International attitudes to moneysaving

CKhalvashi

Hey all,

This is on the run-up to something I'm doing for work, which certainly won't be published here, but something that I'm looking at is international attitudes to moneysaving and different governments.

I'm currently in my home country, where the gov. have been encouraged to keep the base rate high (slightly different system) and people have been encouraged to save, tax-free, for a 5-year term that's been extended for a further 5 years until 2017.

The taxes have been significantly lowered (from 28% flat rate to 10% flat rate) and the unemployed (high level of unemployment since Soviet breakup) have been given the incentive to start their own businesses, two of which have large multi £bn contracts (one is a food packaging company that works with a major supermarket, the other is a cigarette manufacturer, and there has been a huge take-up of foreign companies using the country as a base for call centres etc.

Something that has really struck me is the way that there are multiple Mercedes' on every street, instead of old Soviet vehicles and the way that many families are still culturally the same, but seem so much happier.

Should this be taken up elsewhere?

CK

oldvicar

After growing increasingly tired of complaints about illegally parked cars corroding the streets of Vinius, Lithuania, Mayor Arturas Zuokas reportedly commissioned an actual tank he used to crush a snazzy Mercedes Benz that was audaciously parked in a bike lane

Lithuanian mayor crushes Mercedes with armoured car

You can have too many Mercedes.

So getting people to save and be miserable rather than buy them and be happier is a good thing? Is that your point?

CKhalvashi

oldvicar wrote: »

After growing increasingly tired of complaints about illegally parked cars corroding the streets of Vinius, Lithuania, Mayor Arturas Zuokas reportedly commissioned an actual tank he used to crush a snazzy Mercedes Benz that was audaciously parked in a bike lane

Lithuanian mayor crushes Mercedes with armoured car

You can have too many Mercedes.

So getting people to save and be miserable rather than buy them and be happier is a good thing? Is that your point?

No, I'm stating that the reason my parents brought me here in the 90s was as a result of high unemployment and low wages (they're both degree qualified; one of which is medically qualified from an EU country originally)

If I have money in my pocket, I'll spend it, and I'm sure that many people are the same, however what does become important is that we're talking of a country where many people still don't trust banks, but are now willing (and able) to save.

The UK, admittedly, has very low unemployment in comparison, however it's UK companies that are investing in this country; I have at least three products in the fridge that are from the same company producing packaging for a large-name supermarket in the UK, and I'm smoking the same cigarettes (ok, with a different language on the packet) that were produced less than 100 miles from where I am at the moment.

I've just heard rumour that a German car manufacturer currently building their engines in China will be operating from the Kutaisi Mechanical Plant from next year (it was in the paper this morning).

One of the reasons for this is quite possibly the low taxation, but also possibly the fact that labour is cheap, and everything is on the border with Turkey, thus with special Geo-TR and TR-EU arrangements, things can be done a lot cheaper.

CK

CLAPTON

sounds odd that a country with lots of savings has lots of mercedes

maybe a bubble waiting to burst.

oldvicar

Well despite the explanation I am no closer to understanding CK's original question:

Should this be taken up elsewhere?

What is the "this" he is wondering might be taken up elsewhere?

somethingcorporate

As an aside...I remember reading somewhere that Greece has more Porsches than higher rate tax payers.

CK, what precisely are you suggesting should be implemented elsewhere? Which country are you referring to? (from memory is it Georgia?)

kabayiri

CK has a simple proposition.

28/30/35% tax rate = bad.

10% tax rate = good.

Presumably, this is just corporation tax.

Using this logic UK should just adopt a 5% tax rate, in a bid to undercut these newcomers.

Except, of course, there will always be somewhere willing to undercut you.

This is why big business hold all the cards, and nation states comply.

Germany don't follow this low tax rate logic, and they still outdo us in the manufacturing stakes. Perhaps the issue is more complex.

somethingcorporate

Well if we drop corporation tax (or any tax) where do we make up the shortfall? I have little direct vested interest in a reduction of corp tax. I'd certainly support a drop in income tax and SDLT for selfish reasons!

CLAPTON

somethingcorporate wrote: »

Well if we drop corporation tax (or any tax) where do we make up the shortfall? I have little direct vested interest in a reduction of corp tax. I'd certainly support a drop in income tax and SDLT for selfish reasons!

corporation tax is added to the price of products; so for selfish reasons you should support it's reduction. plus all the other reasons why its in your interest too

oldvicar

It just seems appropriate to quote the words of the Janice Joplin prayer:

Oh Lord, won't you buy me a Mercedes Benz ?
My friends all drive Porsches, I must make amends.
Worked hard all my lifetime, no help from my friends,
So Lord, won't you buy me a Mercedes Benz ?

Oh Lord, won't you buy me a color TV ?
Dialing For Dollars is trying to find me.
I wait for delivery each day until three,
So oh Lord, won't you buy me a color TV ?

Oh Lord, won't you buy me a night on the town ?
I'm counting on you, Lord, please don't let me down.
Prove that you love me and buy the next round,
Oh Lord, won't you buy me a night on the town ?

Everybody!
Oh Lord, won't you buy me a Mercedes Benz ?
My friends all drive Porsches, I must make amends,
Worked hard all my lifetime, no help from my friends,
So oh Lord, won't you buy me a Mercedes Benz ?

That's it!

kabayiri

oldvicar wrote: »

It just seems appropriate to quote the words of the Janice Joplin prayer:

It seemed the ultimate injustice when that Janice Joplin song was adopted by Mercedes and played during a set of their adverts!

Talk about trying to change the meaning of something.