After Britain, Italy, and Spain cut spending, Portugal would not be left out. Portugal’s legislature is planning a June 2nd vote to:

• Raise income taxes up to 1.5%
• Raise the Value Added Tax by 1% across all categories
• Tax companies with more than 2 million euro in profits an extra 2.5%
• Cut top government employees pay by 5%

This package is skewed to raising taxes rather than spending cuts. It is designed to mollify the market. When the United States finally joins the party we will see both spending cuts and tax increases. But don’t expect any real action soon. It will take an extraordinary emergency to get Washington to act.