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Comments

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I'm told that high taxes lead to a weak economy,while low taxes lead to a strong economy.

If that's correct, then a chart of all the world's economies' tax rates and economic strengths should show an approximate "X" shape, with economic strength generally going down as tax rate went up.

anon

just wanted to say i just found ur blog and it's awesome! thanks for all the info. it would help if u put ur personal finance list in order of favorites or top blogs (in your opinion) so we could read the best. just a suggestion.

Jerry

I think you have a point. Or, Forbes does. I'm not sure I'd want to live in some of those countries either. Singapore is a nice place to visit but not stay. Too strict in other ways. And a lot of those other "misery" countries have health insurance for their citizens. That seems like that would contribute to high taxes. I'm not quite sure what the perfect formula is if there is one. But maybe discussion will help to lead us to a solution.
Jerry

credit

Very good analysis as far as it goes, but productivity is not the only relevant criteria for most people, I think. Quality of life is relatively poor in many of the low misery index countries (South Africa, India, Russia, Indonesia, South Korea). This is partially because the government does not have the funds to address many problems and provide good services, especially infrastructure. In Russia and India for example, lack of infrastructure makes it much more difficult for industry to grow, which in turn lowers the salaries and economic well being of the country.

I have visited India recently and was struck by the fact that even in the wealthy neighborhoods in New Delhi, the air pollution is horrible. Even if one is wealthy there the quality of life is very poor.

So I don't think one can generalize across countries. If a nation has bad problems they need to have the resources to address them.

Joe

I think I would prefer to live in any of the countries with the top ten highest tax rates. Russia is just not what I think of when I think of a strong economy.

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