World Happiness Report 2018: The happiness report for the year 2018 is out, and what's common between the people of happiest nations is that they pay higher taxes. Don't believe us, here's the proof
World Happiness Report 2018: The happiness report for the year 2018 is out, and what’s common between the people of happiest nations is that they pay higher taxes. The top three nations on World’s Happiness Index 2018 are Finland, Norway and Denmark, and they are among the highest tax paying nations in the world — with tax rates high as 60%.
And the relationship between happiness and tax rate is not purely coincidental but correlated. Eminent social-scientist Benjamin Radcliff has drawn a parallel between happiness and tax rates, saying that “higher levels of taxation suggest higher levels of satisfaction with life”, and hence more happiness.
And there are other social scientists too who contend the same. The research on ‘happiness economic’ conclude on two important points: Both progressive tax and higher tax are indeed related to the happiness of people. Three social scientists in a research paper named ‘Progressive Taxation and the Subjective Well-Being of Nations’ examined whether progressive taxation is associated with increased levels of subjective well-being.
And what they found was that nation with more-progressive taxation evaluated their lives as closer to the best possible life and reported having more positive and less negative daily experiences than did respondents living in a nation with less-progressive taxation.
Finally, they concluded that that the association between more-progressive taxation and higher levels of subjective well-being was mediated by citizens’ satisfaction with public goods, such as education and public transportation.
Jeffrey Sachs of Columbia University recently told CBS that happiness is also about creating stronger social foundations, social trust, and healthy lives, which can come from a county’s citizens paying a higher tax.
In short: Due to higher tax paid by citizens, the government is able to provide social benefits, universal healthcare and education, better infrastructure and higher employment rates among others, thus making them happier.