In case you need reminding — You Are Hardly Overtaxed in America!

❝ Americans generally feel they’re being over-taxed, especially around this time of the year . . . The Organization for Economic Cooperation and Development analyzed how 35 countries tax wage-earners, making it possible to compare tax burdens across the world’s biggest economies. Each year, the OECD measures what it calls the “tax wedge,” the gap between what a worker gets paid and what they actually spend or save. Included are income taxes, payroll taxes, and any tax credits or rebates that supplement worker income. Excluded are the countless other ways that governments levy taxes, such as sales and value-added taxes, property taxes, and taxes on investment income and gains.

Click on this once or twice to get a larger version

While you’re at it – reflect that those tax dollars in other countries get folks better healthcare, generally better education and jobs for their kids, better roads and public transit – especially high speed rail. They don’t go to the world’s largest military-industrial welfare plan, special loopholes for Big Pharma, the NFL, etc..

Thanks, Barry Ritholtz

Wealthiest pay higher taxes — with no substantial impact on economic growth

As the political fight over raising taxes for high-income Americans fades away, so are predictions for negative economic fallout.

The bill for President Barack Obama’s 2013 tax increases comes due April 15, and the first boost in marginal income rates in 20 years is already reducing the U.S. budget deficit without tipping the economy into recession.

“In advance one always hears the squeals of the oxen who would like everyone to think they are about to be gored,” said James Galbraith, an economist at the University of Texas at Austin. “Then it turns out that they are only nicked, and life goes on.”

The U.S. government is projected to collect more than $3 trillion for the first time in the fiscal year ending Sept. 30, a 9.2 percent increase over last year, according to the Congressional Budget Office. CBO forecasts another 9 percent rise in 2015 and estimates that more than half of the increases in revenue stem from tax law changes.

Because of tax increases, spending cuts and economic growth, the federal budget deficit is projected to be 3 percent of gross domestic product this year. That’s less than half its 2012 level and the smallest budget deficit since 2007…

High-income taxpayers face additional levies, effective in 2013, to help pay for Obama’s health-care plan. That means those at the very top of the U.S. income scale face higher marginal tax rates than at any time since 1986…

The high-income tax increase sapped 0.25 percentage points from GDP in 2013, estimates Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. That slight economic drag, he said, shouldn’t continue.

The question of how much tax-law changes affect the economy also plays out in states, where lawmakers have cut taxes in an effort to provide a jolt to businesses or raised them to bridge budget gaps that persisted after the recession.

California in November 2012 approved a temporary increase in the tax on retail sales and set a nation-high tax bracket of 13.3 percent on incomes of more than $1 million. Opponents warned that it would extract a toll in lost jobs, as businesses cut costs or fled to other states.

The reality in California, now benefiting from a reviving real-estate market, has been different. While job growth slowed in 2013 from a year earlier, employers still expanded payrolls by 2.6 percent, faster than the 1.7 percent pace in the U.S., according to U.S. Labor Department data compiled by Bloomberg.

“There’s just no evidence that the income tax increases have had any substantial impact on California’s economic growth,” said Christopher Thornberg…“It just is not the primary driving force the way some people think it is.”

RTFA. Like most serious Bloomberg articles, this one has lots of red meat and reality. Unlike the ideology-driven crap from Tea Party frumps.