Our valued sponsor

US To Have Highest OECD Top Tax Rate on Personal Income 57.4%

Martin Everson

Offshore Retiree
Staff member
Moderator
Jan 2, 2018
10,320
1
10,006
173
Register now
You must login or register to view hidden content on this page.
https://taxfoundation.org/democrats-top-income-tax-rate/
---- quote start

Under the latest iteration of the House Build Back Better Act (BBBA), the average top tax rate on personal income would reach 57.4 percent, giving the U.S. the highest rate in the Organisation for Economic Co-operation and Development (OECD).

High-income taxpayers would face a surcharge on modified adjusted gross income (MAGI), defined as adjusted gross income less investment interest expense. The surcharge would equal 5 percent on MAGI in excess of $10 million plus 3 percent on MAGI above $25 million, for a total surcharge of 8 percent (equivalent to about a 9.1 percent tax rate on taxable income). The plan would also redefine the tax base to which the 3.8 percent net investment income tax (NIIT) applies to include the “active” part of pass-through income—all taxable income above $400,000 (single filer) or $500,000 (joint filer) would be subject to tax of 3.8 percent due to the combination of NIIT and Medicare taxes. Under current law, the top marginal tax rate on ordinary income is scheduled to increase from 37 percent to 39.6 percent starting in 2026. Overall, the top marginal tax rate on personal income at the federal level would rise to 51.4 percent (or 52.5 percent on the basis of taxable income).

In addition to the top federal rate, individuals face taxes on personal income in most U.S. states. Considering the average top marginal state-local tax rate of 6.0 percent, the combined top tax rate on personal income would be 57.4 percent—higher than currently levied in any developed country. This assumes the deduction for state and local taxes remains capped.

Taxpayers in New York and California would face the highest tax rates, at 66.2 percent and 64.7 percent respectively, while six other states plus the District of Colombia would have top rates exceeding 60 percent. Even in states that forgo an income tax, such as Florida, taxpayers would have a top rate of 51.4 percent, which far exceeds the top rates found in most OECD countries.

Top Tax Rate on Personal Income Would Be Highest in OECD under New Build Back Better Framework

As policymakers explore options to raise revenue, they should keep in mind how the U.S. compares to other countries and what the economic effects might be. Raising the top marginal tax rate on ordinary income to the highest in the OECD will damage U.S. competitiveness. It will also reduce incentives to work, save, invest, and innovate, with broad implications for the U.S. economy.

---- quote end
 
  • Like
Reactions: troubled soul
This is obviously not happening. SPD, FDP and Grüne are still discussing the details as we speak but as FDP will be part of this new government any ‘significant’ income tax increases will most likely be limited or not happen at all.

The Linke originally wanted up to 75% income tax I think but they are not going to be part of the new government.
 
This is obviously not happening. SPD, FDP and Grüne are still discussing the details as we speak but as FDP will be part of this new government any ‘significant’ income tax increases will most likely be limited or not happen at all.

The Linke originally wanted up to 75% income tax I think but they are not going to be part of the new government.
FDP lol

It's all theatre......
You think this monkey linder is going to safe germans ?
Also since when does FDP protect normal workers?People are forgetting fast their past actions and why they went to nirvana for over 20 years

Scholz deep communist.Did you ever saw him in action in JuSo ?Normal communists are harmless against him and people from Gruene are deep communist known for a longer time.
 
programs letter of SPD and Gruene where they state how the want to increase income tax and tax based on citizenship
This is also wrong. SPD doesn’t have it in their program.
It is true that Grüne were toying with this idea, but again, FDP will prevent this.
They need the FDP to form the coalition. It’s as simple as that. So even though it’s a small party it will water down the most crazy SPD and Grüne ideas.
 
This is also wrong. SPD doesn’t have it in their program.
It is true that Grüne were toying with this idea, but again, FDP will prevent this.
They need the FDP to form the coalition. It’s as simple as that. So even though it’s a small party it will water down the most crazy SPD and Grüne ideas.
You still belive votings are not rigged and the final result not already preplanned ?
IT'S A THEATRE
Tell me since when did german government do any of their important laws themself ?
Since when ?
Because all they do is passing laws written by the establishment and passing it mostly 1:1 as their own.

You clearly have no idea what FDP did in the past so they lost all their voters and were kicked to the nirvana.
The never ending carusell with CDU,SPD,Gruene,FDP since 70 years (gruene and fdp came later).
Maybe ask a founder of Gruene if he would still vote the deep communist party ?
Or ask the old awarded activists from greenpeace if they still support greenpeace and if they are allowed to publish really important things.
Everything has been hijacked.Its only a fassad a threatre for the crowd and nothing more.

Have a look at Linder from the vid.You really belive such a stupid person has anything to say or is he hired to convience the public of the nonsense they will implement.
Just listen what he already said in the vid that his specialisation is to convince companies to buy his crap.

You know what happens when a party which is really for people and they get significant ?
Their leaders are demanded to the US secret service in Berlin.

A good example "Die Piraten" which lost more and more voters because of their actions AFTER visiting the US secret service.

So keep dreaming that the FDP has any choice and cares about normal workers.
 
Last edited:
The Linke originally wanted up to 75% income tax I think but they are not going to be part of the new government.

How could any human being with a straight face suggest such a high tax rate. OK France introduced a 75% tax rate in 2012 but it did not last long at all. That rate is simple crazy to comprehend.

My reaction is like Will Smiths


It will surely flood the mentor group with new people looking to save taxes

lol.
 
How could any human being with a straight face suggest such a high tax rate. OK France introduced a 75% tax rate in 2012 but it did not last long at all. That rate is simple crazy to comprehend.

My reaction is like Will Smiths




lol.
the goal of high tax is to suck out wealth to implement basic income in some years which will be introduced because of high unemployment caused by the crisis and industry 4.0
 
the goal of high tax is to suck out wealth to implement basic income in some years which will be introduced because of high unemployment caused by the crisis and industry 4.0

Your right. They already started with UBI in LA :confused:.

https://www.laweekly.com/los-angeles-testing-guaranteed-basic-income-program-for-3000-people/
 
Register now
You must login or register to view hidden content on this page.