force and less than 3% unemployment as of 2009.” “Not stopped it”?!? Perhaps the business pundit only quotes dyslexic sources.

    By the way, the country with the lowest tax rate is Saudi Arabia, with 2-3%, collected voluntarily. Most people donate the 2-3%. Even the Swiss could learn something from the Saudi’s.

  • Sue

    The writer should be fired for such a sham of an articles. Please research and check the facts. Singapore corporate tax is 17% and personal tax max 25%. I don’t see Singapore anywhere on this list. How on earth Australia made this list? I almost feel off my chair laughing. I declined a position down under after my University education and move to Asia simply because the Australian tax is too damn high. I got less per annum renumeration in Asia but far more $$$$ in the bank because I pay less tax.

  • EK

    Check this out. Tenths of nation with tax lower than 20%

    http://en.wikipedia.org/wiki/Tax_rates_around_the_world

  • cyril.R

    fendastic

  • I heard Singapore and Hong Kong were tax havens, now only Hong Kong is on the list.
    Russia has 13 %, Macedonia 10 % income and corporate tax. Strange…

  • You you could edit the webpage name 12 Countries With The Highest & Lowest Tax Rates | Business Pundit to something more catching for your webpage you create. I loved the post nevertheless.

  • Jonathan

    It would be nice, when doing research, to not encounter an article that isn’t completely and hopelessly biased. Guess I’ll have to keep looking…

  • Kaz

    One word for this article; nonsense!

  • mimi

    Not sure why the United Arab Emirates is not listed here but according to Wikipedia it is the country with the lowest Taxation rate:
    http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP

    The highests would be Kribati, Denmark and Sweden
    This post is useless!

  • Joe

    It’s funny how some of these stats are from 2006, some from 2009. As seen in the U.S. alot can happen to your economy in 3 years. Unemployment increase, housing market crash. I lived in Italy for 5 years and young men live with their family because that’s what Italians have been doing for decades, they center their lives on family not work. They enjoy life, and seemed to have less stress.

    agreed this article lacks in every aspect. I don’t have a big issue with taxes, but wasteful government spending on the other hand is a problem.

  • dude

    The author is ignorant. US income tax is based on a combination of FEDERAL plus STATE income tax. WHile 4 states have 0% income tax rates, the majority of Americans end up paying an additional 6-10% of their income to the states in income taxes (not to mention property tax, capital gains tax, sales tax, estate tax, registration fees, etc.)!

  • foo

    American tax rate in california for a average worker

    federal: 32%
    state: 10%
    SS: 7%
    Disability: 2%
    total: 51% THE HIGHEST IN THE WORLD

    for independent workers, add another 7% social security tax

    Total: 59% TAX
    BEYOND THE HIGHEST IN THE WORLD

  • Did the writer forgot the name of Pakistan?

    Pakistan’s foreign tax returns, which currently are equal to 10.2% of gross domestic product, one of the world’s lowest ratios.
    http://online.wsj.com/article/SB10001424052748704835504576059621949090978.html?mod=rss_asia_whats_news&utm_source=twitterfeed&utm_medium=twitter

  • CameoWalkin

    What useless and self-serving data you serve up. The USA is depicted as the lowest-taxed country — but nothing lower than the USA]s percentages are even mentioned? How does that help those of us seeking a better currency exchange rate and better tax options, in a somewhat safe, urban to semi-urban setting, where English is spoken, if not the main language?

  • Tori

    To Pissed Off American – good riddance, don’t let the door hit you on the way out. Bet you are on Social Security or getting disability, government programs I might add. Be sure to inform us what country you end up in, if they let you in.

  • john doe

    What BS this article is.

    Look like written by a 9th grade student thst copy/pasted from CIA World “Factbook”

    First the tax brackets are all wrong… Canada low taxes on personal income ROTFL!

    And please when you look at GDP use the PPP and don’t mix the numbers to twist the truth.

    LAst and not least, it is not only the tax rate that matter but the COST OF LIFE and the SERVICES the country is providing.

    In Finland they might have higher taxes but free healthcare, good quality public school, childcare services etc…

    It is ok to pay more taxes for more services and many place you pay a little less taxes for MUCH LESS services

    Overall a very crappy article

  • BigSoph

    Canada gets nailed with federal income tax, harmonized sales tax, provincial income tax (55%) of federal and various municipal taxes

    All told, tax freedom day in Canada is now in late June (August at the earliest of the NDP ever formed a government)

    We are NOT low tax

  • selena

    well, let’s remain positive: at least the writers are 100% clear about their objective: convincing everybody that ‘low taxes lead to higher growth’. just to bad that even after manipulating numbers and a lot of suggestive phrasing they still fail to convince me (and presumably most other readers).
    if anything this article makes some strong arguments for the other side: that high taxes are beneficial to most countries, proven by all those western-european countries that have ‘high taxes’ but are still outperforming the rest of the world. india or china f.i. with all their people and resources have a total economic weight (GDP)that is comparable to countries only a fraction their size. the reason the G7 is so euro-centric is not tradition, it’s because tiny little europe is doing pretty well economically.

    as for swiss: it’s a tax-haven. that’s how they can have low tax-percentages but still raise lots of tax-money.
    the united states?: one of the ways they raise money is by insuring the dollar is the international currency (like attacking iraq when they switched to euro’s), thereby imposing a *tax* on any country that needs dollars for international trading.

  • Ken

    Brunei has no tax.

  • Chris

    Man you guys bitch alot. don’t want to pay taxes?
    move to the Congo.

  • KB0001

    How is this article allowed to be posted/printed. This was written obviously to show that anyone can manipulate figures or rather only use figures that supports the writer’s opinion. Sort of like when Gore came up with his global warming stuff, (right around the time when he claimed to be the creator of the web). There should be a BS detecting company (a third party company) that must be used by all newspapers mags, corporate Internet posting…etc. That limits the ability to print/post data. Or not free speech and all.. Take it light
    –KB

  • Loz

    Julia* Gillard is Australia’s PM, please correct this ;-)

  • chrisboote

    Surely Monaco, with a zero marginal rate of income tax should be up there at the top?

  • Danny

    Talking about PER CAPITA.

  • larry e

    “Canada is taxed in a manner similar to that of the United States, imposing a 31.2% marginal tax rate on average income workers………” Total bullshit.
    I live in Canada, and while the federal tax may indeed top out at 31% (I dont know), I DO know that each province in Canada will hit you with their own tax, to get you much much closer to 50%, then municipal taxes (I pay about $5000 per year on my home), then gasoline and the thousand other taxes. I almost forgot the 5% GST (goods and services tax, with which the government of canada has made each and every business owner into a tax collector for the government………..AND with which even if you have a money losing business in Canada, the government will take the first 5% “off the top” of your revenue before you even get close to break even.

    I would have to put the government share of peoples income in Canada at closer to 60% to 70% depending on whose numbers you want to use. It is definitely NOT the country with economic freedom for its citizens as an underlying desire. I will not even tell you about the fraud of the five banks who have a near monopoly in Canada. Canada is a “skim” country. We have $17 million (total annual budget) to spend on the RCMP fraud cops, and we have not prosecuted one large scale fraudster yet. NOT ONE. Investor Beware of Canada. Fraudsters Protected.

  • ROC

    As great as the U.S. is, when looking at the tax structure, we also offer less services than any of these countries listed. Something to consider…

  • Patrik

    This has to be an extremely generalized example? I mean, after all it’s different fron county to county. For instance, a woman I used to talk to from Nashville TN, and she said (if she’s not lying that is) that the taxes are extremely low there. And same goes for Norway wich has a generalized (while we’re at it) tax rate of 25-29%, and are not on the list. But still, depends on the county you live in. I don’t really believe this article at all.

  • Patrik

    Taxes.. We all get spooned by the government and we accept it.. Blindness is among us all. The government haven’t given me anything back. Freedom? To do what? Buy stuff wich also is taxed, buy a house and be part owner with the government who also sells what nature gave us for free. No I’m not a hippie, just a realist.

  • Brian

    I realize I’m late to the conversation, but this author is just plain wrong. I don’t even know where to begin other than to say he/she isn’t qualified to write.

  • Ms Ann thrope

    What a load of bollocks…Australia low tax? While we have 35% personal income tax we also have 10% GST + tons of hidden taxes (local council land rates, govt charges for everything, high petrol tax, alcohol taxes, car taxes etc)….add them all up and we pay around 65% tax or more…and the stupid b!tch that runs the place is about to introduce another massive tax for carbon

  • Clay

    haha! who the f____ wrote this! Bermuda has NO INCOME TAX! and AMERICA HAD NO INCOME TAX BEFORE WWI. I am suspicious…there is no way you are that dumb, so my only reasonable conclusion to draw is that for whatever reason you are trying to boost up the English decent western ruling countries (USA, Canada, UK, Australia, etc)

  • stan

    in uk a slave will pay : minimum 20% income tax (above 37000 is 40%) , 12 nino , 10 nino again (company pays for you ), 20% vat (sale tax) , tabaco tax ,fuel tax ,property tax,alchool tax,birocratic tax..etc
    from every 1000 £ aprox. 65 % will end up in the aristocracy hands….
    we have a ,,fair” sistem and ,,social security”…LOL..stupid people….you just have to find them :)..
    ps:and the fiat s@..t toilet paper (currency) will tax you about 3-5% every year (aka steal from you).we had times when it was 20%…

  • Aborn

    cool. nice propoganda. strange how when taxes went up in the US in the early 90’s the economy went through the roof, and the opposite happened directly after the Bush tax cuts.

  • How idiotic. Where is Dubai? No tax at all.

    And the author says US has a low tax rate. Hah!!!

  • Dan

    And this article demonstrates there isn’t even a correlation between tax rates and GDP per capita.

  • Citizen

    The highest Australian tax rate is 47% and it kicks in at an annual salary of $180,000, on top of that we pay 10% GST, and stamp duty on most purchases, a 1.5% medicare levy and forced private insurance on top, and if that was not enough we have additional state and local government taxes. The socialist Australian Government has created a very generous welfare system, and 15% of the population are either unemployed or on welfare benefits. For the professional workforce they carry the burden of the tax, while avarge wage earners, factory workers and unskilled labour still command a wage of $77,500 pay almost zero tax. The lesson in Australia, get educated, get a degree then leave and work in Asia. Singapore and Hong Kong, top tax rate of 15%, even Malaysia top tax rate is 28%.

  • Jim

    Many low tax countries have been missed in this article.

    Different layers of taxes(income, sales, property, etc etc) make it difficult to use the marginal income taxes as a good measure of the nation’s tax burden.

    A useful indicator which OECD puts out is the Tax-to-GDP ratio. Some of the top (countries whose GDP is largely made up of tax revenues) in this list would include – Sweden at 45.8%, Italy at 43%, France at 42.9%, Finland, Germany, UK, Spain, Canada, Switzerland, and USA at 24.8%.

    Some would argue that these countries are at risk of losing their productive enterprises and entrepreneurs to more welcoming locales.

    @citizen from Australia – Your numbers explain why the Aussie expat population is growing pretty fast.