Lost in tax translation: U.S., European tax source differences

November 15, 2014

The many differences between European countries and the United States extend to taxes.

The Tax Foundation recently looked at the latest tax data from the Organisation for Economic Co-operation and Development, or OECD. That 2011 material shows that consumption taxes are the largest source of tax revenue for OECD countries.

That's not a surprise, notes the Tax Foundation, since all but one OECD nation levy value added taxes, or VATs, at relatively high rates.

Which is the lone non-VAT country? The United States.

Uncle Sam relies the most on individual income taxes. Combined federal, state and local taxes raised approximately 37 percent of all U.S. tax revenue in 2011, notes the Washington, D.C.-based tax policy group.

By comparison, individual income taxes in all other OECD countries accounted for around 24 percent.

You can check out the rest of the tax group's findings on European and U.S. tax tendencies in its Fiscal Fact #443, Sources of Government Revenue in the OECD, 2014.

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TAX-SAVVY WAYS
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill.

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings.

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year.

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Credits/Deductions

Disasters

Family

Filing and Paying Taxes

Politics/Laws

Refunds

State Taxes

Tax Brackets/Inflation

Tax Tips

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