Hey! Greece LOWERED its top marginal tax rate from 45% to 42%!
Great news, right? Wrong.
They shifted the brackets. The previous earning threshold was $130, 700. Now anyone making over $55,000 will have their money confiscated to the tune of 42%.
Greece is our canary in the coal mine.
The new tax rates, part of the austerity measures demanded by the country’s international rescue lenders, were submitted to parliament hours after the finance ministers from the 17 European Union countries that use the euro agreed in Brussels to restart rescue loan payments.\
In return for the rescue loans, Greece’s international lenders have insisted on a series of reforms, tax raises and spending cuts.
But the successive hikes in taxes, required to meet deficit-cutting targets, have hammered the economy, pushing unemployment up to 26 percent, and with more than 20 percent of the population now officially living in poverty — earning less than €7,200 ($9,420) per year.
Huh? How could that be? Raising taxes is good! And having people in poverty is STIMULUS.