and the democratic socialist label for the more left-wing positions. Interestingly, Marx and Engels referred to socialism and communism interchangeably. I, having lived under communist rule, remain unconvinced by the definitional differences between democratic socialism and social democracy. They both encroach on our personal freedoms.
There is no sensible way of definitively ranking countries as social democracies. Currently, nations such as Norway, Sweden, Finland, and Denmark, as well as some Eastern European countries have adopted their own system of capitalism where socialist welfare policies are made to fit within a capitalist framework. Japan and Canada have also implemented policies that could be considered to fall within a reasonable definition of social democracy. I will borrow a sentence from Dinesh D’Souza that these countries are “capitalist in wealth creation and socialist in wealth distribution.”
For example, in the United States the top combined tax rate of 46 percent kicks in at $400,000, which is more than 8 times the average income. In Denmark, the top tax rate of 60 percent kicks in at $60,000 which is only 1.2 times the average income. Similar rules apply in Norway, Sweden, and Finland. That is, the United States imposes a high tax rate on the rich, whereas the Scandinavian norm is to tax heavily vast segments of the population.
Moreover, Sweden, Norway and Denmark, also collect a value-added tax of 25 percent on most consumer items. American politicians consider value-added taxes regressive in that they disproportionately penalize the lower income population that must spend a higher proportion of their income on consumer goods. In the Scandinavian countries, when the value-added taxes are considered the math shows that the middle classes pay taxes that are the same as, or higher than the rich.
This is telling because American politicians that label themselves as democratic socialists point to the Nordic countries as examples to follow. We are left to wonder if they are fundamentally ignorant or just deceitful.
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