Complaining About High Taxes? Don't Tell France And Germany.
To all Americans complaining about high taxes, better keep your beef on this side of the Atlantic. According to a recent OECD report, captured by the Economist, when it comes to total taxes paid out by both employees and employers, the US doesn't even come close to its just slightly more socialist European cousins. In fact, while total taxation as a % labor costs is about 30% in the US, comparable with Japan and Ireland, in France and Germany this number is nearly half of the total. Which explains why there is no greater threat to these two countries than the perpetuation of the status quo welfare state. Should Greece file Chapter, who knows what will happen to the Bismarckian ideal. Incidentally, on the other end: Chile, which pays out just 7% of labor costs to taxes. Per the article. "The report splits out the tax burden on employment which is paid by employers (in the form of social-security payments) and employees (as income tax and more social security). France and Germany have some of the most costly tax regimes—with people who earn the average wage taking home just over 50% of their total labour cost. The effect of fiscal austerity, particularly across Europe, has meant that the tax burden rose in 22 out of the 34 countries in the OECD from 2009 to 2010. Meanwhile real incomes for average-wages earners fell in 15 OECD countries. As the second chart shows, these reduced earnings caused by the world recession and subsequent inflation tend to have a much larger impact on incomes." Also notable: these charts exclude any Value Added Taxes: another favorite European mechanism to fund the welfare state. Should that be included in the total and the take home may in fact drop to less than 40% in some cases.
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America is very like 'Wall Mart' - you get what you pay for. and as American pay nothing - they get nothing.
Great system - until you're on the wrong side of it. born into poverty. no chance of getting out.
despite the claims of wealthy turds like Trump - they don't actually 'work their way to the top' - 99% of them have some assistance along the way, either from wealthy family, a network of friends. or the odd 'fracture' of the law in the early days to get them started.
In trumps case he made his millions off the back of his shareholders who didn't - when he went bust a couple of times over.
This is why so many Americans can stand and decry the Government spending levels - at least the Europeans got free healthcare and unemployment benefits and social help - what did the US get? - Absolutely f**k all.
America got socialism - without the 'social' bit - so they just got 'ism' - which is shit frankly.
It's one in the eye for free market capitalism - it's the unions of Europe which have ensured that Europeans have austerity to challenge - the case on the other side of the Atlantic is truly sad.
4 million + on food stamps - and the right wing are complaining about Medicare.
It just goes to prove that 'freedom to spend your own disposable income' is not such a good idea - it seems that over the last 40 years the 'socialist' Europeans have been buying useful things - but the average American spunked his up the wall on frviolous shit - not realising the mother of all collapses was coming.
Again - an advantage of handing spending to the Government - like your ma and pa - they buy things which you don't immediately consider useful. but when that rainy day comes.
I hope the US are learning their lessons and not listening to the ramblings of the right regarding public spending.
The largest public spending in the US of course being on security and wars - now how much did the American public have in the choice between free medical care and fighting wars. and how many would have chosen the former in preference to the latter?Source: www.zerohedge.com