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Taxes are good for a nation’s health and well-being—study

By lungta     Jan 2, 2007 in Lifestyle
Canada is falling behind a number of OECD nations in a wide range of social and economic areas,
Yes we all like a tax cut but the main problem is - as you save your 150 dollars with a 1% cut, a corperate entity can save several million on the same one percent and the public coffers feel the pinch.
As ever it pays to look a little deeper than the shallow campaign promises and into the results of the implications of that big break your being given.
Tax cuts as promised by “the new Canadian government” for the most part lead to higher poverty, increased income gap, worker insecurity, lower GDP, less innovation, less saving, less competitavness, a less well educated population, more drug use, more work, and less satisfaction with your life.
If steves BA and MA are actually in economics, as rumored, it should really make you wonder where he wants Canada to go if these results are conceived by a knowing mind.
OTTAWA—Canada is falling behind a number of OECD nations in a wide range of social and economic areas, and a study released today by the Canadian Centre for Policy Alternatives points to tax cuts as the culprit.
The study, by Neil Brooks and Thaddeus Hwong, compares high-tax Nordic countries and low-tax Anglo-American countries on 50 social and economic measures and finds the high-tax Nordic countries score better in 42 categories.
According to the study, tax cuts are disastrous for the well-being of a nation’s citizens. For example, the high-tax Nordic countries have:
* lower rates of poverty, more equal income distribution, and more economic security for their workers;
* a higher GDP per capita;
* higher rates of household saving and net national saving;
* greater innovation, including a higher percentage of GDP spent on research and development;
* a higher ranking on their growth competitiveness by the World Economic Forum;
* higher rates of secondary school and university completion; and
* less drug use, more leisure time, and higher life satisfaction.
“By cutting taxes the Conservative government is taking Canada in the wrong direction,” says Brooks. “It wants to make Canada more like the United States, yet our findings show that Americans bear severe social costs for living in one of the lowest taxed countries in the world.”
The U.S. falls near the bottom of the 21 industrialized countries in a strikingly large number of social indicators. It also ranks as the most dysfunctional country by a considerable margin.
In contrast, Finland ranks near the top of the industrialized world in most of the social indicators and has been named the most competitive country in the world by the World Economic Forum four years in a row.
“The tax cut lobby has it backwards,” says Hwong. “Not only do government social programs create a healthier society, they also create the conditions for a vibrant—and competitive—economy.”
More about Taxes, & tax cuts Conservative government policy