Steven Hill's NYT Letter to the Editor Regarding Krugman Column, Europe's Social Contract
New America in California, Political Reform Program
Paul Krugman calls Europe the "comeback continent" because of its resurging economy, yet repeats another stereotype -- Americans pay less in taxes than Europeans. The situation actually is more complex.
For their taxes, Europeans receive many benefits for which most Americans must pay additional fees and payments out of pocket. Many Americans, if they have health care at all, are paying for escalating premiums and deductibles. Other Americans are saving $100,000 for each of their children's college education, yet European children attend for free or nearly free.
Millions of Americans are scraping to save the amount they will need for retirement beyond Social Security, but the European retirement system is much more generous. Many Americans pay extra for child care, or self-finance their own sick leave or parental leave after a birth, but Europeans receive all of these (and more) from their taxes.
When all these differences are added up, it turns out that many Americans are paying out as much as Europeans -- we just receive a lot less for our money. The "overtaxed European" is another stereotype used to scare Americans away from the European model, so it's unfortunate that Mr. Krugman reinforced that stereotype.
Steven Hill
San Francisco
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