America is more fiscally progressive than Europe

Dec 5, 2011
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European Union tax structure (as % of total taxation):

Taxes on labour: 47.3%
Taxes on consumption: 34.4%
Taxes on capital: 18.4%

Source: Eurostat

Unlike sales tax, the VAT is collected at every stage of production and distribution process. No EU member state is allowed to cut the VAT standard rate below 15%.

Taxes on labour are paid by employees and employers, including compulsory social contributions and on non-employed labour income.

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Share of total taxes (national and local) paid by the wealthiest 10%:

United States: 45%
Italy: 42%
United Kingdom: 39%

Canada: 36%
Germany: 31%
France: 28% (before Hollande tax hike)

Sweden (VAT 25%): 27%
Denmark (VAT 25%): 26%

Switzerland: 21%

Share of total income earned by the wealthiest 10%:

Italy: 36%
United States: 34%
United Kingdom: 32%
Germany: 29%
Canada: 29%
Sweden: 27%
France: 26%
Denmark: 26%
Switzerland: 24%

Source: OECD


Because of the VAT and other indirect taxes, 100% of citizens in Europe pay taxes to the central government.


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Conclusion: The low and middle class in Europe pay the Welfare State. Not the rich, not big corporations. There are not enough ultra-rich people in the world to fund "free" education and health care for 500 million people.
 
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