Spending as a share of GDP: USA 38%; Germany 42%

Discussion in 'Politics' started by Euroconservativ, Dec 24, 2012.

  1. Euroconservativ
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    Euroconservativ Member

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    Total spending (federal, state and local). Only 4 points difference

    Germany has a national VAT of 19% and will balance the budget in 2013. The VAT in the EU ranges from 15% in Luxembourg to 25% in Denmark and Sweden and 27% in Hungary. No member state is allowed to cut it below 15%.

    Revenue structure in the European Union (source: Eurostat):
    - 50% from taxes on labour
    - 33% from taxes on consumption
    - 16% from taxes on capital


    It seems that the "free stuff and tax the rich" propaganda is successful: according to recent polls, most Americans oppose spending cuts in social programs and defense and support tax hikes only for the top 2%. That's pretty illogical.

    You can go after the wealthy, create a tax rate of 75% for millionaires like France... but it will never be enough. Eventually, if you want a spending level of 35-40% of GDP, you have to increase taxes on everyone (or create new ones).
     
  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Germany is supporting practically the entire European Union and it's Euro which is sinking fast.

    Interesting that both World Wars were preceded by German Economic Might. Hmmm.
     
  3. Missourian
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    Missourian Gold Member

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