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Their loans get more expensive, and everyone who loaned to them has to write off the loans, or extend them a lot. Greece's loans are currently 1 year, if I unde
by tobylane 15y ago
Their loans get more expensive, and everyone who loaned to them has to write off the loans, or extend them a lot. Greece's loans are currently 1 year, if I understood correctly the plan for their default is to turn them into 30 year loans, like South America did ~25 years ago.
Also, like Greece is now, the country has to have massive public service cuts, and tax hikes. Have the republicans been asked about the possibility of this?
- StavrosK 15y agoI read an article the other day about how about 54% of an average salary goes to the government in one form or another. Unfortunately, it's in Greek, but, from what I saw, it was very accurate.
- tobylane 15y agoThat's true of most countries, and it's much lower than it used to be, mid Cold War UK and US top tax rates were 85 and 90 just for income tax. Now top tax rate is 50, but then you have National Insurance (NHS) and so on. If you buy something pre-tax you can save over 60%.
- StavrosK 15y agoThat's for top tax rate, though (over 100k, in Greece). I'm talking about the more average salaries, about 45k gross, which comes out to about 1700 EUR/mo net (after just income tax and insurance payments). Taxes on cigarettes, gas, etc are still absurdly high (something like 80% of the price of cigarettes is tax, if I remember correctly).