Which Countries Tax the Rich the Most

The third most populous country in Europe, France remains a world power, a member of the G7 and the second largest EU economy in purchasing power parity. With 31 of the world`s 500 largest companies in 2015, France ranks fourth in the Fortune Global 500, ahead of Germany and the United Kingdom. Which countries have the highest high income tax rates and why is this important? Some people believe that introducing high tax rates on the rich helps redistribute income throughout society, thereby increasing equality and ensuring that the less wealthy have adequate housing, health care and enough to eat. Belgium was the first country in continental Europe to go through the Industrial Revolution and has since been ranked as one of the most developed countries in the world. But recently, Wallonia`s unemployment rate has been more than double that of Flanders, and the country has become more politically divided than in the last century or two. There are many low-tax countries with cities that rank high on the indices of the quality of life and happiness of their citizens. There are more than 160 countries outside the Western world and many are highly developed countries like Georgia, Costa Rica, Panama and Singapore. To put this in context, Monaco, a low-tax country located on the French Riviera, has no income tax and is one of the richest countries in the world. Monaco`s low tax rates are undoubtedly one of the reasons why the French represent nearly 30% of Monegasque citizens. Who could resist enjoying the same quality of life (or better) without tax obligations? To prevent capital flight, supporters of the wealth tax have advocated the introduction of a single exit tax for wealthy people who renounce their citizenship and leave the country. [75] An additional constitutional objection to such a tax could be raised on the grounds that it violates the Withdrawal Clause of the Fifth Amendment, which prohibits the federal government from taking private property for public use without fair compensation. [76] Denmark has some of the happiest people on the planet, and let`s face it, living in a country like this seems charming.

All of this is inflated until you stumble upon their tax rates, which account for nearly 56% of personal income. In order to close the wealth gap between rich and poor in Germany, the Social Democratic Party of Germany has called for the reintroduction of a national wealth tax in 2019. [34] Under the proposed tax reform, wealthy households would have to pay an additional tax of between 1% and 1.5%. A single household would have to pay 1% of its net worth for every euro over €2 million, and a married couple would have to pay for every euro over €4 million. A married household with total assets of €4.2 million would have to pay an annual wealth tax of €2,000. [35] A small number of countries have had wealth tax systems in place for some time. Revenues from wealth tax systems vary from country to country, ranging from 0.98% of GDP in Switzerland to 0.22% in France. [38] 2020 U.S. presidential candidate Elizabeth Warren has claimed that a wealth tax plan could generate 1.4% of GDP in revenue for the United States.

[39] In the United Kingdom and other countries, property (real estate) is often a person`s main asset and has been taxed – for example, the 1696 window tax, rates, to some extent municipal tax, municipal property taxes and a new villa tax proposed by some political parties. Keep in mind that Finnish citizens are among the most depressed, even though the country`s well-being is among the best in the world – which could be a consequence of high tax rates. The rates are so high that this small house of only 5.5 million people ranks 8th in this list of countries with the highest taxes, thanks to its highest tax rate of 51.6%. The wealth tax has become the subject of fierce debate as progressive Democratic candidates in the 2020 election advocate it as a mechanism for redistributing wealth. They also see it as a way to curb the economic power of the wealthiest Americans. Senator Elizabeth Warren suggested it first, and Senator Bernie Sanders later followed. The U.S. ranks 41st out of 140 countries, according to KPMG, based on the highest national marginal tax rate.

This makes it the highest annual income tax rate for the wealthiest in the United States between Norway and Mexico, but significantly lower than some of the highest rates in other major economies in the world, including the United Kingdom, France, Germany, Japan, and China. (U.S. states levy the most per capita income taxes.) Whatever theory resonates with you, there is no doubt that tax rates influence the decisions of the rich about where and how they live, work and invest, including their activities in countries where marginal tax rates are highest for individuals. Nevertheless, Slovenia has a developed economy and is the richest of the Slavic countries in terms of nominal GDP per capita, ahead of regional powers such as Poland and Russia. Barry L. Isaacs interprets current jurisprudence in the United States to mean that a wealth tax is a direct tax under Section 9 of Article 1. [69] [70] Given the extreme difficulty of allocating a wealth tax among the population of the state, the introduction of a wealth tax in the United States would require either a constitutional amendment or the repeal of current jurisprudence. [71] Unlike federal wealth taxes, states and municipalities are not bound by Section 1, Section 9, which is why they may levy taxes on real estate. [72] Germany, as the Germans call it, starts this list of countries with the highest taxes in the world with a maximum tax rate of 47.5%. It is the most populous country in Europe and, in many ways, it is the power that feeds Europe. In 1990, according to the Organisation for Economic Co-operation and Development, a dozen European countries had a wealth tax. Today, only four European countries have it: Spain, Norway, Switzerland and Belgium.

Ireland is considered one of the richest countries in the European Union and among the twenty-five richest countries in the world in terms of GDP per capita. It is one of the best examples of how development and growth were possible, even shortly after the 2008 global financial crisis. The rate of innovation in this small Middle Eastern country is staggering. Israel is one of the few non-European countries on this list and has a population of only 8.5 million citizens. However, it also has the second largest number of startups in the world after the United States. The highest tax rates are also quite high in a number of other OECD countries. With honorable mentions from six to 10: “Germany is the most populous country in Europe (if you don`t count Russia) and in many ways it is the power that drives Europe. The maximum rate of 53% does not apply to all Canadians.

The Netherlands, for example, has 52% as its peak rate. Hypothetically, if the same threshold applies and the same percentage of the population falls into the peak rate, Canada would be more expensive. But considering the 21% tax on most of the products you buy (in the Netherlands), the 1% difference would be pretty much eliminated. Therefore, other taxes should be considered, for example. B inheritance taxes (40%), city and provincial taxes (€900 per year in some cities), aqueduct taxes (€700 per year). .