As I’ve pointed out before, the big difference between the United States and Europe is not taxes on the rich. We both impose similar tax burden on high-income taxpayers, though Europeans are more likely to collect revenue from the rich with higher income tax rates and the U.S. gets a greater share of revenue from upper-income taxpayers with double taxation on interest, dividends, and capital gains (we also have a very punitive corporate tax system, though it doesn’t collect that much revenue).
The real difference between America and Europe is that America has a far lower tax burden on lower- and middle-income taxpayers.
- Tax rates in Europe, particularly the top rate, tend to take effect at much lower levels of income.
- European governments all levy onerous value-added taxes that raise costs for all consumers.
- Payroll tax burdens in many European nations are significantly higher than in the…
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