The US is Not the Most Taxed Nation in the World

Let's talk about taxes. This week the President stated that we are the highest taxed nation in the world. Many called him out by saying that we are one of the lowest, and widely circulated a chart showing our Tax Revenue as a proportion of GDP. Who do we believe? Looking at Tax Revenue generated, there is no doubt we are very low. But it is a flawed metric because it doesn't look at the actual burdens on individuals or corporations. For instance, if we taxed everyone at 100% but it only equated to 15% of the GDP, it wouldn't show people suffering. The individual tax rate is very complex and I won't get in to it, but to side with the President, he isn't wrong that our corporations are some of the most taxed in the world.

With that said, a race to the bottom tax rate globally only serves to line the pockets of investors and guts the public sector. A more responsible tax reform package must involve penalizing corporations that choose to invert (renounce their citizenship) and/or horde cash abroad. The globe is still interested in investing here, despite our tax burden due to our tremendous and capable workforce. That said, to bring in revenue as to reduce the debt, reforms must be enacted.