Wednesday, January 25, 2006

VAT and jobs

There is currently a seemingly endless and definitely time consuming debate in Europe about the reduction of the VAT taxation of a number of goods and services. The objective, proponents say, is to create jobs. I may have forgotten many important things from my economics classes, but I really don't see how the reduction of a tax on added value will induce the creation of jobs... There is one word at the back of my mind: demagogy.


  1. Alex, I think politicians talk about *their* jobs!

  2. Oh right! Now it all makes sense. How stupid of me. Thanks David ;)