Companies are trying to maintain profits for equity holders, and White collar worker benefits, by forcing down Blue collar Pay. They would try it for the Brown collar jobs, but even they knew there was a line. ( minimum wage, unless your German then you could get a One Euro job ) Now under the deluded capitalist system, That’s all they now want to Pay. ( Swine Bosses ) Now under the (fantastic) Capitalist system the state has to support works under welfare programs, so bosses can gain higher earnings and pay less (Avoid) Tax. So the workers need to pay more to support workers, and the swine never get enough at the swill.
I was surprised to see in link 2 that Greece taxes more than the US…!!!
We had the “Greece pays no tax” line, banded about in the news when Greece were sinking…. I suppose this means the Greek story is deeper and more complex than the Tax angle..???
My last surprise, was in the Prag-Cap link 8, which showed Australian households as more indebted than Us Brits..??? I suppose that comes down the the housing market over there..??? ( Can’t see it being anything else, but could be wrong ..??)
I think I will go back to the last link, and read it over… Prag-Cap articles are usually ones to read…:)
Greece pays more rate, but what about total take? Taxes are like most things in nature, on a curve. Increased tax rate eventually causes decreased take. Commonly known as the “Laffer” curve.
I thought the graphs were % of GDP…???
As in, how much they take in taxes, to how much they spend…???
If they take less in taxes, they obviously spend less, to keep the ratio up…???
To me, it shows on of two things ( or both )…. People either have no confidence in the Greek Gov’t likelihood of riding the storm, even if their Gov’t do spend less as a proportion of tax revenues than the US….
Or, it shows something else is going on in the US….. Something more, shall we say “vertical”..??
Evening Nick…. ( Posted again, as original comment disappeared…??? )
I was surprised to see in link 2 that Greece taxes more than the US…!!! We had the “Greece pays no tax” line, banded about in the news when Greece were sinking…. I suppose this means the Greek story is deeper and more complex than the Tax angle..???
My last surprise, was in the Prag-Cap link 8, which showed Australian households as more indebted than us Brits..??? I also suppose that comes down the the housing market over there..??? ( Can’t see it being anything else, but could be wrong ..??)
I think I will go back to the last link, and read it over… Prag-Cap articles are usually really good, and stoke a bit of interest in the mind…:)
P.S. I will probably look more than a little daft tomorrow, when the original comment makes an appearance..!!!?? :)
Greece – As I understand it – Many of the employment is small outfits that can work on the black. The middle are PAYE and get a bad time of it. The rich just don’t pay no matter the tax rate.
The Australian housing boom is a real beauty~!
Dear Mr. Mystic: In your story about levels of taxation (and the notion that the USA is a “low tax” country) I don’t know how the tax numbers were compiled for the USA, but they are a load of BULL. If you add-up Federal Income Tax, State Income Tax, Federal Unemployment Tax, State Unemployment Tax, Medicare Tax, Social Security Tax, State Sales Tax, County Sales Tax, Fuel Taxes, and assorted Property and Excise Taxes, the average worker is paying 50% or more in taxes. And it’s only getting worse. Toss in Homeowners Insurance, Automobile Insurance, and Health Insurance, and the typical middle class worker is left with very little in the way of discretionary income. I just joined the Libertarian Party. :)
“I don’t know how the tax numbers were compiled for the USA”. Maybe they included the tax paid by billionaire funders of libertarian parties and the corporations they own. When you add these to the common man and take a weighted average of tax paid in the whole economy, the level goes right down. Remember the slide a few weeks back of how Romney would shift the tax burden (I think it was this site, maybe not) – more tax on the workers, less on the rich, less overall. So the headline figure can be improving whilst “it’s only getting worse” for the majority.
Yes indeed and I can think of others too. All those little fuzzy additions to utility bills, phone bills, etc.
As an employer, I have to pay even more of some listed and some not listed in your comment. It feels absurd all too often.
At the end of the year when I view the total amount for the year of all the tax related stuff on our spread sheets – I usually say something like ‘holy shit!’ :)
I use to wonder why anyone would buy, say foodstuffs, toilet paper, etc. at a place like Office Depot and pay near 3 times what you can get the same stuff at otherwise. Now I know. If a business buys anything at a place like Office Depot – automatic unquestioned business expense. Seeking more tax write-offs – in turn – businesses support businesses. Sort of like the internet too. In many ways – the internet feeds on itself. I won’t bother to attempt to explain. Just start an ecommerce website business – you’ll very quickly understand. :)
How do graph nr. 8 jive with MMT? Is it only surplus/deficit that eguals out? Or is the savings abroad?
I think I have to answer by talking about `stocks` and `flows`. Graph 8 are lists of stocks of debts. To get into the lists, they have to flow in there. (they have now taken a life-time to make up those totals)
MMT (sectoral balances) which I am guessing you are referring to are the amounts of flow over the period on one year. To any flow into debt, someone must be flowing into surplus.
For all those debtors in the lists; somewhere there are creditors.
*I’ll leave it there……and ask if I am answering your question or not~?*