by pup55 » Tue 23 Oct 2007, 20:13:22
$this->bbcode_second_pass_quote('', 'h')igh taxation here makes us more resilient against high oil prices
This is a really interesting point that has been discussed in various ways in this forum.
Americans have a strong bias against "direct" taxes. Reason: it is frequently used as a bludgeon during election time to make a candidate look bad. Part of the reason is that they have a distrust of government, and by extension, any money that goes to the government is considered "wasted".
Europeans on the whole do not have a problem in using tax policy to try to regulate behavior. Furthermore, due to such innovations as the VAT, the Europeans have a way to raise money without directly taking it out of the pockets of the citizens.
Most Americans have no problem at all with "indirect" taxes, such as inflating the currency, and also, no problem with borrowing money to provide goverment benefits to the population. The reason is: most Americans are not alert enough to understand that they are being robbed indirectly.
The third complicating factor is that even though they really hate "direct" taxes, they have no problem whining about getting benefits from the Federal treasury.
So you have this demand for services and benefits from the treasury, and simultaneously, the representatives have no stomach at all for higher taxes to pay for it. So in essence, Americans hope to get something for nothing.
The original thread was about the pricing in Thailand. Thailand, like most of those funny little Asian "dragon" economies appears to be biased more toward taxing business, and leaving the bottom tier of workers alone. Plus they have a 7% VAT
Thailand taxes
the fuel tax is only 2.4 bhat per liter:
Thailand Taxes #2
So, all I am saying is, the price of fuel at the pump is an artifact of market conditions as well as tax philosophy, just as is the price of chocolate. Since the system is so different, it is really hard to compare these prices directly, since the benefits of the taxes that the fuel purchaser might get (such as cheap medical coverage and a good pension system) are not included in the calculation.