I do know this Bernie Sanders preferred policies would put him at the far left end of Nordic politics and economies.
What’s more progressive about America’s system compared to Scandinavia? Isn’t the top marginal effective tax rate for most of the countries over 50 percent?
What’s more progressive about America’s system compared to Scandinavia? Isn’t the top marginal effective tax rate for most of the countries over 50 percent?
Those top rates in Scandanavia generally start at about 1.2 to 1.5 times average income. In the US, persons in that same income range have marginal rates in the range of 40% to 60% of the highest marginal rate.
Also, those Scandanavian countries collect a significant % of their revenues via a VAT consumption tax. Highly regressive.
Those top rates in Scandanavia generally start at about 1.2 to 1.5 times average income. In the US, persons in that same income range have marginal rates in the range of 40% to 60% of the highest marginal rate.
Also, those Scandanavian countries collect a significant % of their revenues via a VAT consumption tax. Highly regressive.
Well, they're also the world's happiest people.
This is all true, but not the whole story. The middle class does pay a higher percent of their income in the nordics than in the US (though if you consider compulsory payments in the US like employer-side payroll taxes and employer premium contributions, which behave a whole like lot like individual taxes in practice, the picture looks very different), they also get a lot more in benefits. To me, if you are going to talk about a system in terms of progressivity, you need some measure of income - taxes + government transfers.
But regardless, the progressive left in the US generally seems to want to have their cake and eat it too. They want Nordic style benefits (which is fine), without Nordic level taxes. Generally, in the Nordics, taxes are in the low to mid 40s as a percent of GDP. I don't have updated US data since the most recent tax cuts, but prior to that we were at 27% of GDP (near the very bottom of the OECD countries), and it's certainly less now. That's just far too low if you want to provide anything approaching comprehensive social benefits. And you can't get there just taxing the rich (though we should tax them more), you need broad based taxes in addition that tax the middle class.
socialists failed not only history but also math and economics
the evidence is everywhere and overwhelming: economic success and greater freedom automatically follow from the abandonment of socialism, socialist policies, and socialist thinking
how are you going to help the poor, or anyone else, if you screw up the economy?
Approximately 75% of academic jobs are off the tenure track. Many of them make less money than the blue collar workers you cite here.
ALOT of that is cultural differences The US population wouldn't remotely be the world's happiest people if you were paying 60% marginal rate on income over $60K.
Companies that are in significant growth phases in their life cycle can take advantage of the hundred percent capital expensing. The Big Driver however is stock compensation. The tax rules here actually make a lot more economic sense than the book rules.I don't want to do that, certainly. I just want to tax the fuck out of the uber rich and close any loophole that allows companies like Amazon, Verizon, Comcast, Pfizer, etc. etc to have a negative tax rate.