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Soon · 08-01-2011, 09:42 AM

U.S.: In state of denial over taxes?

“Historically and internationally, the U.S. can’t be categorized as anything other than a low-tax country,” remarked Gordon Betcherman, an economist and professor at the University of Ottawa’s school of international development and global studies.

“Either Americans don’t realize their economy is taxed less than other major economies, or they just have a different standard of what an appropriate tax level is,” said Prof. Betcherman, who spent a decade at the World Bank in Washington.

...

For decades now, the U.S. has increased spending, but hasn’t ratcheted up taxes to pay for bigger government – the military, health care, pensions and the like. The country has been generating tax revenue equal to roughly 18 per cent of its economy for a generation, but spending has climbed steadily to nearly 25 per cent of GDP, from roughly 16 per cent in 1965. The results are huge deficits, and more than $14-trillion (U.S.) of debt.

...

“Tax increases are the only way to ensure that high-income households pay a fair share of the deficit burden,” Mr. Marr said. “Without higher taxes as part of the fiscal-reform package, middle- and low-income households, which tend to feel spending cuts most acutely, will end up bearing almost all of the burden.”

Most of the rest of the developed world – Canada included – has managed to bear higher tax burdens for decades, without grinding their economies into the ground. Economists say even an economically weakened U.S. could cope with a heavier tax load.

The total tax burden on Americans, as a percentage of gross domestic product, stood at 24 per cent in 2009 – lower than it was in 1965 and still falling. That compares to 31.1 per cent in Canada, 34.3 per cent in Britain, 42 per cent in France, 37 per cent in Germany and 43.5 per cent in Italy. The Japanese, Australians and South Koreans all pay significantly more.

The United States is the only major country without a national value-added tax and its sales taxes are lowest in the OECD. Likewise, U.S. fuel and sin taxes are at the bottom among rich countries. And generous tax breaks mean many businesses and individuals pay few taxes, placing a heavy burden on a relatively narrow tax base.

08-01-2011, 09:42 AM	#17
Soon Infamous Member How Do You Identify?: femme Relationship Status: attached Join Date: Dec 2009 Location: . Posts: 6,896 My Photo Gallery Thanks: 29,046 Thanked 13,094 Times in 3,386 Posts Rep Power: 21474858	Taxes need to be raised U.S.: In state of denial over taxes? “Historically and internationally, the U.S. can’t be categorized as anything other than a low-tax country,” remarked Gordon Betcherman, an economist and professor at the University of Ottawa’s school of international development and global studies. “Either Americans don’t realize their economy is taxed less than other major economies, or they just have a different standard of what an appropriate tax level is,” said Prof. Betcherman, who spent a decade at the World Bank in Washington. ... For decades now, the U.S. has increased spending, but hasn’t ratcheted up taxes to pay for bigger government – the military, health care, pensions and the like. The country has been generating tax revenue equal to roughly 18 per cent of its economy for a generation, but spending has climbed steadily to nearly 25 per cent of GDP, from roughly 16 per cent in 1965. The results are huge deficits, and more than $14-trillion (U.S.) of debt. ... “Tax increases are the only way to ensure that high-income households pay a fair share of the deficit burden,” Mr. Marr said. “Without higher taxes as part of the fiscal-reform package, middle- and low-income households, which tend to feel spending cuts most acutely, will end up bearing almost all of the burden.” Most of the rest of the developed world – Canada included – has managed to bear higher tax burdens for decades, without grinding their economies into the ground. Economists say even an economically weakened U.S. could cope with a heavier tax load. The total tax burden on Americans, as a percentage of gross domestic product, stood at 24 per cent in 2009 – lower than it was in 1965 and still falling. That compares to 31.1 per cent in Canada, 34.3 per cent in Britain, 42 per cent in France, 37 per cent in Germany and 43.5 per cent in Italy. The Japanese, Australians and South Koreans all pay significantly more. The United States is the only major country without a national value-added tax and its sales taxes are lowest in the OECD. Likewise, U.S. fuel and sin taxes are at the bottom among rich countries. And generous tax breaks mean many businesses and individuals pay few taxes, placing a heavy burden on a relatively narrow tax base.