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David Watson 🥑
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*in a state with much less wealth inequality. of course that is how you do it when there is much less wealth disparity in the first place. in the US it's worse than before the french revolution.
Both left and right seem obsessed by the idea that there's an easy out-group that could be tapped to repair the budget without touching the middle class. I asked Grok to make the rough equivalent for Australia, seems to largely check out:
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doing this via income tax is better for the poor than doing it via consumption tax. the best way period is a land value tax, but America is not ready for this discussion yet
I'm very skeptical of this data. The wealthy are good at gaming the system so they pay little in taxes
From your mouth to Trump's ear. (As you know, Trump is the one of the biggest supporters of the welfare state.)
I wish the argument for a larger welfare state was "it's worth it to pay more taxes for a larger welfare state" rather than "don't worry we'll just tax the rich and everyone else will benefit directly."
I'm take it this is intended to be descriptive and normative? Too bad charts end in 2017 and don't include deficit financing, otherwise descriptive for US would be: "The way you pay for income tax cuts is 1/4 base broadening, 1/4 safety net cuts, and 1/2 deficit financing."
Yes, the key to a robust welfare state and how it redistributes resources is through progressive expenditure (which happens quite naturally), less so through progressive taxation. This nearly necessitates broad flat taxes such as VAT.
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Or the way you avoid running a 6% deficit and a 100% debt. Europe gets a welfare state universal health care and with a lower deficit and debt.
This doesn’t include payroll taxes, it’s intentionally deceptive. Literally those are the things the middle class pays to the welfare state.
So this doesn’t include social security taxes? Also, a big one in the USA is property tax, is that included? I know that’s a lot larger in the USA than UK’s council tax.
Does this include state and local taxes? Because middle class pays a lot to inefficient non federal programs in many states… especially salaried workers
No you tax the wealthy and large corporations and not wage pointless wars
Also worth noting none of these places do so via particularly high corporate or capital gains taxes