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Why Doesn t the United States Have a European-Style Welfare State?

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Figure

Table 3 summarizes the composition of government revenue in Europe and the United States
Table 3.Composition of General Government Revenue, 1999  Percent of GDP Tax revenue Direct taxes Social securityPropertyGoods andNontax CountryTotalTotalHouseholdsBusinessescontributionsaincomeservicesrevenueb United States31.015.112.42.87.11.07.77.2 Europ
Figure 1. Difference between U.S. and EU Marginal Income Tax Rates, 1999–2000 a
Table 4. Government Expenditure on Subsidies and Transfers, 1870–1998 a Percent of GDP Country 1870 1937 1960 1970 1980 1998 United States 0.3 2.1 5.0 7.5 10.4 11.0 European Union b 0.9 6.8 10.7 13.2 17.9 19.0 France 1.1 7.2 14.1 14.9 18.4 21.5 Germany 0.5
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