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European Politico-economics QA Mega-thread - Page 1228

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Although this thread does not function under the same strict guidelines as the USPMT, it is still a general practice on TL to provide a source with an explanation on why it is relevant and what purpose it adds to the discussion. Failure to do so will result in a mod action.
Gorsameth
Profile Joined April 2010
Netherlands5 Posts
February 11 2019 11:42 GMT
#24541
Plus your money has a decent risk to poof, as crypto isn't the most stable of currency. And that if enough companies do this your country turns into Greece.

I get that no one likes to pay taxes, but if no one pays taxes the country goes to shit.
It ignores such insignificant forces as time, entropy, and death
Nyxisto
Profile Joined August 2010
Germany0 Posts
February 11 2019 22:44 GMT
#24542
I don't understand how this works accounting wise. If you have people on official payroll and you try to escape taxes through crypto, you're missing money somewhere if you officially underpay them. You're basically screaming to get busted at some point
Godwrath
Profile Joined August 2012
Spain156 Posts
February 11 2019 23:14 GMT
#24543
It must be nice to live in a country where people don't get paid in black all the time.
Dangermousecatdog
Profile Joined December 2010
United Kingdom0 Posts
February 11 2019 23:30 GMT
#24544
Sounds unbelievably sketchy. What can you even pay using cryptocurrency for? Its not "real" money. Does Romania have a Greece level of tax enforcement?
Big J
Profile Joined March 2011
Austria1 Post
Last Edited: 2019-02-11 23:52:01
February 11 2019 23:44 GMT
#24545
On February 12 2019 08:14 Godwrath wrote:
It must be nice to live in a country where people don't get paid in black all the time.


In around 80% of all investigated cases in Germany the tax investigators find something that is not being done right. Tax investigators are really great at paying their own payrolls. Which is why the regional parties cut tax investigators for matters of local advantages. F.e. Bavaria (like the Austrian conservatives) is quite openly advertising that they are lenient about "pesky" controls and anyone who demands more controls is "dishonoring" the entrepreneurs.

Another recent example would be Germany's extremely poor job at implementing the 4th Anti-Money laundering directive of the EU. The so-called transparency register Germany created is essentially just a big middle finger towards Brussels.
https://www.sueddeutsche.de/wirtschaft/transparenzregister-firmeneigentuemer-eu-1.4317342
Nyxisto
Profile Joined August 2010
Germany0 Posts
Last Edited: 2019-02-12 00:01:35
February 12 2019 00:00 GMT
#24546
What's also a little paradoxical about trying to avoid taxes with crypto currencies is that the entire ecosystem is on a public ledger, so if anyone should ever connect a user or business account to a wallet you're pretty much screwed up because you have a public history of literally every transaction. And given the security behaviour of people in the real world that's not too hard to imagine.

If someone built a crypto ecosystem that's good for anything other than buying drugs off the internet, making tax and business transactions much more transparent would actually be a good use-case
Dan HH
Profile Joined July 2012
Romania0 Posts
February 12 2019 05:44 GMT
#24547
On February 12 2019 08:30 Dangermousecatdog wrote:
Sounds unbelievably sketchy. What can you even pay using cryptocurrency for? Its not "real" money. Does Romania have a Greece level of tax enforcement?

AFAIK it gets automatically exchanged for a real currency upon a purchase or ATM withdrawal, they're Visa cards so they work pretty much everywhere I assume.

We do have a Greece level of tax enforcement and on top of that, popular morality around here suggests that snitching to the tax man is wrong and and paying employees in black is neutral or even good for sticking it to our 'common enemy'.
The bloody Beaker folk, coming over here with their beakers. What's wrong with just cupping up the water in your hands?
xM(Z
Profile Joined November 2006
Romania0 Posts
Last Edited: 2019-02-12 10:17:05
February 12 2019 10:15 GMT
#24548
- it happens mostly in IT circles;
- it is taxed as “income from other sources” at a rate of 10% (subject to income tax);

the issue here is that employers sign working contracts based on minimum wage but pay more than that; the extra being sometimes payed in crypto makes it more edgy but not uncommon. you get it in LEU too(cash form).
- there's a shortage of qualified working force(the so called brain drain of undeveloped countries) so it's seen as a bribe of sorts: employer to the employee. employees screw themselves of some pension earnings and screw the state sponsored healthcare system and the employer gets to keep the asset.
- the last elected gov. changed the tax burden from the employer to the employee which made employers less accountable with regards to taxes.
it's a gray area but can be justified if needed by ways of discretionary payments/bonuses and/or other stuff.
And my fury stands ready. I bring all your plans to nought. My bleak heart beats steady. 'Tis you whom I have sought.
{CC}StealthBlue
Profile Joined January 2003
United States0 Posts
February 15 2019 12:13 GMT
#24549
So what is stopping a new Government in power after the election from collapsing as well? Especially since the Catalans apparently hold the cards to allow a budget? What Coalition would even allow the discussion of Catalan Independence to be heard...?

Spain’s prime minister, Pedro Sánchez, has called a snap election for 28 April after Catalan secessionists joined rightwing parties in rejecting the socialist government’s national budget earlier in the week.

The country’s third general election in less than four years was seen as an inevitability following Sánchez’s defeat on Wednesday.

“Between doing nothing and continuing without the budget and calling on Spaniards to have their say, I choose the second. Spain needs to keep advancing, progressing with tolerance, respect, moderation and common sense,” Sánchez said in a televised address to the nation following a cabinet meeting. “I have proposed to dissolve parliament and call elections for 28 April.”

Sánchez’s PSOE, which holds 84 of the 350 seats in congress, relied on the support of Basque and Catalan nationalist parties to seize power from the conservative People’s party (PP) in a confidence vote last year.

But the two main Catalan pro-independence parties – the Catalan Republican Left and Catalan European Democratic party – voted with the PP and centre-right Citizens party on the budget, defeating it by 191 votes to 158, with one abstention.

A general election had been due next year.

Sánchez wants a ballot as soon as possible to mobilise left-leaning voters against the threat of the right coming to power.

The PSOE are ahead in opinion polls, which give them about 30% of voting intentions, but the two main right-of-centre parties together poll more than 30%. In Spain’s most populous region of Andalucía, they unseated the socialists last year with the help of the far-right party Vox.

Sánchez’s government has taken a more conciliatory approach to the Catalan question than its predecessor, and he has met the Catalan president, Quim Torra, on several occasions.

The separatists, however, said they would only support the budget if Sánchez agreed to discuss self-determination for the region. That would have cost the PSOE votes in the rest of Spain where a majority want to preserve the nation’s territorial integrity.

“We are prepared to talk and find a solution within the constitution but not outside of it,” Sánchez said on Friday. Many Catalans are dismayed that the separatists joined forces with right-wing parties to bring down Sánchez. The Barcelona mayor, Ada Colau, described it as a grave error.

Since the transition to democracy in 1978, Catalan and Basque nationalists have played the role of kingmaker to a series of minority governments. That role might now fall to the centre-right Ciudadanos party, which appears willing to go into coalition with either the PSOE or the PP if it means a taste of power.

The great unknown is the impact of Vox, which recently emerged from the shadows to take 11% of the vote in December’s elections in Andalucía, a socialist stronghold.


Source
"Smokey, this is not 'Nam, this is bowling. There are rules."
Godwrath
Profile Joined August 2012
Spain156 Posts
Last Edited: 2019-02-15 13:52:19
February 15 2019 13:51 GMT
#24550
On February 15 2019 21:13 {CC}StealthBlue wrote:
So what is stopping a new Government in power after the election from collapsing as well? Especially since the Catalans apparently hold the cards to allow a budget? What Coalition would even allow the discussion of Catalan Independence to be heard...?

- A right coalition, PP, Ciudadanos and Vox, which is very likely to be the one that wins the elections.
- Plausible? None. Fantasy world ? Podemos with the independentists.
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