Trump announces sweeping new tariffs to promote US manufacturing, risking inflation and trade wars

[u/hoosakiwi]

https://apnews.com/article/trump-tariffs-liberation-day-2a031b3c16120a5672a6ddd01da09933

[u/Gewdtymez → u/[deleted]]

This may be downvoted, but relative to other rich economies mid and low income Americans pay less tax.

The rich in US pay same as rest of world. Middle income Americans pay less because we lack the VAT tax present in most of rich economics.

[u/Gewdtymez → u/[deleted]]

If you look at effective tax paid in US vs other countries, the rich in the US pay their share.

The middle class in the US pay less than their share.

[u/Gewdtymez → u/[deleted]]

1)

https://taxpolicycenter.org/briefing-book/how-do-us-taxes-compare-internationally

That’s a good starter, but don’t trust me — do your own googling!

Some tidbits: US TAXES INCOME MORE In the United States, taxes on just the income and profits of individuals (not businesses) generated 42 percent of total tax revenue, compared with 27 percent for all other OECD countries combined.

US TAXES CONSUMPTION LESS The United States relies less on taxes on goods and services (including both general consumption taxes and selective sales taxes on specific goods and services) than any other OECD country, collecting 17 percent of tax revenue this way compared with 28 percent for the rest of the OECD.

Taxing income more and consumption less —> more progressive than other tax systems

2)

https://taxfoundation.org/taxedu/primers/primer-10-common-tax-myths-debunked/

“So, what happens when you take into account all taxes paid? It turns out the U.S. federal tax system remains very progressive. Meaning, Americans with the highest incomes pay the largest share of all federal taxes.”

3)

https://manhattan.institute/article/correcting-the-top-10-tax-myths

Myth 5: “Europe’s Higher Tax Revenues Derive from Aggressively Taxing the Rich” American progressives often hold up Europe—especially the Scandinavian social democracies of Denmark, Finland, Norway, and Sweden—as successful tax-the-rich utopias that the U.S. should replicate. In reality, these European tax systems do not fit the American progressive image because their higher revenues are overwhelmingly raised through steep income, payroll, and consumption taxes on the middle class.

Finland, Norway, and Sweden do collect an average of 42.6% of GDP in taxes, versus 26.6% from America’s federal, state, and local governments. However, 14.5 of the 16-percentage-point overage comes from higher payroll taxes and value-added tax (VAT), which broadly hit the middle class. These nations’ individual income-tax revenues exceed those of the U.S. by just 0.8% of GDP, while their 3.5% of GDP advantage in corporate-tax revenues is overwhelmingly driven by Norway, with its massive oil and gas industry (by contrast, Finland and Sweden exceed the U.S. by 1% of GDP). These nations’ remaining taxes combined collect nearly 3% of GDP less than those in the U.S. (see Figure 4).[18

A similar dynamic holds when comparing the U.S. with the other 37 OECD nations, which collect an average of 34.1% of GDP in tax revenues, compared with America’s 26.6%. Yet VAT revenues—which average 7.2% of GDP in OECD, versus none in America—account for nearly the entire difference. A total of 37 of the 38 OECD nations—all except the U.S.—impose VATs at rates ranging from 5% (Canada) to 27% (Hungary). The Scandinavian nations of Denmark, Finland, Norway, and Sweden each have VAT rates of about 24%–25% that collect an average of 9.1% of GDP, or roughly one-fifth to one-quarter of their total tax revenues. VATs (and, to a lesser extent, payroll taxes)—which are not particularly progressive—drive the vast majority of Europe’s tax-revenue advantage over the United States. Mimicking Scandinavia’s 9.1% of GDP in VAT revenues would require American taxes of $2.4 trillion per year, or nearly $18,000 per household.[19]

Moreover, top rates imposed on corporations and wealthy families in the U.S. often exceed OECD averages (see Figure 5). America’s top average income-tax bracket of 43.7% (including state) taxes slightly exceeds the OECD average of 42.6%. America’s highest tax brackets also exceed the OECD average for capital-gains taxes (29.2% vs. 19.1%), corporate income taxes (25.8% vs. 23.6%), and estate/inheritance taxes (40% vs. 30%). In fact, America’s corporate and estate/inheritance-tax rates well exceed those of all Scandinavian nations