Economics as victim between lawyers and mathematics: An explanation for the tax credit, Bulgarian potential fraud, European unemployment and the economic crisis

Colignatus, Thomas (2013): Economics as victim between lawyers and mathematics: An explanation for the tax credit, Bulgarian potential fraud, European unemployment and the economic crisis.

Abstract

(1) The basic problem in OECD countries is the tax void. (2) A tax system with an exemption is more transparant than a system with a tax credit. (3) Exemption should be at the level of the net minimum wage so that such workers can work at net = gross. (4) A tax credit is a sufficient but not a necessary condition for vertical translation of a piecewise-linear tax system. (5) The Tax Plan for the 21st Century of 1998-2001 contained a deliberate misrepresentation. (6) The issue is important for the current economic crisis and European unemployment: (6a) The analysis is an element in the explanation of the aggressive export policies of Northern Europe via their low wage policies. (6b) Given the similarity of the tax policies in the OECD countries we find an explanation for the Great Stagflation since 1970 that was masked by financial deregulation. (6c) One should hope that Jeroen Dijsselbloem, the Dutch minister of Finance and chairperson of the Eurogroup, understands this issue. (7) A root cause lies in the handling of economic science in Holland. Though other countries can already benefit from the analysis presented here, it still remains better that the integrity of economic science is restored in Holland so that the full analysis becomes available.

• Item Type: MPRA Paper
• Institution: Thomas Cool Consultancy & Econometrics
• Language: English
• Keywords: tax credit, tax void, exemption, tax law, premium, insurance, fraud, lies, irregularity, boycott, Bulgaria, Holland, Europe, economic crisis, unemployment, tax harmonisation, basic income, basic benefit, heterogenous labour, minimum wage, productivity, equity, efficiency, transparancy, free lunch, political popularity, welfare state, poverty, surplus, external account, export, low wage policy, stagflation, financial deregulation, scientific integrity
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy

References

Colignatus is the science name of Thomas Cool, econometrician and teacher of mathematics in Scheveningen, Holland.

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