Tuesday, March 31, 2009

AWOP - Comparative Analysis

The social welfare and taxation system in America, from what i believe, divides the poor and the rich in drastic measures. Two systems that participate in providing for those who are in poverty is the social democracy and the mixed economy. In a social democracy, it is necessary to live a descent life where public services are guaranteed to those who have money issues. In a mixed economy there are both public and private opportunities offered to people in poverty--it is just the matter of how many people who are willing to accept the help that is/could be given to him/her. Meanwhile, the taxation system is divided into four major taxing systems in society: Flat taxes, where everybody pays the same tax rate, regressive, the poor people pay for the higher percent of tax, while progressive tax is when the rich pay for the higher percent of tax. The last major-kind of taxing system is the marginal tax bracket system where the income of the person pays a certain amount of tax percentage--as the income increases, the tax percentage increases. Examples of regressive taxing is social security taxing & sales tax while in come tax is a progressive taxing.

In Denmark, the Danish students told Tyler and I that everybody who has a paying job is taxed 60% of his/her income which pretty much covers for anything possible, such like medicare & school. We were also told with medicare, every person in Denmark is given a card, similar to a credit card, where they swipe it into the system everytime he/she visits the doctor. The best part about medicare is that there are no hidden fees, meanwhile in America, people have to pay between a $25-$50 fee when visitng the doctors office.

Based on my knowledge with America's economy & the Danish system, I believe that regardless of any kind of system to follow, people are likely to suffer with there lack of money to pay for their children, food, clothes, shelter, etc. Though if I were to choose, I think it would be more convenient for America to convert to the Danish system of taxing due to the fact that people have many benefits with schOol & aid without having to suffer. Although tax is pretty high in Denmark, jobs & homes are offered to those who are unemployeed and homeless, which is provided because of the high taxes.

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