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Can we tax our way into happiness?

by Mike Ruskovich
| October 27, 2010 9:00 PM

Most Americans see an oxymoron when the words "tax" and "happiness" appear in the same line, but that apparently isn't true of those northern countries that gave the world the Vikings and pickled herring. In a recent worldwide survey to determine the happiest people on the planet, Denmark and its Scandinavian neighbors dominated the top spots, which is a curious phenomenon considering those countries also have the world's highest taxes.

So what gives? As far as the happiness rankings, America wasn't even in the top 10, yet given the blessings of this country and its comparatively low taxes it is surprising that the Danes are not deeply depressed and the Americans aren't dancing for joy. After all, in the USA taxes and misery are considered synonymous, and our taxes are clearly lower than theirs. Could it be that in places like the Netherlands, where getting an outdoor suntan is next to impossible, people are feeling sunny because of taxes and not in spite of them?

Scandinavians pay high taxes, no doubt, but they also have high expectations. That, in fact, may be the key. We cynical Americans have become resolved to tossing our hard-earned dollars into a government pot that looks like a black hole to us, a system that seems to have lots of cracks through which our coins can fall and land in corrupt hands. We complain, but we basically buy into the cliche, "It's close enough for government work," when we don't get much bang for our buck. We've actually come to expect inefficiency from the bureaucracy, and those low expectations have become a self-fulfilling prophecy.

Maybe this latest poll on happiness teaches us that our complaints about high taxes are really complaints about low returns. We expect our money to be handled poorly, and those expectations are being met in the form of frivolous projects attached to important pieces of legislation and other selfish earmarks that give us bridges to nowhere and airports in towns with populations smaller than the passenger occupancy of the planes that occasionally land in them.

On the Scandinavian Peninsula pride has played a bigger part in the infrastructure than politics. These countries have excellent bridges, roads and railways as well as the latest in energy technology. They also have some of the best health care on the planet, and the poor and sick and old do not have to stress about medical care when it is needed. Perhaps that lack of stress adds to their happiness. It doesn't come cheaply, but if the poll is right, it is effective.

Our country, on the other hand, does feel the stress of our faltering infrastructure and health care system. Our lower taxes are spent in quite a different way than higher taxes in the happy countries up north. Following the federal tax dollar last year shows that the top expense was defense (33 percent), followed by bailouts and economic support (27 percent), health care (17 percent), poverty programs (11 percent), general government expenses (9 percent), energy and science (2 percent), and diplomacy (1 percent).

Harder to follow are the shady deals that take place in a system full of lobbyists and elected officials who owe financial loyalty to special interest groups and corporations who fund their elections. But the picture is pretty clear to Joe Taxpayer that his return on his tax dollars will not be equal to what he paid. And if he is satisfied that he got what he paid for, then he must realize that, in comparison with the happy countries, he didn't pay much. He must try to smile while driving his 1974 Ford Pinto-like programs down a rough road as a Swede passes going the other way on a first class transportation system. And he must keep telling himself that at least he doesn't pay the high taxes those poor Scandinavians have to pay. In the meantime those Swedes keep on paying high taxes with a smile, it seems. And why not? Getting what you pay for makes people happy.

Maybe we here in the good old US of A would actually be happier with higher taxes if we believed we got what we paid for. But that would first require higher expectations. And higher expectations are not realistic with the current system in Washington, D.C., where those who spend our money have too many temptations and distractions (like getting re-elected) to be proper caretakers of our funds. Until elected officials can feel free to do what's right for the people and not for their parties and financiers, the cynicism we currently harbor will keep our taxes lower than Norwegian taxes, but it will apparently keep our level of happiness lower too.

Mike Ruskovich is a resident of Blanchard.