Thanks for sending this. Only one point to correct: as part of recent austerity measures, the UK has had to cut some of their welfare programs, but still had to INCREASE their VAT from 17.5% to 20% to tackle their ridiculous debt! (http://news.bbc.co.uk/2/hi/politics/10371590.stm) So that puts Britain's total top tax rate at an even 70% not 67.5%... God save the Queen!
Granted the tax brackets in the email below are the highest bracket, they are still ridiculous... (By comparison, where I live in Singapore, tax brackets vary from 3.5%-20% http://www.iras.gov.sg/irasHome/page04.aspx?id=1190)
Juxtapose those tax rate numbers to these GDP growth statistics below... http://www.economywatch.com/economy-business-and-finance-news/economic-forecast-2009-2010-imf-raises-gdp-growth-expectations-09-7.html
| Total Tax Rate | 2009 GDP Growth | 2010 GDP Growth | |
| UK | 70% (50+20% VAT) | -4.2% | 0.2% |
| France | 60% (40+20% VAT) | -3.0% | 0.4% |
| Japan | 45% (40+5% consumption) | -6.0% | 1.4% |
| Singapore | 27% (20+7% GST) | -2.1% | 8.9% |
(http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1053414/1/.html)
Do you see a trend? Lower taxes = higher growth. Not rocket science people.
We're coming off of the worst economic downturn in recent history. "Modern" economies in Europe are broken under the burden of their social welfare systems because people on average just aren't as productive as long as they used to be. (Why would they be when they are incentivized not to work?) People were living in a dream.
Younger economies in Asia have learned from the mistakes of Europe by incentivizing independence, entrepreneurship, and economic growth in all of their domestic policies. Work hard, save for yourself, spend your own cash to increase living standards and move the economy forward. It took me 20 minutes to look up all this information... what do our politicians do in Washington that they can't figure this out?
Oh thats right.. they have to spend more time figuring out how to make buying votes with social programs to enslave the lower income brackets in reliance on government assistance sound like they are "helping the poor." I can see how that is a tough task... Wake up America.
Current European tax rates:
United Kingdom Income Tax: 50% VAT: 17.5% TOTAL: 67.5%
France Income Tax: 40% VAT: 19.6% TOTAL: 59.6%
Greece Income Tax: 40% VAT: 25% TOTAL: 65%
Spain Income Tax: 45% VAT: 16% TOTAL: 61%
Portugal Income Tax: 42% VAT: 20% TOTAL: 62%
Sweden Income Tax: 55% VAT: 25% TOTAL: 80%
Norway Income Tax: 54.3% VAT: 25% TOTAL: 79.3%
Netherlands Income Tax: 52% VAT: 19% TOTAL: 71%
Denmark Income Tax: 58% VAT: 25% TOTAL: 83%
Finland Income Tax: 53% VAT: 22% TOTAL: 75%
