High Costs Yield High Benefits?
September 29th, 2009 at 3:04 pm By Nina Slupphaug
As a citizen of a rather socialized country I am often confronted with the high tax rate and cost of living in Norway compared to the U.S. In the American health care debate, those proposing a public insurance options are often confronted with similar claims. It is true that Norway has a maximum income tax of 49.5% and a Value Added Tax (essentially a sales tax) that tops out at 25%. For many Americans this sounds like a nightmare come true and a system that should be avoided. However, I am not complaining and for good reason.
In Norway your taxes go to more than just health care, although that is a substantial part of the benefits we get back. Elementary education is free and higher education usually cost about 400 NOK or $67 per semester. Because living costs are high all students are eligible for eight years of student aid through loans and scholarships. The student loans are federally run and interest rates are usually low. Repayment on loans start 6 months after graduation and no interest is added to your principal while you are still in school.
As for health care and health care related benefits, they are plentiful in Norway. Medical treatment with a General Practitioner has a standard co-pay of 130NOK or about $22. Dental is free up to and including your 18th year. As far as your co-pay goes, the maximum amount an individual is responsible for is just under $300 a year. After that the government will cover the bill. All prenatal care is free as is any medical treatment required for giving birth. Maternity/paternity leave is paid at 80% for 56 weeks or 100% for 46 weeks. Day care is also subsidized in part through taxes. The cost of day care is calculated based on the income of parents.
Miscellaneous benefits covered by the high taxes include the 10.2% of your income you receive back the next year in form of “vacation money”, government paid sick leave (anything exceeding the 16 days covered by the employer), $ 161 per child per month until they turn 18 to ensure that all children receive basic clothing and food, but the most important benefit is perhaps peace of mind.
So next time you hear someone argue that the Americans should be fearful of a Scandinavian model because of the high taxes, keep in mind that those high taxes pay for a lot more than health care and that high taxes may be a low price to pay when you consider all that you get in return.
LikeTags: Health Care Reform, Norway
Americans won’t go for any system that helps everybody equally. Americans crave winners and losers, not just in sports and politics but in every part of life. You can’t be a winner here unless somebody else is a loser. We will not pay to help other people be winners (unless we know them personally), so we will not accept higher taxes even if it has a clear societal benefit.
I’ve been to Norway a number of times and my wife is from Norway. There is never any worry there about paying for healthcare, education, or child care. Also, people there like to live healthy lifestyles which lowers costs of healthcare.
This type of system would fundamentally change the “everybody for themselves” mentality this country has unfortunately adopted. Nobody should apply the word “entitlement” to quality education and excellent healthcare.
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