Hi Shannon

Thanks for your comment!

The figures shown include all taxation. The OECD has some detailed information about taxation in the US here:


A really interesting difference in the above, is the difference in consumption taxation stemming from the US not having a VAT. My to-write-list has something about this - what a VAT would mean for the US and what the effects of a revenue-neutral reform of an income tax reduction and VAT introduction would be.

As for your analogy to insurance - that is exactly the point, and a very nice way to think about it.

The US has a large military spend, and also contributes much more to NATO than other members. Countries have commited to contribute with 2 percent of GDP, but few actually do.



I’m an economist doing policy design and analysis. I write about the economy, taxation, innovation and growth, policy design, and financial markets.

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