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Czech Republic proposes the highest digital tax rate in Europe

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Re: Czech Republic proposes the highest digital tax rate in Europe

#41

Earlier quoted context omitted.

Airbnb is highlighting a zoning problem that governments are unwilling to admit to themselves. Sublets and short term rentals existed long before before and most cities on Earth didn't care, but once a frictionless platform came along it suddenly was a problem. My landlord kicked us out to run an airbnb fulltime after seeing how much a neighbour was earning. (Around New Years /Christmas you could easily bring in 2 mo…

AirBnB isn't highlighting a zoning problem; rather, it enables ordinary people to engage in frictionless regulation-skirting commerce. Incidentally, Uber does the same thing. The problem with this is that it makes masses of lawbreakers out of normal people. When suddenly lots of people are breaking the law, and they're not easily treated as an outgroup, the incentives about enforcing the law get complicated.

Only a very small fraction of the people involved actually break the law, but those bad actors are a surprisingly large fraction of the total nights booked through AirBnB, so the company wishes to conceal and defend them.

For instance, renting a room inside your home to visitors, while you continue to occupy the home, is perfectly legal almost everywhere. Often, there is little or no regulation to comply with. (For example, actual BnBs.)

But many, many, many of AirBnB's rentals are illegal flophouses. Entire-apartment rentals inside established buildings, or flophouses with 2-4-6-8 bedrooms rented to unrelated strangers, with a maintenance service that comes by to turn down the beds. Those are where the money are at.

Re: Czech Republic proposes the highest digital tax rate in Europe

#42
post #38

Could SF and other cities like Vanc, BC, Miami, London, etc., levy a significant tax and use that tax to build affordable or subsidized housing to counteract pricing out of the affected people.

The reason construction of affordable housing isn't happening has nothing to do with those city's lack of revenue.

Re: Czech Republic proposes the highest digital tax rate in Europe

#43
post #7

Targeted advertising is not the only or even main space in which global giants avoid taxes. So not sure why such a focus on FB and Google.

Selection bias. HN community tends towards disliking Google/FB, and will tend to show articles that target those kinds of tech giants. In all honesty, they do have monopolies and it seems that the same type of anti-trust enforcement that was used to help Apple/Google in the browser war against Microsoft just isn't there anymore. Now Google/FB really do have a monopoly on user data. I think properly regulating instead…

> HN community tends towards disliking Google/FB

HN community also understands better Google/FB business model and what actually happens with their data when fed into Google/FB.

Re: Czech Republic proposes the highest digital tax rate in Europe

#45
post #42
post #38

Could SF and other cities like Vanc, BC, Miami, London, etc., levy a significant tax and use that tax to build affordable or subsidized housing to counteract pricing out of the affected people.

The reason construction of affordable housing isn't happening has nothing to do with those city's lack of revenue.

Wouldn’t this be a fairer tax rather than diverting general funds?

Re: Czech Republic proposes the highest digital tax rate in Europe

#46

Why single out Google and FB or tech in general? Is the belief that these companies pay less taxes than non tech companies? I don’t have the breadth nor depth on this topic, just wanting to learn.

The big tech companies are US-based and haven’t had as much time to build deep political connections like older industries. This makes them a natural target.

yes, this.

think about taxi drivers: very low numbers, low revenue=low taxes, huge political clout.

same thing with the model aircraft enthusiasts: https://www.google.co.uk/amp/s/amp.ft.com/content/2574825c-6...

considering that most young people that work in these tech companies don’t vote, these tech companies are ripe for plundering.

Re: Czech Republic proposes the highest digital tax rate in Europe

#47
post #31

Earlier quoted context omitted.

Because politicians attack things perceived as bad by the public. If there's a time to implement such a tax it's after a year of sensationalist (and largely fake) news about FB and Google, from exaggerated data breaches to helping terrorists.

I don't know about (any) Google data breaches but the Facebook data breaches are neither fake nor sensationalist.

I agree but taxation and data breaches are orthogonal. To be clear, I’m not defending their practices (or lack of security).

Re: Czech Republic proposes the highest digital tax rate in Europe

#48
"It has helped malicious actors during the 2016 U.S. presidential election and the Brexit referendum, arguably helping to subvert democratic institutions."

Wow, it seems clear to me that some people only respect democracy when they win. I don't like Brexit but if people in UK vote for it, let them be.

The malicious actors and those that try to subvert democracy are the billionaires that buy Media in order to propagate lies that at the current time remain unproven.

A tax on absolute income is a very dangerous thing in any gobertment. But we already have it, with inflation.

Re: Czech Republic proposes the highest digital tax rate in Europe

#49

Why single out Google and FB or tech in general? Is the belief that these companies pay less taxes than non tech companies? I don’t have the breadth nor depth on this topic, just wanting to learn.

Disproportionately deep pockets and impact. Research the breakup of Standard Oil (which became Exxon, Amoco, Mobil and Chevron) in the US. The power Standard Oil wielded was non-insignificant, as with behemoth tech companies. While these regulatory actions are surprising to some, if you’re into history it’s no surprise it’s happening again, but to tech instead of oil.

Standard oil had major political influence and the energy companies today still have major political clout. Source: worked for 6 years for a vertically integrated energy company.

It’s not clear how big tech companies have the same political influence. Yes, social media has been manipulated I think to influence outcomes, but do social media companies themselves have that influence over politicians? To be clear, I am not saying you’re wrong. I’m asking a question.

Re: Czech Republic proposes the highest digital tax rate in Europe

#50

Intermediary platforms such as Airbnb and Uber exacerbate cities’ housing problems and weaken worker protections. Its interesting that this line has no support and just treated as fact for this article. Is there a source to explain the reasoning?

the uber one is certainly a lie. the simple fact is these companies have money, can very easily be portrayed as the bogeyman, bonus points because they are not companies to country that will tax them, and simply because most of the populace won't care because its not them.

talk to any of the uber drivers where I work, so take it as you will, and many will tell you of passengers who use uber/lyft because the drivers are friendlier, arrive on time, and tend to drive nicer cars. the arrive on time and don't just drive off because you need to go where the taxi won't is very important. and it is people of all income levels using them

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