Thursday, March 17, 2016

The European Country With the Highest Taxes and the Lesson It Teaches Us About the Tax Proposal of Ted Cruz

As a percentage of gross domestic product, Denmark collects the most tax – at nearly 50%. Interestingly, compared to most other EU countries (except Sweden, Hungary, and Croatia), a much larger proportion of this was from indirect taxes, that is the VAT and the like, reports World Economic Forum.

The VAT is the type of tax Ted Cruz wants to implement in the US. Such indirect taxes are easier to increase because the masses don't recognize the cost directly. They are a very dangerous form of taxation.

The Nordic nations all return high levels of tax revenue as a percentage of GDP. Sweden and Finland both have figures of around 44%, with high indirect taxes. Most of Europe’s biggest economies also return high tax revenues as a percentage of GDP – generally 40% or more – with the exception of the UK, which taxes only equal 35% of GDP. It also has one of the lowest indirect tax levels relative to GDP .


1 comment:

  1. We really cannot use Denmark as any kind of model or object lesson for the United States. Denmark has a small, relatively homogeneous population. There is a high level of public trust, and apparently, a relatively non-corrupt government and bureaucracy. None of those apply to the United States.