Paying to play

It seems the main thrust of some politicians, especially those promoting greatly expanded social programs, is higher taxes on the wealthiest Americans and corporations. Nary a word is said about broad-based tax increases on the population to pay for what we want. No concern is expressed over deficits and growing national debt.

Take a look at the following charts SOURCE: https://worldpopulationreview.com/country-rankings/highest-taxed-countries

Countries with extensive social programs pay for them with higher taxes on all citizens except the very lowest income. What is represented is not even the full tax picture for many countries. It doesn’t include payroll taxes or special focused taxes such as on vehicles.

Most countries do not rely on high corporate taxes, perhaps because it is counterproductive
The Value Added Tax (VAT) or form of sales tax is used by most European countries. The countries with the most extensive social programs generally have the highest VATs.

It all comes down to this. You keep as much of your money as possible to pay your bills and support your lifestyle or you trade some of that by paying higher taxes and letting government decide how to reallocate resources and decide which social programs you want and need.

Despite the misleading rhetoric, there are really no other choices.

2 comments

  1. As Thomas Sowell wrote, “for social problems, there are no solutions, only trade offs”. Many elected leaders ignore that reality.

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  2. “Nary a word is said about broad-based tax increases on the population to pay for what we want. No concern is expressed over deficits and growing national debt.”
    None of which will help get the politicians re-elected. Americans don’t want to pay for the solutions that benefits them, but willing to let others pay. That is true at ALL income levels, even the rich.

    Like

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