Subject: Your visit to Holland on June 19 & the crisis & the tax credit fraud in Holland
Dear professor Krugman and professor Van der Ploeg,
I sent prof. Krugman an earlier email for his visit to Holland on June 19, that is available here:
It so happens that last week had a discussion in Dutch Parliament on frauds with tax credits. As economists we are all aware that the tax credit is an important instrument for employment. We also see that Holland and Germany have a related low wage policy with structural surplusses on the external account that aggravate the problems in the Eurozone.
This present situation caused me to write this paper: Economics as victim between lawyers and mathematics: An explanation for the tax credit, Bulgarian potential fraud, European unemployment and the economic crisis. It is available here: http://mpra.ub.uni-muenchen.de/47071/
I write to prof. Rick van der Ploeg now at Oxford since he was assistant minister of culture and member of the Dutch kabinet in 1998 when the tax credit was introduced in Holland. In a discussion on the tax credit he stated that I was right theoretically but not practically. Van der Ploeg did not want to clarify this back then. Now that we see mass unemployment not only in Holland but also with the economic crisis all over the world, and now that we see this massive tax credit fraud in Holland, perhaps I can ask again what he means by that phrase.
I copy to some other people since the issue is quite important. A key question is whether Jeroen Dijsselbloem understands the issue. It is his Treasury that deliberately lied in 1998 and that would have to make amends now in 2013. It is the common problem in the OECD with the tax void masked by the tax credit that is key to understanding the Great Stagflation since 1970 and to start solving the present economic crisis.
Since prof. Krugman stated (a while ago) that he wasn’t quite at home in tax theory, I have written above paper such that it should be understandable for a wider audience.
For the context for Dutch readers, I copy below an earlier email in Dutch to prof. Van der Ploeg, parliamentarian Helma Nepperus and the editors of the national television NOS. I might copy another earlier email to Ruud de Mooij, tax specialist now at IMF, but I suppose I already sent enough to read.
Thomas Cool / Thomas Colignatus
Econometrician (Groningen 1982) and teacher of mathematics (Leiden 2008)
Date: Sun, 19 May 2013
Cc: whitebirdbv, Olivier Blanchard, Martin Wolf, Peter Bofinger, James Galbraith, Robert Skidelsky, Mark Thoma, Sandra Phlippen, Charles Groenhuisen, Sweder van Wijnbergen, Bas Jacobs, Alfred Kleinknecht, Ruud de Mooij, Helma Nepperus, NOS, and some others