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What's your definition of "social programs"? Barn dances? Dating services? Please explain. And whom were you talking to, who lead you to believe that Europe was a single country with a single tax rate?
What's your definition of "social programs"? Barn dances? Dating services? Please explain. And whom were you talking to, who lead you to believe that Europe was a single country with a single tax rate?
She didn’t say Europe was a single country but some countries in Europe like Sweden but what I mean are social programs like health care, education, etc.
I heard that this is true in Europe. Was I being lied to?
The effective tax rate (what???? national income/central government tax revenue) in Italy is upwards of 50%, and into the 60s if local and basic utility taxes are taken into account.
In other European countries, I would expect that rate to be about the same.
Of course, most government spending is on pensions, health care, education, public and national safety (e.g. police and military), courts and the legal system, public transportation, and in some cases so-called strategic industries and other business sectors (like banking), and paying all the people to administer and work those systems.
And naturally the quality of government services varies widely from country to country. If I were to choose to pay some 50%-60% of my income to government, I would rather do it in Denmark than, say, the Italy, Greece or Portugal.
In the United States, by contrast, the effective tax rate is around 19% and I personally feel that the price/quality ratio is more or less fair.
On the other hand, paying sky-high premiums for crappy health insurance is a rip-off, and there is no relief in sight.
There are two kinds of income taxes in France, one is for the social programs like health care, retirement, sick leave, unemployment, etc. and it comes out of your paycheck every month. The other is for paying for the armed services, and government salaries, and other government services. The second one you just pay at the end of the year.
When I was working in France, about 6 years ago, the first tax was about 19% of my paycheck and the second tax was about 17% (so total of 36%). My income was probably slightly above average, and I had no children or any real write-offs. I was married though, so this tax provided healthcare for two people. Other taxes in France can be quite high too, like the sales tax is about 18% (for non-food items).
In the US for a similar salary and similarly no write-offs, I paid about 25% of my income in taxes, but then I had to pay for my own healthcare, and had less sick-leave style benefits (in France this is a public service, not a private insurance like in the US). And of course in the US, university is very expensive (free in France), healthcare is very expensive even if you have insurance (much more reasonable in France), sick leave/paternity/family leave policies are not as good in the US, etc.
I think for a family with children you get a better deal in France. For a single person that wants to maximize his/her earning potential, you get a better deal in the US.
She didn’t say Europe was a single country but some countries in Europe like Sweden but what I mean are social programs like health care, education, etc.
Think about it for a second.
Do you think you would be able to pay your bills and put food on your table?
A model of the modern welfare state, Sweden boasts high taxes that pay for a variety of social programs. These include retirement pensions, sick leave, parental leave, universal healthcare and childcare, and education through to college level. When all the taxes are added together, the highest rates approach 80% of individual income. Despite this, most Swedes are quite content with what they get in exchange for their taxes.
I heard that this is true in Europe. Was I being lied to?
Was the person who told you this from Europe?
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