Czech Republic proposes the highest digital tax rate in Europe • Hacker News Board

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

#21

Post by grey-area » Tue, May 07, 2019, 9:04 PM UTC

akvadrako wrote: post #9

Shivetya wrote: post #8

The way to tax the corporations is to have a minimum base rate they cannot escape and rules tightened on what qualifies to reduce their rate to that point. the value of personal data can only be quantified if you can follow the path to its eventual sale. If they are not selling it but using to expand their own presence I have no issue. However buyers should be easy to identify along with the transaction value. i just…

Base rate of what? The problem is that their profit is artificially low.

Presumably they are thinking of revenue, that would of course be tricky, and quite apart from that set up an incentive to limit revenue. Just as we've seen profit limited by taxing profit (for example Amazon could be making obscene profits, but chooses not to), we would see revenue limited by taxing revenue. I've no idea what that would look like. Has anyone tried it?

Just as tax rates have an impact on architecture, they also help to shape companies.

https://99percentinvisible.org/article/vernacular-economics-...

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

#22

Post by djakjxnanjak » Tue, May 07, 2019, 9:07 PM UTC

tracer4201 wrote: post #13

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.

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

#23

Post by sokoloff » Tue, May 07, 2019, 9:11 PM UTC

protomyth wrote: post #20

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?

Full time AirBnB rentals almost certainly exacerbate any housing shortages that might exist. A tourist in general is willing to pay far more (maybe 5-10x) per night of temporary lodging than a resident is willing/able to pay for 365 days per year. This is especially true in beautiful but inexpensive, tourist magnet cities like Prague, Vienna, Budapest, and the like.

Taking otherwise available rentals off the full-time rental market and moving the "up" the economic return ladder to AirBnB rentals makes the housing situation tighter for residents and would-be residents.

(I'm a happy user of AirBnB platform and am "OK" with the conversion of real estate to its highest and best use, but I understand the opposition argument and think it has some merit.)

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

#24

Post by megous » Tue, May 07, 2019, 9:17 PM UTC

tootahe45 wrote: post #19

tracer4201 wrote: post #13

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.

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.

No. I have a database of all news article titles from major Czech Media over the last decade, and there's precisely 2 news about google and data leaks and 2 news about google helping terrorists.

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

#25

Post by ShorsHammer » Tue, May 07, 2019, 9:20 PM UTC

sokoloff wrote: post #23

protomyth wrote: post #20

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?

Full time AirBnB rentals almost certainly exacerbate any housing shortages that might exist. A tourist in general is willing to pay far more (maybe 5-10x) per night of temporary lodging than a resident is willing/able to pay for 365 days per year. This is especially true in beautiful but inexpensive, tourist magnet cities like Prague, Vienna, Budapest, and the like. Taking otherwise available rentals off the full-tim…

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 months rent). Despite all this I hold no illwill towards Airbnb.

If any other basic need was chronically undersupplied due to government inaction people tend to riot, yet somehow housing gets a free pass.

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

#26

Post by pjc50 » Tue, May 07, 2019, 9:28 PM UTC

ShorsHammer wrote: post #25

sokoloff wrote: post #23

Earlier quoted context omitted.

Full time AirBnB rentals almost certainly exacerbate any housing shortages that might exist. A tourist in general is willing to pay far more (maybe 5-10x) per night of temporary lodging than a resident is willing/able to pay for 365 days per year. This is especially true in beautiful but inexpensive, tourist magnet cities like Prague, Vienna, Budapest, and the like. Taking otherwise available rentals off the full-tim…

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…

People say "zoning problem", but should we really solve the problem that 1 in 6 residences in Edinburgh is an airbnb by building skyscrapers in a World Heritage Site? I suppose it would repel the tourists.

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

#27

Post by Gibbon1 » Tue, May 07, 2019, 9:29 PM UTC

ShorsHammer wrote: post #25

sokoloff wrote: post #23

Earlier quoted context omitted.

Full time AirBnB rentals almost certainly exacerbate any housing shortages that might exist. A tourist in general is willing to pay far more (maybe 5-10x) per night of temporary lodging than a resident is willing/able to pay for 365 days per year. This is especially true in beautiful but inexpensive, tourist magnet cities like Prague, Vienna, Budapest, and the like. Taking otherwise available rentals off the full-tim…

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…

You comment reminds me of what a friend said about Venice.

Venice is as real a city as the Magic Kingdom. Because tourists ate it completely. There have always been tourists going to Venice, but since the jet age so many that all the old families that used to make it their home have been kicked out.

Probably the future is everyone not wealthy gets kicked out and put on the equivalent of an Indian Reservation. Enforced by rents, toll roads and congestion pricing.

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

#28

Post by hapless » Tue, May 07, 2019, 9:33 PM UTC

pjc50 wrote: post #26

ShorsHammer wrote: post #25

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…

People say "zoning problem", but should we really solve the problem that 1 in 6 residences in Edinburgh is an airbnb by building skyscrapers in a World Heritage Site? I suppose it would repel the tourists.

You could try _enforcing_ zoning laws and arresting the people running illegal flophouses. That would be a start.

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

#29

Post by crazypyro » Tue, May 07, 2019, 9:34 PM UTC

ShorsHammer wrote: post #25

sokoloff wrote: post #23

Earlier quoted context omitted.

Full time AirBnB rentals almost certainly exacerbate any housing shortages that might exist. A tourist in general is willing to pay far more (maybe 5-10x) per night of temporary lodging than a resident is willing/able to pay for 365 days per year. This is especially true in beautiful but inexpensive, tourist magnet cities like Prague, Vienna, Budapest, and the like. Taking otherwise available rentals off the full-tim…

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…

People with residential property often don't want the supply of such property in nearby area to increase.

Property owners, who are also voters, have incentives for keeping zoning a problem.

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

#30

Post by hapless » Tue, May 07, 2019, 9:36 PM UTC

ShorsHammer wrote: post #25

sokoloff wrote: post #23

Earlier quoted context omitted.

Full time AirBnB rentals almost certainly exacerbate any housing shortages that might exist. A tourist in general is willing to pay far more (maybe 5-10x) per night of temporary lodging than a resident is willing/able to pay for 365 days per year. This is especially true in beautiful but inexpensive, tourist magnet cities like Prague, Vienna, Budapest, and the like. Taking otherwise available rentals off the full-tim…

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 neighborly -- they're not particularly invested in the comfort and safety of the people around them, because they'll be leaving soon.

* 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.

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.