I think the tax brackets of U.S.A are high comparing to other developed country. The following figure shows us the ratio between the highest break point of personal income tax and per capita income. In U.S.A case, the ratio is much higher than other developed country. It means the highest break point of personal income tax is higher than other developed country. Thus I think the tax break points of U.S.A need to be lowered.
The highest break point of personal income tax
Per capita income ratio U.S.A
[source : hangyurae news paper]
I think the number of the income tax brackets are appropriate. In South Korea case there are 5 numbers of the income tax brackets and in japan case there are 6 numbers of the income tax brackets. I think if the government use 6 numbers of the income tax brackets, they can divide people reasonably.
Is there an appropriate degree of progressivity (recognizing we cannot totally determine the true, actual, effective rate of taxation by looking at nominal brackets)?
I think the degree of progressivity of U.S.A is lower than other developed country according to effective income tax rates. The following figures show us effective income tax rates on USD 100,000 and 300,000 of gross income.
[ Effective income tax rates on USD 100,000]
[ Effective income tax rates on USD 300,000]
These charts can show that…