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by pendar747 3112 days ago
That's true, but it's worth mentioning that income tax also doesn't seem to be a large portion of most country's GDP. It seems to range between 1% to 14%, except Denmark (25%) which is an outlier. See: https://data.oecd.org/tax/tax-on-personal-income.htm#indicat.... The global average is only 8%!

Another interesting fact is that in the graph for corporate profit, Luxembourg actually has the highest rates, which must be because of its small size and huge number of companies that are registered there to benefit from the countries low tax rate.

Despite this I think corporate should be higher judging how much large multinationals earn. Otherwise the income inequality is only going to grow further.

2 comments

Actually, I looked into it more, in my country, the Netherlands, and over all it is split: 55% individual contributions, 45% business contributions.

Income taxes are just plain income taxes. There are also social security contributions, part of which is paid by the employer. I know it is not necessarily appropriate to say that that is a tax the employer has to pay, but I counted it as such. Transaction taxes, I counted as a "business tax". VAT, I counted as individual taxation, mostly because it is regressive and hits the poor, i.e. non business owners disproportionately.

So my earlier claim was incorrect. It is more of a 50-50 split.

http://www.oecd-ilibrary.org/taxation/data/revenue-statistic...

"social security contributions.... tax the employer has to pay": that's a great lie, that employers pay those, not employees.

For employers, it's one amount of money paid for hiring an employee: employers don't really care what's salary, and what's taxes. In France, employees don't even get 50% of their gross salary: there are more social security contributions than salary.

Employees should really want to reduce social security contributions, instead of thinking "my boss pays for it".

It seems that in the UK income tax is around a third of all tax collected - https://www.ukpublicrevenue.co.uk