Greece Urged to Get Tough on Tax - WSJ.com
Somehow, one can't help but think of all of this as socialist accounting which thinks there is no downside - i.e. the money from the private sector (where it can be invested, grow and create jobs) goes to the public sector (where it is consumed and then gone) - all of which is akin to the fairy tale about the goose that laid the golden eggs.
There have been interesting studies about the amount of GDP that can be taxed. The percentage tends to stay the same over time - no matter what the rates.
As is common knowledge, the higher the rates (esp. VAT), the greater the size of the 'gray' economy.
When an individual does their personal shopping, the price matters (if the price is too high, you don't buy it or can't afford to buy it).
With governments, the logic is that price does 'not' matter and VAT tax rates don't impact economic growth or activity.
It's too bad the common answer to economic malaise in Europe and the US is 'higher taxes' instead of 'less government'.
As taxes have gone up and government grown, there has been a downside. But, with such a commitment to taxes and big government, the downside has to be ignored.
Monday, December 24, 2012
The 'OBAMA DEBT' left to future generations! The Decline of Innovation and Economic Growth | Robert J. Gordon - WSJ.com
The Decline of Innovation and Economic Growth | Robert J. Gordon - WSJ.com
What also might have been mentioned is that many of our most advanced multi-national companies are now being basically 'forced' by US tax policies to leave huge sums of money offshore.
It would seem blatantly obvious (but not to a social worker) that the money left offshore will be much better 'spent' and 'invested' offshore - rather than back in the US where it will be reduced by 35% (more or less).
All these 'pundits' comment that once the fiscal cliff is resolved, then American companies will be ready to invest this money and create (US) jobs.
They seem clueless as to where the money is located and what the tax implications are of bringing it back and spending it in the US!
An interesting example of living in a non-geographically constrained virtual world is that intellect and knowledge can be hired anywhere. When one talks about 'centers-of-excellence', these no longer need to be physical places, they can be virtual places.
Thus, those with the ability to live and locate anywhere in the world - such as myself, can live a very fulfilling and productive life outside of the US.
The real fiscal cliff should be the insane tax and spend policies of the Obama Administration. I ponder whether the "Obama Debt" won't be one of the legacies the President will be known for by future generations?
What also might have been mentioned is that many of our most advanced multi-national companies are now being basically 'forced' by US tax policies to leave huge sums of money offshore.
It would seem blatantly obvious (but not to a social worker) that the money left offshore will be much better 'spent' and 'invested' offshore - rather than back in the US where it will be reduced by 35% (more or less).
All these 'pundits' comment that once the fiscal cliff is resolved, then American companies will be ready to invest this money and create (US) jobs.
They seem clueless as to where the money is located and what the tax implications are of bringing it back and spending it in the US!
An interesting example of living in a non-geographically constrained virtual world is that intellect and knowledge can be hired anywhere. When one talks about 'centers-of-excellence', these no longer need to be physical places, they can be virtual places.
Thus, those with the ability to live and locate anywhere in the world - such as myself, can live a very fulfilling and productive life outside of the US.
The real fiscal cliff should be the insane tax and spend policies of the Obama Administration. I ponder whether the "Obama Debt" won't be one of the legacies the President will be known for by future generations?
Let's hope the young wake up! The Decline of Innovation and Economic Growth | Robert J. Gordon - WSJ.com
The Decline of Innovation and Economic Growth | Robert J. Gordon - WSJ.com
Lets just say liberalism and attempts at social equality, big government, high taxes and regulations, etc. are inhibiting factors. By the end of the 1970's, liberals were all arguing that growth was also gone and that the focus of policy should be equitable redistribution.
Reagan's policies changed that - but, of course, liberals hate the free market and private capital.
We now again have White House policies that are anti-business, pro-union, big government, high taxes on the productive sectors, etc.
Per Art Laffer's comments on the 1930's, we are repeating both the policies and the outcomes that the writer of this article excuses by other means.
Let's hope the young say "enough-is-enough" (both in the US and Europe) and stop the transfers of wealth to the middle-aged and retired who want more than they saved for and contributed to.
The young are being left with huge debts for the consumption of non-productive members of society. If the young want to sacrifice their lives for the older parts of the population, well then, so-be-it. But, they don't have to and they should wake up what is being done to them!
Lets just say liberalism and attempts at social equality, big government, high taxes and regulations, etc. are inhibiting factors. By the end of the 1970's, liberals were all arguing that growth was also gone and that the focus of policy should be equitable redistribution.
Reagan's policies changed that - but, of course, liberals hate the free market and private capital.
We now again have White House policies that are anti-business, pro-union, big government, high taxes on the productive sectors, etc.
Per Art Laffer's comments on the 1930's, we are repeating both the policies and the outcomes that the writer of this article excuses by other means.
Let's hope the young say "enough-is-enough" (both in the US and Europe) and stop the transfers of wealth to the middle-aged and retired who want more than they saved for and contributed to.
The young are being left with huge debts for the consumption of non-productive members of society. If the young want to sacrifice their lives for the older parts of the population, well then, so-be-it. But, they don't have to and they should wake up what is being done to them!
Thursday, December 20, 2012
Surprise, surprise! Euro-Zone Consumers Cut Back on Spending - WSJ.com
Euro-Zone Consumers Cut Back on Spending - WSJ.com
Gee - we'd sure like jobs producing things. But heck, we have to pay for entitlements. That means, everything you buy will cost 25-50% more and you salary will be hit to pay for additional taxes.
Oh my, Obama's wonderland.
And then, what you make can't afford to buy you things that are now that much more expensive.
Americans don't have a clue at what socialist policies cost and they think borrowing 42 cents of every federal dollar spent doesn't have consequences. (But as reported last week in the Wall Street Journal, the US is already spending 220 billion a year on interest on the federal debt (over 10 years, 10x220 = 2.2 trillion, which is about equal to the tax increases and budget cuts being bandied about).
So increase the interest rates to where they should be. Pick a number - say 6%. And then the US is in real do-do.
Meanwhile,with all these federal expenditures, the economy is barely limping along.
How can people not think something is wrong?
(amongst the myriad of untouchable questions is why Europe spends less than half of the same percentage of GDP but has satisfactory healthcare. could the end-of-life costs in the US be subject to debate?)
Gee - we'd sure like jobs producing things. But heck, we have to pay for entitlements. That means, everything you buy will cost 25-50% more and you salary will be hit to pay for additional taxes.
Oh my, Obama's wonderland.
And then, what you make can't afford to buy you things that are now that much more expensive.
Americans don't have a clue at what socialist policies cost and they think borrowing 42 cents of every federal dollar spent doesn't have consequences. (But as reported last week in the Wall Street Journal, the US is already spending 220 billion a year on interest on the federal debt (over 10 years, 10x220 = 2.2 trillion, which is about equal to the tax increases and budget cuts being bandied about).
So increase the interest rates to where they should be. Pick a number - say 6%. And then the US is in real do-do.
Meanwhile,with all these federal expenditures, the economy is barely limping along.
How can people not think something is wrong?
(amongst the myriad of untouchable questions is why Europe spends less than half of the same percentage of GDP but has satisfactory healthcare. could the end-of-life costs in the US be subject to debate?)
Wednesday, December 19, 2012
Why not cut taxes? Bank of Japan in Tough Spot After Abe's Win - WSJ.com
Bank of Japan in Tough Spot After Abe's Win - WSJ.com
"Mr. Abe also has suggested the central bank buy more government debt to finance spending on public works, "
Why not 'cut' taxes instead!
People work and invest more when they get to keep more (reduce income and investment income taxes, incl. corporate taxes). They also spend more when they get more value for money (i.e. reduce sales and/or VAT taxes).
"Mr. Abe also has suggested the central bank buy more government debt to finance spending on public works, "
Why not 'cut' taxes instead!
People work and invest more when they get to keep more (reduce income and investment income taxes, incl. corporate taxes). They also spend more when they get more value for money (i.e. reduce sales and/or VAT taxes).
Thursday, December 13, 2012
"DEBT CLIFF" AND "ENTITLEMENT CLIFF" Poll: Strike a Cliff Deal Now - WSJ.com
Poll: Strike a Cliff Deal Now - WSJ.com
Why aren't Americans being better informed by the media about what is really a "debt and entitlements cliff".
How many young (and older) people are aware that each person is in hock by the government for $150,000? (per the WSJ yesterday).
It seems plausible that the Obama administration and Democrats want this debt to grow as fast and far as they can so the country will have to put in a big new VAT tax to pay the interest? (This is after all something California just did to pay for public pensions).
Why aren't Americans being better informed by the media about what is really a "debt and entitlements cliff".
How many young (and older) people are aware that each person is in hock by the government for $150,000? (per the WSJ yesterday).
It seems plausible that the Obama administration and Democrats want this debt to grow as fast and far as they can so the country will have to put in a big new VAT tax to pay the interest? (This is after all something California just did to pay for public pensions).
comparative numbers (Bernanke and Ireland) - EU Deal Reached on Bank Supervisor - WSJ.com
EU Deal Reached on Bank Supervisor - WSJ.com
Doesn't what Bernanke is planning to do (i.e. buy roughly $80 billion per month of treasuries and mortgage bonds) strike one as scary in comparison with the number quoted below for Ireland?
" Irish Finance Minister Michael Noonan, whose country has had to pump more than €60 billion ($78.4 billion), or one-third of gross domestic product, into its lenders,"
Flooding the US economy with liquidity is barely helping it to grow. Something else is wrong!
Doesn't what Bernanke is planning to do (i.e. buy roughly $80 billion per month of treasuries and mortgage bonds) strike one as scary in comparison with the number quoted below for Ireland?
" Irish Finance Minister Michael Noonan, whose country has had to pump more than €60 billion ($78.4 billion), or one-third of gross domestic product, into its lenders,"
Flooding the US economy with liquidity is barely helping it to grow. Something else is wrong!
Monday, December 10, 2012
Taxes impact on inflation / addiction to credit: Consumer Spending Is Losing Its Vigor - WSJ.com
Consumer Spending Is Losing Its Vigor - WSJ.com
What is also a puzzle is how tax increases are somehow ignored in terms of inflation?
Sure some people don't pay them - but, for those that do, the cost of living has gone up because the government is taking more.
And, of course, we all seem to want to ignore the 'only relatively good economic growth' is being financed on a huge pile of debt!
As many of us know from past use of credit cards, eventually credit limits and higher payments really get to bit.
In this sense, like other enablers of those with an addiction, the Fed is abetting the Democrat and Obama administration habit of borrowing 42 cents of every dollar they spend. Etc.
What is also a puzzle is how tax increases are somehow ignored in terms of inflation?
Sure some people don't pay them - but, for those that do, the cost of living has gone up because the government is taking more.
And, of course, we all seem to want to ignore the 'only relatively good economic growth' is being financed on a huge pile of debt!
As many of us know from past use of credit cards, eventually credit limits and higher payments really get to bit.
In this sense, like other enablers of those with an addiction, the Fed is abetting the Democrat and Obama administration habit of borrowing 42 cents of every dollar they spend. Etc.
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