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 Bernard - Jun 26 37 comments
by Migeru - Jun 26 61 comments
by Frank Schnittger - Jun 27 21 comments
by rifek - Jun 27 30 comments
by Frank Schnittger - Jun 25 92 comments
by Frank Schnittger - Jun 24 72 comments
by Frank Schnittger - Jun 23 40 comments
by tyronen - Jun 22 38 comments
by rifek - Jun 2730 comments
by Frank Schnittger - Jun 2721 comments
by Bernard - Jun 2637 comments
by Migeru - Jun 2661 comments
by Frank Schnittger - Jun 2592 comments
by Frank Schnittger - Jun 2472 comments
by Frank Schnittger - Jun 2340 comments
by tyronen - Jun 2238 comments
by John Redmond - Jun 1726 comments
by Frank Schnittger - Jun 1734 comments
by gmoke - Jun 155 comments
by Frank Schnittger - Jun 1362 comments
by DoDo - Jun 1231 comments
by Democrats Ramshield - Jun 104 comments
by generic - Jun 81 comment
by fjallstrom - Jun 81 comment
by DoDo - Jun 647 comments
by ARGeezer - Jun 617 comments
by DoDo - Jun 568 comments
by ARGeezer - Jun 270 comments