- Jul 11, 2004
- Reaction score
Last Updated: Thursday, December 7, 2006 | 7:16 AM ET
People who live in countries with higher taxes enjoy lower rates of poverty, have more equal income distribution, more economic security for workers and can expect to live longer, suggests a new study from a left-leaning think tank.
Written by two Toronto tax law professors for the Canadian Centre for Policy Alternatives, the report, released Wednesday, is blunt.
"Tax cuts are disastrous for the well-being of a nation's citizens," say authors Neil Brooks and Thaddeus Hwong.
The study compares four high-tax Nordic countries (Sweden, Norway, Denmark, and Finland) with six low-tax Anglo-American countries (the U.K., U.S., Canada, Ireland, Australia and New Zealand).
The four Nordic countries scored better than the lower-taxed countries on most of the 50 indicators measured in the report, including:
Rate of poverty, equality of income distribution, and economic security for workers.
GDP per capita.
Rate of household saving and net national saving.
Innovation, including percentage of GDP spent on research and development.
Growth competitiveness as ranked by the World Economic Forum.
Rates of secondary school and university completion.
Rate of drug use.
The more lowly taxed countries came out on top in seven of the 50 indicators, including their sense of freedom, their suicide rates and the number of people reporting they are very happy.