Guess I Just Have To Stick These Facts In My Pipe And Smoke And Smoke 'Em
UPDATE: Finally got the graph up.
Trying to upload a neat New York Times graph I swiped from Greg Mankiw's blog, but Blogger's giving me a little grief tonight. Instead, visit his short post and then return.
Done?
Okay, that hurts the argument of a guy like me who thinks that the Canadian government requires a pretty good pruning. For those of you who haven't visited the graph on Mankiw's blog, what it says is that Canada has 33.4% of its GDP going to taxes. Sounds high, right?
Well, not quite. That puts it behind the high 30's crowd of Britain (37.4%), Spain (36.7%) and Germany (35.7%). Well behind the 40's players of Italy (42.7%) or France (44.5%). And not even close to the fiscal insanity of Denmark (49%) or the leader Sweden (50.1%)
And the graph shows that nineteen of the twenty countries listed have seen their tax percentage rise since 1975 (Goooooo Netherlands!), Canada comes in tied with Germany for the lowest percentage gain of the bunch (+1.4%).
Puts the "smaller government" arguments into perspective, however I still maintain that smaller is better. While some people look at the word "taxes" and sees opportunity for government to create social safety programs.
I see "taxes" and the more traditional definition springs to mind. Namely, a tax on society's growth and development. A hindrance. A hurt on her potential.
We need to recognize them for what they are: A harmful necessity. No point of pride.
Course, that being said, I go back to the graph and see that Canada is not doing nearly as bad as I thought on that front.
Gotta accept that and add it to the equation.
This graph may not show the "real" picture for Italy, as we all know about 30% of its economy is underground.
Therefore, Italy should have a relatively lower ratio.
Posted by
X |
7:23 PM
Maybe your argument for the real picture is wrong X... the more the tax, the more you drive the economy underground, which then forces you to raise tax and so on. A vicious circle of tax and hide.
Posted by
Dwayne |
9:36 PM
Do these stats include arm's length agencies whose revenue streams go back to government such as liquor stores and gaming commissions? The number for Canada may be higher when we factor in additional Crown corporations...
Posted by
Unapologetic Winnipegger |
11:23 AM
Dwayne, from your argument, are you saying countries like France, Denmark, Sweden, and Finland have larger underground economies than Italy? After all, they have a higher percentage of GDP going to taxes than Italy.
All I was trying to say is Italy has an interesting phenomenon, where its underground economy is about 30% of its actual GDP. Hence, the figure posted may not truly reflects reality.
There are reasons other than taxes to drive the economy underground. Taxes is one of them, but is not the only reason for the phenomenon.
Posted by
X |
10:35 PM