Article Summary
The Social Benefits and Economic Costs of Taxation: A Comparison of High and Low-Tax Countries
Research Report by Neil Brooks, Thaddeus HwongBrooks and Hwong, cognizant of the tax-cut focus of the federal Conservative Party in Canada, attempt to determine whether countries with high taxes are more successful in achieving social objectives than low-tax countries. Examining a series of social measures they found that high-tax countries rank “significantly” higher than countries with lower taxes in terms of the quality of services provided, while being competitive over the course of several economic indicators.
In particular, Brooks and Hwong emphasize the success of Nordic countries. From their research, they found these countries to have, among other characteristics, lower rates of poverty, higher old-age pension plans, equal income distribution, gender equality, higher life expectancy and educational performance. In terms of economic well-being, the Nordic region bested Anglo-American countries in 19 of 33 economic indicators (including higher GDP per-capita; lower unit labour costs; higher net national savings; higher percentage of broadband subscribers, and higher growth competitiveness).
The authors conclude that Canada, dominated by a increasingly tax-cut friendly philosophy, would be better served by following the Nordic example that set by the United States, a country that, in their view, bears severe social costs for being one of the lowest-taxed countries in the world.
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Policy Publication Details
| Author(s): | Neil Brooks; Thaddeus Hwong; | ||
| Publisher: | Canadian Centre for Policy Alternatives [ Visit Website ] | ||
| Year Published: | 2006; | Publisher Type: | Research Institute |
| Publicly Available: | Yes | Research Focus: | National; |
| Registration Required: | No | Language: | English |
| Payment Required: | No | Publication Format: | Adobe PDF |
Subjects / Categories:
Policy Articles / Fiscal & Budgetary / Tax Policy
Policy Articles / Fiscal & Budgetary / Corporate Welfare
Policy Articles / Fiscal & Budgetary
Policy Articles / Fiscal & Budgetary / Corporate Welfare / 2006
Policy Articles / Fiscal & Budgetary / Tax Policy / 2006
Keywords / Tags:
social benefits; taxation; high-tax countries; welfare state; Nordic countries; quality of life; income distribution; health; education; gender equality; poverty; pensions; gross domestic product; foreign direct investment;