the jimmymac attack!

This is a collection of assorted observations from my travels and experiences. Many of the posts refer to life in Taiwan where I spent a year living and working. And many others are about my own country, Canada.

Wednesday, December 06, 2006

 

Tax cuts good? or bad?

Like so many things the American Republicans have wrong it seems tax cuts do more harm than good. At least more harm for the country as a whole. Maybe that is not something they actually care about.
A study by The Canadian Centre for Policy Alternatives has shown that high tax Nordic countries perform better than low tax Anglo American countries in social performance. http://www.policyalternatives.ca/

Some of their findings include:

Nordic countries have significantly lower
rates of poverty across almost all social
groups;


Poverty is widespread(in the US). A greater
percentage of Americans, and in particular
children and the elderly, live in poverty
in the United States than in any other
industrialized country in the world.


In Nordic countries; as an indicator of how well a country
protects the vulnerable, the elderly have
significantly higher pension income
replacement rates in Nordic countries
and the income received by those with
disabilities relative to the population is
much higher;
• income is distributed significantly more
equally in Nordic countries;
• on every measure we examine there is
significantly more gender equality in
Nordic countries;
• Nordic workers have significantly more
economic security;
• in terms of health outcomes, infant
mortality rates are significantly lower
and life expectancy is longer in Nordic
countries;
• in terms of educational outcomes, a greater
percentage of the population completed
secondary school and university in Nordic
countries and 15-year old students score
higher on math tests;

In the USA:
• Living conditions are shockingly unequal.
By any measure, income is distributed
more unequally in the United States than
in every other industrialized country. In
2004, America’s richest 1% held more of the
nation’s wealth than the bottom 90% (34.7%
versus 29.9%).
• Ordinary workers in the United States have
less economic security than workers in any
other industrialized country (as shown by a
comprehensive index of economic security
developed by the International Labour
Organization).
• As an indication of gender inequality,
women in the United States still hold a
relatively small percentage of positions
in the professions, legislative bodies, and
senior civil service.

There are many other disparities including lower homicide rates in the high tax Nordic countries. It really makes one wonder why a country would favour tax cuts over improved social programs. It also makes it abundantly clear why and how the debacle of the Hurricane Katrina 'rescue' happened. And why the worlds richest country has so many citizens living in poverty.
For the complete report go to http://www.policyalternatives.ca/documents/National_Office_Pubs/2006/Benefits_and_Costs_of_Taxation.pdf

 

Less poverty found in high-tax countries

Less poverty found in high-tax countries

Nordic states are thriving, report says
OTTAWA -- The high-tax Nordic countries score better both socially and economically than low-tax Anglo-American countries, especially the United States, according to a Canadian social and economic policy think-tank.

Low taxes are not necessarily a good thing

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