Thursday, January 28, 2010

America is more socialist than Poland!

at least in personal taxation: a presentation from the OECD shows (p. 9) that personal tax progressivity in Poland is lower than in the US! In other words, richer Americans are taxed more heavily than richer Poles relative to their poorer compatriots!

Given that richer Poles stop paying social security contributions when their annual income exceeds 30-times the monthly average income, Poland's tax wedge (combining PIT and social security contributions) is probably one of the least progressive in the whole OECD and the EU.

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