The U.S. tax system relies on progressive rates for individual income, collects multiple kinds of taxes from residents, and is considered less reliant on consumption taxes than many other developed countries.[1][2][3][4]
U.S. residents are taxed less on consumption and more on income, whereas most European systems feature higher taxes on consumption (VAT) and social security, with varying degrees of income tax progressivity. ⭐[17][7][4]
This structure means Americans see a lower overall tax burden compared to Western Europe, but pay more income tax than low-tax countries in Eastern Europe; and pay much less in sales/consumption taxes than most countries with VAT. [7][4][17]
The Development of the U.S. Tax System Since 1900
Taxing Wealth vs Income; Saez & Zucman (2019) — Progressive Wealth Taxation