Tax policies are essential to the quality of healthcare. Without an adequate taxation system, it would be difficult to afford medical treatment or other necessary expenses related to one’s health.
In today’s article, we will use the welfare state of Norway as an example when looking at how taxes lay the foundation for a well-working health care system.
The way to finance health care workforce and modern equipment
One thing Norway has become known, almost infamous for, is its heavy taxation system. Most Norwegian citizens may expect a tax percentage as high as 30 to 35 percent, compared to 10 to 15 in Russia and the US. It is even considered high among Englishmen who pay 20 to 25 percent out of their pockets each month. Despite how horrible it might sound to repeatedly lose a third of one’s wages (that one will “never see again), there are some quite important reasons for the high tax policy in Norway.
The truth of the matter is that taxes help to finance the workforce and modern equipment for hospitals and other health care services. This is a very important fact to consider, especially in the current climate where cuts in funding are a major concern. Taxable income provides the necessary revenue for governments to invest in hospitals, schools, and public infrastructures such as roads and bridges.
Taxes provide stability in the society by redistributing wealth from those who have more than they need to those who need it more. Taxes also provide a safety net for people who cannot work due to disability or old age.
The higher the income tax, the better the healthcare is. This is because, in countries with a progressive taxation system, there will be a trickle-down effect on the quality of healthcare. The more money people make, the more money will be allocated to improving their quality of life and their healthcare situation.
Good use of tax money
It is important to note that, if high taxation is going to do any good, then it must be used in the right ways.
Tax revenues are, again, used by governments in order to provide public goods. This includes health care services that might be needed in the future. It is necessary for governments to invest more in health care services in order to improve the quality of life of their citizens. The people will only have access to better services if higher taxes are actually used to fund a sufficient health care workforce and modern equipment.
Some things we may grasp from looking at the connection between Norway’s taxation and health care system are that:
- Provided that a nation’s leadership has the intention to improve health care services, higher taxes will lead to better services for the people
- If a nation’s leadership is not interested in improving hospitals and other infrastructures that support people’s health, then higher taxes won’t necessarily lead to a better health system
- Therefore, in order for the quality of a nation’s health care to be improved, there must be a connection between higher taxes and higher funding of the things that constitute a good health system