How does a nation's tax rate relate to prosperity? PDF Print E-mail


Erskine Bowles and Alan Simpson, chairs of the deficit commission, cap government revenue at 21% of G.D.P.   Paul Ryan's Republican Budget restricts government revenue to 19% of GDP.  Are such caps necessary for a prosperous economy?  Prosperity for all citizens requires both a strong public sector and a strong private sector.  Actually as a percent of G.D.P., the United States has one of the lowest tax rates in the world including all levels of taxes - local, state, and federal.  The United States rate is 27.3% whereas Germany has 36.2% and Denmark has 50%.  Yet Germany is second highest in exports, and Denmark has a growing export industry and an unemployment rate much lower than the U.S.  Both countries have strong social safety nets.
 

Tax rates to provide services to citizens, in other words, do not necessarily harm the private sector.  They can enhance the private sector, for example, by lowering the cost of health care, by providing the educational investment necessary for highly skilled workers, through research later used in products sold by private corporations, and by building the private infrastructure used to transport goods. According to Our Fiscal Security, the tax rate on the top income bracket was as high as 80% during the 1960s, when the average growth rate of the economy was almost 4.5%, compared to a growth rate of around 1.7% for the past decade of historically low taxes on the wealthiest.   See how U.S. taxes compare internationally.

Last Updated on Saturday, 13 August 2011 09:28
 

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MN's Leading Election System

With Secretary of State Steve Simon

 

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Listen to Secretary of State Steve Simon's excellent presentation on MN's outstanding election system emulated by many other states at the Think Again Brooklyns forum January 19, 2016.  Secretary Simon includes ways in which it can be improved, and he explains why it is important to vote.  He concludes with a quote from a tee shirt:  "Failure to vote is not an act of rebellion.  It is an act of surrender."

Get details on how to vote at http://mnvotes.org

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How Oregon Became the Easiest Place to Vote in the US

By Lornet Turnbull
YES! Magazine
October 8, 2016

 


In January, Oregon became the first state in the country to begin automatically registering eligible citizens to vote when they obtain or renew their driver's licenses or state IDs, completely shifting the burden of voter registration from the individual to the government. 

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