I have a table here showing the difference between a country with low taxes (United States) and a country with high taxes (Sweden). What I want to say with the table is that people who are unemployed have much more money in Sweden compared to the US. Also, in Sweden the taxes are making the costs lower for elderly care, child care, education, health care, medicine and so on. So even if the taxes are higher, you probably have better access to health care, medicine and financial aid in Sweden even if you are living on a minimum income. Because of the redistribution of money, taxes are giving money to people in poverty.
United States
Sweden
Income tax for people earning below 50 000 USD: 10-12 %.
Income tax for people earning over 50 000 USD: 22-37 %.
Income tax for people earning below 50 000 USD: 31 %.
Income tax for people earning over 50 000 USD: 51 %.
Value-added tax on goods and services: None.
Instead some states have sales tax on around 6 %.
Value-added tax on goods and services: 25 % and all purchasers pay value-added tax. It amounts for 47 % of the total budget for the Swedish state.
Benefits in unemployment, share of previous income after five years: 9 %.
Benefits in unemployment, share of previous income after five years: 60 %.
Adequacy of minimum income benefits for a single person with no children: 6 % of median disposable income.
Adequacy of minimum income benefits for a single person with no children: 42 % of median disposable income.
Net childcare costs for a couple with average wage: 32 %.
Cost for one year in college: Over 9 000 USD /​ year.
Net childcare costs for a couple with average wage: 5 %.
Cost for one year in college: None, you get money for that.
Diabetes prevalence: 10.7 %.
Epipen cost: 600-700 USD.
Diabetes prevalence: 5.1 %.
Epipen cost: 40 USD (if your medical expenses exceeeds 300 dollars a year, you get your medicine for free).
The social security contribution paid by the employer (caculated on top of the employee’s salary): 7.65 %.
The social security contribution paid by the employer (caculated on top of the employee’s salary): 31.4 %.
This post is not about the total aggregate effect of taxing money and then spending it wisely. It is just about the taxation. Yes, Sweden saves more money with its social spending than it kills with its tax system. But Swedish life expectancy would be even higher if the money all came from natural resources, without any taxation.
I have a table here showing the difference between a country with low taxes (United States) and a country with high taxes (Sweden). What I want to say with the table is that people who are unemployed have much more money in Sweden compared to the US. Also, in Sweden the taxes are making the costs lower for elderly care, child care, education, health care, medicine and so on. So even if the taxes are higher, you probably have better access to health care, medicine and financial aid in Sweden even if you are living on a minimum income. Because of the redistribution of money, taxes are giving money to people in poverty.
Income tax for people earning below 50 000 USD: 10-12 %.
Income tax for people earning over 50 000 USD: 22-37 %.
Income tax for people earning below 50 000 USD: 31 %.
Income tax for people earning over 50 000 USD: 51 %.
Value-added tax on goods and services: None.
Instead some states have sales tax on around 6 %.
Net childcare costs for a couple with average wage: 32 %.
Cost for one year in college: Over 9 000 USD /​ year.
Net childcare costs for a couple with average wage: 5 %.
Cost for one year in college: None, you get money for that.
Diabetes prevalence: 10.7 %.
Epipen cost: 600-700 USD.
Diabetes prevalence: 5.1 %.
Epipen cost: 40 USD (if your medical expenses exceeeds 300 dollars a year, you get your medicine for free).
This post is not about the total aggregate effect of taxing money and then spending it wisely. It is just about the taxation. Yes, Sweden saves more money with its social spending than it kills with its tax system. But Swedish life expectancy would be even higher if the money all came from natural resources, without any taxation.