Tuesday 24 Jul 2018 | 03:45 | SYDNEY
Tuesday 24 Jul 2018 | 03:45 | SYDNEY

Reader riposte: Life and taxes

13 October 2010 14:16

Peter Layton responds to an op-ed mentioned in yesterday's Linkage post:

Noting Greg Mankiw's latest NYT column, it seems he ignores that taxes also buy something. While perennially unfashionable, taxes are not, or should not be, dead money but rather an investment in the country that gives you a real rate of return, even if indirect at times. Consider that in Pakistan taxes are about 9% by GDP whereas in Australia they are closer to 30-35%. Which country provides its citizens with a better life'

Maybe Mankiw's taxes that he doesn't like paying are more important to his well-being than he might think. His taxes pay for a great deal of the bubble in which he lives.