The US Lowest Tax Rates among Developed Nations

Subject: Finance
Pages: 2
Words: 277
Reading time:
< 1 min

Tax issues that concern both ordinary citizens and the richest people in the country have always been a controversial topic. However, the belief of many that reducing payments to the state can improve the standard of living is wrong. Leopold argues that today, the American tax system is characterized by one of the lowest rates in terms of fee volume. If this figure is reduced, taxes on the activities of large national corporations will decrease too, which will have a negative impact on the development of local businesses. When analyzing the existing system, one can note that it is unfair fair. Neither companies nor ordinary citizens are forced to give most of the accumulated capital to the state treasury, as was the case during World War II. Nevertheless, while taking into account the income of the richest citizens, the share of fees is significantly higher for the poor than for the rich in proportion. Therefore, this unfair tax system is an aspect that contributes to social and economic inequality.

One of the main reasons why the United States has one of the lowest tax ratings of any developed nation is promoting business climate optimization programs. Leopold draws attention to the proportional ratios of fees and notes that after the abolition of the principles of taxation, which imply payments based on the difference in incomes, tax liability has eased. At the same time, wealthy corporations continue looking for ways to evade taxes through corporate social responsibility programs, philanthropy, and other measures to reduce their share of fees. Thus, maintaining this order cannot have a positive impact on economic equality and stability.