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Guest | 24 Ocak 2015 saat 01:01

I have observed two funtamendal issues in the US about government spending over the years:1. The US doesn't have a social contract between the government and population about what government is supposed to do and how well it is supposed to function. There is an expectation from a high percentage of the population that govenrment is, by its very nature, incompetent and therefore having good management is not possible. If you elect a lot of politicians who are determined to prove that government cannot function well, guess what the result is? Many socialist countries have high tax rates but expect to have high quality services in return and so their economies don't collapse.2. Government spending is often disconnected by taxation due to transfer payments and mandates which disrupts the ability to form a social contract on spending and taxation. The Federal government will send transfer payments from its taxes down to states and municipalities. It may also pass mandates down as well without funding to carry them out, so when a local tax is increased it is often because of some mandate that is completely out of the control of the local government which means that nobody is accountable now. This also occurs at the state level. For example, in NYS county governments are responsible for much of the spending on Medicare with mandated requirements from the federal and state governments but only partial funding. So local proprty taxes pay for some of the mandated spending on what is essentially a federal and state program. There would probably be a much better social contract if the spending occurred at the same level as the taxes. In Canada, provincial taxes are about the same as federal taxes, so the province taxes for universal healthcare but is also responsible for delivering it. There is no ambiguity about where the decisions to tax and spend on healthcare come from.