For the record, however, the most-taxed countries on Earth (i.e., the countries where revenue is the highest percent of GDP) are in order:These countries have much less population than the USA. Their governments and people embrace all sorts of social programs. One thing socialism will do is level out the net wealth of the population because the incentive to excel becomes lower. Why bust your butt when most of your money goes to the government to support those who sit on their butts? There's also no argument from me that the folks in those countries are "happier" -- I'd be happy too if the government takes care of me for years, from my birth to my death.
1. Denmark
2. Sweden
3. Belgium
4. France
5. Norway
In terms of per capita GDP these are, respectively, the 4th, 9th, 14th, 15th, and 3rd richest countries on earth while the United States is 17th. Of course in part that’s an exchange rate phenomenon and if you use PPP adjustments rather than market exchange rates, the U.S. looks better. On the other hand, if you peer into the future it seems to me that exchange rate comparisons are likely to make us look even worse in years to come. The high-tax five also do very well on things like the U.N. Human Development index.
But guess what? These nations aren't the most competitive in the world. Look at the Fortune Global 500 (2008) list. Look at the most recognized commercial brands: Apple, Intel, Microsoft, Toyota, etc. Look at the list of billionaires. Not many from the above listed countries, eh?
High taxes may not adversely affect per capita GDP, but it certainly diminishes the individual's will to exceed expectations and profit personally. In turn that spells trouble for the nation's industries and long-term prospects.
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