Yeah, Norway proves higher taxes don't mean a weaker economy.
On the other hand, I've also noticed a fair amount of countries also have a flat income tax, and not have disastrous economic effects from that alone.
And I came across this U.S. proposal, that says you can eliminate taxes for everyone making less than $215k (except payroll taxes), eliminate deductions/credits/loopholes, have a flat tax for everyone making more than $215k, and it be revenue-neutral (with no other new tax). The rate would be around 50-55% for it to be revenue-neutral.
http://en.wikipedia.org/wiki/OneTaxI also did some research, and found a few years ago that for there to be a "normal" flat tax on everyone in the United States and it be revenue-neutral, while eliminating all deductions/credits/loopholes, the rate would have to be around 28%.
I did some more research, and found that a total tax burden around 70% would be the one that gets the most out of people, before overtaxing becomes too much of a burden and actually decreases revenue. Which is a lot higher than I thought it would be, but like it was said, Norway's total tax burden must come close to that and it's pretty well off.
The ideal to me would be something close to the OneTax, but also replace payroll taxes too, and we shouldn't be afraid of people making less than $200k paying at least a little in taxes.
I wonder how much revenue a plan like this would generate for the United States (if it could ever pass):
* $0-50k/year=0%
* $50-150k/year=1%
* $150-250k/year=5%
* $250-400k/year=40%
* $400k+/year=67%
