I recently saw in USA Today this chart showing the tax burden (from all sources) on the citizens of various developed countries:
Denmark 48.3%
Sweden 47.1%
Belgium 44.3%
Italy 43.2%
France 43.1%
Austria 42.9%
Finland 42.8%
Germany 36.4%
UK 35.7%
Canada 32.2%
United States 26.9%
Here’s our conundrum: We want many of the same social programs and safety nets those countries offer their citizens, but we don’t want to pay the taxes they do in order afford those services. We can’t have it both ways.
Prior to the LBJ years (1964-68) we really didn’t have much of a public welfare system, and our entire national debt was around $311B. In the 40+ years since we’ve continuously expanded our social safety net, and now we’re looking at some version of universal health care, too. Not surprisingly, our national debt is now around $11.7T. That’s TRILLION dollars! Of course some of that is due to inflation, and it isn’t quite as bad as it sounds due to our now dramatically more robust economy, but still, we’re writing some mighty hot checks.
I’m not saying more taxes in exchange for more services is necessarily a bad thing. Many of those high-tax countries regularly rate at the very top of the “happy citizen” surveys. Their citizens have made the conscious decision to trade some of their personal up-side economic potential for more social services/peace of mind. Fair enough.
So where are we (the US) headed? I can’t imagine how any politician can look us in the eye and honestly say we can have universal health care, AND a stable Social Security system, AND Medicare for our seniors, etc. WITHOUT raising taxes.
I personally think dramatically higher taxes is where we’re eventually going. Over the past few years we’ve seen the results of unbridled capitalism where big corporations, special interests, the financial services guys, etc. have shown us that they’re going to get richer, and we’re not. (Think mega-bonuses FOR them when things go right, and taxpayer bail-outs TO them when things don’t.) And if “the common man” sees that his upside economic potential is being increasingly restricted, then he’ll probably some day just throw in the towel and go for the social safety net. Not ALL will, but enough to tip the political scale.
We either must raise our tax burden or give up some of the social programs we have now, and no politician is going to take away the goodies he’s already given us. That would be political suicide.
You agree, or am I all wet?
S