The Tax Bite That's Holding Germany Back

If you're concerned about the impact of tax increases on the U.S. expansion, cast an eye on Germany, which has been enacting massive tax hikes in the midst of a recession. Economists at Salomon Brothers Inc. report that this year's rise in pension-insurance contributions will claim an additional 0.85% to the payroll-tax rate, bringing it to 9.6% of the taxable wage, and a new nursing-home-care scheme awaiting legislative approval would add a similar amount.

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