U.S. Taxes too high? Think again
Donald Trump keeps telling us we are the world’s most over-taxed country. And nothing will get more votes than a promise to cut taxes. But today when most everyone either has a computer or access to one, nobody should get by with this kind of deception. It’s a simple matter to Google up “countries ranked by tax revenue as a percentage of GDP (national income).” Here we will find there are 48 nations with higher total taxes than our 26.9 percent. Of developed countries only Chile, Mexico and South Korea have lower taxes. Anyone want to move there?
European nations with high taxes are disparagingly called socialist by the right wing. That’s more misinformation. Freemarket capitalism is alive and well throughout Europe. One conservative congressman recently demanded “Name me one Swedish world-class corporation.” I would ask him “Do the names Volvo, Electrolux or Ericsson Communications mean anything to you?”
Right-wing ideologues bandy about the term “socialism” to scare the misinformed. But socialism entails state ownership and control of the means of production, not the government’s provision of employment security, retirement, medical care, affordable higher education and other vital services. Socialism was tried and found woefully wanting in both the Soviet sphere and the west. Britain even tried it for a brief time following World War II. It didn’t work in the Industrial Age and won’t work in the Information Age either. Most politicians, other than maybe Bernie Sanders on an ego trip, concur.
Republicans also complain that the high U. S. corporate tax rate is stifling prosperity and costing us jobs. But due to tax loopholes and other devices, no American corporation pays anywhere near the full rate. In fact, last year 39 major U. S. corporations paid no Federal taxes at all.
Denmark, who usually scores first on the annual world happiness survey, is taxed at a 45 percent rate, almost double ours. Yet nine of 10 Danes say they gladly pay these high taxes as an investment in a high-quality lifestyle. College tuition is free in Denmark for those who qualify. The success of Danish young people depends on their ability and drive, not on the size of their parents’ bank accounts. Young Danes don’t have to mortgage their future to pay for college; no $60,000 student loan debt as a graduation present.
Don’t high taxes stifle the competitive spirit and cost jobs? Germany, with a 42 percent tax rate, is second only to China in exports. Conservatives say the Germans are better educated and work harder than Americans. Actually the Germans have proportionately fewer college graduates than we do and work less hours per week.
Today the European Union has more Fortune 500 Corporations (179140) than the U. S. Isn’t it high time we quit listening to right-wing propaganda and outright lies and get in the real world about taxes, spending and the nation’s economy?
George B. Reed Jr., who lives in Rossville, can be reached by email at reed1600@bellsouth.net.