Sunday, December 23, 2012

Do Taxes hurt economies?

Some interesting research, below is Wikipedia's list of the most taxed nations on Earth.  Firstly the United States is pretty low on the ranking of highly taxed nations.  Some of these nations are real hell holes like Zimbabwe but most of them are the high end nations.

CountryHeritage
Foundation
(2012)[1]
OECD 2009
(some 2008).[2][3][4]
Eurostat
(2008 data)[5]
 Kiribati[6]69.7
 Zimbabwe49.3
 Denmark49.048.248.2
 Sweden47.946.447.1
 Belgium46.843.244.3
 Cuba44.8
 France44.641.942.8
 Finland43.643.143.1
 Norway43.641.042.2
 Austria43.442.842.8
 Lesotho42.9
 Italy42.643.542.8
 Bosnia and Herzegovina41.2
 Germany40.637.039.3
 Iceland40.441.436.7
 Netherlands39.839.1 (2008)39.1
 Swaziland39.8
 Slovenia39.337.937.3
 Cyprus39.239.2
 Hungary39.139.140.4
 United Kingdom39.034.337.3
 Spain37.330.733.1
 Argentina37.2(2011)
 Portugal37.035.2 (2008)36.7
 Russia36.9
 Israel36.831.4
 Luxembourg36.537.535.6
 Czech Republic36.334.836.1
 Botswana35.2
 Malta35.234.5
 New Zealand34.531.0
 Brazil34.4
 Bulgaria34.433.3
 Serbia34.1
 Moldova33.8
 Mongolia33.8
 Poland33.834.3 (2008)34.3
 Barbados32.6
 Turkey32.524.6
 Estonia32.332.2
 Canada32.231.1
 Seychelles32.0
 Guyana31.9
 Australia30.827.1 (2008)
 Ireland30.827.829.3
 Latvia30.428.9
 Dominica30.3
 Greece30.029.432.6
 Mexico29.717.5
 Slovakia29.529.329.1
 Switzerland29.430.3
 Macedonia29.3
 Namibia28.8
 Japan28.328.1 (2008)
 Romania28.128.0
 Ukraine28.1
 Montenegro28.0
 Trinidad and Tobago28.0
 Jamaica27.2
 Bolivia27.0
 Tonga27.0
 South Africa26.9
 United States (all levels)26.924.0
Now look at the ranking of top human development nations:

RankCountryHDI
New 2011 Estimates for 2011
[1]
Change compared to new 2011 data for 2010[1]New 2011 Estimates for 2011
[1]
Change compared to new 2011 data for 2010
[1]
1Steady Norway0.943Increase 0.002
2Steady Australia0.929Steady
3Steady Netherlands0.910Increase 0.001
4Steady United States0.910Increase 0.002
5Steady New Zealand0.908Steady
6Steady Canada0.908Increase 0.001
7Steady Ireland0.908Increase 0.001
8Steady Liechtenstein0.905Increase 0.001
9Steady Germany0.905Increase 0.002
10Steady Sweden0.904Increase 0.003
11Steady Switzerland0.903Increase 0.002
12Steady Japan0.901Increase 0.002
13Increase (1) Hong Kong0.898Increase 0.004
14Decrease (1) Iceland0.898Increase 0.002
15Steady South Korea0.897Increase 0.003
16Steady Denmark0.895Increase 0.002
17Steady Israel0.888Increase 0.002
18Steady Belgium0.886Increase 0.001
19Steady Austria0.885Increase 0.002
20Steady France0.884Increase 0.001
21Steady Slovenia0.884Increase 0.002
22Steady Finland0.882Increase 0.002
23Steady Spain0.878Increase 0.002
24Steady Italy0.874Increase 0.00

With the exception of Hong Kong the best places on Earth to live, and the places people are immigrating to are also high tax societies.  In fact most of the human movement happening on the planet today is from a lower tax to a higher tax society.

Why?  Because the free market obsession with low taxes ignores the real life of most people and society.  Most high tax societies provide the kinds of services like health and education that allow a prosperous society to develop.

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