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Re:Market Concentration Is Threatening the US Economy by sykic on Wednesday March 13, 2019 @11:39AM (#19379740)
Making matters worse, America’s low tax-to-GDP ratio – just 27.1% even before the Trump tax cut – means a dearth of money for investment in the infrastructure, education, health care, and basic research needed to ensure future growth.

In comparison to our peers the U.S. is under taxed. The OECD average is 34.2%. What makes the average person feel overtaxed is the combination of federal income tax, state income tax (where it occurs), along with stagnant wages and high medical care costs. The U.S. spends far more per capita on healthcare than any other OECD nation.

It is easy to convince a significant portion of average Americans that taxes are too high. So they vote for politicians that promise to lower taxes. Except they don’t lower taxes for average people. In a properly functioning political system this disconnect between promise and actuality would be taken care of at election time. In my lifetime I’ve not seen this happen and my political memory starts with the Reagan administration.

Due to globalization and the ability of the top 0.1% to easily move money from country to country and to easily move citizenship from country to country one can no longer reasonably make the case that what is good for the top 0.1% is necessarily good for the country. The intersts of the nation as a whole and the interests of the top 0.1% are badly misaligned.

The U.S. is politically unhealthy and until this changes I see no hope for improvement. I think only a shock to the system will really change things.

Re:Market Concentration Is Threatening the US Economy by rb808 on Wednesday March 13, 2019 @12:00PM (#19379982)
> In comparison to our peers the U.S. is under taxed. The OECD average is 34.2%. What makes the average person feel overtaxed is the combination of federal income tax, state income tax (where it occurs), along with stagnant wages and high medical care costs. The U.S. spends far more per capita on healthcare than any other OECD nation.

Its really difficult to compare. Healthcare is a big difference, if we relabeled health insurance as a tax, US tax rates would be very high.

Re:Market Concentration Is Threatening the US Economy by sykic on Wednesday March 13, 2019 @01:51PM (#19381414)
The problem I have with this relabelling is that decent health care is largely dependent upon how rich/nice your employer is and it costs lots of money at the point of contact. Healthcare in the U.S. is not provided to citizens in a way that resembles a government program.
Re:Market Concentration Is Threatening the US Economy by dragonwriter on Wednesday March 13, 2019 @01:59PM (#19381509)
> Healthcare in the U.S. is not provided to citizens in a way that resembles a government program.

Except for the ~1/3 of Americans who get healthcare through one or more of the government programs (Medicare, Medicaid, VA, Tricare, etc.)

Re:Market Concentration Is Threatening the US Economy by sykic on Wednesday March 13, 2019 @02:14PM (#19381669)
I fail to see what your point is. You believe the totality of all U.S. healthcare spending ought to be viewed as a tax because - using your statement - 1/3 of the people receive healthcare via a department of the federal government?
Re:Market Concentration Is Threatening the US Economy by dragonwriter on Wednesday March 13, 2019 @02:29PM (#19381857)
> I fail to see what your point is.

The point is exactly and only what the text of the comment said.

> You believe the totality of all U.S. healthcare spending ought to be viewed as a tax

No, I never said that. Nor, AFAICT, did anyone upthread. The claim rb808 made seems to be more "comparing tax rates between countries where there is a substantial difference in the extent to which essential services are provided through tax funded programs is of limited utility".

Re:Market Concentration Is Threatening the US Economy by sykic on Wednesday March 13, 2019 @03:09PM (#19382371)
I think I may have upset you. I don't understand your original comment in the context it was made. From my perspective rb808 thinks that health care expenditures ought to be added to the U.S. tax computation to make comparisons to other OECD nations' tax rates. I don't agree with this for the reasons I stated.

As an aside I think if one doesn't view something as a tax then it shouldn't be added to the tax calculation. If one wants to say we are both taxed low and in return don't receive as much government services and so it balances out then have at it. I don't agree with that perspective either but it's a logical one to make.

If you agree with rb808 I wish you well in convincing others with your point of view.

Re:Market Concentration Is Threatening the US Economy by dragonwriter on Wednesday March 13, 2019 @06:11PM (#19384448)
As an aside, the parent comment appears to be a misplaced response to https://news.ycombinator.com/item?id=19382254

> I think I may have upset you.

It's probably best not to post your guesses about other people's emotions when they don't contribute to the discussion.

> I don't understand your original comment in the context it was made.

Clearly, and you keep trying to interpret it as a defense of (what I have already explained why I consider a misinterpretation of) rb808’s comment, even after I have explained both that I see your interpretation of his comment as wrong, and that my original comment was a tangent that didn't intend to defend his comment (whether as I interpret it or as you do) in the first place.

Re:Market Concentration Is Threatening the US Economy by sykic on Wednesday March 13, 2019 @02:53PM (#19382156)
I know that you didn't say that. Hence the question. I didn't claim you said it. But rb808 sort of did claim this:

...if we relabeled health insurance as a tax, US tax rates would be very high...

Your original comment doesn't appear to be relevant or to add to the conversation to me because VA, DOD, Medicare, and Medicaid spending are already taken into account when computing tax rates. I really don't understand what you are getting at with your original comment. The healthcare expenditures you mentioned are already part of the calculation for the tax rate in the U.S. So there is nothing to add with regard to the programs you mentioned when making the comparison to OECD average tax rates.

Re:Market Concentration Is Threatening the US Economy by dragonwriter on Wednesday March 13, 2019 @02:59PM (#19382254)
> rb808's comment is that the totality of healthcare spending ought to be added to the tax percent when comparing tax rates amongst OECD countries.

rb808 does not say it ought to be. He says that the comparison is complicated, and that it would be different if it was added in, not that it should be added in. One could with more justification interpret him as describing a problem and noting the effect of one plausible method of attempting to resolve the problem, rather than claiming that that particular method is necessarily correct.

> Your original comment doesn't appear to be apt to me

That's because you are trying to view it as an argument in defense of the position you've read into rb808's post rather than a tangent responding only to the specific claim in your post that was quoted, from someone who doesn't even agree that the position you've read into rb808's post was likely even rb808's position and who, in any case, wasn't arguing in defense of any position, actual or inferred, posited in rb808's post.

Re:Market Concentration Is Threatening the US Economy by WillPostForFood on Wednesday March 13, 2019 @12:08PM (#19380053)
It is easy to convince a significant portion of average Americans that taxes are too high. So they vote for politicians that promise to lower taxes. Except they don’t lower taxes for average people.

Let’s be honest, tax cuts may be bad policy, but it is not true that they haven’t been lowered for the average person. Rates are down, standard deduction is up.

Re:Market Concentration Is Threatening the US Economy by SeanAppleby on Wednesday March 13, 2019 @01:38PM (#19381253)
SALT caps really screw a lot of people though. My effective federal tax rate is higher after the tax "cut" than it would have been under the previous tax laws.

It really depends on where you live. Some blue areas have had effective tax increases for a sizable chunk of the population.

Re:Market Concentration Is Threatening the US Economy by sykic on Wednesday March 13, 2019 @01:53PM (#19381436)
I misspoke. The cuts have been mostly but not exclusively for the very rich. For instance, Reagan thought the tax on capital ought to be higher than the tax on labor. Now if a politician suggested this they'd be labeled a socialist by the Republican party.
Re:Market Concentration Is Threatening the US Economy by refurb on Wednesday March 13, 2019 @11:48AM (#19379828)
United states is 26% tax to GDP. Australia is 27.8%. Switzerland is 27.8%[1]

Are those countries broken too?

[1]https://en.wikipedia.org/wiki/List_of_countries_by_tax_reven...

Re:Market Concentration Is Threatening the US Economy by sykic on Wednesday March 13, 2019 @01:48PM (#19381385)
The political system in the U.S. is broken from my perspective. It is not broken because tax rates are too low. That tax rates are low for the very wealthy is a symptom of the brokenness of the system. It is not the cause and I did not claim the U.S. has a broken system due to low taxation.
Re:Market Concentration Is Threatening the US Economy by sacheendra on Wednesday March 13, 2019 @11:56AM (#19379926)
Yes?
Re:Market Concentration Is Threatening the US Economy by pitaj on Wednesday March 13, 2019 @12:14PM (#19380122)
So what do you think a better tax system would look like?

Here's what I think:

- No corporate taxes - No income tax deductions - No income tax exemptions - Lower income tax rates across the board - Income tax rate is calculated by a continuous function based on your income - Such a function would be based on existing effective tax rates

Done correctly, such a reform would be much simpler, easier to deal with, and revenue neutral.

Re:Market Concentration Is Threatening the US Economy by moate on Wednesday March 13, 2019 @12:57PM (#19380717)
>>and revenue neutral.

Why is this a good thing? It seems that most people feel that the problem is twofold. 1- Middle and Lower class families feel like too much of their money is forced to pay for taxes or services that taxes could be used to provide and thus they're not getting a fair shake. 2- Rich people are able to navigate the complex legal codes relating to tax in such a way that they benefit by "not paying their fair share". This seems to be a growing sentiment in both wings (although conservatives tend to believe that everyone is taxed too heavily and have all sorts of varied solutions about how best to deal with wealth inequity)

If you created a revenue neutral system it doesn't seem like it really addresses the issue of wealth inequality. If someone believes the wealthy aren't paying their fair share, it would make sense that in a reformed system that's "better" you would increase revenue because you'd be gaining more from those at the top.

Re:Market Concentration Is Threatening the US Economy by pitaj on Wednesday March 13, 2019 @01:35PM (#19381218)
If revenue should increase, it's much easier to increase it by changing some constants in the function. Same applies if you think revenue should decrease, or if you think the taxes should be more progressive.

A simpler system benefits everyone: it's easier to comply with, it's easier to enforce, it's easier to change.

For instance, adding a negative income tax would be as easy as adding a negative offset to the function.