Comments for Impossible German Debt Target at http://www.cepr.net , comment 1 to 5 out of 5 comments http://www.cepr.net Sat, 25 May 2013 06:51:13 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/impossible-german-debt-target/#comment-862 Three problems with Laffer's analysis: 1) Most likely the Bush tax cuts will be extended for those earning under $200,000 per year, so there won't be a drastic change for most people. 2) Most people don't have much ability to shift income from one year to the next. That is a salaried employee has less options than those working on "deals" in which the form and timing of income is flexible. Note) For those situations, income shifting absolutely happens. For example, "carried interest" is a tax dodge which takes advantage of lower rates for capital gains; instead of fees taxed at income rates, the manager gets a percentage ownership in the entity created by the deal, thus when it is sold a capital gain is recognized. 3) Laffer always focuses on the negative implications of taxes. But there are positives also, in that government borrowing declines, and government spending does positive things. A large part of Government spending just moves money from workers to retirees, from healthy to sick, and from civilians to soldiers. Similar blind spots occur when spending constraints are proposed; attention is drawn to the spending cut's negative effects, but not to the positive benefits of more income available to country at large. - AndrewDover Tue, 08 Jun 2010 04:17:45 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/impossible-german-debt-target/#comment-855 Can I get some informed commentary on this article please... http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html - Daniel Mon, 07 Jun 2010 17:54:23 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/impossible-german-debt-target/#comment-844 The German Parliament voted a change to the German Consitution, under which the public deficit has to fall within the 3% deficit stipulated by the Maatricht Growth and Stability Pact - charles Mon, 07 Jun 2010 04:04:21 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/impossible-german-debt-target/#comment-841 The NYT article text: "This means the national debt has to be limited to a maximum of 0.35 percent of gross domestic product by 2016, thus putting immense pressure on the government to find savings now." is just factually wrong. "Revenues and expenditures shall in principle be balanced without revenue from credits. This principle shall be satisfied when revenue obtained by the borrowing of funds does not exceed 0.35 percent in relation to the nominal gross domestic product." https://www.btg-bestellservice.de/pdf/80201000.pdf Page 102-103 Article 115. The current situation is displayed graphically at http://www.spiegel.de/fotostrecke/fotostrecke-54629-3.html - AndrewDover Mon, 07 Jun 2010 03:31:54 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/impossible-german-debt-target/#comment-838 "hopefully an editor will get it straightened out" Dean, you've crossed the threshold from dry humor to outright dessicated. Personally I like it. - alex Mon, 07 Jun 2010 02:52:28 +0100