Daily Economy Thread

[Luc 4,776]

As you say it I don't think the real issue is capitalism, as it's a system but to me, it seems that it lost it's goal. Now it's making money, for more money, for more money, even if it costs, lives, resources, and so on... It's weird.

 

 

What denmark is planning on entering the eurozone? Do you think it means the pay is gonna get lower... I wish not

Denmark isn't planning to... but their Central Bank Leader wants it.

Denmark is extremely eurosceptic with huge nationalist parties. I remember being there a year ago and Copenhagen was full with posters for a referendum on some EU rule or sth only Denmark cares about.

[Miker 5,683]

The stock markets are always looking for anything positive from the Eurozone. It just seems there is always a negative aspect or an nonsustaining confidence when it comes to the Europe countries.

[Luc 4,776]

Deflation of 0,7% in January in the Netherlands

http://www.z24.nl/economie/serieuze-deflatie-in-nederland-bij-start-2015-crash-olieprijs-en-uitverkoop-537746

Reasons:

- low oil price

- warm winter caused low sales of winter clothes, causing big sales in January

- super market prices going down because of big competition

 

 

Greek economy shrank 0,2% Q4 2014, mostly thanks to people being scared for a possible Syriza election victory.

The average Eurozone growth was 0,2% in Q4. Germany and the Netherlands did quite well, with respectively 0,7% and 0,5% growth, mostly thanks to a much bigger export thanks to the cheap Euro.

Eurozone growth over all of 2014 was 0,9%.

Germany's economy grew 1,6% over all of 2014. Stagnation hew?

[Economy 52,861]

Deflation of 0,7% in January in the Netherlands

http://www.z24.nl/economie/serieuze-deflatie-in-nederland-bij-start-2015-crash-olieprijs-en-uitverkoop-537746

Reasons:

- low oil price

- warm winter caused low sales of winter clothes, causing big sales in January

- super market prices going down because of big competition

 

 

Greek economy shrank 0,2% Q4 2014, mostly thanks to people being scared for a possible Syriza election victory.

The average Eurozone growth was 0,2% in Q4. Germany and the Netherlands did quite well, with respectively 0,7% and 0,5% growth, mostly thanks to a much bigger export thanks to the cheap Euro.

Eurozone growth over all of 2014 was 0,9%.

Germany's economy grew 1,6% over all of 2014. Stagnation hew?

thats good deflation tho

 

low oil prices lower business costs which means if they pass on savings to customers, it doesnt affect their profits or earnings neither does it affect stocks negatively or cause pay cuts for employees... its just lower business costs and the consumer saves

 

And competition encourages efficiency and prevents companies from exploiting the consumer

 

really deflation of 0.7% is not gonna start a downward spiral. Youd have to be really cheap to delay buying products and hoard money for a whole year because you anticipate prices to fall 0.7%

 

Im not the only one who thinks like this. Many experts agree that the root cause of inflation or deflation is just as important if not more so than the number itself. And also that some people blow the negative effects of low inflation way out of proportion

 

Deflation because people arent spending and demand is low is bad. And corporate earnings drop, business investment stops leading to more job losses etc...

 

Deflation because of lower energy prices for instance wont have any of those implications and over-all is of net positive.

[Woolfsmck 2,763]

Deflation of 0,7% in January in the Netherlands

http://www.z24.nl/economie/serieuze-deflatie-in-nederland-bij-start-2015-crash-olieprijs-en-uitverkoop-537746

Reasons:

- low oil price

- warm winter caused low sales of winter clothes, causing big sales in January

- super market prices going down because of big competition

 

 

Greek economy shrank 0,2% Q4 2014, mostly thanks to people being scared for a possible Syriza election victory.

The average Eurozone growth was 0,2% in Q4. Germany and the Netherlands did quite well, with respectively 0,7% and 0,5% growth, mostly thanks to a much bigger export thanks to the cheap Euro.

Eurozone growth over all of 2014 was 0,9%.

Germany's economy grew 1,6% over all of 2014. Stagnation hew?

Actually, fuel prices directly impact food prices the most. Large scale farming requires diesel powered equiptment. Shipping, and temp control all use energy in food production. Plus, most people need to drive to the store to buy food, lower fuel costs help.

[Economy 52,861]

Deflation of 0,7% in January in the Netherlands

http://www.z24.nl/economie/serieuze-deflatie-in-nederland-bij-start-2015-crash-olieprijs-en-uitverkoop-537746

Reasons:

- low oil price

- warm winter caused low sales of winter clothes, causing big sales in January

- super market prices going down because of big competition

Greek economy shrank 0,2% Q4 2014, mostly thanks to people being scared for a possible Syriza election victory.

The average Eurozone growth was 0,2% in Q4. Germany and the Netherlands did quite well, with respectively 0,7% and 0,5% growth, mostly thanks to a much bigger export thanks to the cheap Euro.

Eurozone growth over all of 2014 was 0,9%.

Germany's economy grew 1,6% over all of 2014. Stagnation hew?

You know Europe is really messed up when your partying over numbers like that. We should all be worried, EU is starting to sound like Japan who parties when the economy grows 1.5%

Here in Canada our politicians have taken so much fire because they cant get the economy past "modest growth" at 2% to 2.5% a year. Same in the US for the past 6 years

I think we should give the EU our mediocre growth rates. Ud hyperventilate from all the exitement if that supposibly great 2% growth was yours :awkney:

[Luc 4,776]

You know Europe is really messed up when your partying over numbers like that. We should all be worried, EU is starting to sound like Japan who parties when the econoy grows 1.5%

Here in Canada our politicians have taken so much fire because they cant get the economy past "modest growth" at 2% to 2.5% a year. Same in the US for the past 6 years

I think we should give the EU our mediocre growth rates. Ud hyperventilate from all the exitement if that massive 2% growth

I would. Anything above 1% is good for me right now.

[Woolfsmck 2,763]

http://www.nytimes.com/2015/02/14/upshot/states-consider-increasing-taxes-on-poor-cutting-them-on-affluent.html?abt=0002&abg=0&_r=0

States Consider Increasing Taxes for the Poor and Cutting Them for the Affluent

I agree that consumption tax should be the main revenue source for states. Considering the large percentage of people who pay no taxes at all.

But under the current system, the proposal does seem to penalize the wage earners more than the employers.

[Economy 52,861]

http://www.nytimes.com/2015/02/14/upshot/states-consider-increasing-taxes-on-poor-cutting-them-on-affluent.html?abt=0002&abg=0&_r=0States Consider Increasing Taxes for the Poor and Cutting Them for the Affluent

I agree that consumption tax should be the main revenue source for states. Considering the large percentage of people who pay no taxes at all.

But under the current system, the proposal does seem to penalize the wage earners more than the employers.

But the consumption tax is nothing but a tiny extra. Health Care, Education, Infrastructure, Social programs etc you need other bigger sources of taxes to cover that like income tax and corporate taxes

I know in the US its different and most of the Spending is from the Federal Government and only a portion from States. Its a bit different in my Country where nearly 40% of Government Spending is Provincial

Still tho, im sure even US States have too much responsibilities to try to rely on sales tax/consumption taxes :rip:

[Woolfsmck 2,763]

But the consumption tax is nothing but a tiny extra. Health Care, Education, Infrastructure, Social programs etc you need other bigger sources of taxes to cover that like income tax and corporate taxes

I know in the US its different and most of the Spending is from the Federal Government and only a portion from States. Its a bit different in my Country where nearly 40% of Government Spending is Provincial

Still tho, im sure even US States have too much responsibilities to try to rely on sales tax/consumption taxes

Consumption tax doesn't cover the total revenue necessary to provide public services and run a gov. under the current system. Increasing them places the burden on the lower tier wage earners because they also pay income tax. Eliminate the income tax completely. Increase consumption tax percentages. That way, non resident/citizen members of the population also contriute. Currently, the percentage is lopsidced because of the number of individuals who skirt the system. Placing the revenue collection at the point of sale will reduce loopoles. Wealthy people buy high ticket items and will pay a proportional increase.

[Economy 52,861]

Consumption tax doesn't cover the total revenue necessary to provide public services and run a gov. under the current system. Increasing them places the burden on the lower tier wage earners because they also pay income tax. Eliminate the income tax completely. Increase consumption tax percentages. That way, non resident/citizen members of the population also contriute. Currently, the percentage is lopsidced because of the number of individuals who skirt the system. Placing the revenue collection at the point of sale will reduce loopoles. Wealthy people buy high ticket items and will pay a proportional increase.

still tho. i dont see how u can replace income taxes with sales tax... But then again US income taxes are lower for States so maybe. I dont know. I definitely wouldnt work here in Canada because Provinces pay for too much stuff

 

The income taxes for ONTARIO are:

 

5.05% on the first $40,922 of taxable income

9.15% on $40,922 to $81,847

11.16% on $81,848 to $150,000

12.16% on $150,001 to $220,000

13.16 % on the amount over $220,000 (top income bracket)

 

Sales Tax 8% Corporate Taxes: 10.5%

-------------------------------------------------------------

 

CANADA FEDERAL Income Tax

 

15% on the first $44,701 of taxable income,

 22% on the portion of taxable income over $44,701 to $89,401

 26% on the portion of taxable income over $89,401  to $138,586

 29% of taxable income over $138,586. (top income bracket)

 

Sales Tax 5%   Corporate Taxes: 15%

 

the amount of revenue these taxes provide would never be replaceable with consumption tax. Oh and btw, sales tax is actually considered a regressive tax. Because although in total numbers rich people will buy more, as a percentage of their income, poor people spend more on sales tax than rich people.

[Woolfsmck 2,763]

the amount of revenue these taxes provide would never be replaceable with consumption tax. Oh and btw, sales tax is actually considered a regressive tax. Because although in total numbers rich people will buy more, as a percentage of their income, poor people spend more on sales tax than rich people.

All those numbers and tiered progression.

Show the actual revenue from sales taxes vs. actual revenue from income tax.

Also, the loopoles. The actual percentage of revenue that the top tier pays under the current system is much less than the lower brackets.

Leveled taxation is the goal, and the euphemistic 'tax the rich' doesn't work when there are rich people making the rules.

Consumption tax is percentage based without loopoles. The revenue generated vs. current system is what I dissagree with.

[Economy 52,861]

All those numbers and tiered progression.

Show the actual revenue from sales taxes vs. actual revenue from income tax.

Also, the loopoles. The actual percentage of revenue that the top tier pays under the current system is much less than the lower brackets.

Leveled taxation is the goal, and the euphemistic 'tax the rich' doesn't work when there are rich people making the rules.

Consumption tax is percentage based without loopoles. The revenue generated vs. current system is what I dissagree with.

thats true... but its still a regressive tax. it may be virtually impossible to avoid but its a tax u can only collect so much from. Unless u made the rates really high in which case ppl wouldnt wanna shop and ud slow the whole economy

 

What needs to be done particularly in the US is to simply lower the taxes but cut out loopholes and simplify it

 

For instance here in Canada our Corporate taxes are only 15% (24% to 27% with Provincial taxes depending on the Province) vs 35% in the US at the Federal Level alone. Our top income bracket tax rate at 29% is also lower than the US top income tax rate of 36% or 37% something like that right?

 

But Corporate taxes and top income taxes are not necessarily that much cheaper in Canada because our laws cut out loopholes more strickly. The taxes are lower but more certain

 

In the US you tax your wealthy more but its easier for them to escape at least some of the official tax rate they are suppostu

[Woolfsmck 2,763]

thats true... but its still a regressive tax. it may be virtually impossible to avoid but its a tax u can only collect so much from. Unless u made the rates really high in which case ppl wouldnt wanna shop and ud slow the whole economy

 

What needs to be done particularly in the US is to simply lower the taxes but cut out loopholes and simplify it

 

For instance here in Canada our Corporate taxes are only 15% (24% to 27% with Provincial taxes depending on the Province) vs 35% in the US at the Federal Level alone. Our top income bracket tax rate at 29% is also lower than the US top income tax rate of 36% or 37% something like that right?

 

But Corporate taxes and top income taxes are not necessarily that much cheaper in Canada because our laws cut out loopholes more strickly. The taxes are lower but more certain

 

In the US you tax your wealthy more but its easier for them to escape at least some of the official tax rate they are suppostu

I wanna see statistics and numerical values on this topic. Liberals shoot down the idea immediately because the conservatives propose it.

And in some states (Montana) there is no sales tax , Florida no state income tax. Two opposing revenue stategies. Florida gets a huge amount of tourism, and they rely primarily on sales tax. Even their state property tax is pretty low.

Raising the sales tax would make the cost of items appear much higher, but remember, eliminating income tax gives wage earners their 'whole' pay check. So when you look at your pay stub, no deductions, what you earn is what you get. I would like to see some hard numbers along this type of tax policy.

I think the economy would be stimulated since most people would have more money in their pockets to spend as they choose rather than big brother controling about %50 of every dime they earn.

[Economy 52,861]

I wanna see statistics and numerical values on this topic. Liberals shoot down the idea immediately because the conservatives propose it.

And in some states (Montana) there is no sales tax , Florida no state income tax. Two opposing revenue stategies. Florida gets a huge amount of tourism, and they rely primarily on sales tax. Even their state property tax is pretty low.

Raising the sales tax would make the cost of items appear much higher, but remember, eliminating income tax gives wage earners their 'whole' pay check. So when you look at your pay stub, no deductions, what you earn is what you get. I would like to see some hard numbers along this type of tax policy.

I think the economy would be stimulated since most people would have more money in their pockets to spend as they choose rather than big brother controling about %50 of every dime they earn.

but income tax u loose no matter what... Sales tax u can avoid by shopping less. So i still think sales tax too high woukd cause that

In Portugal they raised it to 21% a few years back and ppl did shop less

I dont maybe its worth a try. I know in my Country it woukdnt work. Provinces are responsible for too big a chunck of Government spending to let go of income taxes or Corporate Taxes

Our Federal taxes are lower than in the US. But our Provinces rake in much more money than US States