Know The Countries With Highest Income Tax; What Benefits Citizens Get In Exchange

Citizens are offered with National Pension in Finland, under social security.

Everywhere around the globe, governments levy taxes on the citizens. In return, the government offers essential services, amenities and securities. The government take taxes from the citizens for the betterment of the country. There are many countries where more than half of an individual’s income is earmarked for taxes. Despite this, it has been found that the populace is quite happy. One of the biggest reasons is the robust social security in these countries. Social Security encompasses the facilities provided by the government for the welfare and safety of the citizens. This includes health, education, security, medical care, accommodation, transport and other government-provided services. So, which country has the highest income tax in the world?

Ivory Coast charges a whopping 60 per cent while Finland deducts about 56.95 per cent of income tax charged. In Japan, it is 55.97 per cent while in Denmark it is 56 per cent, 55 per cent in Austria, 52.90 per cent in Sweden and Belgium it is 50 per cent. More than half of the income is deducted for taxes. But what facilities do they offer the citizens in exchange?

In return for charging high taxes, governments offer certain facilities to their citizens. In Finland, under social security, citizens are offered a National Pension, which is given to every person about the age of 16 years of age. Under the Employee Pension Scheme, a pension is provided by the government after retirement. Apart from this, citizens are also entitled to health insurance which offers free treatment in case of illness.

Citizens also benefit from unemployment insurance which is given to people, who will be able to meet their household expenses in case of loss of employment. In many places, medical expenses and rehabilitation expenses are included under worker’s compensation. Governments also provide family assistance in case of illness or disability of a family member. Not just this, the government also takes up the responsibility of taking care of children if the parents are incapable of doing so. They make arrangements for children’s education and accommodation.

In the case of disabilities, in various countries, the government offers all kinds of assistance ranging from treatment, and accommodation to food. This can be one of the reasons why Finland ranks first in the World Happiness Report 2024, as people get better living conditions and benefits in return for the high tax levied.