Americans are the most honest taxpayers in the world

[LeBrok]

This can be a big surprise to many, but it turned that Americans are the most honest and compliant taxpayers of the civilized world.

http://www.tackletaxhavens.com/Cost_of_Tax_Abuse_TJN_Research_23rd_Nov_2011.pdf

Left column shows the total of government losses due to tax evasion, and due to the sheer size of economy America is on first place. However per capita or by percentage of tax cheaters, Americans seems to be most honest. More honest than typically compliant and orderly Japanese and Germans. Brazil and Russia being the last is no surprise knowing how rampant corruption culture is there. It is yet another sign how destructive Putin'omics is turning for Russia.

PS. Can someone help me to find a statistical chart with many more countries. I was unable.

 

[Angela]

This can be a big surprise to many, but it turned that Americans are the most honest and compliant taxpayers of the civilized world.

http://www.tackletaxhavens.com/Cost_of_Tax_Abuse_TJN_Research_23rd_Nov_2011.pdf

Left column shows the total of government losses due to tax evasion, and due to the sheer size of economy America is on first place. However per capita or by percentage of tax cheaters, Americans seems to be most honest. More honest than typically compliant and orderly Japanese and Germans. Brazil and Russia being the last is no surprise knowing how rampant corruption culture is there. It is yet another sign how destructive Putin'omics is turning for Russia.

PS. Can someone help me to find a statistical chart with many more countries. I was unable.

I'm not at all surprised, actually. I find most Americans remarkably honest in their every day lives. That goes from the neigborhood, to business dealings, to governmental interactions. Statistics based on inner city crime totally distort the true picture.

I would say, however, that in my opinion had a study been done thirty years ago, the numbers would be even lower.

 

[hope]

The U.K. government has consistently failed to properly tackle tax avoidance and tax evasion despite all their speeches regarding it.

Re: other statistic charts..no luck, the one you have is the only one I could see.

 

[LeBrok]

Size of shadow economy by country. Percent of whole economy.

Switzerland - 8.5%
USA - 8.6
Austria - 9.7
Luxembourg - 9.7
Japan - 11
UK - 12.5
China - 12.7
Singapore - 12.9
Holland - 13.2
Australia - 14
France - 15
Iceland - 15.6
Canada - 15.7
Ireland - 15.8
Germany - 16
Denmark - 17.7
Finland - 17.7
Slovakia - 18.1
Czech Republic - 18.4
Norway - 18.7
Sweden - 18.8
Belgium 21.9
Israel - 22
India - 22.2
Spain - 22.5
Portugal - 23
Hungary - 24.4
Slovenia - 26.2
Italy - 27
Malta - 27.2
Poland - 27.2
Greece - 27.5
Latvia 29.2
Mexico - 30
Estonia - 31.2
Turkey - 31.3
Croatia - 32.1
Lithuania - 32
Romania - 32.6
Albania - 34.3
Bulgaria - 35.3
Macedonia - 37.6
Russia - 43.8
Armenia - 44
Belarus - 46.4
Ukraine - 49.7
Georgia - 65.8
Bolivia - 66.1

 

[sparkey]

Do other countries have tax collection agencies as intimidating as the IRS?

 

[mihaitzateo]

Size of shadow economy by country. Percent of whole economy.

Switzerland - 8.5%
USA - 8.6
Austria - 9.7
Luxembourg - 9.7
Japan - 11
UK - 12.5
China - 12.7
Singapore - 12.9
Holland - 13.2
Australia - 14
France - 15
Iceland - 15.6
Canada - 15.7
Ireland - 15.8
Germany - 16
Denmark - 17.7
Finland - 17.7
Slovakia - 18.1
Czech Republic - 18.4
Norway - 18.7
Sweden - 18.8
Belgium 21.9
Israel - 22
India - 22.2
Spain - 22.5
Portugal - 23
Hungary - 24.4
Slovenia - 26.2
Italy - 27
Malta - 27.2
Poland - 27.2
Greece - 27.5
Latvia 29.2
Mexico - 30
Estonia - 31.2
Turkey - 31.3
Croatia - 32.1
Lithuania - 32
Romania - 32.6
Albania - 34.3
Bulgaria - 35.3
Macedonia - 37.6
Russia - 43.8
Armenia - 44
Belarus - 46.4
Ukraine - 49.7
Georgia - 65.8
Bolivia - 66.1

What a surprise,9 of 10 most dishonest tax payers countries are Eastern European countries!

I am amazed that Romania is not in top 3 most dishonest tax payers!

 

[oriental]

Li Ka Shing, the wealthiest man in Hong Kong has all his wealth hidden in Cayman Islands or some such place and it is open knowledge. There 8 or 9 billionaires that own everything in Hong Kong. All of them have accounts in tax havens. They are a minority so while the rest are honest they skew the statistics. Most of Hong Kong's wealth is tax evaded but that is not shown in the statistics. Maybe they should change that to show the volume of money which is not taxed rather than the number of people who evade taxes. This could be revealing.

 

[LeBrok]

Do other countries have tax collection agencies as intimidating as the IRS?

I'm not sure if other revenue agencies are less intimidating. If taxes are properly paid there is no reason to fear an audit in any country, I guess. In Canada there is no imprisonment for not paying taxes, however the government has many instruments to force people to pay. From not renewing a Driver's Licence to garnishing salary.

 

[LeBrok]

What a surprise,9 of 10 most dishonest tax payers countries are Eastern European countries!

I am amazed that Romania is not in top 3 most dishonest tax payers!

Usually people in poorer countries are more likely to avoid paying taxes, just from simple fact that they don't have much money. For every adult, the family is his/her priority to take care of. If there is some money left, after feeding family, people usually don't mind sharing with society in general, through paying taxes in this example.

 

[mihaitzateo]

Usually people in poorer countries are more likely to avoid paying taxes, just from simple fact that they don't have much money. For every adult, the family is his/her priority to take care of. If there is some money left, after feeding family, people usually don't mind sharing with society in general, through paying taxes in this example.

Romania is not exactly poor.
And Russia is not poor either,even with the recent embargo.
Romania PPP (purchasing power parity) GDP per capita is 20k $ ,is 61th in the world.
But you realize that real GDP PPP per capita is actually higher,cause shadow economy is not taken into account.
Russia GDP PPP per capita is 25k $ if you also take shadow economy into account it goes to around 30k or more I think.

 

[LeBrok]

Romania is not exactly poor.
And Russia is not poor either,even with the recent embargo.
Romania PPP (purchasing power parity) GDP per capita is 20k $ ,is 61th in the world.
But you realize that real GDP PPP per capita is actually higher,cause shadow economy is not taken into account.
Russia GDP PPP per capita is 25k $ if you also take shadow economy into account it goes to around 30k or more I think.

I mean poorer, as not exactly rich as Western Europe is. In a generation or two, when Eastern Europe catches up to the West with standard of living, we can expect shadow economy to shrink to about 15 percent.