February 16, 2007
VAT: A Tax Too Fair
In the U.S., most people hate taxes. Why is that? Well, they've been brainwashed that taxes are bad, but logically it also would seem reasonable to suppose that Americans don't like taxes because it's painfully obvious that we get so little in return. That's something quite unique ("great" if you're chauvinistically inclined) about America, setting us apart from every other industrial democracy. To put taxes in perspective I turned to Neil Brooks, a Canadian tax expert, and coauthor of a brilliant recent paper The Social Benefits and Economic Costs of Taxation: A Comparison of High- and Low-Tax Countries (PDF), produced by the Canadian Center for Policy Alternatives. Now, if you're thinking taxes are a dry subject, think again: this is a truly fascinating conversation, covering material that will be news to a lot of you. It's the tax machinery that frames much/most social policy and if one doesn't have a handle on it one can't really intelligently sort through the rest. Trust me on this one. Total runtime one hour. Enjoy!
Comments
This is a very interesting and informative podcast. About halfway through, Neil Brooks says that it is so difficult to raise taxes in the U.S. because (a lot of studies show that) a substantial number of marginal voters are racist and they think transfer payments will go to colored people of another race. George comments that poor whites in the South don't realize that their interests are similar.
I am not aware of the studies Neil Brooks mentions, but I have believed this observation to be true for a long time. Further, I don't believe it is restricted to marginal voters or poor whites in the South. I have lived in various parts of the Northeast all my life and I have felt that this belief is pervasive across all segments of white society. I think it is the norm, not an exception.
This is one reason that I believe it will be very difficult to solve social problems like healthcare that affect everyone, until the issues surrounding race are resolved. Of course as Neil Brooks mentions, the fact that so many social services like health care in America are provided by the private sector with all their political power to prevent efficient solutions like single payer universal health care doesn't help.
Posted by: John D. Bartram | February 20, 2007 6:26 PM
Interesting talk.
The concept is intriguing but I wouldn't trust the US gov with more tax money. It wouldn't go into social programs for sure, or useful ones at least. No Child Left Behind? War on Drugs? Homeland Security? Please.
You'd just get an increased military budget, huge corporate welfare and extravagant pork-barrel spending. Until the US gets a more accountable Congress, I'd keep my tax dollars well away from them.
Posted by: Kevin M. | February 21, 2007 4:54 AM
As you noted in the podcast, it is great when a top scholar confirms your own point of view. I was expecting to nod off during this, not being an economist or tax maven, but it is a scintillating discussion and opens lots of avenues for further exploration.
The 2 earlier comments point out areas I would like to learn more about. As someone who grew up in the segregated South, I am keenly aware of racism and know that it is still prevalent in our society. The current immigration debate is an example and provides another way to explore the lingering effects of racism on our economy and political life.
You've done some excellent work on the military budget (the Chuck Spinney podcast was very insightful), but IMHO there are many myths about our federal spending that are widely believed by voters. (Foreign Aid is a classic example). Also, many of us ache for a move from the perpetual war economy to something more sustainable and moral, but there seems to be no room at all for this view in our political debates.
Thanks for your work here. I have become an EP addict — one of the healthier changes in my lifestyle.
Posted by: Charles Dunaway | February 26, 2007 8:15 AM