Tax Rates in US and East Asia

choi

My comment:
(a) There is no need to read the rest of either report.
(b) Eduardo Saverin, a co-founder of Facebook, did not drop out (as two-co-founders did) and graduated from Harvard in 2006. Having become a permanent resident of Singapore, he (born in Brazil and obtained US citizenship in his teens) gave up American citizenship in 2011. A move some criticize to avoid tax, which he denied. According to (2).
(c) The WSJ report does not mention Taiwan.
(d) Taiwan does have capital gains tax. In Taiwan, the income tax rates for corporate and individual are 17% (single rate) and 40% (highest rate).
The Basics On Taxes In Taiwan. English in Taiwan (EIT), Feb 3, 2012.
http://www.englishintaiwan.com/teaching/teaching-in-taiwan/taxes


(1) Shibani Mahtani, Asia's LIghter Taxes Provide a Lure. Wall Street Journal, May 17, 2012.

Quote:

(a) US tax rates "remain historically low.

(b) "Top individual income-tax rates are 20% in Singapore and 17% in Hong Kong, compared with 35% at the federal level in the US [besides state and local taxes], according to an Ernst & Young report.

"Not all Asian countries have a reputation for lighter tax burdens. In China, the top tax rate for high-income earners is 45%, though corporate taxes there are relatively low. Japan is also known as a relatively high-tax country.

(c) In additional lower corporate and personal income taxes, Singapore also has no capital-gains tax, no tax on bank interest and no dividends tax.

(2) Quentin Hardy, A Co-Founder's Reflections. New York Times, May 17, 2012
("His [Eduardo Saverin's] stake will most likely be worth more than $3 billionwhen Facebook goes public Friday. * * * Mr Saverin [capiral] savings [] could easily exceed $100 million. * * * If he remained an American citizen, he would not have had to pay the United States capital gains tax on his income until he sold his shares")