Apr 05, 2022
Taxes

Question of the Day: Order these countries from highest to lowest tax rates - United States, Germany, Mexico

It's April and tax season! Check out how the US income tax rate stacks up...

Answer: Germany (45%), United States (37%), Mexico (35%)

 

Questions:

  • Why do you think that taxes vary so much between countries?
  • What are other ways a country can collect taxes other than income tax?
  • Which country do you think provides the most benefits and services for its citizens? Explain.

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

 

Behind the numbers (World Population Review):

"Taxes come in many forms, including sales tax, income tax, property tax, inheritance and estate taxes, excise tax, and more. Plus, tax rates and regulations vary greatly from country to country, and even within different parts of the same country. For example, most U.S. states charge some form of income tax, but an individual state's income tax rate may be anywhere from 1% to 13.3%. Moreover, seven states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) do not collect any state income tax at all, and two more (New Hampshire and Tennessee) tax interest and dividend income, but not wages or salaries.

Similarly, most U.S. states charge a state sales tax, but some do not. However, states without a sales tax or an income tax may add or raise other taxes to make up for the deficit, such as implementing higher property tax rates. Finally, most governments that levy taxes charge different percentages based upon the amount of income or type of goods being taxed. For example, a person who makes $40k a year may pay 12% in income taxes while their next-door neighbor, who makes $200k, pays 25% or more. Similarly, sales of basic needs such as groceries are typically taxed at a much lower rate than sales of luxury items such as tobacco products or a new car. For this article, we’ll compare three main types of taxes: personal income tax, corporate tax, and sales tax."

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Check out the Taxes Unit! 

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About the Author

Mason Butts

After graduating from UCLA with a Master's in Education, Mason spent 5 years as a science educator in a South Los Angeles public high school. He is committed to supporting the holistic growth of all students and empowering them to live a life of relational, academic, and financial success. Now settled in the Bay Area, Mason enjoys facilitating professional developments and partnering with educators as they prepare students for a bright financial future. When Mason is not building curriculum or planning a training, he can be found cycling, trying new foods, and exploring the outdoors.

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