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If you believe the proposed solution was 'increase taxes', you are uninformed and should have refrained from commenting on this topic.

rockinghigh 11y ago
The offered deals included reducing pensions and increasing tax revenues.
- Confusion 11y ago
  Yes, increasing tax revenues. That does not mean increasing taxes. A major problem in Greece is that taxes aren't being paid. Raising taxes does not solve that problem.
  - pvaldes 11y ago
    Increasing VAT means increasing taxes. The funny fact is that the experiment backfired totally in other countries and both Tsipras and the Troika know it. When Spain increased VAT forced by the Troika, revenues dropped instead to increase. People just started refusing to buy at the new prices and the government lost millions in its expected tax revenue, increasing the crisis instead to solving it. Maybe by design. The troika for instance force the government to raise VAT from 4% to 21% in barbershops. As result of this, more than 13.000 small beauty salons, otherwise doing reasonably well, closed in only two years. This means adding about 34.000 people to unemployment statistics (and also that VAT revenues from those business fell suddenly from 21% to 0%). Finally, as expected, troika nonsense is hurting also Deutschland. As companies were earning less and being taxed more, some closed or relocated and people get fired and stop buying as happily as before. German products are losing grip in the market at the new tax prices imposed by germany, just because China can always offer cheaper replacements. Germany industry was selling 'trust', not 'cheap', but troika repeated failures blowing up the middle class had damaged seriously the trust or the need to the germany expertise.
  - deleted 11y ago
    [deleted]
autokad 11y ago
wow somebody is touchy, did you by a Greek bond or something? the deal included both increasing taxes and cutting spending / pensions. personally I feel both are wrong in a recession

rockinghigh 11y ago

The offered deals included reducing pensions and increasing tax revenues.

Confusion 11y ago
Yes, increasing tax revenues. That does not mean increasing taxes. A major problem in Greece is that taxes aren't being paid. Raising taxes does not solve that problem.
- pvaldes 11y ago
  Increasing VAT means increasing taxes. The funny fact is that the experiment backfired totally in other countries and both Tsipras and the Troika know it. When Spain increased VAT forced by the Troika, revenues dropped instead to increase. People just started refusing to buy at the new prices and the government lost millions in its expected tax revenue, increasing the crisis instead to solving it. Maybe by design. The troika for instance force the government to raise VAT from 4% to 21% in barbershops. As result of this, more than 13.000 small beauty salons, otherwise doing reasonably well, closed in only two years. This means adding about 34.000 people to unemployment statistics (and also that VAT revenues from those business fell suddenly from 21% to 0%). Finally, as expected, troika nonsense is hurting also Deutschland. As companies were earning less and being taxed more, some closed or relocated and people get fired and stop buying as happily as before. German products are losing grip in the market at the new tax prices imposed by germany, just because China can always offer cheaper replacements. Germany industry was selling 'trust', not 'cheap', but troika repeated failures blowing up the middle class had damaged seriously the trust or the need to the germany expertise.
- deleted 11y ago
  [deleted]

autokad 11y ago

wow somebody is touchy, did you by a Greek bond or something? the deal included both increasing taxes and cutting spending / pensions. personally I feel both are wrong in a recession