Income taxes are imposed by governments on the income generated by individuals and businesses within their jurisdiction. The United States' tax system is progressive, meaning that those who earn more in income will owe more in taxes than those who earn less. For instance, in 2017, the average federal individual income tax rate for the top 1% of the population was more than 25%, compared to a rate of less than 5% for the bottom 50% of the population. This is a result of the top 1% having a total net worth of $32.5 trillion, compared to the bottom 50%'s $1.5 trillion. Of the 40 countries with the highest marginal tax rates, income taxes accounted for the largest share of taxes that individuals pay in 37 countries.
Given that so many nations rely on income taxes in order to generate revenue, it's easy to assume that any country that doesn't levy an income tax is going to be underfunded. This doesn't have to be the case, if the nation has an alternative primary source of revenue. The world has 23 countries without income taxes. Of that number, six are rich in crude oil reserves. Additionally, just because these countries don't charge income taxes doesn't mean they offer a tax-free life. The Bahamas, for example, derives its tax revenue from value-added taxes (VATs), real property taxes, casino taxes, import duties, stamp duties, and license fees.
I HAVE LISTED SOME OF THE COUNTRIES ..
