Accountable;539258 wrote:
It's still preferable to the tax situation I saw in the UK in the early 90's (I can't speak to present-day). The VAT can be raised at any time with little hoopla and the consumer might not even notice. And the income tax -

- I saw the amount my beloved lost from her paycheck so I called to find out if it was right. The very pleasant young lady asked me to hold. Two minutes later she came back with "Yes, it's all corect." - :-2 . I didn't know how to respond to that so I just hung up. It was like bringing a car back to the garage because it still ran poorly, and the mechanic saying "nope, it runs just fine."
The VAT rate has not changed in the past 20 years (17.5% on discresionary spend).
The tax rate is currently zero in the first n thousand (generally 5,000 but varies according to allowances), 10% on next 2,200, 22% on next 31,000 and then 40% on anything above that. (effectively you hit the 40% band when you exceed about $75,000).
What is more important though is take home pay as a percentage of cost of living and the shape of the pay curve. If a country's tax is twice that of it's neighbour but average income is three times and cost of living is half then the man in the street can purchase three time the goods and services of the poor sods next door even though their only taxed at half the rate.
The more you distort your pay curve from a bell the more poverty the country will experience. OK, the minimum wage and the dole will put a cut-off on the lower bound but put too many people in the lower percentiles and you will have social unrest and injustice.
The absolute tax rates are not all important.