Money and Government

[andrewducker]

The UK takes in 34.4% of GDP as tax*. This is a bit less than the EU average (35.7%), about 6% less than Germany (40.6%), and a chunk less than the countries at the top end (Sweden at 45.8%, France at 47.9%, Denmark at 50.8%).

Is this the major source of the UK being awful at providing a safety net at the moment? Or are there other things that play a significant part in exacerbating the situation?

And are those figures comparable? In the UK that 34.4% has to cover the vast majority of healthcare, while in Germany healthcare looks to be largely on top of that - which would have an effect there (Although that would make the overall figures even higher in Germany).

I'm not actually sure how much I trust the figures in this case either. That page has the USA at 26%, whereas the figures here show total US taxation as either 18% (Federal), or 42% (Federal, State, and Local).


*All figures from here.

Comments

[miss_s_b]

We're partly crap because of how little we take in, but also because of where we take it from (less from corporations, more from people; less from those with wealth, more from VAT and income) and what we spend it on (tax breaks for afore-mentioned corporations; not on preventative healthcare but on patching people up when they break, etc)

[drplokta]

Tax breaks reduce the tax take, they're not a form of spending.

[birguslatro]

I'd think the biggest factor to providing a 'safety net' is the public's willingness to do so. If most believe they should make provisions for their own safety nets, they're not going to support taxes to pay for other people's safety nets. Such attitudes vary from country to country. Or maybe culture to culture would be a better term.

[skington]

I believe the miracle of the NHS in the UK is that it does remarkably well despite not having anything like as much money spent on it as does e.g. the French health service.

But maybe you can test that belief by looking for statistics on the proportion of GDP spend on health care?

[tobyaw]

I’m pretty sure that the most significant issue affecting our ability to provide public services (including the “safety net”) is the consistent high level of inward migration. Keeping up with population change is the key here, rather than providing services for a static population size.

Germany has higher immigration than the UK, but as you have identified, has a very different model for health provision.

[danieldwilliam]

Here are some OECD stats which I think are the source of your numbers. It lets you place with the breakdowns in various ways.

https://stats.oecd.org/Index.aspx?DataSetCode=REV

I think the USA has quite high tax rates but lots and lots of exemptions. I think the comparison there is that US tax rates are at 18% or 42% but the actual tax take is 26%.

[mair-aw.livejournal.com]

Just in passing, I read that self-employed in Spain, besides tax, have to pay 330 euro/month social security.

That's a lot. I don't know how accurate the source is (half-way down here: http://www.proz.com/forum/money_matters/307189-taxes_freelance_translator_spain_or_uk-page3.html ). I also found this document which says a little more http://www.expatica.com/es/about/Social-security-in-Spain-and-benefits_565081.html

Here in Germany health insurance, as you say, is largely separate from taxes.