Oops. The U.S. (arguably) already has the most progressive tax system amongst the rich, developed, countries.
What’s shown below is the share of taxes paid by the richest 10%, their share of income, and the ratio of the two. A ratio higher than one indicates that the richest 10% pay a higher share of taxes than their share of income (which is the desired outcome of any progressive tax system).
I lifted this table shamelessly from this piece:
| Table 4.5. Alternative measures of progressivity of taxes in selected OECD countries, mid-2000s | |||
| B. Percentage share of richest decile | |||
| 1. Share of taxes of richest decile | 2. Share of market income of richest decile | 3. Ratio of shares for richest decile (1/2) | |
| Australia | 36.8 | 28.6 | 1.29 |
| Austria | 28.5 | 26.1 | 1.10 |
| Belgium | 25.4 | 27.1 | 0.94 |
| Canada | 35.8 | 29.3 | 1.22 |
| Czech Republic | 34.3 | 29.4 | 1.17 |
| Denmark | 26.2 | 25.7 | 1.02 |
| Finland | 32.3 | 26.9 | 1.20 |
| France | 28.0 | 25.5 | 1.10 |
| Germany | 31.2 | 29.2 | 1.07 |
| Iceland | 21.6 | 24.0 | 0.90 |
| Ireland | 39.1 | 30.9 | 1.26 |
| Italy | 42.2 | 35.8 | 1.18 |
| Japan | 28.5 | 28.1 | 1.01 |
| Korea | 27.4 | 23.4 | 1.17 |
| Luxembourg | 30.3 | 26.4 | 1.15 |
| Netherlands | 35.2 | 27.5 | 1.28 |
| New Zealand | 35.9 | 30.3 | 1.19 |
| Norway | 27.4 | 28.9 | 0.95 |
| Poland | 28.3 | 33.9 | 0.84 |
| Slovak Republic | 32.0 | 28.0 | 1.14 |
| Sweden | 26.7 | 26.6 | 1.00 |
| Switzerland | 20.9 | 23.5 | 0.89 |
| United Kingdom | 38.6 | 32.3 | 1.20 |
| United States | 45.1 | 33.5 | 1.35 |
| OECD-24 | 31.6 | 28.4 | 1.11 |
| Source: Computations based on OECD income distribution questionnaire. | |||
Oops. It seems that the rich in the U.S. already pay more than the rich everywhere else. Pity. I’m not sure what many people would talk about it if they actually knew this.
Read the whole thing.
Via Carpe Diem.
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