Tax Obligation: We’re Number 33

Budgets Taxing Spending and Priorities
Written By Sadie Cornelius

When looking at other OECD countries, the US tax obligation of 26.6 percent of GDP is well below the average. Denmark has the highest percentage of GDP (46.9 percent); France is 2nd (45.1 percent); followed by Austria (43.5 percent), Italy (43.3) and Finland (43.0). The United States comes in as 26th. Chile, Ireland, and Mexico are the only OECD countries that collect a smaller percentage of taxes than the United States.

Individual states and their localities develop their own means and levels of taxation. Altogether, there are some 11,000 sales tax jurisdictions in the United States, and residents face combinations of income tax, property tax, excise tax, sales tax, and a wide variety of fees. Currently, seven states (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming) levy no income tax. This compares with several states that levy high individual income taxes: California (13.3 percent), Hawaii (11.1 percent), New York (10.9 percent), New Jersey (10.7 percent), (Oregon (9.9 percent), and Minnesota (9.8 percent). In addition, twelve states tax Social Security benefits (Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia).

Source: Tax Revenue, OECD, https://data.oecd.org/chart/72Cy: Jim Probasco, “Nine States with No Income Tax,” Investopedia, March 21, 2023, https://www.investopedia.com/financial-edge/0210/7-states-with-no-income-tax.aspx.

Sadie Cornelius

Sadie K Cornelius is a proud Longhorn and graduate of the University of Texas at Austin’s Moody School of Communications with a Bachelor's in Advertising and a minor in Business.

She has more than 15 years of experience in Squarespace website and graphic design for 200+ clients all over the world.

A fourth generation business owner Sadie is passionate about helping others through creating compelling visuals and cohesive brand identities. She’s been featured in Forbes as a female-owned company, has taught several digital marketing classes at General Assembly, is a volunteer for non-profit organizations.

Sadie enjoys traveling the world, spending time with her husband, King Charles Cavalier, and families in the Carolinas. Originally from Kansas City, Sadie resides in Washington DC (but is forever an Austin girl at heart).

https://www.skc-marketing.com
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