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Summarizing The Terms Of Italian Austerity (Or Here Comes The Piazza Navona Strike Cam)

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Fri, 08/12/2011 - 17:39 | 1555692 Mongo
Mongo's picture

Bunga time

Fri, 08/12/2011 - 20:18 | 1556006 Citxmech
Citxmech's picture

"Buy the fucking Bunga!" - Bitchez.

(Credit to WB7 for that beauty)

Sat, 08/13/2011 - 10:05 | 1556958 caconhma
caconhma's picture

This "draconian" Italian deficit reduction plan is not worth a paper it was written on. It is a joke.

It reminds me a street-corner prostitute promising to stay in her business practicing abstinence from sex.

Fri, 08/12/2011 - 17:40 | 1555695 mynhair
mynhair's picture

Solidarity tax?  Oy....

Fri, 08/12/2011 - 18:04 | 1555755 macholatte
macholatte's picture

.....an additional 5 percent on income above 90,000 euros per year and 10 percent on income above 150,000........


if you wanted to run people out of your country, that's a good start.



Fri, 08/12/2011 - 18:27 | 1555813 navy62802
navy62802's picture

Same thing that's gonna happen to Jefferson County Alabama.

Fri, 08/12/2011 - 20:41 | 1556050 Pay Day Today
Pay Day Today's picture

"if you wanted to run people out of your country, that's a good start."

Where are these rich Italians going to go to? Greece? And are they going to be able to get as high paying a job there with massive unemployment around the EU? And will they really leave behind all their family and friends and networks simply because they have to pay an extra $5000 in taxes a year on their $200,000 income?

If that's as much loyalty as they have to a country, then actually yeah both sides would be better off if they did leave.

Don't be held hostage with idle threats from the rich. Wherever they threaten to move to is quite possibly going to be the site of the next bankster attack anyway. So what are they going to do? Move again?

Fri, 08/12/2011 - 20:51 | 1556085 Waffen
Waffen's picture

Who is John Galt?

Fri, 08/12/2011 - 21:10 | 1556125 LetThemEatRand
LetThemEatRand's picture

A ridiculous cult follower who has been proven wrong yet refuses to admit it because cult members tend to be true believers regardless of the facts.  See your anticipated response.

Sat, 08/13/2011 - 01:09 | 1556511 Setarcos
Setarcos's picture

Ayn Rand's fictitious hero ... and guess who worshipped Ayn Rand?  Well Alan Greenspan and Milton Freidman ... the 'intellectual' proponents of where we are today.

Fri, 08/12/2011 - 21:02 | 1556109 Seer
Seer's picture

You know, this reminds me of the big sports team owners who regularly hold US cities hostage in order for them to build them (or subsidize) new construction.  It's mostly worked, up until now...

Sat, 08/13/2011 - 12:12 | 1557132 caconhma
caconhma's picture

Pay Day Today ,

You are so right. These rich Italians will eventually end up in China working for a bowl of rice.

Sat, 08/13/2011 - 15:21 | 1557411 ThirdCoastSurfer
ThirdCoastSurfer's picture

If your tax rate goes up by 10% and you get a pay raise of 12%, what's the net effect? 

The whole reason people in this tax class are able to command the wages they do is because they have the pricing power to demand them.

Most quickly recover if not immediately. 

It is those without pricing power that must ultimately bear the brunt of any increase, no matter who, what or where these increases originate from. 

The good thing is that pricing power, by it's very nature, results from a scarcity, so the burden of the few is passed down to the many and the net effect is very dilutive. 

Trickle down works. 

Sat, 08/13/2011 - 16:26 | 1557466 Pizza spaghetti...
Pizza spaghetti and mandolino's picture

The fact is that the solidariety tax is newspeak for tax increase. The top personal income rate becomes 57 %. However, dear Tyler, let me bet you, we won't see a revolution in Italy, unless there is world war. You may even see some demonstrations in piazza Navona but not a revolution. That's not typical Italian. Italian successful civil commotions happen only at times of international wars. The only exception in centuries, from the fall of the Roman Empire in 476 AD, has been the Fascist Revolution in 1922 (but also that was connected, somehow, to the Russian Bolschevik Revolution, an international major event).

So you'll see a serious revolution in Italy only if Israel attacks Iran. At that point you may trun out to have had a correct forecast.  

Sat, 08/13/2011 - 03:08 | 1556614 dolly madison
dolly madison's picture

if you wanted to run people out of your country, that's a good start.

I've read before that higher taxes do not tend to make richer people move.

It seems logical to me that they wouldn't want to move every time the taxes changed somewhere.

Sat, 08/13/2011 - 06:40 | 1556843 Pay Day Today
Pay Day Today's picture

Also the fact that jurisdictions with increasingly low tax rates tend to be increasingly unstable, dangerous or autocratic places to live.

Interesting correlation, that.

Sat, 08/13/2011 - 08:17 | 1556886 Bendromeda Strain
Bendromeda Strain's picture

Unlike Chicago...

Sat, 08/13/2011 - 19:14 | 1557704 masterinchancery
masterinchancery's picture

I predict tax revenues DROp if these measures are adopted.  But bureaucrats and politicians never learn.

Fri, 08/12/2011 - 18:47 | 1555849 slaughterer
slaughterer's picture

"Solidarity tax" = "Solidaritaetssteuer" (a fossil from German post-1989 re-unification which never ends in its parasitic eating away at all positive income).  Nice.  Did they send someone from the German Finanzbehoerde to draft this damnation to Hell?  The Germanization of the fun-loving Mediterranean cultures has come.  They will never look the same. Europe has killed off its sun-drenched utopias.   Everything turn to grey.    

Sat, 08/13/2011 - 06:41 | 1556845 Pay Day Today
Pay Day Today's picture

Grey? Why, Audi's look good in black as well.

Sat, 08/13/2011 - 06:55 | 1556851 Nussi34
Nussi34's picture

Take a look at the proposed tax rates for capital gains. They look very German too. Socialists of Europe seem to unite. The question is if Switzerland will close the borders before or after the EUSSR will build a wall around Switzerland!

Fri, 08/12/2011 - 17:43 | 1555702 swissaustrian
swissaustrian's picture

This is 14.300.000.000.000 times better than the US budget compromise... At least they are trying to do something.

Fri, 08/12/2011 - 17:59 | 1555744 topcallingtroll
topcallingtroll's picture

YOU just hate it that the usa has the financial world's confidence and Europe as a whole doesn't. We are the only country whose bonds go up on a downgrade.

If you really want to run the next world currency you must get rid of spain portugal ireland italy and greece in the ECU.

Fri, 08/12/2011 - 18:02 | 1555750 LeBalance
LeBalance's picture


$1746 per ounce of that "confidence" and ripping!



/in the dark/

Fri, 08/12/2011 - 18:40 | 1555836 swissaustrian
swissaustrian's picture

YOU might have recognized that i´m from Switzerland.

Fri, 08/12/2011 - 21:33 | 1556174 disabledvet
disabledvet's picture

really? do u have a cow? we use to have cows where i grew up. i miss those cows.

Sat, 08/13/2011 - 01:59 | 1556545 electronpaul
electronpaul's picture

 "the usa has the financial world's confidence"    hahahahahahahahahahahahahahahahahahaha

Sat, 08/13/2011 - 10:33 | 1556979 Bob
Bob's picture

lololol.  You gotta admit, though, "confidence" is what we do.  It's pretty much all we do, but still.

In reality, though, I see it as folks just trying to hide in the ponzi that will be last to fall.  Some confidence that is.  And what an achievement!

Sat, 08/13/2011 - 03:00 | 1556610 luigi
luigi's picture

"YOU just hate it that the usa has the financial world's confidence and Europe as a whole doesn't. We are the only country whose bonds go up on a downgrade.

If you really want to run the next world currency you must get rid of spain portugal ireland italy and greece in the ECU."

Muahahahahahaha! No: all it's needed is a powerful fleet and a owning the largest arsenal of WMD in the world, then you can go around telling everyone "try to drop the dollar, if you can" (remember Jack Palance "Pick up that gun" ?)

Fri, 08/12/2011 - 19:10 | 1555900 slaughterer
slaughterer's picture

Good luck with this austerity measure (they have been trying to do this for decades without success):

  • Purchases worth more than 2,500 euros will no longer be allowed to be made in cash, as a means of curbing tax evasion. There will also be tougher penalties, such as suspension from professional bodies, for failure to issue receipts and invoices

Fri, 08/12/2011 - 20:32 | 1556030 itchy166
itchy166's picture

This is about control, not austerity.  


Sat, 08/13/2011 - 03:11 | 1556616 dolly madison
dolly madison's picture

This is 14.300.000.000.000 times better than the US budget compromise... At least they are trying to do something.

I can't help but notice they are only raising the retirement age to younger than we have it at.  We waste too much damn money on corporate welfare and imperialism.

Sat, 08/13/2011 - 19:16 | 1557709 masterinchancery
masterinchancery's picture

As Yoda said, "there is no try, only do."

Fri, 08/12/2011 - 17:42 | 1555704 Cleanclog
Cleanclog's picture

Basta!  Si si, we have too much debt.  So does everyone!  Japan is worse than we are. So, come on down Senori Allemani and Mangia.

Eat it up!  We aren't gonna get debt free.

Fri, 08/12/2011 - 17:43 | 1555705 Irish66
Irish66's picture

10% over 150,000

Dang that will case chaos

Fri, 08/12/2011 - 18:51 | 1555859 Herman Strandsc...
Herman Strandschnecke's picture

Not if you accept a pay cut to 149.999. There, fixed it.

Fri, 08/12/2011 - 20:44 | 1556059 Pay Day Today
Pay Day Today's picture

Let's be real, someone on $160,000 will have to pay an extra $1000 tax. No big deal, seriously.

Fri, 08/12/2011 - 20:57 | 1556099 LongBalls
LongBalls's picture

Exactly. That is one heck of a return on a single Euro!

Sat, 08/13/2011 - 04:26 | 1556670 Sudden Debt
Sudden Debt's picture

actually, 16000€ extra and that comes above the tax they already pay.

The real question should come from billionaires who make 1000€ a month officially!


Sat, 08/13/2011 - 08:38 | 1556896 Pay Day Today
Pay Day Today's picture

"actually, 16000€ extra"

If you read the statement it says that it applies to income over €150,000. In the example I used above only €10,000 worth of income is affected as that is how much rests above the threshold.

Fri, 08/12/2011 - 17:43 | 1555706 cswjr
cswjr's picture

"Solidarity tax", lol. 

Fri, 08/12/2011 - 17:46 | 1555709 Negro Primero
Negro Primero's picture

...meanwhile tutto tranquillo (at least at the Pope's Residence)


Fri, 08/12/2011 - 17:47 | 1555714 swissaustrian
swissaustrian's picture

I would have offered the mafia to launder all of its money without criminal prosecution for a 5% fee. Hell that would have brought some revenues.

Fri, 08/12/2011 - 17:54 | 1555735 Pay Day Today
Pay Day Today's picture

"I would have offered the mafia and multinational corporations to launder all of its money without criminal prosecution for a 5% fee."

Just an idea.

Fri, 08/12/2011 - 18:06 | 1555761 vocational tainee
vocational tainee's picture

That would be  50 % of AMERICAN GDP...

Fri, 08/12/2011 - 18:09 | 1555767 eurusdog
eurusdog's picture

You might be underestimating that a bit.

Sat, 08/13/2011 - 03:09 | 1556615 luigi
luigi's picture

Done already two years ago: it was called "the fiscal shield"... People having money abroad were allowed to bring it back with a mere 2% fee and a "tombal deal" with the state not asking anything about where the money comes from and renouncing on any further taxationo or prosecution for fiscal fraud. In fact Tremonti did some real unfair competition to mafia in money laundry...

Fri, 08/12/2011 - 17:53 | 1555734 topcallingtroll
topcallingtroll's picture

Now this is the durden that we all love and be "we all" I really mean me.

Bring back the junk button, please!

This place was great when we had the great flame wars and anything by GW about israel brought out the internet warriors in full glory.

We need the junk button....but some people didnt like controversy and wanted complete conformity...so junk went to ratings went to nothing at all now....so boring.


Fri, 08/12/2011 - 18:15 | 1555781 mynhair
mynhair's picture

TCT, you get released from jail early?  Heard the black SUVs got ya....

Fri, 08/12/2011 - 18:19 | 1555792 slewie the pi-rat
slewie the pi-rat's picture


L0L!  who could have seen that coming? 

hey t_c_t!  either way is ok w/ me.  i'm not sure if there are issus with the site staying up better w/out it, tho, in which case, i woiuld say better not, now. 

Do NOT follow this link or you will be banned from the site!