Reply to: Good reasons not to buy a flash car

[doodab]

That's because the black market is so huge there, it's nothing to do with the tax rate

Government tolerance of black market activity amounts to an effective reduction in the amount of tax paid per unit of economic activity.

So for example, if the tax rate on $1 trillion of legitimate economic activity is 30% and black market is worth $500 billion the EFFECTIVE tax rate relative to true GDP of $1.5 trillion is only 20%.

[gingerjedi]

No, you have to own stuff. Like land, art, houses, businesses etc. Lots of old money in Italy.

What happened to the 'dont' I meant to put there??

I'm not 45 yet.

[amcdonald]

What this means in practice is that real tax rates for the very rich are lower than they appear. And yet Italy's economy is still ****ed, allegedly. Which rather gives the lie to the theory that cutting taxes for the rich boosts the real economy.

Or does it?

That's because the black market is so huge there, it's nothing to do with the tax rate

[AtW]

Well they keep quiet about it.

Pst, tt's ze Official Secrets act...

[Old Greg]

Its what the silent majority work in

Well they keep quiet about it.

[Spacecadet]

WTF is the 'real economy'?

Its what the silent majority work in

[doodab]

WTF is the 'real economy'?

The part of the economy that actually produces goods and services, as opposed playing the markets.

Clearly in this case the tax avoidance has boosted the flash car segment of the Italian economy, which is actually quite significant.

[Old Greg]

What this means in practice is that real tax rates for the very rich are lower than they appear. And yet Italy's economy is still ****ed, allegedly. Which rather gives the lie to the theory that cutting taxes for the rich boosts the real economy.

Or does it?

WTF is the 'real economy'?

[doodab]

What this means in practice is that real tax rates for the very rich are lower than they appear. And yet Italy's economy is still ****ed, allegedly. Which rather gives the lie to the theory that cutting taxes for the rich boosts the real economy.

Or does it?

[Old Greg]

You're on a role today, aren't you OG?

If I was on a role I'd have no time to be on a roll.

[AtW]

And your house can become a target for robbery.

Park at the neighbours then?

[cojak]

On the up-side, you can always park it in your flash drive.

Get in there!

You're on a role today, aren't you OG?

[Old Greg]

On the up-side, you can always park it in your flash drive.

Get in there!

[vetran]

Maybe they should have tried that at Dale farm?

[BrilloPad]

Other reasons are you have to drive more carefully to avoid gettting your car scratched. People are less likely to give way. And your house can become a target for robbery.