Paul de Grauwe: Solve the purchasing power crisis by transferring money from higher incomes to lower incomes

17 comments
  1. “De rijkste Belg is de overheid, met een jaarlijks inkomen van boven 200 miljard euro. Ondanks zijn gigantische inkomen is die rijkste Belg er niet in geslaagd over de generaties heen een eigen vermogen op te bouwen. Hij heeft alleen maar een groeiende schuld. Niet echt een voorbeeld voor zijn inwoners.

    Het wordt hoog tijd dat we twee eindjes verbinden: een hoger nettosalaris voor al wie werkt door het verlagen van de last op arbeid gefinancierd door het ontvetten van de rijkste Belg. De doelstelling van die ontvetting is 5 procent van het bruto binnenlands product, ongeveer 20 miljard euro per jaar”

    ~https://www.tijd.be/opinie/algemeen/leg-alleen-de-rijkste-belg-een-rijkentaks-op/10384931.html

  2. I’d like to see a limit to companies’ profit with exceptions for life saving products and services that EU can’t provide internally.
    It would be great also to see the abolition of shares and that whole artificial gamble. If you don’t work, don’t expect money, which also should be capped by job type. Something to stop people from being advisor in 20 companies and getting 20 times the salary.

    The consequences would be disastrous at first with companies like Coca Cola refusing to sell on the European market and boycotts and lobbying. But in the end things would settle, local non profit organisations would step up to cover the void.

    Dream big !

  3. The Belgian solution to any issue: new taxes. This country already has the highest taxes in the world and our ‘overheidsbeslag’ is crazy high.

  4. > De Grauwe is een van de acht economische experten die door de regering-De Croo zijn aangesteld in de expertengroep die advies moet uitbrengen over de economische crisis.

    The first thing they are going to do with extra tax money is hire eight additional poverty experts, and then an additional panel of experts to evaluate the work of the first sixteen experts.

  5. Middle class will bleed, as always….

    You think 1M is not middle-class?
    Work with 2, add inflation, work 20 years, and you can pay up

    If they index this 1m number, then yes it could work.

  6. If wealth is defined as investable assets, excluding primary residence, collectibles, consumables, and consumer durables, *and* it leads to a general decrease on taxes on labor, sure, good proposition.

  7. What our government has is not a revenue problem, but a spending problem. They need to learn to say no, and to stop handing out money they don’t have to people that don’t need it.

  8. Meanwhile at NVA headquarters: “Fuck, we’ve lost Paul to the dark side. Obviously the power crisis can only be solved by another ‘index sprong’ and blaming the Walloons some more. Why doesn’t anyone understand that??”

  9. The solution (or at least solve part of it) is not adding more taxes. It is to start using the current taxes more wisely. A lot of the governments money or institutions are very inflexible. (I ‘seated’ in a government-run body as a student, we had a budget of €5000 every year and we were obligated to spend all the money, we ‘save’ anything for the next year)

    Also, if they want to increase purchasing power (koopkracht) of the low incomes, they should lower their taxes, not GIVE them money. From the €2500brut I earn every month, I ‘give’ nearly €750 to the government. Let people earn more money, don’t just give them extras. It’s the ‘give away for free’ mentality of the ’90s that dug our ‘begrotingstekort’. (Also isn’t going to keep people motivated to work if they just get more and more for free)

    I’m not saying ‘don’t tax the rich’ but your not going to solve this by just adding more taxes. (especially not in an over taxed country like Belgium)

  10. Person who gets paid by the government declares that more government is going to solve our problems. More at 9.

  11. Interessanter naast De Grauwe was de heer Goddeeris.

    Toch een paar tenen gekruld bij die zijn voorliefde voor Putin.

    Goed dat Paul tegengas gaf.

  12. Wonder when our overlords in Brussels are going to do something about their ridiculous high income. If they can offer a prostitute €4000 for two hours of sex, they get way overpaid.

  13. Wow. Toch wel even inzoomen op minuut zes.

    Van Mieghem: « Wat is de mediaan eigenlijk? »
    de Grauwe (geeft een soort definitie die elk kind van dertien ook weet)
    Van Mieghem: “Nee ik bedoel, hoeveel bedraagt die in België”
    de Grauwe (inmiddels totaal in shell shock) “oh ik… ik zou daar geen cijfer op kunnen plakken”

    Sorry man, maar als je (prof economie zijnde) als deskundige wordt uitgenodigd door de regering om de koopkracht-crisis op te lossen en als je aan de inkomens van de Belg wil gaan sleutelen, dan verwacht ik wel dat je *zonder nadenken* de mediaan kunt opnoemen van de Belgische lonen!

    Of ben ik nu aan het dolen?

  14. I would like to see more people discuss issues with the proposal itself. How does a discussion on taxing the wealthy immediately derail to conversations about social spending and the welfare state?

    People see nothing but supposed problems to an issue they barely seem to talk about…

    There are more benefits to this proposal than at first sight. A study by Apostel found that a tax such as De Grauwe’s, which again likely does not tax you because you likely are not as rich, would a) lead to more revenue than expected, and b) decrease our collective climate footprint.
    The latter is a benefit that should not be underestimated.
    Apropos; luxury spending taxes etc. to this aim (CO2 emissions) are coming soon on the menu from Europe

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