Which nation has the most progressive tax system?

Click here for the answer.

Update: Wow.  This short post really just a link to an another blog-proved to be more controversial than I expected.  Matthew Yglesias raises me America's youth about irresponsibly misleading.  Scott Sumner responds to Yglesias, pointed out is "If you're going to argue that it best not to make a serious mistake in your attack is people who make mistakes should be outlawed,."

The question is, what to do to this table:

Over at Yglesias blog, a very useful named Peter Whiteford commentor the table as follows:

I am the person who wrote the chapter in the OECD report, which is the basis of these figures. It is part of a report on the distribution of income to households, so that it contains no taxes are paid directly by households, as these are included in income surveys....[T] he table calculated the distribution of the taxes for the budget as according to the adjustment for the number of persons in the household, so that it will differ from data on the income tax are calculated back for household size. are not regulated

as others have pointed out this measure includes all direct taxes on individuals, so that you control and staff, but not employer payroll taxes includes social security contributions. Also not sales tax included it, but these are much harder in the most other OECD, and not as progressive as direct taxes, so if you indirect taxes in kind modeling it is almost certainly added by some that the United States of still the most progressive total tax.

Progressiveness is not the same as redistribution but emphasizes OECD report. Progressiveness is released measures such as the distribution of the tax burden, while the redistribution measures how much the tax system reduces inequality. Redistribution is both control of the progressiveness and the amount of the taxes gathered.

In fact, the US system of direct taxation actually reduced inequality, as well as more than any other country. A total of United States inequality reduces the most other countries but much less than, to take into account the other thing you need is what taxes spent to get.

Now the US social security system and cash benefits reduce inequality by less than any other OECD country except Korea. The US social security system is the OECD average slightly less progressive then, but the level of expenditure is very low, only Mexico and Korea of less in the OECD spend.

So while the U.S. tax system is progressive and inequality reduced, is the U.S. State of well being much less effective to reduce inequality. And because the United States of a very unequal distribution of income from capital and a much wider wage distribution than many other OECD countries, it ends up being relatively unequal country after taxes and benefits

If you look at the Nordic countries, they have all much less progressive tax systems as the United States, but they much more in taxes (including VAT). Then they spend this much higher taxes on social security and services, and it is this side of the equation, is the most important in reducing inequality.

So will not cause that the United States must either to increase or reduce the progressivity of the tax system. If you want to reduce inequality, must increase the taxes levied and spend effective.

View the original article here