Do you know how they catch tax evaders in Italy?
However they do it, it’s not terribly effective, tax evasion being about 18% of the Italian GDP.
Still quite enough to run the government. One doesn’t even have to try that hard.
Actually we’ve been running deficit for as long as I can find data for, except for about a decade in the 1990s.
But then, who hasn’t? The US?
(edit: Speaking of which, US has the tax law that is effectively anti-progressive on the high range—every big company exploits loopholes)
Good point.
The budget has to be in defecit, or else the whole system falls apart. That’s the modern system of fiat money—it’s based on continued issuance through deficit spending. Just not too much deficit or you end up in hyperinflation.
However they do it, it’s not terribly effective, tax evasion being about 18% of the Italian GDP.
Still quite enough to run the government. One doesn’t even have to try that hard.
Actually we’ve been running deficit for as long as I can find data for, except for about a decade in the 1990s.
But then, who hasn’t? The US?
(edit: Speaking of which, US has the tax law that is effectively anti-progressive on the high range—every big company exploits loopholes)
Good point.
The budget has to be in defecit, or else the whole system falls apart. That’s the modern system of fiat money—it’s based on continued issuance through deficit spending. Just not too much deficit or you end up in hyperinflation.