mileslunn
Junior Chimp
Posts: 5,820
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« on: February 08, 2024, 02:56:14 PM » |
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If tax rate is 0% get nothing and same if 100% so Laffer Curve goes on idea that there is some maximizing point. I have heard many different ones is without trying all hard to say. IMF suggests globally it is 44% (but depends on country off course). UK review back in 2012 put it at 48%. Paul Krugman puts it at 73% in US and Saez and Piketty put it at 81%. In Canada, Lars Osberg and CCPA put it at 65% while Stephen Gordon put it between 42-54%. So wondering where those with any economic background think it is.
My thoughts are for US it is probably 50-60% although depends on who is driving it since if at state level, revenue maximizing is probably about 3-4% above average of all states whereas national probably around 60%. For Canada I would say just under 50%, for Japan mid 50s while for EU its probably closer to 45% being higher in Nordic Countries while in Mediterranean and especially Eastern Europe, its probably closer to 40%. Ability to re-locate is key as in US must renounce US citizenship to avoid tax thus revenue maximizing highest of group while EU has free mobility of labor so lower than most. In developing countries I would say somewhere in 30s as high income more likely to leave even if move to higher taxed countries due to higher salaries and more opportunities.
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