Friday 16 November 2012

Big or small government and paying taxes

The American election is now over. And the world sighs with relief. It used to be said that the US presidential election was often more important the a countrys own election, such is or was the influence of the US. These days perhaps what happens in China should be watched more closely.

A lot in the US battle centered on taxes and big or small government. As a European living in Latin-America I can feel I have a comment on that.

My home country Sweden is a typical big-government country, probably enormous by american standards :-) The post world war Sweden was built on a kind of cradle to grave mentality, where the state was involved in every level. The social democratic vision was one of equality and erasing poverty, among other things. These days we pay a lot of tax, at least 35% of your income and in return receive services like health insurance for all, free schools, care of the elderly etc 

My current country, Paraguay, sounds like a big government when you read the laws, but in reality it's a small government place riddled with corruption. It has one of the worst school systems in the world, the general health care is of low quality and a lot of people lack any kind of health insurance, and we could go on. But if you have money, well that is a different matter, then the doors are open for you.

Paraguay lacks any kind of income tax and Sweden has at least 35%, and after more than two years I know which I prefer!

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