5 Lessons from Europe for America

[geoffrobinson]

Five Lessons for America from the European Fiscal Crisis « International Liberty

1. Higher taxes lead to higher spending, not lower deficits. Miss Morandotti looks at the evidence from Europe and shows that politicians almost always claim that higher taxes will be used to reduce red ink, but the inevitable result is bigger government. This is a lesson that gullible Republicans need to learn – especially since some of them want to acquiesce to a tax hike as part of the “Supercommitee” negotiations.

2. A value-added tax would be a disaster. This was music to my ears since I have repeatedly warned that the statists won’t be able to impose a European-style welfare state in the United States without first imposing this European-style money machine for big government.

3. A welfare state cripples the human spirit. This was the point eloquently made by Hadley Heath of the Independent Women’s Forum in a recent video.

4. Nations reach a point of no return when the number of people mooching off government exceeds the number of people producing. Indeed, Miss Morandotti drew these two cartoons showing how the welfare state inevitably leads to fiscal collapse.

5. Bailouts don’t work. This also was a powerful lesson. Imagine how much better things would be in Europe if Greece never received an initial bailout. Much less money would have been flushed down the toilet and this tough-love approach would have sent a very positive message to nations such as Portugal, Italy, and Spain about the danger of continued excessive spending.

Best quote I heard today. "You know Europe is screwed up because they have a German pope and an Italian central banker."

[Sharkfood]

I don't get the opposition to a VAT from libertarian conservatives.

A vote against a VAT is a vote for higher income taxes and higher corporate taxes.

Why is a tax on investment preferable to one on consumption?

[sharkey]

I don't get the opposition to a VAT from libertarian conservatives.

A vote against a VAT is a vote for higher income taxes and higher corporate taxes.

Why is a tax on investment preferable to one on consumption?

Because we would end up with both.

[geoffrobinson]

I don't get the opposition to a VAT from libertarian conservatives.

A vote against a VAT is a vote for higher income taxes and higher corporate taxes.

Why is a tax on investment preferable to one on consumption?

1. Higher taxes lead to higher spending, not lower deficits. Miss Morandotti looks at the evidence from Europe and shows that politicians almost always claim that higher taxes will be used to reduce red ink, but the inevitable result is bigger government. This is a lesson that gullible Republicans need to learn – especially since some of them want to acquiesce to a tax hike as part of the “Supercommitee” negotiations.

Government spending will just go up more and sap more money out of the public sector. Conceptually, a sales tax of some sort is OK. But as Sharkfood mentioned, we'll end up with both. And the VAT is worse in some regards because it is hidden.

[hammersklavier]

Um, since the lesson Europe has for America is don't finance a welfare state* on debt, I don't see what this has much to do with anything. I call B.S.
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* As opposed to emergency recovery measures, which under Keynesianism are supposed to be deficit-financed.

[raider.adam]

I don't get the opposition to a VAT from libertarian conservatives.

A vote against a VAT is a vote for higher income taxes and higher corporate taxes.

Why is a tax on investment preferable to one on consumption?

Well, why do you think libertarian conservatives should support VAT?


I am personally against VAT.
1) Some of the reasons are increased costs of accounting.
2) Tax rates are predominantly hidden from the end user.
3) It creates an additional revenue stream for Congress (similar criticism I have for Cain's 9-9-9 plan).

I would only consider supporting VAT if it was to replace income and business taxes, not in conjunction with.