Comparing tax rates in Australia and the US

Taxes are compulsory levies imposed on individuals and corporate organizations by the government of the country. No country can grow without taxes.

Whenever you visit Australia and see lots of infrastructure, like good roads, steady electricity, healthcare facilities, etc, those infrastructures weren't built by itself. They were built from taxes.

Tax rates in Australia have been criticized for being excessively high. To see if this assertion is true, we look at Australian tax rates and compare them to those in the United States.

The table above depicts Australia's income tax brackets and the percentage rate at which each is taxed. Once you earn more than $18,201, you'll be subjected to a 19 percent tax rate. Immediately you exceed $37,001, this increases by nearly 13%.

Although this is small compared to the highest tax level, which is 45 percent and applies to anyone earning $180,000 or more. Of course, that highest tax bracket is only reached by a small percentage of the population. However, it has an impact on the economy because many companies choose to operate from another country, and people work a little less to avoid paying such high rates.

The benefits of having high income taxes include a well-functioning country that is consistently ranked among the world's top ten most livable. Indirect taxes, like the GST, are also among the lowest in the world.

Any earnings in the United States are subject to income tax, which starts at 10%. While tax rates are high for low-income earners, they do not rise in lockstep with earnings. Only individuals earning more than $91,150 are subject to the 28 percent tax rate. Only those earning more than $415,000 are eligible for the highest tax level of 39.6%!

Income tax rates in the United States are substantially lower — for high earners – than in Australia. This makes it an appealing location for doing business. If you make less than $9,275, however, you pay a comparatively high rate of 10%, which is substantial for low-income taxpayers. It's simple to send money from the United States to Australia.

Australia has some of the highest tax rates in the world. High earners will pay significantly higher rates on far lower incomes than in the United States.