The World's Richest Countries And Biggest Economies, In 2 Graphics

[mawilson 2,133]

They all have higher tax burdens and - with the exception of Luxembourg - higher government spending than the US.

And their economies suck. No surprise there.

Luxembourg has fewer people than I can see from my office window. Not what I'd consider a real country. What's next, Monaco?

[Mr. Big Dog 10,747]

Ireland has a higher income tax rate than the US - there are two brackets, 20% and 41%. Anything over €20-30k (depending on your status) gets taxed at 41%. It's pretty high.

You were probably thinking of Ireland's *corporate* tax rate. It is indeed lower than other European countries, and of course lower than the US which now has the higher corporate tax rate in the world.

Rates. In terms of corporate tax revenue relative to GDP, no country collects as little as the US. Think it was 1.8% here. You're supposedly low corporate tax haven Ireland collects 2.8% of GDP in corporate taxes. Britain collects at twice the US rate and Luxembourg actually grabs over 5% of GDP in corporate taxes. So, despite these corporate tax rates, corporation don't seem to be shelling out all that much in corporate taxes on this side of the pond.

[mawilson 2,133]

Rates. In terms of corporate tax revenue relative to GDP, no country collects as little as the US. Think it was 1.8% here. You're supposedly low corporate tax haven Ireland collects 2.8% of GDP in corporate taxes.

True. The US should lower the corporate tax rate to 5% and eliminate all exemptions.

Imagine how many new businesses would incorporate in the US if the corporate tax rate was as low as 5%.

[Mr. Big Dog 10,747]

True. The US should lower the corporate tax rate to 5% and eliminate all exemptions.

Imagine how many new businesses would incorporate in the US if the corporate tax rate was as low as 5%.

Ireland tried that. Worked well, didn't it?

That said, I do agree that tax rates should be lowered and loopholes closed. And not just for corporate taxes.

[JohnR! 5,495]

1339006454[/url]' post='5424621']

Ireland tried that. Worked well, didn't it?

That said, I do agree that tax rates should be lowered and loopholes closed. And not just for corporate taxes.

The problem with Ireland is that it did not have the infrastructure to accommodate all the new business it wanted to attract nor was their workforce prepared to take the jobs. In typical third world fashion, the well-intended Ill-conceived badly executed plan blew up in their faces...

[Obama 2012 1,714]

Ireland tried that. Worked well, didn't it?

That said, I do agree that tax rates should be lowered and loopholes closed. And not just for corporate taxes.

Seriously. Why the hell do people get tax refunds every year? Just lower the percentage and let everyone keep more of their hard earned cash!

[Usui Takumi 1,562]

Seriously. Why the hell do people get tax refunds every year?

Because they paid too much?

[JohnR! 5,495]

1339006797[/url]' post='5424639']

Seriously. Why the hell do people get tax refunds every year? Just lower the percentage and let everyone keep more of their hard earned cash!

Because they don't know how to claim their allowances correctly in their W-4.

Edited June 6, 2012 by Gegel

[Mr. Big Dog 10,747]

Because they paid too much?

That's usually why.

[mawilson 2,133]

Ireland tried that. Worked well, didn't it?

It did. How many new businesses set up shop in Ireland that otherwise wouldn't?

5 percent of something is better than 20 or 30 percent of nothing.

Because they paid too much?

What about those who paid nothing and still get a "tax credit"?

[Mr. Big Dog 10,747]

It did. How many new businesses set up shop in Ireland that otherwise wouldn't?

And what did that do for Ireland's economy and fiscal health? Irish debt has junk status, doesn't it? The Irish economy is still smaller than it was 5 years ago. Meanwhile, high corporate tax locations in Europe are doing incredibly well. What gives?

[mawilson 2,133]

And what did that do for Ireland's economy and fiscal health?

I'm going to pull an Obama and claim that it "created or saved" 500,000 jobs.

Can't prove that it didn't or that they wouldn't have been in a much deeper hole with a higher tax rate. Like Greece.

[mawilson 2,133]

Meanwhile, high corporate tax locations in Europe are doing incredibly well.

What are you smoking? There's not a single location in Europe that is doing well, let alone "incredibly well".

[Mr. Big Dog 10,747]

I know Germany is going strong. Lowest unemployment rates in two decades and industrial orders keep coming in. They borrow money either for free or even get paid for the privilege to borrow. Globally, and certainly among developed nations, all that's neither red or black on your map is in pretty good shape.

[mawilson 2,133]

I know Germany is going strong.

That's because Germany has sucked all the money out of the rest of Europe. Bund yields have gone negative!

Germany (an export based economy) would be toast if other European countries exited the Euro and devalued their currencies.