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High taxes allow the government to keep debt low but contributes to private debt.

• bildung 6y ago
  Why would it? One could easily argue the opposite, because high taxes usually means high social safety and thus lower risk for personal finance catastrophes. Edit: I looked it up, there is no correlation between high taxes and personal debt: Look at this table and spot low tax countries like Ireland or the US, compared to high tax countries like Germany: https://tradingeconomics.com/country-list/private-debt-to-gdp https://tradingeconomics.com/country-list/private-debt-to-gd...
  • Number157 6y ago
    (1) There are too many confounding variables to draw that conclusion from that data. (2) Raise your taxes by 30%, do you have more money or less? Less. And the government has more. Clearly there are more factors, but there would be no way for the government to keep its spending up without borrowing, without getting money in the form of taxes.
    • bildung 6y ago
      1: Suddenly there are confounding factors? Why didn't that stop you from claiming the correlation in the first place? 2: This isn't how taxes work. High-tax countries essentially do collective purchases with that money, which usually means lower cost per individual for services like education, healthcare, pensions and so on.
  • bilekas 6y ago
    Ireland is only considered a low tax rate for companies. Personal taxes are quite high actually. > 40% over €34,550 for single, €42,800 for married taxpayers. >Plus USC(Universal Social Charge)4.5% on income up to €50,170 and 8% on balance. >Social insurance 4% Not to mention out VAT is higher than Germany's also..