The High-Tax Myth: Why Paying More Can Mean Living Better

The High-Tax Myth: Why Paying More Can Mean Living Better
Higher taxes can mean real freedom—and peace of mind.|©iStock/arcady_31

This is one of those moments in which I wish I was standing in front of a large audience so that I could ask this question: Would you be willing to pay more in taxes… if it meant you never had to worry about a $100,000 hospital bill again?

Would you trade that little patriotic shiver you get from “low-tax America” for the quiet comfort of knowing you’ll never go bankrupt because you got cancer?

Would you give Uncle Sam a slightly larger slice of your income if, in return, you got world-class healthcare without fear or stress.

I do wonder how many Americans would say yes to that, given that the high cost of healthcare is one of the leading reasons for personal bankruptcy in America. Even Americans with health insurance can end up in bankruptcy court because the cost of some serious ailment exceeded what their policy covered.

Which I find criminally insane.

And which leads me to my initial question about paying more in taxes for healthcare security.

Truth is, that question wasn’t really aimed at paying more taxes in America. It’s really about Northern Europe—places like Sweden, Norway, the Netherlands, Denmark, and elsewhere, all places where Americans can seek residency, and where higher taxes mean far better and far more affordable healthcare than is available in the US.

The Great American Assumption is this: Low Taxes = More Freedom

It’s a bogus fairy tale we like to tell ourselves because we’ve been indoctrinated with a belief that taxes are bad.

The problem is that relative to American taxes, that statement is largely true. Few Americans see any real benefit to the taxes they pay. Education requires massive loans. Healthcare requires pricey policies and wallet-cracking deductibles. Roads are strewn with potholes. Bridges are literally falling down. Airports in many US cities are no better than those in the developing world in too many cases.

The list goes on, but you get the point.

Though some will disagree, the truth is that low taxes are not the hallmark of a free society.

They are the harbinger of higher costs buried elsewhere in the system.

On paper, keeping more of what you earn feels like freedom.

Until you get old.

Or sick.

Or both.

Then, suddenly, you realize that your “freedom” includes the “freedom” to choose between a $12,000 deductible and a GoFundMe campaign to pay for your chemo.

That’s not freedom, of course.

That’s indentured servitude to a system that’s spent decades monetizing human vulnerability.

And the kicker?

You’re still paying for it.

Look, this isn’t intended to be a political screed. I’m no card-carrying liberal. I was a columnist for the Wall Street Journal for X years. I’m just telling you how I see it: In America, we pay more per capita for healthcare—even after taxes—than people in countries where the government picks up the tab. According to OECD data, the U.S. spends over $13,000 per person annually on healthcare, compared to $7,000 in Sweden, $6,500 in Denmark, and $6,000 in Norway.

Yet those Scandinavian countries rank near the very top in healthcare outcomes, while the US ranks poorly. It’s like spending $100,000 to buy a Ford Pinto, while someone else is spending $50,000 to buy a Lamborghini.

So, the question isn’t really, “Do you want to pay less tax?”

The real question is: “What are you really getting for what you already pay?”

Let’s look at a few examples of countries where taxes are higher, but where the trade-off is a lifestyle that includes real healthcare security—something millions of Americans will never experience unless they go abroad.

Sweden

Tax rates can climb as high as 52% for top earners. But your basic income tax is closer to 30%–35%, depending on where you live.

Moreover, healthcare is universal. You pay a nominal fee—typically around $20 for a doctor visit, and a maximum of about $115 per year out of pocket for care. That’s your cap.

No deductibles. No co-pays. No networks. Just care when you need it.

On the equivalent of $100,000 in income, you’ll pay about $34,000 to the municipal and national governments, but you have no meaningful healthcare costs.

In Atlanta, Georgia, just to pick a random big city, your state and federal taxes will be right at $20,000. But a family of two is paying about $15,000 per year in healthcare premiums. So that right there exceeds your total tax burden in Sweden… and in Sweden, you never face a risk that your health needs exceed your policy coverage.

Bonus: Americans can apply for residence to live in Sweden and gain access to the state health system. A so-called person of means visa (basically proof you can pay for your life) requires about $18,000 per year in income. A self-employment visa for those who might want to enter as digital nomads, requires about $21,500 per year in income.

Denmark

Personal income tax runs as high as 55.9%, but Danes enjoy free public healthcare. And I mean truly free.

The system is publicly funded, accessible, and efficient. Wait times for non-emergency care can vary, but overall outcomes are excellent.

Denmark also offers a Startup Denmark visa and other options for retirees who meet certain financial thresholds.

Norway

Top tax rate is around 38%–47%, depending on income.

Healthcare is publicly funded and largely free, with low out-of-pocket costs (less than $300 per year).

Quality of care? Norway ranks in the top 10 globally in most health outcome categories.

Americans can apply for residence through a self-employment visa, or as retirees who can demonstrate sufficient means.

In all three cases, you’re paying more outwardly in taxes. But your total cost of living—including healthcare—is often less because you are erasing one of the single largest budget items that Americans have to pay: healthcare premiums.

And none of that math takes peace of mind into account.

How much less stress would you feel knowing you will have no meaningful healthcare costs in your life, and that you will never, ever, face bankruptcy or poverty because of your health?

Lots of Americans will scream about socialism, but America practices socialism all the time: fire departments, police departments, public schools, public roads… they’re all publicly funded—that’s socialism.

When it comes to healthcare, I’m a pragmatist. I fully embrace freedom and capitalism—but not when capitalism cannibalizes your quality of life to fatten the wallet of CEOs, board members, and investors, that ain’t about my freedom in the slightest.

It’s about enriching others at a steep cost to me.

So, if you’re going to pay taxes (and we all do, one way or another), the question isn’t: How much do you pay?

The question is: What value are you deriving from your taxes?

And if the healthcare system demands that you pay premiums for access, then that is just a tax gussied up as freedom-of-choice.

It’s all a lie.

In places like Northern Europe, what you get is healthcare that is free and that works far better than in the US.

No paperwork jungle. No arguments with insurance agents. No fear that the wrong illness will ruin your retirement.

Now, I’m not saying you have to rush off to live in Northern Europe.

It’s cold in winter. And it can be expensive in other areas of life, such as housing.

But for the globally curious retiree—especially one with a chronic condition, or just an eye toward healthcare security—Scandinavia offers a freedom found nowhere in America: The freedom to stop thinking about healthcare.

Because in the end, freedom isn’t about low tax brackets and healthcare choice.

It’s about not having to live in fear of your own body breaking down.

And if you have to pay a few extra percentage points in taxes to get that freedom?

You might just discover that it’s the best deal of your life.

Better Care, Lower Costs — Without Moving to Scandinavia

You don’t need to head north for great, low-cost healthcare.
You don’t need to head north for great, low-cost healthcare.|©iStock/xbrchx

You don’t have to head north for excellent, affordable healthcare. Some of the most accessible, high-quality systems in the world are in warm, easy-going destinations where expats already feel at home.

In Portugal, expats pay around $550 a year for private insurance, with routine doctor visits costing less than $20. Costa Rica offers full coverage through its national system for a small monthly contribution—and private care that’s fast, modern, and affordable. France and Spain both deliver first-rate care at a fraction of U.S. prices, while Italy’s public system provides near-universal access for just a few hundred euros a year.

In all these places, healthcare isn’t a privilege; it’s a public good. And it’s one of the biggest reasons so many North Americans are rethinking where they call home.

👉 Read more about the world’s most affordable, high-quality healthcare systems here.

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