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> But trivial change could be to make pensions base on retirement age: someone can retire at 62, but get smaller pension, and another could retire at 78 but get
by NoLinkToMe 3y ago
> But trivial change could be to make pensions base on retirement age: someone can retire at 62, but get smaller pension, and another could retire at 78 but get much larger pension, plus have pension base on contribution.
That trivial change is essentially already the case. There's no law that requires you to work like some kind of slave. You can retire whenever you want. The laws are about the age to be eligible for full-retirement. You can already retire early and receive a lower retirement, or keep working for much longer and have a much higher income in retirement.
> corp tax dropped from 33 to 25 in last five years
To drive economic growth. France's gdp per capita is lower today than it was 15 years ago. In the US it's 45% higher than it was 15 years ago. France's corporate system wasn't working, and high taxes were a key reason from lots of studies.
Anyway, taxes aren't really that relevant for retirement. If a person needs to consume 10 units of goods/services (e.g. food, clothes, healthcare, whatever), and workers produce 40 units each, a population of 25 workers can produce 1000 units and sustain another 75 retirees (1000 production, 1000 consumption).
If you lower the retirement age such that there are just 15 workers and 85 retirees, you're now still consuming 1000 units, but only produce 600 units. There's massive shortages, prices skyrocket, and many people become poor because there's not enough production to meet their needs.
Raising lots of money through taxes doesn't change this fundamental issue. Even if you give everyone $ 1 trillion dollars of money, in this economic system, there's still not enough production to meet needs. So you need one of two things to solve it: more workers (= more production), or more productivity per worker (= more production). That latter point is not something the government can really control, although high taxes tend to drive productivity per worker down because economic activity is less rewarding to the source of the activity, as the activity is taxed. So high taxes can actually make this situation worse.
I'm aware I'm simplifying a lot but I hope it helps to show taxes don't address the root-cause issue.
- riku_iki 3y ago> To drive economic growth. France's gdp per capita is lower today than it was 15 years ago. In the US it's 45% higher than it was 15 years ago. France's corporate system wasn't working, and high taxes were a key reason from lots of studies. actually, high corp taxes can drive economic growth, because they give incentive to companies to reinvest into the business and not into shareholder's pockets.