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| quote: | Originally posted by Vyper0987
The way to stimulate consumption is to create jobs for people so that they have excess money to spend. Companies like GM are pulling out of regions like the Ruhr because the labor costs are WAY too high. They can move plants further east into Europe and pay much less. And now all of those former plant workers lose their jobs and have little disposable income. Jobs stimulate economies. More jobs, better wages, better economy.
Also, don't forget that countries still need the tax revenue, so if you flatten out income taxes, you have to make up for that tax revenue somewhere else...aka sales tax. Just because you're paying a lower income tax doesn't mean that you're winning tax-wise. The government will get you somewhere else. It's just reworking how they tax their citizens. |
Well, companies moving out is a problem for pretty much every traditional western country. I don't think that's the main problem for Germany, at least not before it wasnt. Then exports were doing good and was pretty much the only thing that held the economy together, no matter what the politicans said they couldn't increase consumption, which was the reason why Germany wasn't doing any good, at all.
Of course that's not the only reason why Germany are doing crap but one of the big ones as far as I understand it.
And as for flat tax, many times it has actually proven to generate about the same revenues at a lower tax rate.
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