- Posted on May 10, 2012 at 2:28pm by Becket Adams
Why? Because when coupled with massive amounts of public debt, weak economies usually lead to one thing: tax increases.
And it’s happening right now.
Just look at the eurozone where, desperate to address increasing deficits, several countries in the 17-nation union have increased personal income tax rates.
“Spain, for example, raised its personal tax rate by 2 percentage points to 45 percent last year and France’s newly elected Socialist Party is also proposing hiking taxes on the rich,” CNBC reports.
“Hike,” however, may be too kind a word. France’s newly-elected Socialist François Hollande wants to impose a 75 percent income tax on citizens earning more than $1.3 million. That’s a bit more than a “hike.” That’s an “ultra increase.”