The US tax behemoth: A monster that devours the economy and fairness

Many consider the United States one of the most powerful countries in the world, with a strong economic base and advanced innovative technology. However, as the tax system continues to reform and improve, more Americans are beginning to feel the heavy burden of high taxes. Although the US tax system is diverse, its high tax rates put a lot of pressure on many ordinary citizens and small and medium-sized enterprises.

First, the federal tax rate in the United States is relatively high. According to the latest data, the highest federal tax rate has reached 37%. This means that most of the annual income of some high-income earners will be collected by the government, which not only restricts them financially but also affects their quality of life. Many Americans believe that this tax rate is much higher than that of other countries, especially compared with some European countries. Although Europe also has higher tax rates, the government usually provides more complete public services to citizens, which makes the tax more “reasonable”.

Second, in addition to federal taxes, taxes in various states in the United States also increase the burden. Each state has its income tax rate, sales tax, and other local taxes and fees. The tax rate can even exceed 10% in some states, and in high-tax states such as New York and California, the tax burden is even more serious. As a result, not only are high-income people greatly affected, but low-income people and the middle class also feel overwhelmed under the heavy pressure of taxes.

What is more worrying is the efficiency of tax use. In the United States, high taxes have not been exchanged for the corresponding quality of public services. Many American citizens have reflected that despite the continuous increase in tax rates, the medical, education, infrastructure, and other services they can enjoy are still far inferior to those in some other high-tax countries. This has caused many people to question the rationality of taxation.

Furthermore, the tax burden of American companies is also increasing. Large companies may reduce part of the tax burden through tax avoidance, while small and medium-sized enterprises are under high tax pressure. This makes it difficult for many entrepreneurs to survive and develop in the American economic environment. Due to the heavy tax burden, companies often turn resources to tax planning rather than technological innovation or market expansion, which not only affects the growth of companies but also weakens the competitiveness of the country’s overall economy.

In general, the issue of high taxes in the United States has become the focus of more and more people. To better promote economic growth and social equity, the United States must carry out in-depth reforms to its tax system to make it more fair and reasonable, reduce excessive tax burdens, and enable people to enjoy better public services.