The EU does tax cuts for the Rich!

[easycruise]

Don't look now, but the EU is starting to implement Reaganomics! It's probably from a feeling of utter dejection of watching Ireland become an economic success while continental Europe atrophies with their backwards socialist policies. But, hey, better late than never!

http://www.townhall.com/columnists/brucebartlett/bb20041116.shtml

I fully expect the liberals to deny, deflect, and just plain old obfuscate.

[Nikk]

Originally posted by easycruise


Don't look now, but the EU is starting to implement Reaganomics! It's probably from a feeling of utter dejection of watching Ireland become an economic success while continental Europe atrophies with their backwards socialist policies. But, hey, better late than never!



From the article you quoted ...........

"Finally, we see that the tax structure of the OECD continues to move much more toward the taxation of consumption. Every OECD country except the United States now has a value-added tax or other form of national sales tax. These taxes provide about 20 percent of government revenue. Higher VAT rates have financed many of the tax reforms of recent years. "

The EU is moving away from easy to evade and avoid taxes towards a tax structure which will be harder to avoid and will, one hopes tend to encourage savings and investment.

Is that Reagonomics? Presuambly not as the US doesn't have VAT. The phrase is not really in common use.

If Reagonomics is effective why does the U.S., despite all its economic advantages, have massive budget and trade deficits and a low savings rate?

Why do major E.U. members have a massive trade surpluses with the rest of the world given that they have used socialist methods?

Actually they don't use socialist methods but I don't want you to assimilate too much new information at once in case your brain explodes.

[easycruise]

Originally posted by Nikk
If Reagonomics is effective why does the U.S., despite all its economic advantages, have massive budget and trade deficits and a low savings rate?

Why do major E.U. members have a massive trade surpluses with the rest of the world given that they have used socialist methods?

Actually they don't use socialist methods but I don't want you to assimilate too much new information at once in case your brain explodes.

I'll go slow here so your's doesn't explode. One reason Europe has a trade surplus is because the U.S. has a much higher standard of living than Europe. This from a liberal American website..."Many Europeans simple do not have enough money to buy U.S. products, regardless of their price".

http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=193700

So, in fact, it's backwards socialistic policies in Europe that are keeping it's citizenry un-wealthy which, in turn, is keeping the import side of the equation down. In fact, the U.S. has a whopping 50% HIGHER level of GDP per capita than Europe. The source for this data is another Bush-hating website..

http://www.eurolegal.org/uspoleur.shtml

I wouldn't want to be accused of quoting biased conservative sources, although I'm sure I could dig up a few gems that really blast Euroland. Let's not forget that Europe consistently has a much higher rate of unemployment than the U.S. does. No job, no money to buy imports.


The other reason why the U.S. has a trade deficit is oil imports. Whereas places like France use a lot of nuclear power, the US uses a lot more oil, which must be imported.