<p>Mini, we could spend hours debating the greatness of the welfare system in Europe, and discuss how wonderful a socialist system is. We can all look with envy on how they finance their education, social security, health care, and other social programs. </p>
<p>The value added tax is 25 percent, the maximum rate allowed for European Union nations, but there are preferential rates for several items.</p>
<p>Then, we have to realize that such expenses are covered by extremely high levies and contribution on wages and a very high tax rate. Payroll taxes are a significant burden, totaling nearly 40 percent of income, including a 32.28 percent tax imposed on employers. These taxes finance retirement, sick leave, unemployment, parental leave, and other programs.</p>
<p>Sweden celebrated its own version of tax cuts for the wealty. The top marginal income tax rate is now about a very generous 57 percent. While punitive, the top rate used to be nearly 90 percent in the late 1970s.</p>
<p>And after all of that, we can look at the $9.00 per gallon cost of gasoline. I have long stated that we should add at least 2.00 per gallon onto our cost and use every penny of that to finance new energy infrastructure, but that is another story.</p>
<p>In the end, we cannot look at a system such as Sweden and look at the substantial returns citizens get on their taxes without measuring first what those represent. As every system, there are winners and losers. Welfare recipients love the system; young entrepreneurs a lot less. </p>
<p>It is a system where there are few real differences between the salaries of a surgeon and a kindergarten teacher. Perhaps, it a system that is better for almost everyone, and the ones who do not like it too much can look at the sunny and rocky beaches of Monte Carlo.</p>
<p>However, once we finish looking at the best attributes of such a system, we can turn to the possibilities of transplanting that to the United States. </p>
<p>Does a negative odd exist?</p>