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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (37331)	11/14/2000 3:00:14 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

<So you think that the Europeans are going to voluntarily give up their protectionist policies and forgo their social benefits in exchange for lower tax rates? That's what it would take. > Someone correct me if I'm wrong... but I believe this is already happening... at least in Germany, and it has been gaining steam in recent years... since they are in the EU, at somepoint the rest would have to follow IMO. As an anecdote I offer tax legislation this year that allows German corperations to divest themselves of their corperate holdings without the heavy tax burden that locked up these assets... German corperations have HUGE crossholding in each other. The government is also debating healthcare reform in a serious manner I understand. I believe there was other Corporate tax relief as well but others will have to substantiate that...or you can do a search: handelsblatt.com That said Germany seems more progressive than the rest. <I listened a few weeks ago to an NPR story about how the Berliners don't want to give up even one of the three Opera houses that are state supported, nor do they want to have them become independent non-profits like some of our art organizations or allow them to raise ticket prices. They pay almost half their income in taxes so they expect to get something from those taxes. To me this doesn't sound like a country about to let the free market decide anything for them.> Yes, heard that... I believe 2 of the 3 are merging, but this is one anecdote. Don't take my word for it, I moved back here 4 years ago... Heinz could update you and give a much better opinion on this as well as the economics behind it. Remember that if you DO believe change is possible you have a situation where upon that change happening the European asset being mispriced by the market due to the belief that this couldn't happen. This is how things are priced IMO. <What it really comes down to is too many hungry people willing to work for less in cheaper countries. Goods that are information based can not be contained within or kept out of countries. Information jobs are extremely easy to move to cheaper locals, ie: India and the software industry.> But you see... IMO this is what is forcing structural changes in Europe. DAK