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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (3265)	4/25/1998 11:04:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 9980

I think they would have been better off with a bigger cut in those taxes (or better yet, eliminating the sales tax they imposed), and allowing them to come back up gradually to a median as the economy's engine start to kick in. Long term, they must be careful not to reduce the tax base too much, since they are running some good size budget deficits. Once the economy starts going, then if necessary, a gradual increase in revenues to balance the budget (or run minimal deficits-I happen not to be a strong believer in budgetary surpluses, these have historically brought about major recessions or worst). The important thing is to stimulate back into growth mode and increased productivity, which will then bring revenues up even at a lower tax rate. Zeev