Article

2015-08-05 Europe

Greek banks reopen but cash limits remain and taxes soar

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Posted by Besoeker 2015-08-05 01:46|| || Front Page|| [3 views ] Top

#1 taxes soar

That'll help the economy...

Posted by Bright Pebbles 2015-08-05 09:24|| 2015-08-05 09:24|| Front Page Top

#2 Doesn't matter how much taxes soar since almost nobody pays them. Or even can pay them.

Posted by Glenmore 2015-08-05 10:32|| 2015-08-05 10:32|| Front Page Top

#3 How Spain Fixed Its Economy

The government of Prime Minister Mariano Rajoy bowed to austerity demands, cut public-sector wages and benefits, and increased VAT to 21 percent (with exemptions) from 18 percent. Had he stopped there, Spain might have bumped along the bottom for a good while longer, rather than seeing the recovery it's now enjoying.

Low inflation, a cheap euro, the fall in energy prices and renewed financial stability in Europe have supported consumer spending and lifted Spain's beleaguered retailers. Holidaymakers have favored Spain this season, too -- in part because visiting Greece without bundles of cash has presented difficulties. Put much of all that down to luck.

But Spain's recovery today also owes a lot to hard reform aimed at particular failings in the economy. The Rajoy government braved street protests and the rise of an anti-reform left-wing opposition and persisted in a deliberate rewiring of the Spanish economy, with an emphasis on far-reaching labor-market and tax reforms.

In 2014, the government said it would gradually lower the corporate tax rate to 25 percent from 30 percent. The top marginal rate on personal income will fall to 45 percent from 52 percent. The government is limiting deductions, broadening the tax base and making a serious effort to curb evasion.

Companies have been given more flexibility to set wages and working conditions. Wage growth that had run ahead of productivity has moderated. The barriers that created Spain's notorious two-tier labor market, with its underclass of workers on temporary contracts, have begun to fall.

Spain is predicting 3.3% growth for this year. I shouldn't count on Greece following Spain's example in the near future, as the government is the anti-reform left wing and, as Glenmore points out, Greeks don't pay taxes.

Posted by trailing wife 2015-08-05 12:06|| 2015-08-05 12:06|| Front Page Top

#4 with its underclass of workers on temporary contracts, have begun to fall.

Looks like we've a ways to go in the U.S. Temp contracting is still on the rise. Thanks for the update TW.

Posted by Besoeker 2015-08-05 12:10|| 2015-08-05 12:10|| Front Page Top

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