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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

#51

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?

I've heard that in Prague due to explosion of AirBnB rentals it's difficult even for software developers to rent reasonably priced apartments. I guess this is a counter reaction meant for a city that hosts >10% of country's population.

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

#52

This reminds me of the Estonian business startup thing that BBC covered, has anyone actually used this to a success? What would be the point of starting a business in countries like Czech and Estonia vs the US?

Do you mean e-residency (https://e-resident.gov.ee/)? I work there, happy to answer questions if you have them. The value of starting a business in Estonia vs. elsewhere depends on a number of factors - we mainly focus on folks from outside the EU (or citizens of the EU but living outside it) who want an EU based company they can run remotely in English which is tough in some jurisdictions

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

#53
post #45
post #42

Earlier quoted context omitted.

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?

The pricing out of existing residents isn't caused (much) by local taxes either.

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

#54
post #53
post #45

Earlier quoted context omitted.

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

The pricing out of existing residents isn't caused (much) by local taxes either.

So if AB&B are reducing the supply of housing to locals who don’t own, then this tax could be used to build or subsidize housing costs for those who because of the reduced inventory and commensurate price increase can’t afford the housing they were once able to.

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

#55
post #30

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…

It's not a "zoning problem." It's much simpler than that. * Airbnb flophouses are not obliged to conform to fire, health, or safety codes, and they don't pay taxes. Right off the bat, they're scads cheaper than hotels because they don't bear those costs. * Visitors and residents have very different incentives. Tourists may wish to stay in cute residential areas, but they are not necessarily interested in being neighb…

>No amount of "zoning" is going to make the commingling of apartments and hotels attractive to full-time residents, nor will any change in "zoning" make flophouses less profitable.

In most old cities, hotels, bed and breakfasts, hostels etc all exist in residential areas. And boarding houses used to be common in these same areas too.

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

#56
post #30

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…

It's not a "zoning problem." It's much simpler than that. * Airbnb flophouses are not obliged to conform to fire, health, or safety codes, and they don't pay taxes. Right off the bat, they're scads cheaper than hotels because they don't bear those costs. * Visitors and residents have very different incentives. Tourists may wish to stay in cute residential areas, but they are not necessarily interested in being neighb…

> Airbnb flophouses are not obliged to conform to fire, health, or safety codes, and they don't pay taxes. Right off the bat, they're scads cheaper than hotels because they don't bear those costs.

Because Airbnbs aren't flophouses. They're holding usually just a couple or family, maybe a dozen people tops unless the place being rented is a really big detached house. Expecting them to be held to the same standards as hotels is not necessary. If this lack of compliance is so dangerous, then why are letting people live in these places full time?

> Visitors and residents have very different incentives. Tourists may wish to stay in cute residential areas, but they are not necessarily interested in being neighborly -- they're not particularly invested in the comfort and safety of the people around them, because they'll be leaving soon.

Tourists also spend more money while on vacation, especially on small businesses like restaurants and bars. More importantly, they bring this money in externally. More tourism attracts the ire of residents that now have to deal with out-of-town people walking around their neighborhood, but I have rarely seen someone complain about negative economic impact of tourism let alone make a coherent argument about why it's bad.

> People do a lot of gross stuff in a hotel that you probably don't want to encounter in your apartment building. Drugs, prostitution, loud parties.

Plenty of people do these things in their apartments, condos, and houses, too.

> No amount of "zoning" is going to make the commingling of apartments and hotels attractive to full-time residents, nor will any change in "zoning" make flophouses less profitable.

Tourists generally don't want to visit residential areas. Airbnb-ing instead of renting a hotel is usually less convenient because the former are further from the city center. When I used an Airbnb in Iceland it was more of a hassle because I effectively needed to rent a car (and then subsequently park a car) to get to the center of the city. It was worth it because of cost. If there were hotel rooms available at the same cost of Airbnb then I would have used that.

However, the number of hotels is usually kept artificially limited. This drives up the cost of renting hotel rooms, which benefits hoteliers. This is the main reason why Airbnb is so much cheaper than hotels. Hoteliers don't want to build more hotels because that would drive their costs down and their expenses up.

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

#57
We can do this in Europe because we are great at killing innovation through our taxes and regulations. This way we can safely tax innovative tech giants without hurting our own tech giants. Because they don't exist here.

We don't like that thing that you do. So we'll just apply taxes and let you continue doing the thing we don't like you to do.

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

#58

We can do this in Europe because we are great at killing innovation through our taxes and regulations. This way we can safely tax innovative tech giants without hurting our own tech giants. Because they don't exist here. We don't like that thing that you do. So we'll just apply taxes and let you continue doing the thing we don't like you to do.

As opposed to the billions tech giants dodge taxes

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

#60
post #30

Earlier quoted context omitted.

It's not a "zoning problem." It's much simpler than that. * Airbnb flophouses are not obliged to conform to fire, health, or safety codes, and they don't pay taxes. Right off the bat, they're scads cheaper than hotels because they don't bear those costs. * Visitors and residents have very different incentives. Tourists may wish to stay in cute residential areas, but they are not necessarily interested in being neighb…

> Airbnb flophouses are not obliged to conform to fire, health, or safety codes, and they don't pay taxes. Right off the bat, they're scads cheaper than hotels because they don't bear those costs. Because Airbnbs aren't flophouses. They're holding usually just a couple or family, maybe a dozen people tops unless the place being rented is a really big detached house. Expecting them to be held to the same standards as…

> More tourism attracts the ire of residents that now have to deal with out-of-town people walking around their neighborhood, but I have rarely seen someone complain about negative economic impact of tourism let alone make a coherent argument about why it's bad.

Tourism is an economic curse similar to the curse of resources. It makes most unrelated economic activity less viable.

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