Posted on 06/24/2015 5:48:52 AM PDT by Oldeconomybuyer
The International Monetary Fund is cautious about the mix of reforms Greece has proposed, saying they rely too heavily on tax increases that can hurt the economy.
The IMF’s concern is that Greece’s proposed reforms should be more related to spending cuts rather than tax rises which hit businesses.
The new proposals by Athens aim to raise €8bn, mostly through new taxes on the wealthy and businesses, early retirement restrictions, VAT increases and a cut in defence spending.
(Excerpt) Read more at news.sky.com ...
Just like a drug addict who does anything and everything to keep using drugs, Greece will do anything and everything to keep the spending and entitlement gravy train going. Spending must be protected at all — all — costs.
Why not? In today's world of bail-ins it is only yet another transfer from makers to takers. Isn't Socialism grand?
Since avoiding taxes is a national pastime in Greece, this should really make a difference.
I’m just guessing. Won’t the Greek population’s response to their leaders proposing more taxes to pay for the EU loans that haven’t benefited the little folk be just a bit on the hostilely outraged side?
Sounds familiar. I'm sure the Greeks will experience similar success.
Nothing can save Greece, this is all just a game of musical chairs among international bankers designed to buying time, to trade the bonds to someone else (like U.S. and E.U. tax payers). In the end the bankers win and the tax payers lose.
It’s going to fail. The public is hurting enough already. They will squawk. The tax hikes will further destroy productivity and jobs. The underground economy will rise fast, further cutting tax revenue.
I see no way out of it for Greece. Unfortunately, I don’t see Germany, France or Italy doing anything but giving Greece more money. The end result will be the same in any case.
Yeah..the Italians invented double book keeping....
And the Greeks (with computers) invented triple book keeping....
One set of books to show the tax man...including a small envelope (bribe).
Second set of books to show to spouse (minus funny money to mistress, gambling and other activities)
final (and private) set of books showing true state of the business.
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