Whenever he says he says he's been busy with his other channels, I am reminded that he has other channels.. In my perfectly sphere of a bubble, this is his main channel..
I was faithfully subscribed and watching every video for 6 months before realizing he had a first channel. Then I watched something like a political compass minecraft video, which was probably the most second channel thing he's ever done on his first channel.
I think that it gets complex quickly because most of taxation is income, VAT and property, but also you'll have some local and some state alternative that isn't accounted for, in addition to all the duties etc. Basically I feel you don't worry
@@ibx2cat we have taxes on the taxes and each province wants a piece of the bigger companies and theres retentions when you hold money directly from the buyer and you have to pay the tax for them, its crazy 😂 anyway we have poorly funded hospitals and universities but they are still decent and you dont have to pay so thats nice (corruption and inneficiency aside)
I think the biggest problem is the piles upon piles of laws and regiments you have to know, because, at least in Brazil, there are so many specific taxes, duties and fiscal relieves that you need dozens of financial and tibutary administrator just so your company can pay as little as possible, which makes some companies pay very little while others have to pay excruciating amounts
@@matheusd.rodrigues429 unless you get a break or a loan from the government tax paying is somewhat equal here, small businesses might evade easier since they do smaller transactions. But yeah there is corruption and some companies go into huge tax debts that a powerful friend can wash away
Sweden has like 30% income tax, but also 30% employer free. So that's 70%×70% = ~49% you keep, 51% in taxes, and the map seems to properly reflect this.
@@toycat that would be an interesting thing to compare in another video. Also, look into import tarriffs. Maybe, even bribes in some places in you need to give bribes just to do basic things such as getting a driver's licence and going to a state run hospital.
I actually think a video on where the highest Texas is could be pretty useful. If you look on google maps for all of the places in the world with Texas in the name and work out which one is most Northerly.
10:25. Literally no corporation pays that tax rate because of the insane amount of loopholes. Most decent sized corporations that can afford dozens of accountants and lawyers pay way less and sometimes even 0%. That figure of the corporate tax rate is extremely misleading.
@@schroederscurrentevents3844 When Amazon, Apple, and Google are paying less in taxes than your average high school fast food worker, there might be a problem
They are not loopholes they are legal tax deductions and guess what every American also gets tax deductions just the same. If you actually take the numbers in this videos and apply tax deductions the number fall really fast. No one in the USA Is paying the fall tax sum due to these deductions. The thing is that if the USA wants to cover the national debt all they need to do is remove the deductions but then the REAL tax rate will actually be what is listed in this video and that will not go down well with the public.
@@drscopeify They lobbied for these deductions, average American workers don't have the capital to lobby the government like that, so they get taxed more. Real fair, sure.
Good point. I think in a future video he can do "Which country has the highest taxes for under $40k/yr earners?" "Which country has the highest taxes for $40k-80k/yr earners?" etc. Not sure where the countries draw their tax bracket lines, but that would be cool to know. I'll compare 2 states so we can see the difference that brackets can make. California and Georgia. California has a 13.3% top tax bracket and Georgia has a 5.75% top tax bracket. However, because of how the brackets work, a person making $60k/yr in California will pay about $2700 in state income tax while a person making $60k/yr in Georgia will pay $3000 in state income tax. To compare the monthly we can imagine it as $5000 per month of income and $225 in CA or $250 in GA per month sent to the state in income tax. The contrast is even greater the closer you get to making $15k/yr with California taking very very little at that income level. California state income tax begins to surpass Georgia at about $70k/yr. That said the property tax part might be the more interesting one. State, county, city all can have their own additions to property taxes so you might have a fairly large change from one mile to the next because one house is in a different county or a different city. Additionally you have to consider the cost of the home you will purchase. Although California property taxes are fairly low, the housing prices are astronomical. Using the same 2 states California and Georgia we can see what difference that could make. A median home price (meaning 50% of houses are more expensive and 50% are less expensive) in California is over $800k now so that 1% in property taxes means $8000/yr. In Georgia the median home is $220k and even a 2% property tax means you only pay $4400/yr. So when you consider house value and income you can see that although you might pay a few dollars more in income in Georgia you are likely to pay much much much less in housing cost and property taxes. This is of course if the person making $60k/yr could even afford one of those $800k homes in California which they can't so they probably won't be able to find a home to buy in the state. I went too simple on property taxes since houses aren't assessed every year in some places or the tax assessment might change depending on the number of structures on the property or how much the city/state can increase the home's value for tax purposes. Stuff is complicated and will vary greatly, but this was an ok example I think.
@@falcianjinn6218 the examples you gave, even if simplified, are great. They really highlight why it's important to consider these things with more depth. An example of an exception in CA - my grandma's home in LA was bought in the 1950's, and due to some of the complexity of the property tax laws, property taxes can only increase by 2% each year. This means that even though the appraised value of the house is north of 1.5 million, she is only paying a little more than $1000 each year in property taxes because the house was paid off so long ago.
@@falcianjinn6218 here is one question did you account cost of living differences between the examples, because 60k is a worth a good deal in Georgia than in California
@@equinox2584 Same everywhere. You pay a crap load and get nothing in return. It's just a ruse to rip you off and feed politicians and their armies of bureaucrats and "public service" personnel. And then a few handouts to keep the voting base coming back.
@@mrawesomeDK That isn't true lol. In literally all of the developed world except America your taxes actually help you and even in America they help as well you just don't get as many public services. Healthcare is a big one, roads, police, welfare is another big one, military, public housing developments, social services, national parks, etc... You do actually get great value from your taxes, in America, our money tends to go a little too much towards the military and a little bit too little to the welfare but it is what it is, I am still glad we have taxes.
Turkish viewer here. A PS5 is 4000₺ without taxes, but with taxes added it is 8200₺. We buy another one for the government when we buy one for ourselves. (Also, minimum wage is 2800₺ and 44% of all workers are minimum wage.)
I find it peculiar that Finland is shown in yellow when in fact the actual top income tax rate is pretty much equal to neighbouring sweden when you include municipal tax as they do in the swedish tax value. That's not even the whole picture as you have to pay social security payments, church tax (if you're a member) and pension payments which add up to with income taxes up to 58% or so depending on the municipality.
I don't mind paying as much as I do. However, I would love to be able to allocate some of it. Let's say currently 2 % of my taxes are spent on street lighting. The base rate could be 1 % or 1.5 % and I could choose to allocate some more. Some areas should probably be fixed but less essential services should be optional. This would allow citizens to show which services they value.
Looking at this list it shows there's not that strong a correlation between this metric and how "good" we consider these countries. Unless you feel very strongly about taxes that is. You can make a good country without high tax and with high tax.
@@balkje Higher than average taxation in a country does often end up making the social security systems stronger, and usually makes education and healthcare free which makes people stress-free regarding those things. Makes quite the big difference if you have no job and not enough financial aid from your parents, it allows you to get an apartment through student aid and keep on studying on any level of education.
9:00 In texas at least, there's a homestead exemption on property tax ie you don't pay on your home, if you don't own any other property you don't pay.
@@julianturner69420 I guess you never use public roads, or go to public school, or see fires being put out by firemen, or see criminals arrested by police, etc. You might want to step outside and see what's going on in the world every now and again.
FYI those maps are wrong. Texas has 8.25% sales tax and the property tax is variable depending on what part of the state you are in. It can go up to 4%
I just want to take a second to point out that the mapmaker chose to denote high taxes as green, and low taxes as red. It seems a bit odd to characterize the relationship in that way…. 🤔 Also, good job pointing out just how oversimplified and misleading such statistics are. American politicians (and others on the global Left) who insist that we pay unreasonably low tax rates compared to global norms are typically either lying on purpose, or simply ignorant to the complexities involved in tax codes. I lose half of my income every year, and I live in one of the “low tax” states.
I live in the Netherlands (a 'high-tax' country) and I had a business partner in the US about 7 years ago. I, too, thought the US had really low business taxes comparatively, and I was absolutely shocked to find that even at not a very impressive ~60k income, my business partner altogether paid about 40% in taxes on that. Why is that shocking? Well, the effective tax rate - excluding sales tax - for me was about 15% that year. The difference is astronomical. that's about when I started understanding that most people just don't understand or know anything about taxes.
@@ssj3gohan456 I’m not too familiar with European (or Dutch in particular) tax codes, but our corporate tax rates are what mystify me most. I’m not sure how you folks do it, but most “small” business owners (anywhere from zero to a few hundred employees) are registered as “pass-through” corporations, where business profits “pass through” straight to the owner, and are then taxed under the individual income tax code. So many/most small businesses don’t use the corporate tax code at all. My business (48 employees) was recently switched to a C-corp (at the advice of my accountant), which does pay corporate taxes, but as you note, those taxes are about the same as individual income taxes, so our tax liability is virtually identical as it was before. It just surprises me that we are the only country which taxes every corporation (well, at least those corporations who lack the resources to lobby Congress for cutouts) the same as we tax individual earners.
@@JJJRRRJJJ Even income taxes seem a little complicated in the US. So all levels of government levy an income tax, even local ones?? I can only give examples from the country I live in, Australia; here only the federal government charges income tax. The Australian states don't. There is one sales tax- at a uniform 10% across the country. In regards to corporate taxes here....I don't know what they are like tbh. According to the map at 9:52, they're above the world average but lower than what they are in the US. In the example given the video, if my calculations are correct, someone earning $5 million dollars in Australia would be paying about 47% effective tax rate (including the medicare levy), which is lower than in New York State. To give you an idea of the political situation here, Australian politics tend to be a bit to the left to the US in general in some respects (e.g. the universal health care system here is supported by both the main left and right-wing parties). I should point out that if you're earning a lot less than $5 million, your effective tax rate will be lower than 47%. If you're earning $500,000 per year, your effective tax rate is about 41%. if you're earning $200,000, it will be about 33%.
@@perthdude21 Yes, our subnational governments are able to levy their own taxes to fund their respective functions. As you likely know, my country has a long history of skepticism toward a meddling centralized national government dictating the affairs of state and local governments far and wide. And thus California can decide to snatch 13% of your income (on top of federal taxes), and Florida can decide to forego any income tax. (Just recently, until 2017, the federal tax code would allow you to deduct state and local taxes from your federal tax bill. Since this deduction was eliminated, people in high tax states are getting even more crushed than they were.” But anyway, how are Australian state governments funded if they cannot levy taxes? Without the authority to dictate its tax policy, how does a state government have any actual power? It seems like they would be mere puppets of the national government, spending only what they were allowed to spend, no? As the video mentions, sales taxes vary by state. My state, Indiana, is at about the average of 7%, though we are below the corporate average at just 3.2%. From what I do know about Australian political culture (which I admit is not much) I tend to really enjoy. It feels much more familiar to me than that of Britain and even Canada… But those countries basically form their whole identity around pretending to be SO much different (re. better) than the US (especially canada), even though we are VERY VERY similar when all is considered. Australia doesn’t tend to have that same chip on its shoulder, and even has a robust conservative instinct in many ways. And you guys understand that China needs to be dealt with, even if you are uniquely dependent on them. Most of our government doesn’t even understand China.
@@JJJRRRJJJ Here in Germany, the national state decides which taxes there are and how much, but not all taxes go to the national state. Some only go to one specific level of government and others are split in a certain way. For example, of your income tax, 15% go to the local government, and of the rest half to the state and half to the national state.
In the UK the taxpayer is going to pay for another 'Royal Yacht'! And nurses are earning less in real terms than they did in 2008, and are expected to be grateful for a 1% pay rise after having to deal with the pandemic. Nice to see the government have got their priorities right.
@@peterc.1618 In fairness I'm sure they'll have a lot of money to spend on boats once they sell off the NHS. Here's hoping for the HMS Prince Andrew - it could do cruise tours of Epstein Island.
Fun fact about Texas: We have no state income tax, however we pay higher sales taxes and property taxes. You can also write off sales taxes from your income when you do federal income tax.
In the US there is the tax rate, and then there is the actual rate paid, which is much much lower for corporations, not to mention that the rate was reduced in 2020 to 28% federal, then add in whatever state income tax there is, 4.55% in CO for example.
The thing about US taxes is that the richer you are the more you are able to get tax breaks. So you end up paying less percentage than people that make less money. Don't really know how that works in other countries.
It is extremely difficult to compare the tax rates of countries. e.g. The higher taxes in Scandinavian countries provide superior benefits whereas no American can afford insurance that is as good as the health and pension benefits in Europe, Canada, UK and the Commonwealth. Sales Tax (VAT) in Europe may seem ridiculously high at ~20% but it only applies to 'nominated luxury goods' and some items such as heating fuel attract a lower rate of ~5% as a nod to the Greens. Traders claim back the VAT that they pay for supplies and services so the net result is much less than 20% and can even be a net gain.
The VAT tax nap is also misleading as different products have different added tax. In Finland, most foods have a tax of 10-14% not in the 20s%. That's for things you don't need to survive like toys.
US corporate taxes are really high because instead of fixing the countless loopholes, they just raise the corporate tax but that doesn't matter because the corporations just avoid the taxes altogether anyway
As a self employed person, I pay around $1000 (includes health and pension insurance) in taxes from my $125000 income under a special tax regime called the patent system in Russia. The effective rate in my case is 0.8%. For a patent, you can apply online using the federal tax service website, specify your address, your occupation and the term of the patent. Once it is approved, you can pay a fixed amount for the patent, for health and pension insurance - and you are done for the term of the patent. You don't even have to file a tax return. Since our mentally ill government started the war, a lot of people from Russia moved to a small nice country called Georgia. As a remote contractor, you can register there under the small business tax regime and since you don't qualify as a VAT payer, your income is taxed under only 1% rate. However, you need to report your income and pay taxes on a monthly basis.
Yikes, it's almost impossible to compare countries on tax rates alone - there are so many considerations. For instance, a) What worthwhile services does your government supply in return? Healthcare, education, retirement benefits? Is your infrastructure maintained and expanded as necessary? b) How are you taxed in other ways - biz taxes, sales taxes, property taxes, etc? c) How fairly is taxation applied? E.g., rich Americans may routinely avoid almost all taxes. d) Does your country provide any unique benefits of citizenship, which can't be had elsewhere? If so, that puts a different light on the taxes you pay to exist there. However, lots of good points made in this vid.
Some of the us states have homestead exemptions for property taxes which Cuts the property tax rate. I paid about $100 USD per year when I was living in an $85k townhouse in Florida.
The more attractive a place is for investment, the higher the tax rate can be without losing investment. Hence why poor countries have to have lower taxes even though they need the tax money the most. The US could charge really high taxes because it’s an extremely attractive place for investment. Also it’s hilarious that Texas chooses to avoid income tax but have a high sales tax, eg, a regressive tax. So poor people pay a higher percent of their income than rich people…
The first part is not always true because another reason countries have low taxes is because they are able to do so like rich oil and gas countries in the Middle East and Europe.
I don't think this map is very accurate and not just because of Federal vs Provincial taxes. For example I live in Ireland. The top marginal tax rate is 52% but there are several different taxes on Income. PAYE : Pay As You Earn. USC: Universal Social Charge. PRSI: Pay related Social Insurance. This map only accounts for the main one of 40%. Same goes for most other European countries to my knowledge.
10:50 _"You know something's gone a little bit wrong..."_ The reason the nominal US corporation tax is so high is that there are so many possible deductions. Really, you should look at the _effective_ corporate tax rate, which ends up rather low.
In Morocco we never talk about taxes because its retained from the source for exemple if a moroccan tels you he have an income of 8000 $ a year it means after deducing the income taxe wich range between 0% to 38%
Im happy to pay a lot more then 10% extra as long as I have a proper national health care system that make sure that my friends, my family and myself get the care needed if shit one day hit the fan. Less toys in the garage but I do not need to go to the graveyard when I want to hang out with my friends.
Get this: the USA actually spends more than the UK. UK gov spends about 4k per head, while the USA gov spends about 4.5k. And then private citizens pay an ADDITIONAL 4.5k, for a total of 9k spent on health per head. The highest health expenditure in the world.
@@FC01 whaaaat?! You pay 50% tax on everything you buy, after income tax and all? If I may ask - roughly how high is your income tax and all that then? 🤯
Have you followed the controversy in Spain with big TH-camrs? They got tired of paying high taxes and moved to Andorra. It was a huge issue in Spain for a while.
I went to the Dunes in Oregon and on the way I heard about people who live in Vancouver, Washington and pay 0% income tax, and then drive across the bridge to Portland, Oregon to shop and pay 0% sales tax.
Brazil is terrible, it's a paradise for the rich and hell on earth for the poor. Basically the vast majority of taxes are in products, so, everything you buy, there's lot's of taxes put into it, which makes the price of the product around double/triple or even more in some cases, in contrast to it's original price. There's a huge debate over here, for decades, about cutting/reducing those taxes in the final product and instead taxing the profits of companies and because here there's basically no taxation on that this enrages the elites the pay way less taxes than the average citizen, making them threaten to leave the country. Basically what happens here is that the workers, the common people, the 99%, pays a hell of a lot in taxes all year so the 1% can keep their life style, surviving on untaxed dividends and untaxed profits, it's literally a pyramid, the higher you are in society the less taxes you pay.
The political class is the rich , not small & medium business owners the Franchise you buy from and you blaming a tiny percentage of rich in private sector . The rich aren't the problem the Government is
Well done bro :) In many countries there are mandatory "taxes" for heath and rettirement system but in others they are not mandatory. Also VAT tax make hugh difference and other taxes too. So it would be even more interesting when "tax freedom day" comes in particular countries.
one week ago, the eu decided to add VAT to everything bought outside the eu (import sales taxes) additional to the countries taxes you got the item from... so yes. you pay vat for absolutely everything now... Austrians VAT is 20% btw.
North Korea has a 0% income tax rate, however, there is a high markup on nicer goods that allows the state to make a significant surplus, while some less luxurious goods and services are free but rationed, and still others are sold at a loss. Effectively this results in a steeply progressive sales tax built into the state economy and overall the effective tax rate is around 40%.
In the US, state and local taxes (SALT) are deductible on your federal return. I live in the US (Maryland) and am in the 37% bracket (top bracket is 37% not 39%). Adding federal, state, local and payroll taxes I (household) average around 20% of gross income. We also cross the border to Delaware for large ticket items (no state sales tax).
Plus having to pay medical insurance, if your employer doesn't. That's not freedom. What happens if you are fired, or want to change your job? And what with all the co pays?
@@iriscollins7583 Adding health insurance costs and copays/deductibles (we contribute to a tax free health savings account as a secondary retirement tax shelter) brings us up to approximately 22 to 23% of gross income (about $7,200 a year for health insurance). That still leaves me about 20% lower than I was paying for income and payroll taxes in Ontario Canada and that does not include the $2,500 per person health care surcharge that they added the year before I left. If you are fired some companies will extend your health insurance to match your severance. The other option is COBRA. Changing jobs is as easy as it is in any country. The difference in the US is that everything is negotiable as part of your compensation package and the more marketable you are the more leverage that you have. Copays and deductibles are a way to lower your insurance premium. A plan with a higher copay and/or deductible will cost you less than a plan with no copay and/or a lower deductible. They are how the insurance industry ensures that you are not using the health care system frivolously. If it costs you $10 or $20 every time that you go to see your family doctor (preventative care is usually covered at 100% with no copay or deductible) then you are probably going to take a minute to consider whether you really need to. Keep in mind that low income people are on a single payer system (Medicaid) and get similar care to countries with universal systems. The people that have the most issues are those above the Medicaid cut-off that choose not to purchase insurance and end up with a condition that is expensive to treat. In the US people have the freedom to make that decision, but also the responsibility of the outcome (positive - possibly save for a home down payment which they would not otherwise be able to afford, negative - may find themselves in financial trouble if they do get sick).
Observation: A street is called "Gonzales". Conclusion: I must be in South America Ah yes, British logic. What's even worse is that you eventually guess Canada, when there are tropical/subtropical plants on the side of the road.
I would say mean or median, not top marginal tax rate, is what matters. Also one thing not included in this is other forms of value extraction like hidden sales taxes (popular in command economies) or private profit. If the government takes 25% of my wages but my wages are only 50% of the value added, who's screwing me over worse, the government which uses that money to fund social programs, the military, public pensions, any state industry that exists, etc, or my employer, who's basically just getting rich on it and expanding their private property.
Only calculates direct income tax, doesn’t include indirect taxes of various forms such as VAT, Local Govt “charges”, charges such as vehicle registration, pollution etc
Russia is actually 44 to 57% tax rate depending on how to calculate and what to include. Standard income tax is around 15% off the sum plus 22% over the sum plus 2-4% over the sum depending on work conditions (so you get 85 of every 125 money units). And on top of that there is a weird system of taxes for companies that can be from 10 to 75% of revenue (the larger your comany the bigger). Of course all this taxes are passed to the customer. So it's usually considered that average russian citizen pays around 55% of their income as taxes. In case of 5M you most likely to get this as an LLC of a kind so it will be 20% straight forward plus around 20%+22%+4% of the rest (only 54 of every 120). But if your income is less than 25 000 USD a year, and you work soly for yourself you can get as lower tax as 4 to 6% depending on who pays you and if you're an LLC with less than 900 000 USD per year you can have a 10% tax off your raw income or 15% of what you keep after paying all business-related expencies. Speaking of US you probably should consider adding sales tax into the mix as it's payed of your money after all.
That's not quite correct. Your taxes under the patent system can be below 1%. (your income should be below 60 mln RUB per year ~ $1 mln, Art 346.45 of the Tax Code) Your taxes under the simplified tax system can be as large as 6% of your income. ( your income should be below 112 mln RUB per year ~ $2 mln, Art. 346.12 of the Tax Code) Your taxes under the professional income tax can be 4% or 6% (your income should be below 2.4 mln RUB ~ $35000) Your taxes under the full income tax system can be 13% or 15%. So your net amount of money would be 0.85 from the contract. Your employer also has to pay 30% for pension and medical insurance. So you total tax burden is 1-0.85/1.3=0.35, i.e. 35% in the worst case. You cannot sum 15% and 30% because the insurance sums are not payed from your salary. If your gross income were 1000 RUB and every tax were taken from this sum, you would get 1000*(1-0.15-0.3)=550 RUB from the total of 1000 RUB but in reality you will get 1000*(1-0.15) out of total 1000*(1+0.3). So in the end it's 35% and not 45%. You also cannot subtract corporate taxes when calculating personal taxes because they are separate creatures.
@@Murmilone thanks for correcting me on professional tax as I used outdated figures. But as I whould argue about the fact that inshurance sums and corporate taxes of complnies you're byuing from and the reasons are: for inshurance. There is no separate source of income for employer for that money and employer pays insurance by not paying that money to emploees. This is called a salary funds - aqll the money employers are ready to pay for their workforce both directly and indirectly. If you claim that inshurance is not a part of salary fund and so the part of money that could be distributed as a direct salary if there whould be no regulations than you must also say that the income tax is not part of the salary for the same reason for other corporate income taxs. Corporates and business ventures have no other source of income than the money they recieve from customers. So every tax they're paying is included into theit prices. Again, when you buy something you may not be told how much of your money are going to be taxes and how much will be your actual payment but that doesn't mean that the 100% of what you're paying are the actual purchase. And it's not the case of how much amount of taxes you're told you're paying as it's the question of linguistics and not economy. I'm interested in if you're making a purchase of, say, 1000 RUB, how much money the government got through it's different institutes so that purchase was made legally. In other words, how much you need to pay so the entity you're paying to gets 1000 RUB for their own unrestricted consideration AND how much you directly or indirectly (through your employer) had to pay so you got that amount in your pocket. You can moove the line to cut that calculation to the different point, but still need to include the corporate/business income tax, inshurances and personal tax anyway
I also think that government revenue is more accurate than tax rate, since many pay nowhere near the expected tax rate and other countries have a high level of just plain tax avoidance eg Greece and Italy.
Property-tax: Texas 1,9% -> say $1.000.000 value gives tax at $19K each _year._ Which means you divide these $19K at 12 months and gets to pay $1583 a month for a one million dollar property. Twelve thousand each month would give a tax-rate at 19%, and people would be up in arms if that happened.
That a very bad argument to be honest. Despite having higher tax rates France is so much wealthier than Portugal and Czechia that they are still making more money after taxes on average. A country has to work, not have low taxes.
Me a Canadian listening to him guess Canada: Not with that plant life! That looks like a palm tree in one shot and few if any conifers in sight. Also, that road surface and the houses don't looked right for a climate that gets actual winters and snow.
Sweden has the highest tax pressure in Europe. Change my mind... If I want to put 1000SEK worth of petrol in my car, for me to earn that money, my employer has to pay 31.4% of what he wants to pay me as an "employer fee". Then I have to pay 34% in taxes. Then the petrol itself costs somewhere around 3SEK/liter but including taxes it's 16.75SEK/liter. So just on the petrol the tax is around 4.5x that of the actual price so all in all I pay around 600% tax on those 1000SEK that I wanted to spend on petrol. Edit: Even worse is that our 95 octane petrol will now get more ethanol mixed in (from 5% to 10%) so that my car will use more fuel so I have to refuel more often so that our "30% government" can put some more money in their pockets instead of spending the money on actual expenses such as road upkeep and the like. They'll even increase the price with 0.6SEK/liter even though ethanol is supposed to be cheaper than petrol. Ethanol costs roughly 12.5SEK/liter so it makes no sense to make E10 more expensive than E5. A large part of all cars on the roads can't even put E10 in their tanks because their engines will corrode and break down. t's all because of money.
In brazil, the income tax is not the worst, but product taxes are. Instead of the USA where you have a set amount of tax in everything you buy, in brazil everything has a different tax rate, and for exemple if you want to buy a bike, more than 70% of its price are taxes
Your not dealing with the total tax rate people suffer. Some places have income tax and travel tax and purchase tax and sales tax and home tax and health tax and window tax and all sorts of other taxes. The single wages tax is therefore totally irelivent. Whats important is the total taxes payable in relation to wages / salaries. If the cost of living and working was insignificant then the higher taxes would become similarly insignificant..
If you´re intrested in taxes, please take a look into Argentinas tax system. Which I think is by far the most complicated of the world, by far. In Argentina you have something called "Gross Income" for wich the buiseness have to pay a % (arround 2%) of what they Invoice to they local (state/province) gov. even if they are just over the costs. Added to that VAT is 21% for most of the Items. Money tranferences pay a "transference/check tax", herritage does as well, buying foreing currency, your net worth pays as well, arround .5% of what you own in the country has to be payed each year, but is 3% if it´s abroad. Also, this year an "extraordinary tax" was passed to add another 2% if you´re rich. And the funnier thing is that some of those taxes are payed in advanced, So, for example, if you payed $100 in taxes last year you have to pay $50 in advanced for this year, because the gov. assumes you´ll be paying again $100 this year. For wages, Employers pay an extra that goes from 20% to 35% of the Gross salary they pay. And the Empoyees pay a 17% of they wages on taxes as well. So if the buiseness pays $100, the employee gets arround $65.
Any website that shows the place where a middle class to high class (not top earner) pays the least amount of taxes yet it's a good country to live? Possibly that speaks english and has a good labour market? I thought of New Hampshire in the US but it seems like their property taxes are way too high and it doesn't seem like there's many jobs where a foreigner can move
But you do understand nobody pays those rates .....nobody. Because once you take the raw number like the one you specified for New York you then get to write off a certain amount for work expenses, you can write off you mortgage interest payments, Anything you use to do your job, tools, clothes, computers, paper, even your car or truck.....then you can write off medical expenses and even some home improvements! Then you write off charitable donations, money you put into your retirement account, you get dedications for a wife that doesn't work. you get deductions for every child you have, you can write off gas used to get to work or your internet bill if you work online. whatever the paper tax rate is you can pretty much cut it in half with the deduction system.
Housing prices in Texas have always been low. A $500k home in Texas will be in a very nice area and quite large. We paid $310,000 for a brand new 4,000 square foot home when we moved to Texas in 2008.
If New Jersey has a high property tax rate and California has a low property tax rate won’t those buying real estate in California pay more flor a home than those in New Jersey will? I am not sure the two states really have different real estate tax costs. Those in New Jersey pay more per year but pay a lot less when they buy the place. In realistic economic terms the burden of property tax may be the same.
The figures in the UK for 5 million pounds is similar to what it would be in Australia for 5 million Australian dollars. For 5 million in Aust, $2,220,667.00 would be paid in income taxes, while $100,000 would be paid for the Medicare levy
Taxes are very interesting when you are not in trouble with the tax authorities! My wife is Japanese and was saying it was outrageous that consumption tax in Japan went from 5% to 8%… while here we are paying 20% VAT or if you’re in Ireland 23% VAT. Still at least we don’t have to pay residents tax (which is based off of your previous years income) meaning that if you have to have some money saved up if you stop working in Japan.
In sweden we pay over 80% taxes. Around 33% on the salary, then 25% on almost everything you buy, more than 300% on plastic bags, thousands % on tobacco, alcohole and petrol and diesel. Obviously how much taxes you pay in Sweden, depends on what you buy and how you live. I pay €240/year in road tax for my car.
Tax is only for highjacking people and give them the illusion that it’s for the road and shit but yet everything is worst then ever the roads the system but sure hell wants to vax you and making you safe !
The marginal corporate tax rates shown in the video are outdated; as of the 2017 tax cuts and jobs act the corporate tax rate in the US is a flat 21% no matter how much money a corporation makes, before deductions.
Ethiopia: Anything you make above $150 is taxed at 35%, plus employer has to pay 20%. VAT 15% (including food items). Income in foreign currency is subject to 20% tax(gov't dictates fixed exchange rates). Inflation runs at 16%+ for the past 10 years. You put everything together, effective tax rate is 70%. Real interest rate(interest-inflation): -10% FINAL TAX RATE: 80%
You overlooked that one pays 12% National Insurance on the first £50k pa in the UK (then 2% thereafter as you noted). And what about UK council tax, sales tax (20% VAT) and excise tax (tobacco and alcohol) etc etc - this should be compared world wide plus only look at the average salary and not just a huge amount.
You don't start paying either income tax or National Insurance until you are earning £12,500 per annum. Your employer also pays into NI for each employee.
A listed tax rate in the US doesn’t mean that it is the rate that is actually paid. US federal, & state income tax as well as corporate taxes are generally much lower than the published rates due to tax deductions & credits. So, the effective tax rates can be as low as 0%.
America's statutory corporate tax rate is high but it's way lower if you take into consideration write offs and things like that. I believe the effective corporate tax is like 25% which is still substantially higher than most of Europe but is nowhere close to the official number. Europe has the lowest corporate taxes in the world but the continent has an average corporate tax of like 19% compared to mid 20's in the US as opposed to the massive gap that appears to exist if you only look at the statutory rates.
unironically I am extremely interested in a channel that talks about taxes
seconded
Third
I can give you a link to a old song that is about taxes
Your cat kind of looks like mine
Plus another
I just get around paying taxes by never earning any money.
I just commit tax fraud
Good plan.
Funny enough that’s also the strategy that Jeff Bezos uses
That’s the goal for you to never have money and forever been in debt !
@@dtales77 Oh I'm not in debt. Sailing through life on pure neutral.
Whenever he says he says he's been busy with his other channels, I am reminded that he has other channels.. In my perfectly sphere of a bubble, this is his main channel..
True
i was just thinking this.
I prefer that american dude that does map videos. No idea why, I prefer Andrews minecraft videos.
@@MISTER__OWL who?
I was faithfully subscribed and watching every video for 6 months before realizing he had a first channel. Then I watched something like a political compass minecraft video, which was probably the most second channel thing he's ever done on his first channel.
I work in my family accounting office in Argentina... I wouldn't wish this job to my worst enemy. We have wayyyy more taxes than Toycat is showing
I think that it gets complex quickly because most of taxation is income, VAT and property, but also you'll have some local and some state alternative that isn't accounted for, in addition to all the duties etc.
Basically I feel you don't worry
@@ibx2cat we have taxes on the taxes and each province wants a piece of the bigger companies and theres retentions when you hold money directly from the buyer and you have to pay the tax for them, its crazy 😂 anyway we have poorly funded hospitals and universities but they are still decent and you dont have to pay so thats nice (corruption and inneficiency aside)
I think the biggest problem is the piles upon piles of laws and regiments you have to know, because, at least in Brazil, there are so many specific taxes, duties and fiscal relieves that you need dozens of financial and tibutary administrator just so your company can pay as little as possible, which makes some companies pay very little while others have to pay excruciating amounts
@@matheusd.rodrigues429 unless you get a break or a loan from the government tax paying is somewhat equal here, small businesses might evade easier since they do smaller transactions. But yeah there is corruption and some companies go into huge tax debts that a powerful friend can wash away
The Russia one is actually higher because the employer pays roughly 30 percent extra in your name.
Sweden has like 30% income tax, but also 30% employer free. So that's 70%×70% = ~49% you keep, 51% in taxes, and the map seems to properly reflect this.
The UK and US have similar systems where 20-30% is paid by them too for what it's worth
@@toycat that would be an interesting thing to compare in another video. Also, look into import tarriffs. Maybe, even bribes in some places in you need to give bribes just to do basic things such as getting a driver's licence and going to a state run hospital.
American companies in Russia don’t pay tax’s
That's just taking away from your pay in reality. Just masking it, same in my country
I read: "Which country has the highest Texas"
I thiink I have Dyslexia
I actually think a video on where the highest Texas is could be pretty useful. If you look on google maps for all of the places in the world with Texas in the name and work out which one is most Northerly.
@@VodkaSelekta Nah highest in terms of number of drugged people.
I think the answer to that is the USA.
Lmao
You mean lysdexia?
“Whatever it is you do when I don’t exist.”
Too real.
10:25. Literally no corporation pays that tax rate because of the insane amount of loopholes. Most decent sized corporations that can afford dozens of accountants and lawyers pay way less and sometimes even 0%. That figure of the corporate tax rate is extremely misleading.
Is it really loopholes or is it deductions
@@schroederscurrentevents3844 both. Some deductions are loopholes by definition. Only there for those large corporations to use.
@@schroederscurrentevents3844 When Amazon, Apple, and Google are paying less in taxes than your average high school fast food worker, there might be a problem
They are not loopholes they are legal tax deductions and guess what every American also gets tax deductions just the same. If you actually take the numbers in this videos and apply tax deductions the number fall really fast. No one in the USA Is paying the fall tax sum due to these deductions. The thing is that if the USA wants to cover the national debt all they need to do is remove the deductions but then the REAL tax rate will actually be what is listed in this video and that will not go down well with the public.
@@drscopeify They lobbied for these deductions, average American workers don't have the capital to lobby the government like that, so they get taxed more.
Real fair, sure.
I would focus more on the other tax brackets in these countries considering most people aren’t a part of a the top 1% of income earners.
Thank you for pointing this out! It was driving me nuts hahaha
Good point. I think in a future video he can do "Which country has the highest taxes for under $40k/yr earners?" "Which country has the highest taxes for $40k-80k/yr earners?" etc. Not sure where the countries draw their tax bracket lines, but that would be cool to know.
I'll compare 2 states so we can see the difference that brackets can make. California and Georgia. California has a 13.3% top tax bracket and Georgia has a 5.75% top tax bracket. However, because of how the brackets work, a person making $60k/yr in California will pay about $2700 in state income tax while a person making $60k/yr in Georgia will pay $3000 in state income tax. To compare the monthly we can imagine it as $5000 per month of income and $225 in CA or $250 in GA per month sent to the state in income tax. The contrast is even greater the closer you get to making $15k/yr with California taking very very little at that income level. California state income tax begins to surpass Georgia at about $70k/yr. That said the property tax part might be the more interesting one.
State, county, city all can have their own additions to property taxes so you might have a fairly large change from one mile to the next because one house is in a different county or a different city. Additionally you have to consider the cost of the home you will purchase. Although California property taxes are fairly low, the housing prices are astronomical. Using the same 2 states California and Georgia we can see what difference that could make. A median home price (meaning 50% of houses are more expensive and 50% are less expensive) in California is over $800k now so that 1% in property taxes means $8000/yr. In Georgia the median home is $220k and even a 2% property tax means you only pay $4400/yr. So when you consider house value and income you can see that although you might pay a few dollars more in income in Georgia you are likely to pay much much much less in housing cost and property taxes. This is of course if the person making $60k/yr could even afford one of those $800k homes in California which they can't so they probably won't be able to find a home to buy in the state.
I went too simple on property taxes since houses aren't assessed every year in some places or the tax assessment might change depending on the number of structures on the property or how much the city/state can increase the home's value for tax purposes. Stuff is complicated and will vary greatly, but this was an ok example I think.
@@falcianjinn6218 the examples you gave, even if simplified, are great. They really highlight why it's important to consider these things with more depth. An example of an exception in CA - my grandma's home in LA was bought in the 1950's, and due to some of the complexity of the property tax laws, property taxes can only increase by 2% each year. This means that even though the appraised value of the house is north of 1.5 million, she is only paying a little more than $1000 each year in property taxes because the house was paid off so long ago.
@@falcianjinn6218 here is one question did you account cost of living differences between the examples, because 60k is a worth a good deal in Georgia than in California
@@falcianjinn6218 Maybe it would be better, to look at the tax rate of a median (not average!) income, because incomes vary greatly between countries.
It’s hard to compare taxes across countries, considering that they provide you with very different things in each place.
Yeah in the USA you pay a crap load of taxes and get literally nothing in return which is why the American citizens tend to hate them.
@@equinox2584 Same everywhere. You pay a crap load and get nothing in return.
It's just a ruse to rip you off and feed politicians and their armies of bureaucrats and "public service" personnel.
And then a few handouts to keep the voting base coming back.
@@mrawesomeDK I think the Nordic countries would probably disagree with you there
@@jw3505 I live there :-D
@@mrawesomeDK That isn't true lol. In literally all of the developed world except America your taxes actually help you and even in America they help as well you just don't get as many public services.
Healthcare is a big one, roads, police, welfare is another big one, military, public housing developments, social services, national parks, etc...
You do actually get great value from your taxes, in America, our money tends to go a little too much towards the military and a little bit too little to the welfare but it is what it is, I am still glad we have taxes.
Most Countries : Have high tax rate
Me in Bulgaria : Yeah, that's rather unfortunate
I read Bulgaria has lowest taxes on Europe, super cool!
Turkish viewer here. A PS5 is 4000₺ without taxes, but with taxes added it is 8200₺. We buy another one for the government when we buy one for ourselves.
(Also, minimum wage is 2800₺ and 44% of all workers are minimum wage.)
a PS5 is also not essential. I very much rather see how much food is taxed than a PS5 or a car
@@matheusd.rodrigues429 a lot
@@matheusd.rodrigues429 cars range from %35 to over %150
@@yungsteaksauceakalilwasher6571 you have it lucky in south Africa cars are %500 to a %1000
I find it peculiar that Finland is shown in yellow when in fact the actual top income tax rate is pretty much equal to neighbouring sweden when you include municipal tax as they do in the swedish tax value. That's not even the whole picture as you have to pay social security payments, church tax (if you're a member) and pension payments which add up to with income taxes up to 58% or so depending on the municipality.
I don't mind paying as much as I do. However, I would love to be able to allocate some of it. Let's say currently 2 % of my taxes are spent on street lighting. The base rate could be 1 % or 1.5 % and I could choose to allocate some more. Some areas should probably be fixed but less essential services should be optional. This would allow citizens to show which services they value.
agreed, that would be great
Giving options in tax rates would encourage competition between municipalities and provinces i think
I would dedicate 0% of my taxes to the mentally disabled and 100% to my self.
@@InvadersDie but then u can’t dedicate any to yourself
@@lubu2960 how? OP is taking 'bout citizens right, not muncipalities or companies right?
Toycot is the living embodiment of spiralling thoughts and it’s great.
Fascinating. Someone with my way of thinking.
Congratulations on the house. You never don't exist in my world...lol. I watch all your channels and haven't run out of content yet.
Looking at this list it shows there's not that strong a correlation between this metric and how "good" we consider these countries. Unless you feel very strongly about taxes that is. You can make a good country without high tax and with high tax.
The only thing you need to pay attention to is how much money the government spends, Milton Friedman said
It’s more about how the money is spent yeah.
It would be interesting to see how strong the correlation is between the happiness of a country's citizens on average and the total tax to GDP ratio.
@@nielsunnerup7099 Probably not so much, but even then correlation is not causation
@@balkje Higher than average taxation in a country does often end up making the social security systems stronger, and usually makes education and healthcare free which makes people stress-free regarding those things. Makes quite the big difference if you have no job and not enough financial aid from your parents, it allows you to get an apartment through student aid and keep on studying on any level of education.
9:00 In texas at least, there's a homestead exemption on property tax ie you don't pay on your home, if you don't own any other property you don't pay.
It kind of hurts me that even the highest sales tax rate in America is still much less than our 13% in Ontario.
But at least you guys get actual government services in return. We pay our taxes but basically get nothing in return.
@@julianturner69420 I guess you never use public roads, or go to public school, or see fires being put out by firemen, or see criminals arrested by police, etc. You might want to step outside and see what's going on in the world every now and again.
@@julianturner69420 that's a stupid thing to say
That's before or after the federal gst?
@@LeSyd1984 in Ontario GST and PST are combined into a single rate called HST which is 13%
FYI those maps are wrong. Texas has 8.25% sales tax and the property tax is variable depending on what part of the state you are in. It can go up to 4%
I just want to take a second to point out that the mapmaker chose to denote high taxes as green, and low taxes as red. It seems a bit odd to characterize the relationship in that way…. 🤔
Also, good job pointing out just how oversimplified and misleading such statistics are. American politicians (and others on the global Left) who insist that we pay unreasonably low tax rates compared to global norms are typically either lying on purpose, or simply ignorant to the complexities involved in tax codes.
I lose half of my income every year, and I live in one of the “low tax” states.
I live in the Netherlands (a 'high-tax' country) and I had a business partner in the US about 7 years ago. I, too, thought the US had really low business taxes comparatively, and I was absolutely shocked to find that even at not a very impressive ~60k income, my business partner altogether paid about 40% in taxes on that. Why is that shocking? Well, the effective tax rate - excluding sales tax - for me was about 15% that year. The difference is astronomical.
that's about when I started understanding that most people just don't understand or know anything about taxes.
@@ssj3gohan456 I’m not too familiar with European (or Dutch in particular) tax codes, but our corporate tax rates are what mystify me most. I’m not sure how you folks do it, but most “small” business owners (anywhere from zero to a few hundred employees) are registered as “pass-through” corporations, where business profits “pass through” straight to the owner, and are then taxed under the individual income tax code. So many/most small businesses don’t use the corporate tax code at all.
My business (48 employees) was recently switched to a C-corp (at the advice of my accountant), which does pay corporate taxes, but as you note, those taxes are about the same as individual income taxes, so our tax liability is virtually identical as it was before.
It just surprises me that we are the only country which taxes every corporation (well, at least those corporations who lack the resources to lobby Congress for cutouts) the same as we tax individual earners.
@@JJJRRRJJJ Even income taxes seem a little complicated in the US. So all levels of government levy an income tax, even local ones?? I can only give examples from the country I live in, Australia; here only the federal government charges income tax. The Australian states don't. There is one sales tax- at a uniform 10% across the country. In regards to corporate taxes here....I don't know what they are like tbh. According to the map at 9:52, they're above the world average but lower than what they are in the US.
In the example given the video, if my calculations are correct, someone earning $5 million dollars in Australia would be paying about 47% effective tax rate (including the medicare levy), which is lower than in New York State. To give you an idea of the political situation here, Australian politics tend to be a bit to the left to the US in general in some respects (e.g. the universal health care system here is supported by both the main left and right-wing parties). I should point out that if you're earning a lot less than $5 million, your effective tax rate will be lower than 47%. If you're earning $500,000 per year, your effective tax rate is about 41%. if you're earning $200,000, it will be about 33%.
@@perthdude21 Yes, our subnational governments are able to levy their own taxes to fund their respective functions. As you likely know, my country has a long history of skepticism toward a meddling centralized national government dictating the affairs of state and local governments far and wide.
And thus California can decide to snatch 13% of your income (on top of federal taxes), and Florida can decide to forego any income tax. (Just recently, until 2017, the federal tax code would allow you to deduct state and local taxes from your federal tax bill. Since this deduction was eliminated, people in high tax states are getting even more crushed than they were.”
But anyway, how are Australian state governments funded if they cannot levy taxes? Without the authority to dictate its tax policy, how does a state government have any actual power? It seems like they would be mere puppets of the national government, spending only what they were allowed to spend, no?
As the video mentions, sales taxes vary by state. My state, Indiana, is at about the average of 7%, though we are below the corporate average at just 3.2%.
From what I do know about Australian political culture (which I admit is not much) I tend to really enjoy. It feels much more familiar to me than that of Britain and even Canada… But those countries basically form their whole identity around pretending to be SO much different (re. better) than the US (especially canada), even though we are VERY VERY similar when all is considered. Australia doesn’t tend to have that same chip on its shoulder, and even has a robust conservative instinct in many ways. And you guys understand that China needs to be dealt with, even if you are uniquely dependent on them. Most of our government doesn’t even understand China.
@@JJJRRRJJJ Here in Germany, the national state decides which taxes there are and how much, but not all taxes go to the national state. Some only go to one specific level of government and others are split in a certain way. For example, of your income tax, 15% go to the local government, and of the rest half to the state and half to the national state.
Would be interesting to see a breakdown of what each country spends their tax revenue on.
In the UK the taxpayer is going to pay for another 'Royal Yacht'! And nurses are earning less in real terms than they did in 2008, and are expected to be grateful for a 1% pay rise after having to deal with the pandemic. Nice to see the government have got their priorities right.
@@peterc.1618 In fairness I'm sure they'll have a lot of money to spend on boats once they sell off the NHS. Here's hoping for the HMS Prince Andrew - it could do cruise tours of Epstein Island.
I don't know of any country that separates "tax revenue" from "newly printed currency". Except maybe those few in the EU that just can't print euros.
@@fawfulBeans No sweat!
Why is green the colour chosen for high taxes and red/black for less taxes? Should be the other way around.
Fun fact about Texas: We have no state income tax, however we pay higher sales taxes and property taxes. You can also write off sales taxes from your income when you do federal income tax.
Didn't the Orange Man get rid of that? The deduction?
@@ericklucasmenezesdelima570 Nope. You can deduct up to a combined total of $10,000 of taxes
@@lukedetering4490 Oh, Sure
@@ericklucasmenezesdelima570 what do you mean sure, you literally can. I have done this and continue to do this.
@@dallyh.2960 Uhhh by sure I mean, sure? As in I didn't knew that you could still do it, but that guy told me you can?
What a strange question from u
In the US there is the tax rate, and then there is the actual rate paid, which is much much lower for corporations, not to mention that the rate was reduced in 2020 to 28% federal, then add in whatever state income tax there is, 4.55% in CO for example.
The thing about US taxes is that the richer you are the more you are able to get tax breaks. So you end up paying less percentage than people that make less money. Don't really know how that works in other countries.
I would love if that tax map was split into subregions. Even a country like Sweden has different rates in different parts
Taxes in general are too complicated to able to compare them. There is always an asterisk or nuance, or taxes that's not called 'tax'
It is extremely difficult to compare the tax rates of countries. e.g. The higher taxes in Scandinavian countries provide superior benefits whereas no American can afford insurance that is as good as the health and pension benefits in Europe, Canada, UK and the Commonwealth. Sales Tax (VAT) in Europe may seem ridiculously high at ~20% but it only applies to 'nominated luxury goods' and some items such as heating fuel attract a lower rate of ~5% as a nod to the Greens. Traders claim back the VAT that they pay for supplies and services so the net result is much less than 20% and can even be a net gain.
The VAT tax nap is also misleading as different products have different added tax. In Finland, most foods have a tax of 10-14% not in the 20s%. That's for things you don't need to survive like toys.
US corporate taxes are really high because instead of fixing the countless loopholes, they just raise the corporate tax but that doesn't matter because the corporations just avoid the taxes altogether anyway
As a self employed person, I pay around $1000 (includes health and pension insurance) in taxes from my $125000 income under a special tax regime called the patent system in Russia. The effective rate in my case is 0.8%.
For a patent, you can apply online using the federal tax service website, specify your address, your occupation and the term of the patent. Once it is approved, you can pay a fixed amount for the patent, for health and pension insurance - and you are done for the term of the patent. You don't even have to file a tax return.
Since our mentally ill government started the war, a lot of people from Russia moved to a small nice country called Georgia. As a remote contractor, you can register there under the small business tax regime and since you don't qualify as a VAT payer, your income is taxed under only 1% rate. However, you need to report your income and pay taxes on a monthly basis.
That hotdog clip is solid gold!!! Your editor deserves a medal
Yikes, it's almost impossible to compare countries on tax rates alone - there are so many considerations. For instance, a) What worthwhile services does your government supply in return? Healthcare, education, retirement benefits? Is your infrastructure maintained and expanded as necessary? b) How are you taxed in other ways - biz taxes, sales taxes, property taxes, etc? c) How fairly is taxation applied? E.g., rich Americans may routinely avoid almost all taxes. d) Does your country provide any unique benefits of citizenship, which can't be had elsewhere? If so, that puts a different light on the taxes you pay to exist there.
However, lots of good points made in this vid.
9:44
Toycat: Can we just talk about taxes??
Me (looking at video title): I mean yeah I reckon
Nah just a little banter, great video
Some of the us states have homestead exemptions for property taxes which Cuts the property tax rate. I paid about $100 USD per year when I was living in an $85k townhouse in Florida.
In Italy the corporate taxes is about 20%, but you also have to pay 46% of whatever you pay to your employees...
and start wonder why everyone is committing more or less of tax fraud.
The more attractive a place is for investment, the higher the tax rate can be without losing investment. Hence why poor countries have to have lower taxes even though they need the tax money the most. The US could charge really high taxes because it’s an extremely attractive place for investment.
Also it’s hilarious that Texas chooses to avoid income tax but have a high sales tax, eg, a regressive tax. So poor people pay a higher percent of their income than rich people…
Texas also has high property taxes so that might equal it out between the rich and poor
The first part is not always true because another reason countries have low taxes is because they are able to do so like rich oil and gas countries in the Middle East and Europe.
I don't think this map is very accurate and not just because of Federal vs Provincial taxes.
For example I live in Ireland. The top marginal tax rate is 52% but there are several different taxes on Income.
PAYE : Pay As You Earn.
USC: Universal Social Charge.
PRSI: Pay related Social Insurance.
This map only accounts for the main one of 40%.
Same goes for most other European countries to my knowledge.
10:50 _"You know something's gone a little bit wrong..."_
The reason the nominal US corporation tax is so high is that there are so many possible deductions. Really, you should look at the _effective_ corporate tax rate, which ends up rather low.
We also have (not terribly well) hidden taxes, like stamp duty on property sales.
I don’t mind 2cat talking about taxes.
In Morocco we never talk about taxes because its retained from the source for exemple if a moroccan tels you he have an income of 8000 $ a year it means after deducing the income taxe wich range between 0% to 38%
Im happy to pay a lot more then 10% extra as long as I have a proper national health care system that make sure that my friends, my family and myself get the care needed if shit one day hit the fan. Less toys in the garage but I do not need to go to the graveyard when I want to hang out with my friends.
Get this: the USA actually spends more than the UK.
UK gov spends about 4k per head, while the USA gov spends about 4.5k. And then private citizens pay an ADDITIONAL 4.5k, for a total of 9k spent on health per head. The highest health expenditure in the world.
@@fawfulBeans the USA is very obese. Also, overegulation destroys the markets
@@fawfulBeans and yet they get one of the worse outcomes of any developed country
After getting used to paying 25% VAT in Scandinavia, it kinda hurts when you call
25%?, here in argentina everything you buy is 50% taxes
@@FC01 whaaaat?! You pay 50% tax on everything you buy, after income tax and all?
If I may ask - roughly how high is your income tax and all that then? 🤯
Andrew I have learned more on geography and geopolitics since subbing to your channel than I ever did in school. Cheers to education being fun!
It's interesting to a point, but also not really when there is no comparison of what you get for the taxes you pay. (Healtchcare, education etc.)
Have you followed the controversy in Spain with big TH-camrs? They got tired of paying high taxes and moved to Andorra. It was a huge issue in Spain for a while.
I went to the Dunes in Oregon and on the way I heard about people who live in Vancouver, Washington and pay 0% income tax, and then drive across the bridge to Portland, Oregon to shop and pay 0% sales tax.
Here in Serbia we pay more than we earn.
I liked the subtle “ I’m not a MULTI millionaire “ flex lol
TH-camrs pay 4-6% incom tax in Russia.
Brazil is terrible, it's a paradise for the rich and hell on earth for the poor. Basically the vast majority of taxes are in products, so, everything you buy, there's lot's of taxes put into it, which makes the price of the product around double/triple or even more in some cases, in contrast to it's original price.
There's a huge debate over here, for decades, about cutting/reducing those taxes in the final product and instead taxing the profits of companies and because here there's basically no taxation on that this enrages the elites the pay way less taxes than the average citizen, making them threaten to leave the country. Basically what happens here is that the workers, the common people, the 99%, pays a hell of a lot in taxes all year so the 1% can keep their life style, surviving on untaxed dividends and untaxed profits, it's literally a pyramid, the higher you are in society the less taxes you pay.
The political class is the rich , not small & medium business owners the Franchise you buy from and you blaming a tiny percentage of rich in private sector . The rich aren't the problem the Government is
Well done bro :) In many countries there are mandatory "taxes" for heath and rettirement system but in others they are not mandatory. Also VAT tax make hugh difference and other taxes too. So it would be even more interesting when "tax freedom day" comes in particular countries.
one week ago, the eu decided to add VAT to everything bought outside the eu (import sales taxes) additional to the countries taxes you got the item from... so yes. you pay vat for absolutely everything now...
Austrians VAT is 20% btw.
Um 20%?!?!? How the hell do you live?
Eu is cancer
North Korea has a 0% income tax rate, however, there is a high markup on nicer goods that allows the state to make a significant surplus, while some less luxurious goods and services are free but rationed, and still others are sold at a loss. Effectively this results in a steeply progressive sales tax built into the state economy and overall the effective tax rate is around 40%.
Great video! High valued info 👍
Love the description!
In the US, state and local taxes (SALT) are deductible on your federal return.
I live in the US (Maryland) and am in the 37% bracket (top bracket is 37% not 39%). Adding federal, state, local and payroll taxes I (household) average around 20% of gross income.
We also cross the border to Delaware for large ticket items (no state sales tax).
Plus having to pay medical insurance, if your employer doesn't. That's not freedom. What happens if you are fired, or want to change your job? And what with all the co pays?
@@iriscollins7583 Adding health insurance costs and copays/deductibles (we contribute to a tax free health savings account as a secondary retirement tax shelter) brings us up to approximately 22 to 23% of gross income (about $7,200 a year for health insurance). That still leaves me about 20% lower than I was paying for income and payroll taxes in Ontario Canada and that does not include the $2,500 per person health care surcharge that they added the year before I left.
If you are fired some companies will extend your health insurance to match your severance. The other option is COBRA. Changing jobs is as easy as it is in any country. The difference in the US is that everything is negotiable as part of your compensation package and the more marketable you are the more leverage that you have.
Copays and deductibles are a way to lower your insurance premium. A plan with a higher copay and/or deductible will cost you less than a plan with no copay and/or a lower deductible. They are how the insurance industry ensures that you are not using the health care system frivolously. If it costs you $10 or $20 every time that you go to see your family doctor (preventative care is usually covered at 100% with no copay or deductible) then you are probably going to take a minute to consider whether you really need to.
Keep in mind that low income people are on a single payer system (Medicaid) and get similar care to countries with universal systems. The people that have the most issues are those above the Medicaid cut-off that choose not to purchase insurance and end up with a condition that is expensive to treat. In the US people have the freedom to make that decision, but also the responsibility of the outcome (positive - possibly save for a home down payment which they would not otherwise be able to afford, negative - may find themselves in financial trouble if they do get sick).
These videos are so chill lol
Observation: A street is called "Gonzales".
Conclusion: I must be in South America
Ah yes, British logic.
What's even worse is that you eventually guess Canada, when there are tropical/subtropical plants on the side of the road.
0:26 Did the rate really go up this year? Look at the date of the change.
I would say mean or median, not top marginal tax rate, is what matters.
Also one thing not included in this is other forms of value extraction like hidden sales taxes (popular in command economies) or private profit. If the government takes 25% of my wages but my wages are only 50% of the value added, who's screwing me over worse, the government which uses that money to fund social programs, the military, public pensions, any state industry that exists, etc, or my employer, who's basically just getting rich on it and expanding their private property.
Only calculates direct income tax, doesn’t include indirect taxes of various forms such as VAT, Local Govt “charges”, charges such as vehicle registration, pollution etc
Russia is actually 44 to 57% tax rate depending on how to calculate and what to include. Standard income tax is around 15% off the sum plus 22% over the sum plus 2-4% over the sum depending on work conditions (so you get 85 of every 125 money units). And on top of that there is a weird system of taxes for companies that can be from 10 to 75% of revenue (the larger your comany the bigger). Of course all this taxes are passed to the customer. So it's usually considered that average russian citizen pays around 55% of their income as taxes. In case of 5M you most likely to get this as an LLC of a kind so it will be 20% straight forward plus around 20%+22%+4% of the rest (only 54 of every 120). But if your income is less than 25 000 USD a year, and you work soly for yourself you can get as lower tax as 4 to 6% depending on who pays you and if you're an LLC with less than 900 000 USD per year you can have a 10% tax off your raw income or 15% of what you keep after paying all business-related expencies.
Speaking of US you probably should consider adding sales tax into the mix as it's payed of your money after all.
That's not quite correct.
Your taxes under the patent system can be below 1%. (your income should be below 60 mln RUB per year ~ $1 mln, Art 346.45 of the Tax Code)
Your taxes under the simplified tax system can be as large as 6% of your income. ( your income should be below 112 mln RUB per year ~ $2 mln, Art. 346.12 of the Tax Code)
Your taxes under the professional income tax can be 4% or 6% (your income should be below 2.4 mln RUB ~ $35000)
Your taxes under the full income tax system can be 13% or 15%. So your net amount of money would be 0.85 from the contract. Your employer also has to pay 30% for pension and medical insurance. So you total tax burden is 1-0.85/1.3=0.35, i.e. 35% in the worst case.
You cannot sum 15% and 30% because the insurance sums are not payed from your salary. If your gross income were 1000 RUB and every tax were taken from this sum, you would get 1000*(1-0.15-0.3)=550 RUB from the total of 1000 RUB but in reality you will get 1000*(1-0.15) out of total 1000*(1+0.3). So in the end it's 35% and not 45%.
You also cannot subtract corporate taxes when calculating personal taxes because they are separate creatures.
@@Murmilone thanks for correcting me on professional tax as I used outdated figures. But as I whould argue about the fact that inshurance sums and corporate taxes of complnies you're byuing from and the reasons are:
for inshurance. There is no separate source of income for employer for that money and employer pays insurance by not paying that money to emploees. This is called a salary funds - aqll the money employers are ready to pay for their workforce both directly and indirectly. If you claim that inshurance is not a part of salary fund and so the part of money that could be distributed as a direct salary if there whould be no regulations than you must also say that the income tax is not part of the salary for the same reason
for other corporate income taxs. Corporates and business ventures have no other source of income than the money they recieve from customers. So every tax they're paying is included into theit prices. Again, when you buy something you may not be told how much of your money are going to be taxes and how much will be your actual payment but that doesn't mean that the 100% of what you're paying are the actual purchase.
And it's not the case of how much amount of taxes you're told you're paying as it's the question of linguistics and not economy. I'm interested in if you're making a purchase of, say, 1000 RUB, how much money the government got through it's different institutes so that purchase was made legally. In other words, how much you need to pay so the entity you're paying to gets 1000 RUB for their own unrestricted consideration AND how much you directly or indirectly (through your employer) had to pay so you got that amount in your pocket. You can moove the line to cut that calculation to the different point, but still need to include the corporate/business income tax, inshurances and personal tax anyway
I also think that government revenue is more accurate than tax rate, since many pay nowhere near the expected tax rate and other countries have a high level of just plain tax avoidance eg Greece and Italy.
me looking at low taxes in singapore and malaysia... yeaaaaah I am sure high taxes equates to better gov spending for people.
great video toycat
We don’t have income taxes in Saudi Arabia, but we have VAT which currently is 15%. We have free kindergarten to university education tho!
Property-tax: Texas 1,9% -> say $1.000.000 value gives tax at $19K each _year._ Which means you divide these $19K at 12 months and gets to pay $1583 a month for a one million dollar property. Twelve thousand each month would give a tax-rate at 19%, and people would be up in arms if that happened.
That a very bad argument to be honest. Despite having higher tax rates France is so much wealthier than Portugal and Czechia that they are still making more money after taxes on average. A country has to work, not have low taxes.
Me a Canadian listening to him guess Canada: Not with that plant life! That looks like a palm tree in one shot and few if any conifers in sight. Also, that road surface and the houses don't looked right for a climate that gets actual winters and snow.
How many energy drinks did you consume before you shot this video?!
Sweden has the highest tax pressure in Europe. Change my mind... If I want to put 1000SEK worth of petrol in my car, for me to earn that money, my employer has to pay 31.4% of what he wants to pay me as an "employer fee". Then I have to pay 34% in taxes. Then the petrol itself costs somewhere around 3SEK/liter but including taxes it's 16.75SEK/liter. So just on the petrol the tax is around 4.5x that of the actual price so all in all I pay around 600% tax on those 1000SEK that I wanted to spend on petrol.
Edit: Even worse is that our 95 octane petrol will now get more ethanol mixed in (from 5% to 10%) so that my car will use more fuel so I have to refuel more often so that our "30% government" can put some more money in their pockets instead of spending the money on actual expenses such as road upkeep and the like. They'll even increase the price with 0.6SEK/liter even though ethanol is supposed to be cheaper than petrol. Ethanol costs roughly 12.5SEK/liter so it makes no sense to make E10 more expensive than E5. A large part of all cars on the roads can't even put E10 in their tanks because their engines will corrode and break down. t's all because of money.
In brazil, the income tax is not the worst, but product taxes are. Instead of the USA where you have a set amount of tax in everything you buy, in brazil everything has a different tax rate, and for exemple if you want to buy a bike, more than 70% of its price are taxes
“If I made 5 million I’d have to pay 1,934,076 in taxes”
Rich ppl: “ya we don’t do that here”
Your not dealing with the total tax rate people suffer. Some places have income tax and travel tax and purchase tax and sales tax and home tax and health tax and window tax and all sorts of other taxes. The single wages tax is therefore totally irelivent. Whats important is the total taxes payable in relation to wages / salaries. If the cost of living and working was insignificant then the higher taxes would become similarly insignificant..
If you´re intrested in taxes, please take a look into Argentinas tax system. Which I think is by far the most complicated of the world, by far.
In Argentina you have something called "Gross Income" for wich the buiseness have to pay a % (arround 2%) of what they Invoice to they local (state/province) gov. even if they are just over the costs. Added to that VAT is 21% for most of the Items. Money tranferences pay a "transference/check tax", herritage does as well, buying foreing currency, your net worth pays as well, arround .5% of what you own in the country has to be payed each year, but is 3% if it´s abroad. Also, this year an "extraordinary tax" was passed to add another 2% if you´re rich.
And the funnier thing is that some of those taxes are payed in advanced, So, for example, if you payed $100 in taxes last year you have to pay $50 in advanced for this year, because the gov. assumes you´ll be paying again $100 this year.
For wages, Employers pay an extra that goes from 20% to 35% of the Gross salary they pay. And the Empoyees pay a 17% of they wages on taxes as well. So if the buiseness pays $100, the employee gets arround $65.
Insanity, lol
Any website that shows the place where a middle class to high class (not top earner) pays the least amount of taxes yet it's a good country to live? Possibly that speaks english and has a good labour market? I thought of New Hampshire in the US but it seems like their property taxes are way too high and it doesn't seem like there's many jobs where a foreigner can move
But you do understand nobody pays those rates .....nobody. Because once you take the raw number like the one you specified for New York you then get to write off a certain amount for work expenses, you can write off you mortgage interest payments, Anything you use to do your job, tools, clothes, computers, paper, even your car or truck.....then you can write off medical expenses and even some home improvements! Then you write off charitable donations, money you put into your retirement account, you get dedications for a wife that doesn't work. you get deductions for every child you have, you can write off gas used to get to work or your internet bill if you work online. whatever the paper tax rate is you can pretty much cut it in half with the deduction system.
Housing prices in Texas have always been low. A $500k home in Texas will be in a very nice area and quite large. We paid $310,000 for a brand new 4,000 square foot home when we moved to Texas in 2008.
If New Jersey has a high property tax rate and California has a low property tax rate won’t those buying real estate in California pay more flor a home than those in New Jersey will? I am not sure the two states really have different real estate tax costs. Those in New Jersey pay more per year but pay a lot less when they buy the place. In realistic economic terms the burden of property tax may be the same.
The figures in the UK for 5 million pounds is similar to what it would be in Australia for 5 million Australian dollars. For 5 million in Aust, $2,220,667.00 would be paid in income taxes, while $100,000 would be paid for the Medicare levy
Taxes are very interesting when you are not in trouble with the tax authorities!
My wife is Japanese and was saying it was outrageous that consumption tax in Japan went from 5% to 8%… while here we are paying 20% VAT or if you’re in Ireland 23% VAT.
Still at least we don’t have to pay residents tax (which is based off of your previous years income) meaning that if you have to have some money saved up if you stop working in Japan.
Congratulations on your new house!
When you compared the taxes between UK and US in the start you used differed currencies 5 000 000£ and 5 000 000$
First channel: Minecraft stuff
Second channel: what place has the highest taxes?
I lived in Vegas for 16 years, and Moved to Minnesota, the lack of insane heat here as you mentioned more than makes up for the high taxes. Cheers!
In sweden we pay over 80% taxes. Around 33% on the salary, then 25% on almost everything you buy, more than 300% on plastic bags, thousands % on tobacco, alcohole and petrol and diesel. Obviously how much taxes you pay in Sweden, depends on what you buy and how you live. I pay €240/year in road tax for my car.
I find it intriguing how Canada keeps being interesting to be zoomed into even though it may just be a minute but still
Tax is only for highjacking people and give them the illusion that it’s for the road and shit but yet everything is worst then ever the roads the system but sure hell wants to vax you and making you safe !
US Corporate taxes are high but many corporations don't pay them at all, through loopholes and outright breaking the law.
The United States does not have a 39% corporate tax rate.
it's 21% I think
The marginal corporate tax rates shown in the video are outdated; as of the 2017 tax cuts and jobs act the corporate tax rate in the US is a flat 21% no matter how much money a corporation makes, before deductions.
Ethiopia: Anything you make above $150 is taxed at 35%, plus employer has to pay 20%. VAT 15% (including food items). Income in foreign currency is subject to 20% tax(gov't dictates fixed exchange rates). Inflation runs at 16%+ for the past 10 years. You put everything together, effective tax rate is 70%.
Real interest rate(interest-inflation): -10%
FINAL TAX RATE: 80%
US corporate tax rate got changed to 21% in 2018. Texas average property tax is 1.69%.
Saudi Arabia doesn't have income tax, only recently they added a vat tax of 5% then they increased it to 15%.
You overlooked that one pays 12% National Insurance on the first £50k pa in the UK (then 2% thereafter as you noted).
And what about UK council tax, sales tax (20% VAT) and excise tax (tobacco and alcohol) etc etc - this should be compared world wide plus only look at the average salary and not just a huge amount.
You don't start paying either income tax or National Insurance until you are earning £12,500 per annum. Your employer also pays into NI for each employee.
A listed tax rate in the US doesn’t mean that it is the rate that is actually paid. US federal, & state income tax as well as corporate taxes are generally much lower than the published rates due to tax deductions & credits. So, the effective tax rates can be as low as 0%.
Taxes aren't that simple. But these websites are a good way of figuring out where the you shouldn't be if your NOT earning a lot of cash.
America's statutory corporate tax rate is high but it's way lower if you take into consideration write offs and things like that. I believe the effective corporate tax is like 25% which is still substantially higher than most of Europe but is nowhere close to the official number. Europe has the lowest corporate taxes in the world but the continent has an average corporate tax of like 19% compared to mid 20's in the US as opposed to the massive gap that appears to exist if you only look at the statutory rates.
In Saudi Arabia we have 0% tax income
But we have 15% vat tax
It start in 2018 as 5% and in 2020 it become 15%
Cause covid right?
@@looshroom1393 nah, less oil money.