It's a circular to fund some of their issues - the health system charges VAT to patients/hospitals/pharmacies (most EU nations do not, or charge very little), which funds the Ministry of Finance, who then has the cash to fund the Ministry of Health the next year. You'll note that the SPD retained hold of Ministry of Finance, Health, Education and a few other goodies, causing Angie to abandon much of her election platform. If she rides the wave through the next elections, she may be able to oust some of these people and get the labor and other reforms through. That will be a few years however.

I found it interesting how easily the increase was made. Too bad VAT increases cause savings to increase and not investments.

Germany has just massively increased their VAT from 16% to 19%, presumably in an attempt to tax their way to prosperity.

But with all that increased tax revenue, I'm sure the government can be trusted to spend it wisely and spread the wealth around. After all, governments always do what's best for the citizens, right? I know I'm counting on Uncle Sam to provide for me:)

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You sir, are my new hero! - Trifan 11/13/2008

Casey, you are a wise man - blueraider_mike 11/13/2008

Casey, This is an astute observation. - Slowbern 11/17/2008

Guess who said this: Buy when there's blood running in the streets.

Baron de Rothschild?