I used to believe that argument, and then I worked in California. My effective tax rate in Canada was ~43% and my effective tax rate in California is 31%. Considering that tuition isn't free, healthcare isn't free and child care isn't free, I fail to see what that 31% goes to.
I mean I lived in both ca and ny and the tax rate is pretty close to European ones. When I lived in Switzerland just the federal rate was higher than my Swiss tax rate.
The big difference in total compensation after tax between Western Europe and USA is in the compensation part for people that are considered highly skilled. For example for me I get at least 2x here in CA compared to what I would get in Norway and Switzerland. In the UK and Germany the difference is even larger.
For people that are not highly skilled it is the other way round, they would earn significantly more in Europe. Another difference there is that life in Europe is much nicer for the average middle class, but personally I think it’s nicer in the US for upper middle class, the top 10%.
> Another difference there is that life in Europe is much nicer for the average middle class, but personally I think it’s nicer in the US for upper middle class, the top 10%.
This is a gross underestimate. One can quibble about whether the top 40% or 80% of the US is richer/consumes more than in Europe but the idea it’s only true for the top 10% is delusional. Germany has a lower GDP per capita than every state bar Mississippi. The US has a higher average household income than everywhere but Hong and much larger households. The US is just richer than any remotely comparable country. The countries that look similar on GDP per capita, like Norway, consume a great deal less.
The gini coefficient of Germany means that the average citizen of Germany has likely more money and a higher standard of living than the average American. Germany has far fewer ultra-rich and ultra-poor people.
Gdp per capital is misleading without talking about measures of income inequality
What you say is statistically true. Having lived in both Western Europe and two US states I would say there is something missing in that you need more money in the US to have a similar lifestyle on an emotional level.
It’s really hard to explain and I guess having to be experienced.
I think this has not always been true, and is part of the reason why we are seeing discontent in the US right now. Life for middle class used to be a lot more comfortable.
This was meant more descriptive than add a political view. In my opinion I would change the taxation rates for the .1% first, Will at the same time importing life quality for the bottom let’s say 60%. A lot of this is not in taxes but due to how society is organized.
This would indirectly change life for top 10% as you cannot as cheap hire people for services.
No, although both NYC and CA has higher sales tax than switzerland but about half of Norway.
To be honest my life does not change at all based on sales tax. Perhaps for cars but other than that it is sort of a rounding error. So little of my money goes to direct consumption compared to house and savings.
There are countries that are better to work in than others though, e.g., Switzerland salaries are near US with significantly better benefits. US is in the top 10 though.
