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France extreme tax rates

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Helsworth
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Post: #11
RE: France extreme tax rates

After WW2, the americans were worried about another Great Depression. Since they were the only ones with a surplus, and Europe was left in ruins, they had to figure out how to keep on producing, on how to keep people employed? So they loaned dollars to Europe, so europeans could buy american exports. The US recycled its surpluses the most in two particular countries, which had huge geopolitical value: RFG and Japan.
Of course, they asked themselves? But where will the european get the necessary dollars to pay the interest on their loans? Well, that's easy. We'll provide them with the dollars to make those interest payments.
So while the US was a net exporter, at the same time it was a net importer of capital. But after the subsequent wars after WW2, America had ran out of any surplus to recycle. Instead, the country was running deficits. What did they decide? We'll recycle the surplus of you other guys.
You, arabs, we'll pay you in dollars whatever oil prices you want, but you better recycle those dollars back into our economy or else we'll come here and kill you.
You, japs, you're gonna sell us cars and engines for a few decades, and in return we'll give you nothing, just paper (dollars).
And that's how it went down. Why do you think China has been the slave producer of the world? It created its trade surplus in order to protect itself. They ran a trade surplus in order to acquire dollars, the universal accepted currency. And they used those dollars to buy strategic resources and technology. They couldn't buy them with the yuan, obviously ^^.
So, yes. Production is demand driven. You don't eat because you've made yourself a sandwich; you've made yourself a sandwich because you want to eat. The main factor which drives job creation and production is sales. Only after sales do the other motives arise, like the high cost of a loan, or high taxes.
So with high taxes on wealth, companies are still able to thrive, simply because of strong aggregate demand correlated with low interest rates on loans. A government with monetary sovereignty can keep the interest rate near 0 indefinitely.
Austerity and QE don't spur growth, they punish the savers. Banks can have all the reserves they want, if households and small and medium businesses are depressed (they're trying to deleverage), they're not gonna want to acquire new loans. Besides, the corrupt banking system is gonna play with that money on stupid shit like financial derivatives: credit default swaps, sub-primes, and other fraudulent crap.
Unlike Wall-Street, Mainstreet is starved for dollars and the eurozone countries are starved for euros.


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28.03.2013 22:36
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Tahooper
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Post: #12
RE: France extreme tax rates

France raising their taxes, UK reducing their taxes to maximum 45% income tax and 20% corporation tax (the 2nd or 3rd lowest in the EU I think).

This can only mean one thing - French businesses are going to invade the UK Jaja

(probably completely wrong but oh well)

16.04.2013 23:34
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