Comments by "looseycanon" (@looseycanon) on "Why Austerity is Returning to Europe" video.

  1. That won't help. Landowners have the right to set their prices and the need for housing is extremely price inflexible. The landlords would simply forward that tax increase to tenants.
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  2. that is the problem. Ceteris paribus is a strong requirement, which is almost never met. That same 15% VAT means something else in one year and the other, for instance, because of total yearly expanded discretionary income (income after taxes, housing, utilities and expenses to hold down a job). If this is higher, then you earn more on VAT, but if economy is not growing as fast, this discretionary income can even fall year on year despite economic growth, people start saving for worse times and you'll end up paradoxically with lower tax revenue year on year.
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  3. Yeah, problem is, these effects did not come to pass just yet. You know, how things work around here... we try something and it always ends poorly...
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