Wed Jun 6, 2012, 02:41 AM

alp227 (20,512 posts)

Greece Warns of Going Broke as Tax Proceeds Dry Up

Source: NYT

As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money.

Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals.

Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s troubled banks. Some are even suggesting doling out i.o.u.’s.

Greek leaders said that despite their latest bailout of 130 billion euros, or $161.7 billion, they face a shortfall of 1.7 billion euros because tax revenue and other sources of potential income are drying up. A wrenching recession and harsh budget cuts have left businesses and individuals with less and less to give for taxes — and growing incentive to avoid paying what they owe.

Read more: http://www.nytimes.com/2012/06/06/business/global/greece-warns-of-going-broke-as-taxes-dry-up.html?pagewanted=all

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36 replies	Author	Time	Post
Greece Warns of Going Broke as Tax Proceeds Dry Up (Original post)	alp227	Jun 2012	OP
This message was hidden by jury decision.	Burke36	Jun 2012	#1
Of course. This is why austerity without increasing the tax rates of the rich	JDPriestly	Jun 2012	#2
I think the intention is that it is not supposed to work.	dixiegrrrrl	Jun 2012	#28
Of course, in the US, private entities could buy public assets and then	JDPriestly	Jun 2012	#31
"Dry up?" When did they start collecting them? nt	nanabugg	Jun 2012	#35
Greeks face a choice between difficulty and catastrophe.	dipsydoodle	Jun 2012	#3
Stop paying absurd dole.	boppers	Jun 2012	#4
That's just nuts. nt	Flatulo	Jun 2012	#5
Are you saying	dipsydoodle	Jun 2012	#6
No. A widow can receive his or her deceased spouse's SS payment, if it is the larger	Flatulo	Jun 2012	#24
Age 18, and out of high school	Throckmorton	Jun 2012	#25
I stand corrected. Does the age extend to 24 if enrolled in college?	Flatulo	Jun 2012	#26
No, it ends regardless of status.	Throckmorton	Jun 2012	#32
It does EXTEND for life of the child if the Child is disabled BEFORE age 22.	happyslug	Jun 2012	#34
I misinterpreted what you meant.	dipsydoodle	Jun 2012	#27
The only people who are avoiding taxes in Greece are the super rich.	fasttense	Jun 2012	#7
Not true. Citizens bypass toll roads regulary.	banned from Kos	Jun 2012	#11
Greece has one of the largest shadow economies in the world	hack89	Jun 2012	#12
That is not factually true	Harmony Blue	Jun 2012	#14
You misunderstand what a shadow economy is	hack89	Jun 2012	#15
Not only do you not understand what shadow economy is	Harmony Blue	Jun 2012	#17
The shadow economy makes up 27 percent of Greek GDP	hack89	Jun 2012	#20
Facts confuse these people	4th law of robotics	Jun 2012	#22
Sure.	boppers	Jun 2012	#29
Austerity economics,	nineteen50	Jun 2012	#8
This is the direction the GOP is taking America.	sinkingfeeling	Jun 2012	#9
Greece gets exactly what it paid for. nt	nanabugg	Jun 2012	#10
Austerity doesn't work	Harmony Blue	Jun 2012	#13
Neither does unrestrained spending and massive debt. nt	hack89	Jun 2012	#16
Actually it can work	Harmony Blue	Jun 2012	#18
Care to give an example? nt	hack89	Jun 2012	#21
How?	4th law of robotics	Jun 2012	#23
Only if you're willing to devalue your currency.	boppers	Jun 2012	#30
When there is no demand there are no sales and less profits	nineteen50	Jun 2012	#19
Austere measures DON"T WORK it only makes the people	lovuian	Jun 2012	#33
drachma, drachma, drachma....n/t	unkachuck	Jun 2012	#36

Response to alp227 (Original post)

Burke36 This message was hidden by Jury decision.

Response to alp227 (Original post)

Wed Jun 6, 2012, 03:38 AM

JDPriestly (37,764 posts)

2. Of course. This is why austerity without increasing the tax rates of the rich

cannot work.

Austerity for the poor who receive money from the government seems such a logical solution to an economic turndown to the simpleminded. But unless you impose the austerity on the rich and transfer the money of the rich to the poor, austerity will not work. That is because as austerity is imposed, the poor and middle class people have less and less money with which to pay taxes, less and less discretionary income beyond what they need for very basic necessities. So you have to raise your money from the rich, from those who can pay taxes.

Greece Warns of Going Broke as Tax Proceeds Dry Up

2. Of course. This is why austerity without increasing the tax rates of the rich

28. I think the intention is that it is not supposed to work.

31. Of course, in the US, private entities could buy public assets and then

35. "Dry up?" When did they start collecting them? nt

3. Greeks face a choice between difficulty and catastrophe.

4. Stop paying absurd dole.

5. That's just nuts. nt

6. Are you saying

24. No. A widow can receive his or her deceased spouse's SS payment, if it is the larger

25. Age 18, and out of high school

26. I stand corrected. Does the age extend to 24 if enrolled in college?

32. No, it ends regardless of status.

34. It does EXTEND for life of the child if the Child is disabled BEFORE age 22.

27. I misinterpreted what you meant.

7. The only people who are avoiding taxes in Greece are the super rich.

11. Not true. Citizens bypass toll roads regulary.

12. Greece has one of the largest shadow economies in the world

14. That is not factually true

15. You misunderstand what a shadow economy is

17. Not only do you not understand what shadow economy is

20. The shadow economy makes up 27 percent of Greek GDP

22. Facts confuse these people

29. Sure.

8. Austerity economics,

9. This is the direction the GOP is taking America.

10. Greece gets exactly what it paid for. nt

13. Austerity doesn't work

16. Neither does unrestrained spending and massive debt. nt

18. Actually it can work

21. Care to give an example? nt

23. How?

30. Only if you're willing to devalue your currency.

19. When there is no demand there are no sales and less profits

33. Austere measures DON"T WORK it only makes the people

36. drachma, drachma, drachma....n/t