In Portugal, income is taxed at 20%, Social Security at 11%, and movie tickets and bottled water at 13%. Moreover, most items taxed in the United States at roughly 4-6% are taxable at close to 23%. The national debt is 129% of the GDP. The fiscal scene is disastrous in Portugal. Interestingly enough though, there is a fairly low amount of regulation of business growth. The debt crisis? Portugal actually runs on a surplus budget most years. However, the debt is seeing a steady increase and Portugal’s GDP to debt ratio is only projected to grow more unfavorable. That would be really bad news for a country like the U.S., whose debt is roughly $20 Trillion.
Yet, individual liberty is high in this country. This is the first nation worldwide to decriminalize all drugs. The result? 20% decreases in drug use. Maybe they should consider implementing libertarian economics as well.