PS. Is there a Greek edition coming?
The graph below illustrates how both tax rates and tax revenues are at historical lows in the post-WWII period. If history is any guide, taxes in the United States are likely to rise. Unless the electorate has changed drastically and will decide to liquidate the major functions of the Federal Government, tax revenues as a percentage of GDP will need to rise in years ahead, just to get back to historical norms. This is before considering the additional revenue that will be needed to support the growing costs of Medicare and Social Security.
Sources: IRS, OMB
What is to come?
Fiscal Cliff means recession.
Tax Foundation: http://taxfoundation.org/article/fiscal-cliff-primer
In case you missed it here is a recount of “who is who”:
- “Russia is not Greece.” Vladimir Putin, Russian Prime Minister, March 2010.
- “France is not Greece.” Christian Lagarde, director of the International Monetary Fund, May 2010.
- “Portugal is not Greece, and Spain is not Greece.” Jean-Claude Trichet, President of the European Central Bank, May 2010.
- “Spain is not Greece. But Greece is where it is thanks to a policy like Zapatero’s policy in Spain.” Mariano Rajoy, leader of the Spanish opposition, May 2010.
- “Hungary is not in the same situation as Greece.” Olli Rehn, EU Commissioner for Economic and Monetary Affairs, June 2010.
- “Hungary is quite obviously not Greece.” Gyorgy Matolcsy, Hungarian Finance Minister, June 2010.
- “Spain is neither Ireland nor Portugal.” Elena Salgado, Spanish Minister of Finance, November 2010.
- “Ireland is neither Spain nor Portugal.” Angel Gurria, OECD Secretary-General, November 2010.
- “Ireland is not Greece.” Angela Merkel, German Chancellor, November 2010.
- “Greece is not Ireland.” Giorgos Papakonstantinou, Greek Minister of Finance, November 2010.
- “Ireland is not in Greek territory.” Brian Lenihan, Irish Minister of Finance, November 2010.
- “Ireland is not Greece.” Michael Noonan, Irish Minister of Finance, June 2011.
- “France is not Greece and it’s not Italy either.” Barry Eichengreen, American economist, August 2011.
- “Italy is not Greece.” Rainer Bruederle, Germany’s FDP parliamentary party leader, August 2011.
- “Italy is not Greece.” Silvio Berlusconi, Italian Prime Minister, October 2011.
- “Austria is not Greece.” Karlheinz Kopf, parliamentary faction leader of Austria’s People’s Party, November 2011.
- “Italy is not Greece.” Christian Lindner, FDP general secretary, November 2011.
- “Portugal is not Greece, and it will not turn into Greece.” Antonio Saraiva, head of the Confederation of Portuguese Industry, February 2012.
- “Spain is not Greece.” Richard Youngs, head of the Madrid-based think tank FRIDE, May 2012.
- “Portugal is not Greece.” Pedro Passos Coelho, Portuguese Prime Minister, June 2012.
- “Italy is not Spain.” Ed Parker, senior director of Fitch Ratings Agency, June 2012.
- “Greece is not Argentina.” Yiannis Stournaras, Greek Minister of Competition, July 2012.
- “Germany is not Zimbabwe.” Paul Casson, fund manager from Henderson Global Investors, June 2012.
- “Spain is not Uganda.” Mariano Rajoy, Spanish Prime Minister, June 2012.
- “Uganda does not want to be Spain.” Asuman Kiyingi, Foreign Minister of Uganda, June 2012.
- “Spain is not Greece.” Elena Salgado, Spanish finance minister, February 2010.
- “Portugal is not Greece.” The Economist, April 2010.
- “Greece is not Ireland.” George Papaconstantinou, Greek finance minister, November, 2010.
- “Ireland is not in ‘Greek Territory.’” Brian Lenihan, Irish finance minister, November 2010.
- “Neither Spain nor Portugal is Ireland.” Angel Gurria, OECD secretary-general, November, 2010.
- “Italy is not Spain.” Ed Parker, Fitch director, June 2012.
Last update: Friday, 06th September, 2013
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