It’s been a rough couple of weeks for Greece, which has been battered by rumors of government default. Interest rates have been climbing, as investors are nervous about state finances, and the country’s debt rating has been downgraded.
Not surprisingly, Greek politicians are dealing with the crisis in large part by further increasing the tax burden. One particularly horrible idea is a 90 percent tax on bank bonus payments. I don’t know if lawmakers in Athens have heard of the Laffer Curve, but they’re about to get a real-world lesson that will teach them how punitive tax rates lead to less revenue.
For those who wonder how Greece got into this mess, here’s a quick chart I put together, based on OECD fiscal data. Don’t be surprised if America has a similar chart in about 10 years.
[...] if taxpayers were more obedient to the state. This is grossly inaccurate. A quick look at the budget numbers reveals that tax revenues have remained relatively constant in recent years, consuming nearly 40 [...]
[...] if taxpayers were more obedient to the state. This is grossly inaccurate. A quick look at the budget numbers reveals that tax revenues have remained relatively constant in recent years, consuming nearly 40 [...]
[...] (here) where he criticized a Times article regarding the Greek debt crisis: A quick look at the budget numbers reveals that tax revenues have remained relatively constant in recent years, consuming nearly 40 [...]
[...] if taxpayers were more obedient to the state. This is grossly inaccurate. A quick look at the budget numbers reveals that tax revenues have remained relatively constant in recent years, consuming nearly 40 [...]
[...] if taxpayers were more obedient to the state. This is an grossly inaccurate. A quick look at the budget numbers reveals that tax revenues have remained relatively constant in recent years, consuming nearly 40 [...]
[...] when I point out that the fiscal crises in nations such as Greece are the result of the opposite approach – letting the public sector grow faster than the productive sector of the [...]
[...] Politicians in Europe have spent decades creating a fiscal crisis by violating Mitchell’s Golden Rule and letting the government grow faster than the private sector. [...]
[...] Politicians in Europe have spent decades creating a fiscal crisis by violating Mitchell’s Golden Rule and letting the government grow faster than the private sector. [...]
[...] Daniel J. Mitchell writes in Helping to Explain Greece’s Collapse in a Single Picture: Politicians in Europe have spent decades creating a fiscal crisis by violating Mitchell’s Golden Rule and letting government grow faster than the private sector. [...]
[...] that take the opposite approach, however, eventually wind up in fiscal chaos. Just look at the data from Greece. Or other crumbling welfare [...]
[...] all the fiscal troubles in Greece, Spain, Ireland, Portugal, and Italy, there’s not much attention being paid to [...]
[...] all the fiscal troubles in Greece, Spain, Ireland, Portugal, and Italy, there’s not much attention being paid to [...]
[...] all the fiscal troubles in Greece, Spain, Ireland, Portugal, and Italy, there’s not much attention being paid to [...]
[...] Here’s a post that shows how Greece’s fiscal nightmare developed. But let’s show a separate chart for the burden of federal spending in the United States. [...]
[...] Here’s a post that shows how Greece’s fiscal nightmare developed. But let’s show a separate chart for the burden of federal spending in the United States. [...]
[...] all the fiscal troubles in Greece, Spain, Ireland, Portugal, and Italy, there’s not much attention being paid to [...]
[...] about Italy or Greece, nations that have spent themselves into fiscal [...]
[...] about Italy or Greece, nations that have spent themselves into fiscal [...]