Cooking one's own goose
2010-08-11
The age-old argument from the Right is that soaking the rich
isn't the cure for budget deficits. Even if you took all the income
of the rich, the theory goes, it wouldn't fix the problem. It simply
wouldn't be enough, because the middle classes are the ones
driving the economy. There's always been a grain of truth to
this, but it falls short in today's Czech context because it
overlooks the massive illicit transfer of wealth over the past 20
years. There are billions and billions of crowns hidden away that
never appeared anywhere as "income" and were never taxed.
Tapping this undeclared pot of gold - and ensuring that it
doesn't grow - is the only feasible way to make a dent in the
national debt. ČSSD can have limited success arguing as
populists that the tax policies of the Nečas government are
socially insensitive, but to provide a comprehensive solution of
its own would require it to tax or confiscate the hidden stashes.
And with someone like Bohuslav "Suitcase" Sobotka or Michal
Hašek in charge of ČSSD, such a policy is entirely unrealistic.
[Czech Republic Petr Nečas tax evasion]
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