What if the price for universal health care, tuition-free higher education, child care, elderly care, and other social benefits were called “social benefit payments” instead of “taxes”? The following is a comparison of two hypothetical families consisting of two married adults with similar jobs and two children aged 1 and 14. The Nielsens live in Denmark and the Smiths in the United States. Despite living in a country with one of the highest income tax rates in the world, The Nielsens pay much less for social benefits and enjoy a higher quality of life. For more detailed information, please see the original post here.
| Nielsens (DK) | Smiths (US) | |
| Gross Income | 75000 | 75000 |
| Labor Market Contribution | 6000 | 0 |
| Taxable Income | 55149 | 50600 |
| National Taxes | 6706 | 6072 |
| State/Municipal Taxes | 12684 | 2024 |
| Total Taxes Paid | 25390 | 8096 |
| Child Credit | 4435 | 2800 |
| Net Income | 54045 | 69704 |
| % Benefits Paid | 46.04% | 16.00% |
| Health Care & Dental | 0 | 13000 |
| Total Benefit Payments | 25390 | 21096 |
| % Benefits Paid | 46.04% | 41.69% |
| Higher Education | 0 | 5040 |
| Total Benefit Payments | 25390 | 26136 |
| % Benefits Paid | 46.04% | 51.65% |
| Child Care | 4572 | 10400 |
| Total Benefit Payments | 29962 | 36536 |
| % Benefits Paid | 54.33% | 72.21% |
| Minor Surgery | 0 | 12000 |
| Total Benefit Payments | 29962 | 48536 |
| % Benefits Paid | 54.33% | 95.92% |
| Vacation Time | 0 | 8203 |
| Total Benefit Payments | 29962 | 56739 |
| % Benefits Paid | 54.33% | 112.13% |