Thursday, July 05, 2007

Wealthy Europeans (and the Continent's legislatures) are laughing up their sleeves, while the ordinary person pays a flat tax on everything purchased

As so often with critics of American policy, they would be on sounder ground if they first understood what goes on at home
writes a John Ellis of Rockland, Maine.
Renaat Horemans states in a letter to the editor (Letters, June 6) that Americans must be willing to accept a more progressive tax structure to support better health care. He cites Europe as an example of what needs to be done: "Social justice starts by paying taxes according to one's income. In Europe, even the wealthy have accepted this basic principle."

I suggest he examine Europe's ubiquitous Value Added Tax, one of the major regressive tax structures in the world. Wealthy Europeans (and the Continent's legislatures) are laughing up their sleeves, while the ordinary person pays a flat tax on practically everything purchased. VAT goes well over 20 percent, depending on the country - 21 percent in Belgium and up to 25 percent in Scandinavia. Adding to the charade, the tax is hidden in the price of the merchandise. Many Europeans don't really seem to realize what is going on here.

As so often with critics of American policy, they would be on sounder ground if they first understood what goes on at home.

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