Oh, It’s Tuesday: Pass the Dutchie (Taxes) on the Left-Hand Side
- Photo by Rob Simpson
So I just loved this NYT article about an American living abroad in Amsterdam and paying 52% taxes on his earning. At first he was upset about having to give up so much of his hard-earned money, but then he eventually started liking his expat tax situation for a variety of reasons. Here are the ones I found especially interesting:
Social Insurance: The author received payments for vacation costs (8% of his salary on top of his vacation pay, which can be used towards plane tickets and whatever other costs come with taking a vacay). He also gets child benefits for both of his daughters, and an extra payment for their school materials. On top of that, the Dutch government reimburses parents for 70% of their daycare costs.
No other taxes: So yes, you’re paying 52% income tax, but you also don’t have to pay state and local taxes or for social security.
4 weeks of paid vacation: 4 weeks! 4 whole weeks! My mind shuts down just thinking about that kind of joy.
A much better social welfare system: If you lose your job, you’re not completely effed.
Universal health care: Here’s what really swung me. If you have a child, the government sends around a newborn helper, who cleans your house and teaches you to take care of your newborn. Can you imagine?
Cheap, safe mixed-income housing: I think that speaks for itself as we suffer through this real estate bubble. And I know in my starving artists days, I could have really used this.
Equality: Everybody gets these benefits, no matter the state of your health or bank account.
Also, the writer pointed out that with everything we have to pay for in the U.S., including state, local, and property taxes; childcare costs; health-insurance premiums; and so on, a 52% tax rate doesn’t seem so bad.
Funnily enough, while I was in Belgium with my sister (a fiscally-conservative Democrat) and her co-worker (a Republican), I was surprised when they both came to the same conclusion. After seeing how their Belgian counterparts lived, they both said that they would be willing to pay 50% of their salary in taxes if it meant that they got health-care, excellent vacation (4 weeks in Belgium too and w/ enough seniority, you’re able to take off for almost 3 months), and the ability to retire with a full pension at the age of 55.
So that got me to wondering, are Americans so tax-adverse b/c they really hate socialism or are they tax-adverse b/c they know that they won’t get much bang for their buck with the U.S. government? Why give money to an entity that doesn’t seem to care about your social or health or childcare needs?
Would you be willing to pay 52% of your salary if it meant that you could enjoy these kind of benefits? Please let us know in the comments and read the NYT article here.
I've always laughed at the argument about paying higher taxes for Universal Health Care. Ok, our taxes would increase a percentage, but we (meaning my family, not the country) are seriously paying out the nose right now for insurance. I honestly doubt our net pay would reflect much of a difference if we switched from pre-tax insurance payment to a universal health care tax.
In the end, we (the country, not just my family) would save money because many people who wait until the last minute for expensive ER care would be able to get cheaper preventative care. This seems so simple.
All that other stuff sounds very nice too…I wonder how much of the Dutch & Belgian people taxes go towards military spending tho.
I've always laughed at the argument about paying higher taxes for Universal Health Care. Ok, our taxes would increase a percentage, but we (meaning my family, not the country) are seriously paying out the nose right now for insurance. I honestly doubt our net pay would reflect much of a difference if we switched from pre-tax insurance payment to a universal health care tax.
In the end, we (the country, not just my family) would save money because many people who wait until the last minute for expensive ER care would be able to get cheaper preventative care. This seems so simple.
All that other stuff sounds very nice too…I wonder how much of the Dutch & Belgian people taxes go towards military spending tho.
In a heterogeneous society like the USA, it's never gonna happen. We're too worried about welfare queens and illegal immigrants and gay parents and other marginalized people getting a free ride on the backs of hard working tax-payers like "us". It doesn't matter that we all need health care and child care and housing and vacations etc. And that society as a whole benefits from an economic safety net. We're too worried about what we'd be giving up (and WHO we'd be giving it to) to think about what we might be able to gain.
I fear that you're right, Ayana. And I'd add that America is a hierarchical society and that there might be a small, low-self-esteem part of us that needs to be doing better than others. Otherwise, I don't see why so many of us seem to be okay with other people not having health care as long as we don't have to pay higher taxers.
In a heterogeneous society like the USA, it's never gonna happen. We're too worried about welfare queens and illegal immigrants and gay parents and other marginalized people getting a free ride on the backs of hard working tax-payers like "us". It doesn't matter that we all need health care and child care and housing and vacations etc. And that society as a whole benefits from an economic safety net. We're too worried about what we'd be giving up (and WHO we'd be giving it to) to think about what we might be able to gain.
I fear that you're right, Ayana. And I'd add that America is a hierarchical society and that there might be a small, low-self-esteem part of us that needs to be doing better than others. Otherwise, I don't see why so many of us seem to be okay with other people not having health care as long as we don't have to pay higher taxers.
Our country is too large geographically and has too large of a population for this to ever work here. Maybe if Texas does seceed from the Union, they could give it a test run.
Our country is too large geographically and has too large of a population for this to ever work here. Maybe if Texas does seceed from the Union, they could give it a test run.
Don't you think that the size of the USA would make it easier? The larger the base with any insurance the easier it is to keep the price down per user. It would take a large infrastructure but I think it could be done and in the end it would cost less for the majority of people who already have health insurance.
Don't you think that the size of the USA would make it easier? The larger the base with any insurance the easier it is to keep the price down per user. It would take a large infrastructure but I think it could be done and in the end it would cost less for the majority of people who already have health insurance.
Distrust of government is too ingrained in American DNA. Only 233 years ago we beat down the English over taxes. Much of our population is made up of recent immigrants or second and third generation immigrants, so we are a people running away from some other government system, which we probably distrusted. Our identity is more closely tied to our individuality and the protection of our immediate family than it is to our national identity. We distrust others and we distrust our government. That's why so many of us cling to our guns. We think it could all end any minute now.
I wish this were not true, because I want me some free flu shots right about now. I'd pay 50% for sure.
Distrust of government is too ingrained in American DNA. Only 233 years ago we beat down the English over taxes. Much of our population is made up of recent immigrants or second and third generation immigrants, so we are a people running away from some other government system, which we probably distrusted. Our identity is more closely tied to our individuality and the protection of our immediate family than it is to our national identity. We distrust others and we distrust our government. That's why so many of us cling to our guns. We think it could all end any minute now.
I wish this were not true, because I want me some free flu shots right about now. I'd pay 50% for sure.
well damn. now i know i need to go find myself a hunky Dutch man to marry! although if this were true i would be very healthy but living in a card board box because I wouldn't be able to afford to pay my rent in the california bay area. Check out the Swedes: http://www.womensenews.org/article.cfm/dyn/aid/53…
well damn. now i know i need to go find myself a hunky Dutch man to marry! although if this were true i would be very healthy but living in a card board box because I wouldn't be able to afford to pay my rent in the california bay area. Check out the Swedes: http://www.womensenews.org/article.cfm/dyn/aid/53…
I have friends who moved from the U.S. to Amsterdam who had a hard time with that tax rate — because as childless healthy adults in their 30s, they did not get to take advantage of any social services, and were merely subsidizing everyone else's services. Across the whole lifespan it totally pays off, though.
I am currently paying about 15% of my income just for health insurance for myself, so I'm not that far off from the Dutch rate without being eligible for the other good stuff like pension, a year of paid maternity leave, child care, etc. Add to the health insurance costs the $40k I spent for infertility treatment last year, and I'm past 100% of my salary in taxes plus health costs for last year. So yeah, I'd happily take the most exorbitant socialist tax rate over this.
I have friends who moved from the U.S. to Amsterdam who had a hard time with that tax rate — because as childless healthy adults in their 30s, they did not get to take advantage of any social services, and were merely subsidizing everyone else's services. Across the whole lifespan it totally pays off, though.
I am currently paying about 15% of my income just for health insurance for myself, so I'm not that far off from the Dutch rate without being eligible for the other good stuff like pension, a year of paid maternity leave, child care, etc. Add to the health insurance costs the $40k I spent for infertility treatment last year, and I'm past 100% of my salary in taxes plus health costs for last year. So yeah, I'd happily take the most exorbitant socialist tax rate over this.