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Comment by fdsary | Hacker News Reader

Why don't the Americans do it on state or city level then?

Sincerely Swede

because of a complex interplay between Federal and state welfare programs. But also, they do more in some states and less in others. What I am saying is, if every state went to a Swedish model, it's not necessarily true that we would be better off. Paradoxically, the Swedes themselves could become worse off. Americans consume more because they have more disposable income, which means they can import things from Europe. What will happen if taxes are so high that Americans start consuming a lot less ?

A huge boom in the middle class, as witnessed by the end of the Great Depression through the 1970s, during which time tax rates were incredibly high on high income as compared to today.

Also closing gaps in income inequality, and continued spending by that larger percentage of middle-class population.

Or so history teaches us, which we're rather happy to ignore now.

I would argue the economy boomed during that period in spite of the high taxes, not because of them.

Absent any evidence, I could argue that's an absurd position to take, based on a desire for something to be the exact opposite of the truth, just to fill a flawed political bent.

absolutely, you are right that US tax rates on the very highest incomes were high. But overall tax burden was never as high. Remember, Sweden has both higher income taxes on the middle class than US ever had and high consumption taxes.

Taxes in the US are not nearly as much lower than in Scandinavia as people like to think, though of course it varies quite a bit depending on state income taxes. When you take into account "necessary but privatised " bits like health insurance, it erases most of the remaining difference.

The thing about health care is that it doesn't feel necessary when you're young, and healthy. Its when you're old, or are having children that you start to care about the health care system.... and by then its too late to revolt.

I don't think that's accurate, Swedish overall tax burden is something like 45% of GDP

For comparison US taxes are 24-27% of GDP according to Wikipedia.

http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenu...

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