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Friday, January 7, 2011

Think you pay too much in taxes?

The GOP wants Americans to think they have this horrible tax burden imposed by a non-responsive government.  The anti-tax manta of the GOP has been its "one trick pony." The GOP, indeed, likes to reduce taxes, regardless of whether this produces a huge deficit.

A weak government is good for corporatism, too. It' harder to assure labor and safety regulations are being broken when you lay off 25 per cent of the inspectors in the Department of Labor as Bush did when he was president.

Want to slow down VA disability pensions. Tell the VA to review all of the ratings at the 50 per cent level or higher. Bush ordered that, too, and it caused a huge backlog in claims that the Obama administration is still cleaning up.

These deficit politics started with Ronald Reagan. George W. Bush continued the deficit politics when he invaded Iraq without raising taxes.

Relative to other Organisation for European Economic Co-
operation and Developement  (OECD) (developed) countries, the US has a very low tax rate. 

"When you look at the overall tax burden, the U.S. is quite low," said Eric Toder, a senior fellow at the Urban Institute in Washington, D.C. Toder was the former director of the office of research for the Internal Revenue Service.

For a family with one wage-earner and two children, only Iceland and Ireland have a lower income tax burden than the U.S., according to the most recent data for 2005.



Citizens in other OECD countries are paying more money, but they are getting more back, in terms of social programs, said Christopher Heady, head of tax policy for the Paris-based think tank Organization for Economic Cooperation and Development, or OECD. 


Its a choice the electorate makes. 

The average American pays wage-based taxes that are similar to what people in the UK and France pay.

Japanese citizens enjoy the lowest rates among the Group of Seven (G-7) large industrial economies. This is in terms of national and local income and payroll taxes.

Add in sales taxes, capital gains taxes, property taxes, and corporate taxes, and the US sends 28 cents of every dollar of output to the government. That still matches Japan for the lowest ratio of tax revenue to gross domestic product (GDP) among the G-7 nations. France and Italy score highest.

sources: http://moneycentral.msn.com/content/taxes/p148855.asp and http://www.csmonitor.com/USA/2010/0411/US-tax-bite-smaller-than-other-nations

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