A new study says that might just be how it works, as long as the taxes are progressive. The study was conducted in 54 nations with over 59,000 respondents. The polling tracked the expressed well being of respondents and then checked for correlations in taxation systems. The end result? On average, those who lived in a country with a highly progressive tax system reported a higher level of quality of life, more positive daily experiences, and fewer negative ones. Overall, people are happier the more progressive their tax system is.
It's an academic paper and the authors don't jump to any political conclusions, but they do provide at least one plausible explanation. The study notes that simply increasing government spending does not increase overall happiness. But people are happier in countries with higher levels of progressive taxation because they are more satisfied with basic government services, such as quality of education and health care.
At Europe Through the Back Door, our tour program just sold its 11,782nd seat for our 2011 season -- topping our best tour sales year ever (2007). Despite our antsy stock market and doom-and-gloom news stories, it seems that our economy is gaining some confidence. And yet, at the same time, our local symphony and arts center are in financial crisis.
As a way to celebrate, to give back to my beautiful hometown of Edmonds, and to spark a little conversation about why a society as affluent as the USA is cutting education, neglecting our environment, and defunding the arts while our wealthy class is doing better than ever, I've decided to make a donation of $1 million (in $100,000-a-year payments over the next decade) to our local symphony and arts center. This sum represents the money I've gained in the 10 years since the Bush tax cuts for the richest Americans (those of us earning over $250,000 a year) took effect.