Estate tax being practically zero means huge quantities of un-earned wealth are transmitted from generation to generation. This isn't true in most first-world countries.
The top tax rate in the US isn't nearly as high as many European countries.
The specific quantity of money that is collected as tax revenue has much more to do with just how successful the higher classes are in the US as compared to other countries. This is a function of (wealth inequality multiplied by the top tax rate) not of how progressive the system is -- certainly not at the federal level.
If you have citations, they are much welcome.
The post you're replying to missed many critical factors, such as the fact that the average salary in constant-dollar terms has remained the exact same since 1964 in the US. [1]
>The top tax rate in the US isn't nearly as high as many European countries.
And the bottom tax rate is much much lower than in other countries. The top 3% of earners pay 50% of income taxes in the US. Nowhere in Europe will you find this.
Remember, in addition to their flatter income tax rates, Europe also has 20% VATs which is extremely regressive.
Payroll taxes are both regressive, substantial and non-refundable: 7.65% on each of the employer and employee totaling 15.3%, which stops when you make too much money. This accounts for a further $6273 if you haven’t taken the employee amount into consideration (I didn’t see it in your breakdown) and $3136 if you did but neglected that this is paid on your behalf by your employer and you never see it. This alone zeros out the net credit you mentioned.
Then of course since we’re comparing the rest of the world to the US, you need to add a couple hundred dollars per person per month - easily $10K for a family per year - for health insurance that gives them a $5K out of pocket maximum per year they can’t afford so they don’t die of cancer (but can’t afford an early diagnosis) and can’t afford their insulin. All of which is included in the tax burden and covered in Europe and Canada and Australia and New Zealand and Taiwan, to name a few. This amounts to a regressive 25% tax if you’re comparing directly (as good health insurance costs rich and poor the same, but represents a disproportionately higher amount of take-home pay for the poor).
I never understood the “freeloader” narrative, payroll taxes easily cancel it all out.
I guess what I would say is that "best in class" clearly isn't good enough given the results and the environment in which these decisions are made. Looking at the results, I'd say it's not working. Either we need to turn up the dials, regardless of what everyone else is doing, or find some new dials, but the status quo won't do.
Estate tax being practically zero means huge quantities of un-earned wealth are transmitted from generation to generation. This isn't true in most first-world countries.
The top tax rate in the US isn't nearly as high as many European countries.
The specific quantity of money that is collected as tax revenue has much more to do with just how successful the higher classes are in the US as compared to other countries. This is a function of (wealth inequality multiplied by the top tax rate) not of how progressive the system is -- certainly not at the federal level.
If you have citations, they are much welcome.
The post you're replying to missed many critical factors, such as the fact that the average salary in constant-dollar terms has remained the exact same since 1964 in the US. [1]
[1] https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us...