This is a tale in three charts. For the sake of this post, I’m considering Australia and Canada honorary European countries.

_2019 Top Tax Rates OECD.png

The US is a bit on the low side - and now we’re a bit lower, but- hey! - look at Norway, UK and Germany. The US is not an outlier. How about the other taxes that target the affluent?

_2019 Dividends Capital Gains Tax Rates OECD.png

It’s pretty clear why the US cut corporate and capital gains taxes. But how do the Europeans do it? They’re not squeezing the rich much more than we do - and yet they have generous social benefits and universal healthcare! The answer’s pretty obvious:

_2019 Taxes and Healthcare OECD.png

Oh…that’s how they do it. The rich European countries tax their people more than the US but spend a lot less on healthcare. And their tax system is more broad-based than ours. Just about everyone pays a lot in taxes, except Canadian families with children. The trade-off: high taxes but you’re taken care of.