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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

#101
post #97

Earlier quoted context omitted.

> You say that like "tech giants" are a good thing. What you see is that - if the Czech Republic would have their own tech giants - they wouldn't propose such an aggressive taxation towards it. It's why Germany was against such taxes because they fear repercussions towards their own industry. > But a predatory attitude focused only on their own growth and "to hell with everyone else". Such a predatory attitude also g…

Well if Czechia had their tech giants they would lobby (read buy influence) against this as if their life depended on it. It's good that bigcorps don't have their claws in every country on the planet. Your "free market forces" argument comes straight from the 70s. How much more abuse are you willing to tolerate before it becomes blindingly obvious that market forces don't punish companies except if they don't make mo…

> Microsoft was punished by the government, i.e. the law, not the market.

I wholeheartedly disagree. There has been a huge active community rigorously battling Microsoft's dominance offering alternative technologies and innovations. They deserve all the credit for maintaining the balance. Not government.

> And how did the market forces punish Facebook for the colossal fuck-ups?

Facebook has become less and less popular in recent years. Exactly because people got concerned with those colossal fuck-ups. So you see Facebook on the fence of those things and trying to improve their company ethics.

> Saying that market forces punish predatory attitudes is beyond the pale. It's gaslighting and ignorance rolled into one.

This is perhaps the popular opinion in Europe. Do you completely deny the existence of corrective forces? It seems to me a the US is doing a far better job at embracing them and has a lot of its innovative success to thank for it.

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

#102

Earlier quoted context omitted.

You say that like "tech giants" are a good thing. The biggest difference doesn't seem to be taxes, but a predatory attitude focused only on their own growth and "to hell with everyone else". "Tech giants" of the past and present like IBM, AT&T, Microsoft, Facebook, Oracle, Uber, and Amazon are all widely disliked and criticized. Aside from that there are plenty of European tech companies (ASML, Logitech, Skype, Spoti…

> You say that like "tech giants" are a good thing. What you see is that - if the Czech Republic would have their own tech giants - they wouldn't propose such an aggressive taxation towards it. It's why Germany was against such taxes because they fear repercussions towards their own industry. > But a predatory attitude focused only on their own growth and "to hell with everyone else". Such a predatory attitude also g…

It's worth noting that Czechia is small 10mil citizen country. So are many other eu countries. The language/culture/policy difference is a real decentralizing showstoping force. What it means is that many countries have their startups just filling vacuims of small local services (their ubers, airbnbs, craigslists, groupons etc.) companies you've never heard of.

At best the countries find "niche" in tech. For example for Czechia it's been security - AVG, Avast, Eset and Kerio. Tooling - InteliJ, Netbeans. And gaming - apart of big merger+acusition which led to 2K czech you have many smaller players like Madfinger.

Also kiwi.com is czech so it's not like there completely no tech scene. Education is great.

It's just mindset is not so much go big or go home. People in europe seem to be ok with moderate success.

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

#103
post #97

Earlier quoted context omitted.

Well if Czechia had their tech giants they would lobby (read buy influence) against this as if their life depended on it. It's good that bigcorps don't have their claws in every country on the planet. Your "free market forces" argument comes straight from the 70s. How much more abuse are you willing to tolerate before it becomes blindingly obvious that market forces don't punish companies except if they don't make mo…

> Microsoft was punished by the government, i.e. the law, not the market. I wholeheartedly disagree. There has been a huge active community rigorously battling Microsoft's dominance offering alternative technologies and innovations. They deserve all the credit for maintaining the balance. Not government. > And how did the market forces punish Facebook for the colossal fuck-ups? Facebook has become less and less popul…

So not taxing companies would be the best solution?

Let's not forget that tech giants often don't pay any taxes to eu countries. Like zero. This is real problem for system based around taxes. It also puts smaller players that have to pay at disadvantage.

This is just way how to tax the giants. I thin soon this is going to be normal and probably even higher.

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

#104

Earlier quoted context omitted.

> You say that like "tech giants" are a good thing. What you see is that - if the Czech Republic would have their own tech giants - they wouldn't propose such an aggressive taxation towards it. It's why Germany was against such taxes because they fear repercussions towards their own industry. > But a predatory attitude focused only on their own growth and "to hell with everyone else". Such a predatory attitude also g…

Okay, but you didn't really reply to anything I said in any meaningful way. Instead you just hooked in to out-of-context fragments to insert your own points. For example on my point about Europe's fragmentary nature due to the different languages you reply with some observations about ... France's tax rates? Okay... This is not really how conversations work.

I'm sorry. I can rant on about this for hours and hours and I feel like I'm already dominating this discussion too much. I don't believe language barriers are such a big problem. Most tech people speak English.

What's ironic is that those language barriers are exactly solved thanks to translation innovations coming from the US. I'm now able to communicate much more easily with fellow Europeans.

I truly believe we have a problem in Europe where there's too much focus on welfare and government control at the cost of free market and innovation. Too much "system thinking" as opposed to creative engineering. This used to be different a couple of decades ago.

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

#105

Earlier quoted context omitted.

Okay, but you didn't really reply to anything I said in any meaningful way. Instead you just hooked in to out-of-context fragments to insert your own points. For example on my point about Europe's fragmentary nature due to the different languages you reply with some observations about ... France's tax rates? Okay... This is not really how conversations work.

I'm sorry. I can rant on about this for hours and hours and I feel like I'm already dominating this discussion too much. I don't believe language barriers are such a big problem. Most tech people speak English. What's ironic is that those language barriers are exactly solved thanks to translation innovations coming from the US. I'm now able to communicate much more easily with fellow Europeans. I truly believe we hav…

That okay, we all get carried away sometimes.

I think you are underestimating the language and cultural barriers inside Europe. When I still lived in the Netherlands (my native country) we got a British employee at some point. Everyone in the company spoke English reasonably well, but not quite fluently. So what happened was that lunch conversations started out in English but quickly evolved to Dutch. I felt bad about it, but it was just so much easier to joke around in Dutch.

This also mirrors the experience of my British ex-girlfriend, who lived and worked in the Netherlands.

After this I lived in the UK for two years while working remote for an Irish company, and it took me a while to truly communicate efficiently with native English speakers. I knew the grammar and vocabulary, it just wasn't always obvious how to use it. People have made entire charts about miscommunications[1]. I also wrote a bit about this elsewhere[2].

It's one thing to argue in English on HN or watch Star Trek, but quite another to actually work in English every day. Perhaps it might actually be easier is everyone is a non-native speaker, but then you quickly run in to the "large group of natives speaking their own language"-problem I described before.

In addition, actually living in a foreign country is also a bit harder if you don't speak the language.

Either way, the barrier is certainly higher than in the US or China, where everyone just speaks the same language.

[1]: https://pbs.twimg.com/media/B0jvF8NIMAAFIn6.png:large and https://merican.vickihollett.com/wp-content/upLoads/anglo-du...

[2]: https://lobste.rs/s/xnjo8g/add_downvote_reason_unkind#c_imbo...

> too much focus on welfare and government control at the cost of free market and innovation. Too much "system thinking" as opposed to creative engineering. This used to be different a couple of decades ago.

Wasn't there much more welfare several decades ago? This certainly seems the case in my own country of the Netherlands, and it was also true in the UK (until Tatcher came in). I can't speak to other countries.

I'm not convinced these things are strongly correlated to creativity or innovation. It seems to me that the primary reason people create things is because humans are just creative; it's part of our nature. Certainly if I look at my own motivations the amount of money going to the taxman is pretty far down the list of why I do things.

Additionally, not everything is about economics. I have some amount of sympathy for libertarianism/free market thinking, but too often does everything get reduced to merely an economical argument. The world is more than just economics. In Germany they've been having a large debate about the ethics of driverless cars, for example, whereas in the US they've just put the cars on the road without first having a public debate. It may be more "innovative", but is it also the right thing to do?

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

#106
post #68
post #51

Earlier quoted context omitted.

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.

The rise in prices for new rentals is real. ~70-100% over last few years. How much of that is caused by AirBnB is debatable.

I live in Krakow and I definitely see AirBnb as the culprit. Students are having a much harder finding housing than before. The situation in Europe is somewhat unique in that there's both a large disparity in nominal income and a large disparity in taxation of alcohol. The cost of a beer at a bar varies from €1 to €10. That creates incentive for people to fly out to places like Prague or Tallinn on the weekend just to get plastered. AirBnb, of course, caters specifically to these "tourists". Quality of the accommodation is unimportant when one's completely shitfaced.

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

#108
post #97

Earlier quoted context omitted.

Well if Czechia had their tech giants they would lobby (read buy influence) against this as if their life depended on it. It's good that bigcorps don't have their claws in every country on the planet. Your "free market forces" argument comes straight from the 70s. How much more abuse are you willing to tolerate before it becomes blindingly obvious that market forces don't punish companies except if they don't make mo…

> Microsoft was punished by the government, i.e. the law, not the market. I wholeheartedly disagree. There has been a huge active community rigorously battling Microsoft's dominance offering alternative technologies and innovations. They deserve all the credit for maintaining the balance. Not government. > And how did the market forces punish Facebook for the colossal fuck-ups? Facebook has become less and less popul…

You must be using an unconventional definition of punish and corrective action.

Microsoft was steamrolling over the huge community battling it, including Apple, Netscape, Sun and Linux.

United States vs. Microsoft Corp forced them to behave, otherwise that huge community would have had to battle them from beyond the grave.

Facebook is a very profitable behemoth. Where exactly is the punishment? Oh, they have to improve their company ethics.

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

#109
post #108

Earlier quoted context omitted.

> Microsoft was punished by the government, i.e. the law, not the market. I wholeheartedly disagree. There has been a huge active community rigorously battling Microsoft's dominance offering alternative technologies and innovations. They deserve all the credit for maintaining the balance. Not government. > And how did the market forces punish Facebook for the colossal fuck-ups? Facebook has become less and less popul…

You must be using an unconventional definition of punish and corrective action. Microsoft was steamrolling over the huge community battling it, including Apple, Netscape, Sun and Linux. United States vs. Microsoft Corp forced them to behave, otherwise that huge community would have had to battle them from beyond the grave. Facebook is a very profitable behemoth. Where exactly is the punishment? Oh, they have to impro…

But that's just not how it happened. That settlement was pretty much insignificant.

First Amazon launched their online book store. Then Microsoft made a $150 million investment into Apple. Then Google launched its search innovation. Linux and Apache were already hugely successful with dominating the web. Java and PHP were kicking ASP's ass.

https://news.netcraft.com/archives/2019/04/22/april-2019-web...

Microsoft got so much distracted by certain market dominance they totally missed the uprising of the web players. Then Valve released their app store, Apple released the iPhone including its app store, Google released Android and Microsoft saw its dominance fall apart. The settlement didn't contribute to any of these developments.

So what happened is - because Microsoft was so dominant - the competition needed to seriously up their innovative game to conquer their positions. If government would have intervened more strongly there wouldn't have been the need for stronger competition which would have resulted in less innovation. The market corrected itself.

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

#110

Earlier quoted context omitted.

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

Ah yes! Pleasantly surprised you'd follow up on here. Does Estonia offer any anonymity through its e-residency program? A lot of us have stereotypes towards EU regulations as being restrictive, wonder if you could address this one glaring fear in the back of our minds (ex. GPDR). What should folks on HN know a thing or two about Estonia? I've literally only heard of the country 4 years ago when I played Arma: Cold Wa…

Haha I'm a big HN reader so I was happy to jump in :) Sorry for the delay, I'm actually on vacation back home (I'm an American from SF)

It depends what you mean by anonymity - if you're just an e-Resident (eg. you've applied for the status and gotten the card) then it's not public to anyone except you and the Estonian government. If you open a business however, then there is a large amount of transparency. Estonia is very very transparent, I can even see things like the age of the owner of a company if I'm so inclined to look it up.

To be honest, I haven't seen much in terms of restrictive policy in Estonia specifically with the exception of banking - Estonia is a small country of just 1.3m and most of the banks are foreign owned. That means there's not much sway we have domestically over policy and it's dictated from outside (mainly from the parent banks in the Nordics) and it can be tough to open a bank account as a foreigner if you don't have strong ties to Estonia. That said, this is getting tighter just about everywhere as banks try to comply with Know Your Customer regulations (however, my impression is that this is mainly brought on by the US rather than the EU and banks are so stringent because they don't want to lose their US dollar payment capabilities from correspondent banks)

There are a lot of interesting things about Estonia - I'll skip the Googleable things and say that from living there the most interesting thing is on one side how closed and yet how open the people are. To give an example, in my apartment complex I don't believe I ever spoke one word to any of my neighbors in a year, but for the people I met via some group activity or was introed by Estonians I knew from work, they are incredibly open and friendly (basically if you don't have a reason to speak with an Estonian they think you're incredibly strange if you try to initiate a conversation, but if there's a reason, they're very friendly people). The other really interesting thing I've found is the Russian/Estonian dynamic. There's still a large Russian minority of people in Estonia from the Soviet days and some communities are not integrated at all, there are constant political debates about forcing schools to only teach in Estonian (there are currently ones that have all Russian courses). So you have a situation where there are people born and raised in Estonia but who don't speak the language and live pretty much only in Russian communities and have a different worldview of many Estonians.

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