[sebgr]

The average Swiss citizen will earn more than your average american - overall swiss citizens will pay a smaller % on taxes than americans.

[david927]

As an American who lived for a decade in Zurich, I can confirm that the Swiss pay less in taxes.

The big difference is that, in Switzerland, the rich pay taxes.

[maxxxxx]

Unless they are Formula 1 drivers from another country :-)

[sebgr]

It seems OP was referring to tax as % of ones income and you are talking taxes as % of GDP is what I was trying to get at.

[harryh]

Um, no. 29.4 is > 26.9 no matter what the average earnings are.

[jrock08]

Let me try to explain with a very very simple example why the average person might pay less, even though the average tax might be higher.

Person 1-10 make $10. Person 11 makes $100

Case 1, a flat tax of 30%

Person 1-10 pay $3, person 11 pays $30, for a total tax of $60 on $200 total income, that is 30%.

Case 2, a progressive tax of 1% on income up to $10, and a tax of 80% above that.

Person 1-10 pay $1, Person 11 pays 1% on $10 and pays 80% on $90 which is $72, a total tax of $82 on $200 income, a 41% tax!!!