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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (20608)	5/28/2009 12:27:09 PM
From: KyrosL	Read Replies (1) \| Respond to of 71475

It all depends on the tax. Income taxes, particularly business taxes are bad for the economy. But consumption taxes may actually be good, particularly if the products that are taxed are mostly imported. Gasoline taxes are like that for countries that import a lot of their oil. Europe has big gasoline taxes (around $4 a gallon on the average) as well as huge sales (VAT) taxes (close to 20%). This discourages consumption and encourages savings. Europe's savings rate has consistently been in the double digits. And it's running a trade surplus, even though it must import almost all of its oil, and many other resources.