Ülo Ennuste Economics

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Comment on the Report*


In the model context of the Report it seems there may perhaps exist in the Estonian extant populist   Dogmatic Profit Tax Mechanism certain Paradoxes  – that probably have no effective solutions in this concise Report toolkit.

It seems that extant Estonian Power Coalition Dogmatic (administratively not discussable)  “0-profit tax mechanism” that may be in the growth periods be efficient for the short-term GDP growth – but at the same time detrimental for the Long-term GDP Potential and domestically usable NNI, national welfare sustainability, private consumption  and especially domestic investments (initiating anomalous flights of investments and labour force from the domestic economy) – and especially dysfunctional for Economic Inequality Mitigation  in the crisis and plights for social- and human-capital (see e.g.**).

Perhaps the* models in the all details contain sufficient tools/complementary- mechanisms for the solution of these kind of Paradoxes – or this kind of complication are necessarily demanding more complex-criteria indictors (like European Semester and*** indicators + Balance of Payments indicators + Gini type indicators etc) than just simply GDP?


*) http://ec.europa.eu/economy_finance/publications/qr_euro_area/2013/pdf/qrea4_en.pdf

**) http://www.ies.ee/iesp/No11/articles/08_Ulo_Ennuste

***) http://ec.europa.eu/economy_finance/publications/european_economy/2013/pdf/2013_05_03_stat_annex_en.pdf

P.S.: Comment https://uloennuste.wordpress.com/2014/01/19/comment/

has been sent 19.I 14 to:

Elena Flores

Director – Policy Strategy and Coordination

Directorate-General for Economic and Financial Affairs

Office CHAR 15/66

B-1049 Brussels

Email: elena.flores@ec.europa.eu


Eric Ruscher

Head of Unit – Macroeconomy of the euro area

Directorate-General for Economic and Financial Affairs

Office CHAR 15/248

B-1049 Brussels

Email: eric.ruscher@ec.europa.eu


January 19, 2014 - Posted by | Uncategorized

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