01.01.70

There’s a rationality the black market is so large in Italy: it’s the only way anybody can survive.  Habitation prices in Rome are egregiously high, and taxes are even more extreme: the characteristic income tax rate tops out at 43%, and the corporate tax rate is 31.4%.  There’s also a 20% value added tax (sales tax).  No wonderment so many businesses in Italy don’t open every day – why bother, when the government will maul you for obeying the law in the form of confiscatory taxation?

And yet Italy still can’t pay for its massive common safety net.  Italy’s debt to GDP ratio is now 120%.  Its ordinary age is well above 40, and there is no robust new generation of children on the way.  Rome has become a sumptuous relic, not just in architecture, but in population.

While we were in Italy, the government had to ram through a $40.3 billion austerity plan; this week, they were only able to raise $9 billion in bond sales.

Source: FrontPage Magazine

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by Eajanel

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Styles

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