Are Higher Taxes Better? Depends How You Spend Them. With Thomas Piketty

Economist
Over a year ago
Political debates about taxes often revolve around a simple question: Should they be higher or should they be lower? Economist Thomas Piketty argues that this conversation draws the spotlight away from a much more important topic: How do you spend taxes once you've collected them? Poorer European countries like Romania and Bulgaria, which have relatively low tax rates, do not necessarily struggle because their governments don't tax enough. Likewise, Sweden and Denmark are not successful states merely because the tax rate is 50 percent of GDP or higher. What sets these nations apart are the values which inform their tax spending. Sweden and Denmark thrive because they invest so much in education, public infrastructure, and other building blocks for growth and prosperity.