Those who earn more ,should pay more
- Thread starter thedaras
- Start date
Hmmm... so what more public expenditure would you cut exactly? If it's salaries, don't you think that those public servants not currently availing of Family Income Supplement would so so? Or would you cut that too? Wealthy people spend quite a bit of money alright - but less proportionately than those that earn less than them. Back to the drawing board with that one.
I'm not in favour of a flat rate tax and higher sales taxes but your points above don't make sense.
The point is that an astronomical reduction in public spending would require further reductions in salaries and/or public programmes (such as FIS). The replacement of income tax with a sales tax would disproportionately affect those who spend proportionately more of their income on items subject to a sales tax - i.e. the lower paid.
What makes you think it's the lower paid who spend proportionately more of their income on VATable items? A large proportion of their income must go on items not attracting VAT - accommodation, food, childrens clothes...
Ah, those sages of credibility - the esri - the guys who gave us such doozy's as the 'soft landing' and who predicted in 2008 that we would have 3.75% growth per annum for the next 9 years.
I agree, that it is unlikely to happen from top down. But I believe that if the western world continues as it has, then the whole system will fall apart and the changes, i.e. massive government spending cuts, will have to be introduced, there will be no choice in the matter.It would be lovely to wave a magic wand and arrive at this situation, however I'd imagine there would literally be blood on the streets if this was implemented. Given the nature of politics here and the voting system, no political party would even consider it. Finally, if it was implemented, then IMO it would only be a matter of time before the old ways crept back in....a td getting a new road built in his constituency etc etc.
Sadly, I think that all we can hope for is reduced government spending on a gradual scale, but I have my doubts here too
I would start by cutting out entire government departments, there are way too many that at the moment simply cannot be afforded, and even in good times are completely unnecessary; wages and welfare would also be cut.
When more wealthy people are attracted here because of tax reasons then more high level spending will come here which would attract higher VAT revenue, so no need to go back to any drawing board.
Hahahahahahaha
I see a war against China before that happens. The West will default 100% on bonds held by the Chinese (only) which would dramatically strenghten their balance sheets...if enough countries came on board then borrowing/lending would resume afterwards with little change. Of course the Chinese would be put back by half a century. Conspiracy theory for sure, but aren't we kinda due a war?
I don't think that percentage wise China holds enough foreign debt to be able to allow a selective default. China's foreign reserves are somewhere in the region of $3-4tr. While that is a large number it is quite small in comparison to what the EU and US has in outstanding debt.
If China were forced to write off that debt it wouldn't have much of an impact in the long run, as they have very little debt, they could continue operating as normal, as they do not eed to borrow to finance themselves.