Optimum Tax Burden for Western Economies

[bigdog3]

Overall tax burden across western economies varies considerably from 26.9% in USA to 56.7% in Norway. Britain is pitched mid-stream at 40.9%, with Germany at 51.7% whilst Australia enjoys just 30.7%.

Generally accepted that excessive taxation deters productivity and is counter productive. In contrast, USA is under-taxed so is unable to afford government expenditure especially servicing debt interest.

What level of tax burden is optimum in today's western economies? My feeling is around 1/3rd with more than 35% being cause for concern. Your comments please.

Edited by bigdog3 on Thursday 1st December 22:44

[Crippo]

Taxes should be as low as possible. First you need to work out what the State should provide and take it from there.
The arguement isnt one of levels of taxation but of the functiuons and responsibility of the State

[bigdog3]

Crippo said:

Taxes should be as low as possible. First you need to work out what the State should provide and take it from there.
The arguement isnt one of levels of taxation but of the functiuons and responsibility of the State

Aren't the state's functions and responsibilities very similar across all western economies, making optimum tax burden almost common?

[mondeoman]

bigdog3 said:

Crippo said:

Taxes should be as low as possible. First you need to work out what the State should provide and take it from there.
The arguement isnt one of levels of taxation but of the functiuons and responsibility of the State

Aren't the state's functions and responsibilities very similar across all western economies, making optimum tax burden almost common?

No - Western countries have totally different approaches to the states influence, hence the disparity between USA (very low state responsibility, especially health) and the Scandinavians, who have much more comprehensive social support.

I'm not saying which is right, though I tend towards smaller government and individual responsibility, but the different countries have vastly different approaches. No "one size fits all".

[bigdog3]

mondeoman said:

No - Western countries have totally different approaches to the states influence, hence the disparity between USA (very low state responsibility, especially health) and the Scandinavians, who have much more comprehensive social support.

That point is implicit in the optimum tax burden question - what level of control do you want the government to take in your life?

There are examples in classic communist China where government control was taken to extremes - almost everything was provided and workers just received pocket money which they didn't need to spend. Rather like a colony of ants.