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Thread: The middle class: are there any studies re: benefits received for taxes paid?

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    Default The middle class: are there any studies re: benefits received for taxes paid?

    Although I'm specifically interested in a comparison of those countries which have a middle class, roughly about the same as in the United States. I don't know if such a study exists, but it would be interesting to see which country provides the most services to the middle class for the taxes paid by the middle class - and somehow, I don't think it's going to be the United States!

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    Default Re: The middle class: are there any studies re: benefits received for taxes paid?

    an interesting concept ... but one which is virtually impossible to fulfill. The first problem is that 'middle class' is a subjective term.

    The second problem is that many countries in essence do not have a 'middle class' measured by US or European standards; instead they jump straight from poor to rich with virtually nobody in the middle.

    The third problem comes in trying to determine the true amount of 'tax money' paid by the middle class. In the US and Europe alike such issues as property taxes, excise taxes, sales taxes, value added taxes, business taxes which are passed on to customers in the form of higher prices, and a myriad of other taxes which are not directly related to income levels vastly complicate efforts to sort out a true figure.

    The fourth problem deals with the middle class actually 'getting' services from the gov't versus getting PROMISES of future services from the gov't that may or may not actually be provided in the future. This is a big issue with promised gov't health coverage (vs waiting in line and never actually actually receiving the promised treatment) and gov't retirement benefits

    The fifth and probably largest problem is in determining the true amount of taxes being paid versus true amounts of income, which can be vastly different from published tax rates and reported amounts of income (Spain is world famous for woeful levels of tax compliance, with France and Italy not being much better)

    I would wager a guess that the countries that offer the highest 'gov't benefits' to the middle class vs the lowest amount of taxes collected are the middle eastern Arab countries. The logic behind this is the 'Alaska scenario' where the income provided to the gov't by oil exports reduces the need for tax collection.

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