Der Spiegel: German Example Shows Way Out of Debt Crisis (hint: raise taxes)

[marmar]

Almost all the industrialized economies are struggling under the weight of enormous debt levels. The problem is their government revenues are too low. Debt-ridden countries like the United States, Ireland and Japan need to raise their taxes to a similar level to Germany.

The global economic and financial crisis has led to a dramatic increase in government debt in recent years. Within the Organization for Economic Cooperation and Development (OECD), member countries' average debt ratio -- i.e., public debt relative to economic output -- increased significantly from 72 percent in 2007 to more than 100 percent in 2011. And there's no turnaround in sight for 2012.

In hindsight, there is no doubt that the states were correct to increase their debt. Without an expansionary fiscal policy and the extensive support programs for the banking system, the global economy would have plunged into a 1930s-style Great Depression during the past few years.

But how significant is this development in reality? If we take the OECD area as a whole, the increase in the debt ratio over the last four years means that national governments now have to cough up around 30 percent more in interest payments. .........(more)

The complete piece is at: http://www.spiegel.de/international/world/0,1518,779893,00.html

[dkf]

1. I am curious what level of taxes the middle class pays if their Revenue is 43% of GDP.

Surely it has to be more broad based to get up to that level

[Commie Pinko Dirtbag]

4. For one thing, the % of population you can hardly tax because they live on peanuts is way lower. -nt

[dkf]

5. Aren't you working for peanuts if you pay 43% of your salary in taxes?

[Commie Pinko Dirtbag]

6. No.

[dkf]

8. If I got taxed at that rate I would be.

And if that's an average that means some pay more. Could you pay your bills if you were at the 43% federal bracket?

[Commie Pinko Dirtbag]

9. ''Could you pay your bills if you were at the 43% federal bracket?''

Hell YES I could. Much easier than if I was at the 0% federal bracket.

[dkf]

10. If your current earnings were taxed at the 43% federal bracket could you pay your bills?

[Commie Pinko Dirtbag]

12. I'd have as much chance of being in a 43% tax bracket as of being drafted to run the 100 meters dash

at the Summer Olympics.

So the question is moot.

[Commie Pinko Dirtbag]

13. Here's the opinion of somebody who lives under the awful tyranny of the Evil 43% Top Tax Bracket

and is lurking this discussion. Such person has given me permission to forward their thoughts:

a) You don't get progressive taxes. Right wingers want flat tax because it hurts the poor and because they can wrap their little brains around it.

b) You don't get that services rendered by the government save the middle class money. They are negative taxes. That's why we have more disposable income at higher taxes in Europe. (The top tax bracket of 43% starts at 60k/year ffs and rightly so - actually there should be a few more brackets)

c) Public/unionized social security beats private retirement saving plans every time. Equipped with enough money, public plans invest the money for the benefit of their savers and use their influence accordingly. Private plans and banks use the influence brought by managing the savings more often than not against the interest of the savers. That's why 401k is a horrible idea. Restricted investment options that leave little options to actually use the benefits of owning stock - it's just a huge gift to the banks that would be much more effective if merged with social security.

[eridani]

16. Hell yes I could. Because the bills for health care, education

--and many other public goods paid for by those taxes would disappear.

[shoutinfreud]

14. High taxes help feed the infrastructure of the economy, which helps YOU live well.

Healthcare, business development, roads. All these things are needed in order to have a healthy society, a healthy society is needed for YOU to make money.

[indurancevile]

7. 1% of the population has 40% of the income. what don't you get?

[dionysus]

2. right. now we need to gain a majority in the House to be able to do it.

[eomer]

3. A majority of what? A majority of Democrats is apparently not good enough.

We had a Democratic majority in both houses and a Democratic President in 2009 and 2010 and they didn't do it. I agree with you but let's be clear that it's a majority of Progressives we need, not merely Democrats.

[sudopod]

11. OH NOES, NOT TEH SOCIALISMS!!!!111one nt

[xchrom]

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