“Removing money from the rich and give to the poor poorer generates”
In the fourteenth century, the philosopher and economist Ibn Khaldun Andalusian origin and perceived that higher taxes could discourage economic activity and eventually reduce the income of “Sultan”. The same idea was embodied six centuries later in a mathematical formula by Arthur Laffer (Ohio, 1940), American economist and father of the Laffer curve. Ronald Reagan tax cuts based its ideas on this economist with an air of showman and preacher. Desacomplejadamente liberal, the father of the Laffer curve calls for drastic tax cuts to spur growth and argues that the welfare state and redistributive policies are sources of human poverty.
The current Spanish government defends like you that tax cuts generate growth, however, the legislature began in 2011 with the largest tax increase in Democracy. He said there was no alternative.
The government was wrong.
With a budget deficit of 9% of GDP, you believe that it was possible to lower taxes?
In Spain, the problem is not the low tax, but unemployment. You can not balance the budget without taking into account this problem. Raising taxes does not improve the deficit, and unemployment and lack of growth. No country has been more successful with tax increases.
“The welfare state is the problem. If you give resources, you end up in bankruptcy”
The European Union recommended that Spain raise taxes. The idea was to resolve the strike, it was first necessary to balance the public accounts.
Fire to the European Union! The only way to get more money from taxes is having a greater economy. Spain needs to grow and have more people working in companies with profits to raise revenue. Look at what has worked in the world. Do you think Reagan is better than Obama? I do. Why not imitate what they have done presidents of success?
Is that enough tax cuts to solve the serious problem of unemployment?
Why snuff is taxed? Because we want people to stop smoking. Why do we tax work? Do we want fewer workers? What Spain has been doing, and I say with great respect, it is to tax people who work and pay people not working. And now you are in shock because there are more people not working. It is a question of incentives. If you take money from the rich and give it to the poor you will generate many poor and no rich people. He follows me?
Yes. You propose to end the welfare state
The welfare state is the problem. Humanity has 250,000 years on earth and has been in the last 20 years with the welfare state when people paid for not working. Free food, free healthcare, free education … That is not the way. When resources are given away, it always ends up in bankruptcy.
Most Europeans believe that the welfare state is one of the great contributions of Europe
I think it’s wonderful. Remain so. I’m just an economist and I love experiments. Let’s take the Laffer curve to end. Regal all people who do not work and the working quítenselo. Do it! We want to work and who creates hate.
The question is not whether Thomas Piketty has been wrong in their numbers; the point is that he does not know economics ”
Do not you think that one of the fundamental principles of a tax system must be the redistribution of wealth?
When you try to redistribute, create more poverty. What the government is doing is to make the enemy taxpayers. A country needs a voluntary payment of taxes for long-term survival. People have to feel that the government is legitimate and fair. When tax rates are too high, people feel cheated and no longer trust. And Spain is close to this situation. When someone gives me money, I do not hate him, hugged him. A government must love their taxpayers, not hate or mistreat. Must thank every day and every euro paid.
What about Thomas Piketty and his book in which he defends the increase in taxes on capital?
Thomas Piketty is a great self-publicist. When wealth is redistributed, always, always, revenue is lost. The problem is not whether Thomas Piketty has been wrong in their numbers or omitted data, the problem is that he does not know economics.