The United States places an unusually heavy share of the tax burden on higher earners. You wouldn’t know this from hearing some politicians claim that the rich escape next to tax-free or deserve to be taxed at higher rates. In reality, the data show the opposite. The most recent example is a study by the Fraser Institute, which shows the US ranks first out of 33 developed countries as having the most progressive tax system.

Progressive tax systems, where tax rates and tax shares increase with income, are often idealized by big-government redistributionists, but they come with trade-offs. As tax systems become more progressive, they make each additional hour of work or investment less rewarding, weakening incentives to work longer hours, take entrepreneurial risks, start new ventures, or invest in continuing education. Over time, these effects compound, slowing economic progress and material well-being for everyone. Highly progressive tax systems are also more volatile revenue sources, unfairly treat similar citizens in vastly different ways, encourage avoidance and evasion, and increase administrative complexity.



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