Political
Economy
Sweden still has the highest marginal tax rate among industrialized countries - but European nations facing economic crisis are forced to raise also raise their own taxes as such they are approaching, according to a new report.
"Over the past year, several countries have raised their marginal tax rate," said Helen Robertson, director at KPMG Tax to the Swedish daily Dagens Nyehter.
For the third consecutive year, Sweden has been topping among OECD countries as one with the highest marginal tax rate of 56.6 percent, according to KPMG's annual survey, the Swedish daily Dagens Nyheter reports. This is followed by Nordic neighbour Denmark, which stood in second place with a marginal tax rate of 55.38 percent. Then come crisis - laden Spain, which just entered the race for highest taxes and is placed third with 52 percent.
Low
marginal taxes are paid in the Czech Republic, 15 percent and Hungary,
16 percent. Marginal taxes here refer to the amount of tax paid on an
additional krona of income. The marginal tax rate for an individual
will increase as income rises. This method of taxation aims to fairly
tax individuals based upon their earnings, with low-income earners
being taxed at a lower rate than higher income earners.
KPMG firm examined the marginal in come taxes of some 114 countries annually. Among the 33 industrialized countries of the organisation, OECD, Spain, France, Canada, Israel and South Korea have raised their marginal tax rates while Luxembourg is the only country that has lowered.
"Over the past year, more countries have raised the marginal tax rates than lower them and almost always indicated the financial crisis as the reason for the increases. Often they are parts of a larger rescue package to tackle the recession and increase state revenues," says Helena Robertson, director, KPMG Tax to the paper.
Between 2003 and 2009 income taxes declined globally, but in recent years the trend has reversed. Between 2011 and 2012, the average marginal tax rate increased by 0.3 percentage points to 28.9 percent.
Soon, however, Sweden departs from the top spot as the French president, François Hollandes, plans on a marginal tax rate of 75 per cent for those earning over a million euros, approximately, Skr 847 000.
"The proposal is mostly symbolic because it would affect relatively few people. Thus, it will have a very marginal effect on the state budget. The Swedish taxing along this line is levied on incomes over Skr587,100 and therefore affects many more people," says Helena Robertsson.
Scancomark.com Team
Sweden has the highest marginal tax rate among industrialized countries
Wednesday, 03 October 2012Sweden still has the highest marginal tax rate among industrialized countries - but European nations facing economic crisis are forced to raise also raise their own taxes as such they are approaching, according to a new report.
"Over the past year, several countries have raised their marginal tax rate," said Helen Robertson, director at KPMG Tax to the Swedish daily Dagens Nyehter.
For the third consecutive year, Sweden has been topping among OECD countries as one with the highest marginal tax rate of 56.6 percent, according to KPMG's annual survey, the Swedish daily Dagens Nyheter reports. This is followed by Nordic neighbour Denmark, which stood in second place with a marginal tax rate of 55.38 percent. Then come crisis - laden Spain, which just entered the race for highest taxes and is placed third with 52 percent.
Low
marginal taxes are paid in the Czech Republic, 15 percent and Hungary,
16 percent. Marginal taxes here refer to the amount of tax paid on an
additional krona of income. The marginal tax rate for an individual
will increase as income rises. This method of taxation aims to fairly
tax individuals based upon their earnings, with low-income earners
being taxed at a lower rate than higher income earners.KPMG firm examined the marginal in come taxes of some 114 countries annually. Among the 33 industrialized countries of the organisation, OECD, Spain, France, Canada, Israel and South Korea have raised their marginal tax rates while Luxembourg is the only country that has lowered.
"Over the past year, more countries have raised the marginal tax rates than lower them and almost always indicated the financial crisis as the reason for the increases. Often they are parts of a larger rescue package to tackle the recession and increase state revenues," says Helena Robertson, director, KPMG Tax to the paper.
Between 2003 and 2009 income taxes declined globally, but in recent years the trend has reversed. Between 2011 and 2012, the average marginal tax rate increased by 0.3 percentage points to 28.9 percent.
Soon, however, Sweden departs from the top spot as the French president, François Hollandes, plans on a marginal tax rate of 75 per cent for those earning over a million euros, approximately, Skr 847 000.
"The proposal is mostly symbolic because it would affect relatively few people. Thus, it will have a very marginal effect on the state budget. The Swedish taxing along this line is levied on incomes over Skr587,100 and therefore affects many more people," says Helena Robertsson.
Scancomark.com Team
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