Question of the Day: Order these countries from highest to lowest tax rates: United States, Germany, Mexico
It's still April, so how about a QoD about taxes. Thanks to Beth Tallman for providing the question.
Answer: Germany (39.7%), United States (23.8%), Mexico (10.2%)
- Why do you think that taxes vary so much between countries?
- Which country do you think has the best benefits for retirees? Explain.
- What tax rate do most countries seem to be clustered around?
Behind the numbers (Forbes):
The amount of tax and social security contributions docked from your paycheck depends heavily on your country of residence. The OECD has released the latest edition of its "Taxing Wages" report which looks at the net personal average tax rate across all of the organization's member states in 2018. On average, slightly more than a quarter of gross wages were devoured by tax and social security in OECD countries last year. Tax rates vary hugely between countries, depending heavily on earnings and family status.
Check out our updated Taxes Unit here.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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