Who are the most taxed citizens in the world?

Governments all over the world impose taxes on their citizens for various reasons. Top among these is the provision of public services, funding social and economic solutions, and creating market efficiencies. Each country differs from the others in regards to the level of taxes imposed, the tax regimes, and the income levels exempted from taxation. We take a look at the world’s most taxed countries.

  1. Ireland

The country has a relatively low-income tax rate for corporations and has thus attracted many multinationals to invest there. This is set at 12.5%. However, the country’s citizens do not enjoy such low tax rates and are currently charged a 48% income tax on income levels exceeding $40,696.

  1. Finland

It is the country whose teachers are paid more than any others in the entire world. Finland is famous for continuously improving its educational system over the years. This, however, comes at a cost for the Finnish taxpayer who has to part with 49.2% income tax for incomes over $87,222.

  1. United Kingdom
ASCOT, ENGLAND – JUNE 19: A general view of racegoers during Royal Ascot 2015 at Ascot Racecourse on June 19, 2015, in Ascot, England. (Photo by Alan Crowhurst/Getty Images for Ascot Racecourse)

The land of the famous Premier League also happens to be among the countries with the highest taxes. The UK imposes a 50% tax rate for those earning more than $234,484. However, it also considers the low income-earners and does not tax those earning $14,000 and below.

  1. Japan

Japan’s capital has more millionaires than any other city in the whole world. This would perhaps help paint a picture of why it also makes the list of countries with the highest taxes. With an average income of $27,000 the country has imposes a 50% income tax.

  1. Austria

Austria’s population is a little over 8 million. The German-speaking country ranks sixth on the highest taxed countries list. The citizens and corporations have to pay taxes totaling 50% of the total income for all incomes above $74,442. It is also among the highest taxed countries in the European region.

  1. Belgium

Similar to Austria, the land of tasty chocolates is also the land of 50% income tax. The country’s population is slightly above 12 million citizens and the government has put the tax revenue to good use improving the country’s overall infrastructure. Belgium ranks alongside Austria and the United Kingdom as Europe’s top taxed countries.

  1. Netherlands
People celebrate the new Dutch King Willem-Alexander who succeeds his mother, Queen Beatrix, in Amsterdam’s Dam Square on April 30, 2013. Queen Beatrix of the Netherlands abdicated on Tuesday, handing over to her eldest son, Willem-Alexander, who became the first King of the Netherlands in over 120 years. REUTERS/Kevin Coombs (NETHERLANDS – Tags: POLITICS ENTERTAINMENT ROYALS) ORG XMIT: RSS39

The Dutch government has imposed a 52% income tax rate on its citizens. The country, popularly known for its numerous shipping ports and horticultural sector comes in at fourth, only topped by Denmark, Sweden, and Aruba. read more

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The History of Tax Resistance in America

Taxpayers have generally never quite enjoyed paying taxes. Tax resistance is very much alive today though probably not as much as it was during some time in history. Tax resistance is the taxpayers’ refusal to pay taxes because they are opposed to the government that imposes the taxes or are opposed to its overall tax policies. Governments however have a rather neat term for such activities -‘civil disobedience’. You will be pleased to know that the general dislike of tax regimes started a long time ago especially in America. We take a look at four famous tax resistances that happened in history.

Fries Rebellion (1799)

This one wasn’t named after the product but after the leader of the rebellion, John Fries. It was an uprising protesting against a property tax that had been imposed by the federal government. While anticipating a war with France, the federal government decided to source revenue by taxing all property that people owned. This included buildings, land, and even slaves. Fries and other angry farmers marched to Bethlehem and forced the release of other resisters who had been captured.

Whiskey Rebellion (1791-1794)

It is also known as the whiskey insurrection. It was a tax resistance protest that took place during George Washington’s tenure as president. The tax in question was the whiskey tax that had been imposed by the federal government. It was aimed at raising funds to pay the debts that had risen during the war. The tax was to be applied to all types of distilled spirits. The problem however arose due to the fact that the American whiskey was the country’s most popular whiskey and was therefore seen as being targeted by the tax. The farmers whose produce was distilled into the whiskey started the resistance which came to be known as the whiskey rebellion.

The Boston Tea Party (1773)

You have probably heard of this one but perhaps never gave it much thought. Prior to the event, the British Parliament passed a bill known as the tea act, cleverly designed to prevent the fall of the East India Company. The bill lowered the company’s tea tax thus giving it an unfair advantage and giving it monopoly powers. Viewing this as tyranny, Samuel Adams and members of the sons of liberty raided three East India ships and tossed more than 340 cheats of tea into the ocean.

Shay’s rebellion (1786-1787)

This was more of a series of protests against local tax collections. The protests were mainly carried out by American farmers. The Shay rebellion was most felt in Massachusetts where farmers faced the largest risk of farm losses through poor harvests, economic depression, and to top it off, the imposition of very high taxes. The protestors tried to capture a weapons arsenal unsuccessfully ending in the rebellion’s leaders fleeing to Vermont. The rebellion, while it never caused any serious instability to the country raise much-required awareness among the political circles and contributed to the revision that was later done to the articles of confederation. read more

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The Tax Man Cometh: Tax Management for Entrepreneurs

There are only two things that are certain in life: death and taxes. How many times have you heard that saying before? Chances are, you’ve heard that statement at least twice in your life. The reason people repeat it so often is because it is the absolute truth. Death and taxes are unavoidable. You have to deal with them. The good news is that taxes don’t have to surprise you or pack a massive and crippling punch. If you own a business, you can manage your business in such a way that you not only minimize your taxes but you also increase your business’ ability to make more money. By pursuing a clear and focused strategy, you can run your business in a way that minimizes the taxman’s take while taking your company to a whole new level. Keep the following in mind.

Begin the Year with Tax Management in Mind

If you want to save on taxes come tax time while working to take your business to a higher level, don’t expect this to happen automatically. Don’t expect this to happen all of a sudden. Least of all, don’t expect to get lucky. It takes serious planning to pull this off. Saving money on taxes doesn’t just happen. Left to themselves, tax authorities will try to saddle you with as many taxes as possible. Don’t be surprised. That is their job. There is, however, a lot you can do about this situation. You can plan your fiscal year with tax reduction in mind. At the start of the year, start with a solid plan. Read the points raised below and add them to your business operations and management plan for the coming year.

Aggressive Spending means substantial tax write-offs

The tax code is structured in such a way that the government only taxes what’s left after a company deducts its expenses from its revenues. So, the more expenses you have, the less adjusted income your company has. Your company is taxed based on what is leftover. If you are serious about saving money on taxes, it is very important that you increase your expenses. This is the core of saving money on taxes while positioning your business for further revenue growth. The less leftover, the fewer taxes you pay because tax authorities follow a graduated system. There is a minimum income level that doesn’t get taxed at all. There’s a higher income level that gets taxed and the rate goes up as your company’s income goes up. This keeps going up until you hit the maximum tax rate. The key to saving money on taxes is to make sure you have a very little leftover. After all, 32% of nothing is, you guessed it, nothing. Keep in mind that this doesn’t mean you don’t make any money. You still make money but you don’t make enough taxable income to get slapped with a high tax rate. read more

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