Not sure if anyone else saw it, but CNN just said austerity measures are taxes.

[RandomThoughts]

They actually said that austerity measures, like imposed on third world countries by IMF or other world institutions are tax raises.

I have heard for years that austerity measures are spending cuts, and reduction in social spending. And those protesting those measures are not protesting taxes.


So why would they say that? To make all the people think the protesters in Greece, and other people protesting IMF and organizations like that are just talking about taxes.


Ridiculous fabrication.

With one intent, to change the meaning of that word and keep people in confusion.

[Xithras]

1. The "austerity measures" include a number of things.

1. They have to cut and freeze public employee wages.

2. They have to raise "sin taxes" on things like alcohol, etc.

3. They have to raise the sales tax (VAT).

4. New taxes on businesses.

5. A reduction in pension payments, and increased retirement ages for public workers.

So, it's a combination of cuts and new taxes to plug the budget hole. These were all in the Greek deal.

[RandomThoughts]

3. I agree a part can be tax raises.

But that is not what austerity measures are, that is only one method, and it also depends who and what they tax.

Rick added in more comments on the topic, that is better then the short segment that just mentioned taxes.

[Hannah Bell]

4. "have to"? 4/5 fall most heavily on labor v. capital. fuck their "have to".

$$ goes straight to the coffers of the banksters to pay off their bad bets.

what a scam.

[Hannah Bell]

2. confusion is what they do best. "the more you watch, the less you know"

[SpartanDem]

5. Greece has been ridiculously lax about tax collection

and the system is prone to cheating since people just declare their income and pay what they own. Well if you could just tell the IRS at the end year how much you made think you might lie? So cheating is done across all income levesl rich, middle class, poor. So Greece is not only raising taxes, but it is increasing overall enforcement.

The Finance Ministry believes that the new tax laws, which also increased the weight on income and value-added taxes, have laid the legal groundwork for better enforcement. In the past, the tax code gave many categories of workers special status. Entire professions were allowed to file a set income. For instance, newsstand owners could simply claim that they earned an income of 12,000 euros (about $15,900) and no questions were asked.

Now, most of these exceptions have been eliminated and the tax code has been simplified. It also offers various incentives to make people collect receipts — an important step, officials say, in shrinking the off-the-books economy.

Mr. Plaskovitis said that tax collectors had already begun using technology to crosscheck claims and that they had taken steps like asking luxury car dealerships for list of their clients. A lot of Greeks, he said, listed luxury cars as company cars, a practice that would be challenged in the future. “We do not believe you need a Porsche to sell Coca-Cola,” he said.

http://www.nytimes.com/2010/05/02/world/europe/02evasion.html?pagewanted=1

April 14 (Bloomberg) -- Greece’s parliament approved an overhaul of the country’s tax system, as the government of Prime Minister George Papandreou struggles to convince investors he will reduce the European Union’s largest budget shortfall.

The new legislation, which increases taxes for wealthier Greeks, was passed in principle today, with 158 lawmakers approving the law and 126 opposed. The vote will be followed by an article-by-article debate.


http://www.businessweek.com/news/2010-04-14/greece-passes-revolutionary-tax-overhaul-to-boost-revenue.html

[Statistical]

6. "Austerity measures" simply mean reducing deficit from 13% of GDP to 3%.

Nothing more nothing less.

They could do that with 100% spending cuts or they could do that with 100% tax raises.
Either way it cuts the deficit.

The plan is to do a little of both. More tax enforcement (tax evasion is a national pastime in Greece), spending freezes, pension freezes, higher VAT (sales tax), etc.