by Jerome a Paris
Tue May 13th, 2008 at 05:19:41 AM EST
An attention grabbing headline on the frontpage of this morning's edition of the European version of the WSJ:
Tax-Cut Plans Imperil Growth In Germany
BERLIN -- Germany's ruling parties are offering voters rival tax-cutting plans, threatening the government's attempts to curtail public debt in Europe's biggest economy.
The sudden rush to propose tax cuts is the latest sign that German politicians are turning their backs on the long-term structural overhauls that economists say the country still needs to grow over the long term.
Woa! Not only the WSJ is against tax cuts, but it says they are detrimental to "reform"? Has hell frozen over?
Not quite...
The proposed cuts, plus promises of extra government spending, would benefit middle-class families most, the CSU said.
(...) Social Democrat leader Kurt Beck told Germany's n-tv television that his party would present its own tax-cutting plan later this month, also pledging to help middle-class and lower-income families.
Chancellor Merkel said Friday that her party and its Bavarian ally would present a joint tax-cutting plan early next year, ahead of national elections due in early autumn 2009. "The aim is to reduce the burden on the middle class, low earners and families and to do more for children," Chancellor Merkel
Haha! All is clear. Tax cuts
for the low earners are the problem. These are evil attempts to unfairly subsidize the parasites of society.
Economists say tax cuts would be a good thing if they were accompanied by spending cuts. But the ruling parties also are competing to offer more-generous spending.
Spending increases are okay is going towards military spending or other forms corporate welfare. But towards the poor? Yuck! Ineffective and dangerous!
Still, it is quite a treat to see that headline.
