Attention Economy


Tuesday, July 18, 2017

Taxes, Welfare Programs, Cultural Values and the Economy

International Comparisons
Why Canada Is Able to Do Things Better

Scandinavian Welfare System
How Can Scandinavians Tax So Much? By Henrik Jacobsen Kleven

Cambridge University Economist Ha-Joon Chang makes an interesting point regarding taxes:
“If tax really were a pure burden, all rich individuals and companies would move to Paraguay or Bulgaria, where the top rate of income tax is 10%. Of course, this does not happen because, in those countries, in return for low tax you get poor public services. Conversely, most rich Swedes don’t go into tax exile because of their 60% top income tax rate, because they get a good welfare state and excellent education in return. Japanese and German companies don’t move out of their countries in droves despite some of the highest corporate income tax rates in the world (31% and 30% respectively) because they get good infrastructure, well-educated workers, strong public support for research and development, and well-functioning administrative and legal systems.
Low tax is not in itself a virtue. The question should be whether the government is providing services of satisfactory quality, given the tax receipts, not what the level of tax is.”


Insights from Psychology and Behavioral Economics on Taxation and Welfare Programs
Excellent piece on Laffer Curve, Income Effects and Substitution Effects

Cultural/Social Factors – Working Class versus the Poor

Are people poor because they are lazy?

Taxes and the Macroeconomy
How sales taxes could boost economic growth
http://review.chicagobooth.edu/economics/2017/article/how-sales-taxes-could-boost-economic-growth