FACTOID # 1: Don't start a company in Australia. More than 20% of the tax collected in Australia is corporate income tax.
 
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Discussion - Taxation > Total tax wedge > Single worker

These are comments that our moderators found as non-authoritative though possibly interesting for further discussion on Taxation > Total tax wedge > Single worker
 

COMMENTARY     

William
16th June 2005
Oh, try working in the US for a while, Martin. I give you two minutes having your soul sucked out of you at some lousy service job, living without insurance in a world in which you need it to survive, and you'll be homesick to the point of tossing up your lunch. Low taxes come at a price just like the amenities of a liberal government come at a price, so find a decent centrist state in which neither the government NOR the corporations are allowed to rape you until the day you die.
SG
19th June 2005
William, I agree with you totally on your point regarding sold out governments and corporations sucking individuals and families dry. Australian society is similar to the US, but there are certain distinctions that keep us worlds apart, such as our traditionally socialist nature, which our respective governments want to obliterate in the name of free enterprise and open trade (capitalist enterprises cannot compete with socialist governments). Let me give you an example: As a free nation, we can openly whinge about our lot in life, the under funding of services such as health care etc. However, with my elderly father in hospital receiving FREE,state funded, excellent public care, with personal 24 hour nurse assistance (yes, someone sits by his bedside all day and night), how can I complain? Bring on the well-spent and fair taxes!
Mr Mclarichie
20th June 2005
Yes, Martin try woorking in the UK or the USA because they have quite high salaries yet quite low taxes! If you agree please reply to my comment
Rob Fowler
3rd July 2005
This statistic really needs an additional comment in the definition such as 'this statistic is quite simplistic being only federal taxes and not including regional taxes or goods and services / value added taxes.
Pedro
11th July 2005
To all; I think you are lucky enough to have an honest government even if some of your taxes are high. Here in the Philippines our income is low and we are taxed to the limit to pay for the worsening national budget. And nearly forty percent of the taxed amount goes to the pocket of corrupt officials.
phods
4th August 2005
What about other countries in the world as Asian countries? And can you have another list with full TAX(Including sales tax & income tax and other sundry taxes)? Thanks
Some1
12th August 2005
Israel according to this chart is fourth most taxed (or taxing...) in the world in individual income tax levels, yet unmentioned: 49%
http://www.worldwide-tax.com/israel/israel_tax.asp
Doug
5th September 2005
Wow, and I thought we were taxed bad here in Australia... I guess i was wrong...
Mohammed Arif
10th September 2005
It is worth to be mentioned about tax system of India which is so complicated that it is hardly understood by common man. It should be simple and in brief. If Govt. of India can punish the corrupt politician who are doing millions of corruption with different name of scams then Indian can be one of riches nation of the world and there will be no jobless person.
Ted
29th September 2005
We ought to move like minded people to societies of their choice: All the statists to their preferred nanny countries, all the free marketers to their jungles. The former seem to think other citizens owe them, regardless what they do with their lives. The latter think no one owes them a thing. The latter, it turns out, are much more charitable. Since governments consistently do the idiotic (e.g., Not recognizing the economic inevitability of vastly increasing their numbers when you give a monthly stipend to unwed mothers, or paying $600 for a $20 hammer, or taking $45,000 out of the economy to give $15,000 to a needy family), I think charity is a better option. It is also better for the soul.
steve
10th October 2005
are u taking into account lost future value of high taxes paid ???
a tax reduction yielding an additional $2,000 per year to invest would grow to $253,000 at 5% in 40 years.
$596,000 at 10% in 35 years.
when u consider future value, the socialist high tax countries lag far behind. U do not get what u pay for.
nothing is free.
Oldnumber7
16th October 2005
The calculations above are a tricky business. In the US, for example, the numbers above don't count the taxes that every worker never sees (i.e. the "employer's share" of Social Security and Medicare -- another 7.65 percent on top of what comes directly from the worker's paycheck). If you also add other employer taxes (e.g. worker's comp, unemployment) that are part of the cost of labor you'll find average taxes as a share of an employee's worth are much higher than reported above -- roughly 42 percent in the US. Then include uncompensated costs for health and auto insurance claims that are shifted to income earners and you'll find the out-of-pocket social burden for the average worker goes up even higher. We may not call it taxation in the US, but it amounts to taxation.
demographer from HongKong
17th October 2005
One important explanation for the gap between the USA and the Continental European countries is that a working American on average income would paying 10% of his/her income to medical insurance (which is not included in this statistics) While cost of healthcare is already counted for most european countries.
jeff garner
23rd October 2005
what is the taxation in the Dominican Republic for individuals in income tax?
norman
5th November 2005
hmmm........India's tax rate is 33%..
23-year-old grad student paying into a d
5th November 2005
Wow. I am SO moving to Australia, New Zealand or Iceland when I graduate. The US has absolutely awful social services for its level of taxation. I didn't go to the public schools because they were so bad, and now I'm paying 2X as much to go to a public university as I did to go to a private one for my undergrad. Plus, health care is enormously expensive and only old people get it for free.

I guess all the tax money goes to support our military dominance. Goodie.
J.C.
8th November 2005
I knew belgium (my country) had high taxes, but being one of the 10,5 million (our average population) highest taxed people in the world, well... word's fail me on that one...
how would it make you feel?
hatussas
26th November 2005
ahh thats y no foreigners want to work in cz
samina
6th December 2005
anyone know how the canadian tax system affects the average middle class family.
Andre
12th December 2005
Canada by far is NOT the highest taxed wealthy country. Vat is 15%, however Vat is 0 on food and children's items. Province Alberta has only 6 or 7% Vat.
I have the data for 1996: Average family income (with kids under 15) was then $68 000, and after ALL deductions including Federal and private pension plans, union fees, and Employment insurance, families were left with $50 000, which accounts for about 25% of total pay check deductions. However, net income tax accounts for about 15% of that amount. Now, 10 years later, average family income in Greater Toronto Area is about 76 000$ and taxation applies accordingly and quite similar to mentioned above. Liberals are talking about lowering it further. Keep in mind that unlike US, which is taxed similarly, Canadians enjoy 100% free health care, flexible subsidies on Child care, better Employment Insurance,including 1 year paid Maternity leave and free adult education curses, Child benefits, and much lower cost of higher education. Therefore, Canada is less taxed than US and especially EU. I immigrated here from Holland and definitely noticed the difference!
Income Taxation rises sharply if person earns over 100 000. I was surprised to see Australia and NZ that low on the scale, and, well, as for UK, I do not believe it. I know it is about 45% combined.
Andrew
24th December 2005
I've lived in both the UK and the USA and I can tell you I get to keep a much greater percentage of my earnings in the USA than I did in the UK. Last year my total tax burden was between 10 and 15%. I do not believe the date presented here.
Joel
25th December 2005
Here in North America where the average earner pay's 30% of their income in taxes is enough to make most people complain a little but not alot. How can someone nevermind the average person pay 40%+ is shocking.
ilya -MOSCOW,RUSSIA
27th December 2005
we have here only 13% personal income tax!
and 18% VAT
and company profit tax is only 24%

it's a good place to live in if you have a body-gaurd and a big income (more than a million $ per year) like me...
Fernando
5th January 2006
Are you crazy, people? You have no idea what a (very) fat and stupid taxation is. Where are the brazilian data? Brazil, sadly, have a strong taxation and an extreme bad public services.
rudyj zabijak czech
12th January 2006
here in czech is the same situation like in sweden. you have tax 43, but every employer is paying next 32% from your sallary. than there is VAT which is 5% for food and 19% for all the other things. So Tax in general is smthk about 62% of your sallary. And... I think, the Life Level in sweden is complaining their taxes, in CZ ... pche... everething here in this country is just about coruption, idiotic investition (again because of coruption) and about coruption and also about coruption etc.
Doug
31st January 2006
Canada has a VAT called GST here of 7 per cent,each province then levies its own provincial sales tax on top of that,which ranges from 12 per cent in Newfoundland to 0 in Alberta.
Mrs. Havisham
6th February 2006
Many UK teachers get paid upto £40k a year (after a few years of working) and thats the sum u get 2 take home after the really high income taxes on teachers (they REALLY like to tax the teachers here)!
Dan
8th February 2006
I live in hungary. My mother can take home less than 250 pounds, (if we calculate with pounds) after 20 years of working as a teacher, so think again who has high taxes.
Karl Stekhoven-Smith
16th February 2006
no why is that Australian tax correct. you got to add GST amoung other things. I agree with Peter A, i don't understand why australia and other first world countrys would have such a high tax system when we should being richer have more money left for spending, i hate government.
John M
21st February 2006
There must be two countries named Australia on this planet. I, of course, do NOT live in the one with a tax rate of 23.1%. No, I start at higher than that rate WITHOUT including Medicare Tax, Superannuation (Pension Tax), GST, Stamp Duty, Land Tax, Property Rates, Fuel Excise, Wine Equalisation Tax and more and more. WHERE IS THE OTHER AUSTRALIA, AND DOES MY CURRENT AUSTRALIAN PASSPORT GET ME IN?
Mark
18th March 2006
23% in Australia. Ha Ha I wish. More like 33%.
andrew
7th April 2006
Floccina-
i'd steer clear from making such general assumptions without hard facts... this is a statistics' site afterall.
nickleus (norway)
14th August 2006
Ales, quite a general statement. I am a foreigner in Norway and am taxed exactly like everybody else. I think i pay about 36% on wages, but Norway has the craziest tax and fee system here that if you add it all up i think i pay about 80% in taxes and fees. I earn probably double of what an average worker in the states earns, but it is seriously impossible to save any money. We pay 25% in sales tax. Cars here cost twice as much as they do in the states (50% of the price goes directly to the government). Gas costs an equivalent of $8 per gallon. There are tax/fees on everything imagineable. The toll fees make it almost impossible/unprofitable to import anything at all from outside countries. But in spite of this, Norway is one of the best places i have ever lived.
Tom Travis (Montreal, Quebec, Canada)
16th October 2006
I would like some comparative statistics on Federal AND PROVINCIAL taxes in Quebec. We are Americans living here in Quebec it is UNBELIEVABLE how much sales and income tax there is. 6% Fed. and 7.5% Provincial Tax. And then we get checks from the governement for rebates on that and for child care and for support of children. I can't believe it! Why don't they just let us all earn and keep our money rather than sending so much $$ into them (the gov't) and they RE-dispurse it. Wealth equalization is ludicrious.
Freddy (Belgium)
22nd December 2006
"also have something similiar to our state, local, and sales taxes?"

More then you! 21% sales taxes, taxes everywhere we go.

I wanna bet we have double as much taxes : European, Belgium, Flanders, province, city, ... and a lot - and i mean a lot - more!(on the water, on the electricity, tv, living next to a route, propriety, car taxes!, kyoto taxes, ...)

(Look at the internet charges)
INQ (Atlanta)
7th February 2007
Anyone know the personal income tax rate for Portugal? Is it progressive and if so what would the rate be for income of between $50 to $55K Euros?
Rik (CA, USA)
12th March 2007
Is it an accident that taxation is so complicated no one can figure it out? Do governments think that if they tax us a little, fifty times, we won't notice? If all the benefits of living a particular society have a cost, then they should just charge a fee for living there.

I like the idea of leveling incomes with taxation, but that's because I'm poor. It really isn't fare.
Barry Woodfield (New Zealand)
16th May 2007
I question your list of counties in order of Taxing. You say NewZealand is on 19.6 % I pay (as a working class worker on the average wage) pay 33% at source Then pay 12.5% G.S.T. on ALL purchaces. Along with that petrol is tax at 47%. I fail to see where you get 19.6% Kind regards Barry

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