Re: Re: Spain’s rising taxes.


@Fuengi wrote:

@logan wrote:

Andrew taxes never benefit markets. Low tax and no tax stimulates growth not more tax.
If consumers have more to spend they generally do or save it. Either way the economy does better. Savings stimulate investment, spending increases demand across the board.

mmm, i instinct is to agree. But higher taxes are not necessarily to the detriment of an economy, all depends on which taxes.
Looking at mixed economies like canada, sweden, etc… they seem to promote lower corporate taxes, lower income taxes but higher consumption/property taxes. Those economies seem to be doing quite well. I think it comes down to the tax mix, not solely its level. look at the nordic model, high labour tax, lower capital tax. lower income tax rate, higher consumption tax. all seems to be (as far as i remember, anyway!) economic elasticity.

Trust me it wreaks havoc even in those countries. The only thing that has saved Canada and Sweden is that in 90s when we had our crisis we dealt with lots of the bureacracy. We basicly liberalised our economies in many ways and the taxes that we knew would not work “pragmatically” higher taxes on corporations etc got slashed. Not because we wanted to do it but just because we knew they would leave otherwise. Normal people can’t just pick everything up and leave and that’s why you tax the people that can’t evade taxes. The problem in Greece for example was that it was quite a fair system… everyone cheated. 😆

People in Sweden for example are “stupid” and work like maniacs because they think they have a good life not understanding that it’s only because the rest of the western world is just a little bit more stupid which makes us get away with it. The mentallity is changing by the day so those generations that doesn’t “steal” from the system will soon be gone. The system will implode… just not before everyone else in europe has. You can basicly say that Germany, Sweden, Denmark and Finland are out producing everyone else and thats why their systems don’t fall apart. Sure they probably have a better functioning system but it’s just a tad bit better. Central economic planning always leads to bad results.

Higher taxes inevitable means more goverment spending which in itself means a very bad functioning economic system. Don’t get me wrong the politicians more than often have good intentions but as they say. Even the road to hell is paved with good intentions.