Monday, November 30, 2009

Germany's Reuinification Tax

I received this from a pretty fraulein in Germany, which then piqued my curiosity, triggering this question;

"I have a stupid question.

Did it ever occur to the Germans immediately after reunification that a reunification tax would NOT be necessary as private investment would presumably swoop in and take advantage of the cheap land, labor and capital? Or was "reunification" just used as a excuse to create another tax?"


Any German economists out there have any thoughts?

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