Class Warfare Tax Policy Causes Portugal to Crash on the Laffer Curve, but Will Obama Learn from this Mistake? « International Liberty

Portugal, the tiny European nation that is struggling with disastrous levels of government debt (over 120% of GDP) has actually led the USA in trying to find a solution to their government deficits. They, like the USA is doing now, raised taxes (no spending cuts like the USA too) but since the higher tax rates did not lead to more revenue, they are considering raising taxes again (naturally?). However, like the USA, they are not cutting government spending and are not considering cutting spending since people in Portugal are now too used to and dependent upon government entitlements to take them away....

And there are even signs that Portuguese officials are beginning to realize that lower tax rates should be part of the solution. But good policy may be impossible since so many people now have a moocher mentality.

This kind of moocher culture, a culture that many nations have developed over the past 40 years and a culture that is very strong in the USA, is too entrenched and vested in receiving their government transfer payments and free things. However, I suspect that like the USA, lower taxes will not be part of restructuring government finances not because it is a sensible approach but because it does not fit into the neo-liberal European style collectivist/socialist model. Neo-liberals, for some inexplicable reason, feel that they have to punish successful and working people by making them either pay higher taxes at their current level of work or encourage them to reduce their work or investment since the additional work and investment does not provide them with as high incremental returns.

It is a truly juvenile approach to the world. To me, its inexplicable. Its as if they are emperors and they can suspend reality and like fascism of the 1930's, it promises to devolve into destruction, poverty and death like it always has.

Class Warfare Tax Policy Causes Portugal to Crash on the Laffer Curve, but Will Obama Learn from this Mistake? « International Liberty