The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Of course it does. That is why the level of taxation is low. In you logic taxes as a proportion of gdp can never rise.
Of course it can. What can not (sustainably) rise above a certain level is the sovereign's surplus as a fraction of GDP. Because the sovereign's surplus is limited by the rate of real capital investment plus net foreign inflows.
And I did I say anything about raising taxes now?
Um, if you want to make plans for ten or twenty years down the road (depending on how soon we stop this Austerity bullshit and start printing money in unlimited amounts to fund countercyclical spending) when this depression is over, then OK, that's a fun game.
But then talking about taxes is playing it backwards: You'll want to talk about what you want the Irish sovereign to do, figure out how much purchasing power you need to drain from the private sector to do it without creating shortages, and then decide upon the distributional profile you would like.
Clinton, because you want to talk more about the example, did raise taxes in 1994. Conservatives - and now you - predicted ruin. And?
Actually he cut them back again in 1995 (of course those were a different sort of taxes - no points for guessing the overall distributional effect of those two moves), which may be more relevant to the stock bubble.
But anyway, no. The sovereign surplus did not cause the bubble. The bubble caused the sovereign surplus. Taxing the bubble was a perfectly sensible thing to do, but believing that those surpluses were sustainable (or that they should be sustained)... not so much.
Friends come and go. Enemies accumulate.
by Frank Schnittger - Oct 16 21 comments
by Frank Schnittger - Oct 12 30 comments
by Frank Schnittger - Oct 17 3 comments
by Frank Schnittger - Oct 2 33 comments
by fjallstrom - Sep 29 41 comments
by Frank Schnittger - Sep 30 21 comments
by Frank Schnittger - Sep 26 2 comments
by Oui - Sep 23 10 comments
by Frank Schnittger - Oct 173 comments
by Frank Schnittger - Oct 1621 comments
by Frank Schnittger - Oct 1230 comments
by Frank Schnittger - Oct 233 comments
by Frank Schnittger - Sep 3021 comments
by fjallstrom - Sep 2941 comments
by Frank Schnittger - Sep 262 comments
by gmoke - Sep 24
by Oui - Sep 2310 comments
by Luis de Sousa - Sep 223 comments
by gmoke - Sep 191 comment
by Cat - Sep 1422 comments