Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Thursday, June 6, 2019

Need good healthcare? Need it now? Short on cash? Be Icelandic.

Today on Facebook I posted a link to this article: "An American In Iceland Found A Lump On Her Body And Her Viral Twitter Thread Shows How Much Better Their Healthcare Is." If you've ever encountered the U.S. healthcare system, you might want to read the article too.

A reliably and sometimes knee-jerk conservative friend of mine left this comment on my post:

"Iceland has a population of 338,349, with practically no illegal (excuse me, undocumented) immigration. The Personal Income Tax Rate in Iceland stands at 46.30 percent. In addition, according to the Trip Savvy website, "VAT in Iceland is charged at two rates: the standard rate of 24 percent and the reduced rate of 11 percent on certain products. Since 2015, the 24-percent standard rate has been applied for almost all goods, whereas the 11-percent reduced rate is applied to things such as accommodations; books, newspapers, and magazines; and food and alcohol." One imagines it might be possible for the United States government to fund all sorts of things under a similar tax regime, not including state and local taxes. How much LIVING the average American would be able to do, however, is another question."

I'm not sure what he's saying there. If we had fewer immigrants, our healthcare system would be as good as Iceland's? If we paid more taxes, our lives would somehow be impoverished?

My friend is right, of course, that the U.S. has a much larger population than Iceland. He is also right that the U.S. has a higher percentage of immigrants: the U.S. population is 15.3% immigrant, whereas Iceland's is 12.5%. I don't know how many of those are undocumented; I do know that many economists have found that immigration (documented or un) is mostly beneficial. A report from the Wharton School (President Trump's alma mater) concludes, "Economists generally agree that the effects of immigration on the U.S. economy are broadly positive."

But let's look at some countries with a higher percentage of immigrants than the U.S. and see how they fare with regard to health and happiness. Here are seven. Ireland: 16.9%. Sweden: 17.6%. Austria, 19.0%. Canada, 21.5%. New Zealand, 22.7%. Australia, 28.8%. Switzerland, 29.6%. Golly, their healthcare costs must be enormous!

Well, no. The per capita yearly healthcare cost in those seven countries averaged $5,352 in 2017, or about half the per capita yearly healthcare cost in the United States, which was $10,209. The costs ranged from $3,683 (New Zealand) to $8,009 (Switzerland). (Iceland's cost was $4,581.)

Ah, but the U.S. has better healthcare, right? Maybe not. Interestingly, people in these seven countries have significantly longer lifespans than people in the United States. U.S. residents' average lifespan is 79.772 years. People in the other seven countries, on average, live three years longer, ranging from 81.884 years to 83.706 years (In Iceland, the average resident lives to 83.152 years). And if you think residents of those countries have to wait longer for healthcare, read the comments on the Iceland article.

But sheesh, those taxes! Yes, U.S. residents pay less tax and have more disposable income than residents of those other seven countries, on average. But the difference is not as great as it might appear, partly because those taxes pay for things that U.S. residents pay for out of pocket, and partly because the U.S. has much more inequality (multibillionaires have a way of skewing the averages). The Gini Index ranks 157 countries from #1--the most unequal--to #157, the most nearly equal. On their list, you want a high number. The U.S. is #39. The other seven countries range from #88 to #152 (Iceland is #141).

So how much LIVING can people in these seven countries do, compared with the average American? Well, with enormous healthcare costs and huge educational debt, life can be rough for average Americans. And when you and your neighbors are poor in a country run by obscenely rich people, you may not feel so good either. Maybe that's why Americans aren't as happy as people from those other seven countries. The U.S. took 19th place in the yearly happiness index. The other seven countries ranked at place 16 (Ireland), 11 (Australia), 10 (Austria), 9 (Canada), 8 (New Zealand), 7 (Sweden), and 6 (Switzerland). (Iceland came in at 4th place.)

Summary: Immigrants are not the reason for high healthcare costs. High costs are not a predictor of good care or good results. Low taxes are not a predictor of happiness.

If you want to terrify Europeans, just suggest replacing their healthcare system with one that resembles the U.S. system. President Trump didn't realize that a few days ago when he went to the U.K. and made comments that worried supporters of Britain's National Health System, but the strong blowback made him quickly change his tune.

America deserves a healthcare system that covers more people, costs less, and produces better results. I wonder why more Americans don't pay attention to systems that are already doing that.

Wednesday, September 23, 2015

A nonpartisan plea to American candidates, pundits, political marketers, and my Facebook friends

Please don't tell me what will work in 2016 and beyond unless you also show me what has worked in previous years, or what is working right now in other countries.

Take healthcare, for example. Don't tell me what will work in some theoretical universe. Show me what is already working in the universe we live in. It's not hard to find information about other countries' approaches, costs, successes, failures, and overall health results. If you want to change our current system of healthcare--and I think we all agree that changes are necessary--how about basing your recommendations on some system that is already more successful than our own? 

Or consider taxes. Forget ideology. Look at our own history. When the highest earners paid a lot more in taxes, did business prosper or lag? When the trickle-down theory became popular, did inequality increase or decrease? When taxes were lowered, did we find it easier or harder to pay for things we value like roads, bridges, and veterans' benefits? When was the average American most prosperous? What was the tax structure then?

Most of us want Social Security to thrive, though we have different proposals for how this should be achieved. To those who think the system should be privatized: how about showing us what happened to pensions when they were largely privatized a couple of decades ago? Who benefited? Who lost out? To those who think earned income over $118,500 should be taxed, how do other developed countries take care of their retirees? Are any of their systems more effective than ours?

Or how about the minimum wage? We all want people to be able to find work that will support themselves and their families. Did American businesses thrive or languish when our minimum wage was proportionately much higher than it is now? Was poverty more or less widespread? Many other developed countries have a minimum wage that is higher than ours. Has this helped or hurt their economies? Has it helped or hurt job-seekers?

Or gun control. Are we safer when citizens are armed, or when they are not? What has happened in countries that have restricted gun ownership? How do our homicide and suicide rates compare to those of countries who regulate firearms more strictly than we do? What proportion of our homicides and suicides are gun related? Do countries that restrict firearms have a large number of criminals who use them anyway? If not, how do they prevent this?

Or abortion, a contentious subject if ever there was one. Instead of positing a paradise (for either conservatives or liberals) where no unwanted child is ever conceived, how about looking at what actually reduces the abortion rate? Which countries have a lower abortion rate than ours? Which ones achieve this without increasing maternal death from unsafe abortions? What policies and practices enable women in the more successful countries to avoid unwanted pregnancies and to raise the children they have conceived?

Or foreign policy, or civil rights, or regulation of financial institutions, or immigration, or education, or the environment, or poverty, or ...

None of these issues are new to Americans. We have dealt with all of them before--sometimes with good results, sometimes not. Why aren't we paying more attention to what has worked, and what has not worked, in the past?

And none of these issues are unique to Americans. Other countries also deal with healthcare, taxes, pensions, wages, firearms, abortion, and a host of other concerns. We can see where they are succeeding and where they are failing. Why aren't we paying more attention to what works, and what does not work, elsewhere?

I'm tired of exhausted ideologies. I'm tired of tear-jerking anecdotes about individuals who illustrate your point of view, or mine (it is easy to find heartwarming or infuriating stories that bolster opposite viewpoints on every one of the issues listed here, but they prove nothing). I want real-life, broad-scale examples from history or from other countries, well supported by reliable data.

The information is readily available. If you want my vote, or my respect for your opinion, inform yourself--and then show me what works. In the real world.