Faciniating discussion on effects of tax rates

[Sabre]

The linked article draws some comparisons between tax rates and productivity.  It also notes that benefits levels can also have an unintended effect on worker productivity.  

http://www.nationalreview.com/nrof_bartlett/bartlett200408110849.asp

I have alway attributed the growth associated with across-the-board federal tax cuts to be solely attributed to in increase in consumer spending and captial investment.  This article suggests there is also a strong link between the tax burden and worker productivity.  Food for thought.

[Edbert]

Interesting that Norway leads the rest of Europe in per capita GDP. No wonder they have not yet joined the EU.

[cpxxx]

The point about Norway is that it has oil. Oil makes all the difference.  Whether in or out of the EU oil is a nice cushion. It's a distorting factor. Without oil things may not be so rosy for the Norwegians in or out of the EU. They are still a high tax country.

One country not mentioned in the report actually has the next highest GDP without oil. Ireland, probably because we are too small. GDP is about 94% of the USA proving the point about low taxes. Currently we have the third lowest direct taxes in the world and low corporate tax. One third of all US investment in Europe is made here.  From AOL to Xerox.  Ireland is the second biggest exporter of software after the USA. We also work the longest hours outside the US.  

Everyone who wants a job has one or even two. Immigrants are flocking here. Apparently 11000 Poles applied for social security numbers here since May?  Will the last person to leave Warsaw turn out the lights?

Quite simply we copied the American model and it worked.

The problem is that the rest of Europe had begun to figure this out.  Not too soon I hope, as we have the field ourselves at the moment.

It's not all gravy though as prices of houses went nuts and now everyone has a car we are stuck in the same traffic jam.

[-MZ-]

Just think how much more productive American workers could be if we got rid of those pesky weekends.

As far as taxes, who needs them?  We can just go on spending more than ever, and barrow what we need from the Chinese.