This article is quite number-intensive, providing strong evidence
for the excerpt below, which I think captures the point of all the
numbers. If liberals have an alternate explanation for the presented
facts, I sure haven’t seen it.
While income distribution has
become a source of protest and political debate, any analysis of taxes paid in
high tax-and-spend countries shows that the U.S. has the most progressive
income tax system in the world. An inconvenient truth for the advocates of
higher taxes on America's rich is that big governments in developed countries
are funded not by taxing the rich more than the U.S. does, but by taxing
everybody else more.
In an eternal irony unique to
large welfare states, it is the expansion of government in the name of the poor
and middle class that always costs poor and middle-class families the most.
If the U.S. spent and taxed
like France and Sweden, it would hardly affect the top 10%, who would pay about
what they pay now, but the bottom 90% would see their taxes double.
Since OECD members have
significantly higher consumption taxes on average than the U.S., the total tax
burden of bigger government is even more heavily borne by lower-income citizens
in developed nations than these numbers suggest.
The real and alarming message
in these OECD numbers is that there appear to be limits in the real world to
how much tax blood can be extracted from rich turnips. With much higher
marginal income-tax rates, countries that are clearly willing to soak the rich
have proven to be incapable of doing so.
Proposals to raise taxes on
high-income Americans in the name of "fairness" not only threaten
economic growth. The experience of nations with large governments shows that
this argument is simply a red herring for a massive tax increase on
middle-income Americans.
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