You have to marvel at the stupidity in Parliaments worldwide. From North Korea, the Circus-USA to Australia. Old, stupid people completely clueless trying to money grab bags of thin air.
From as early as July 2017, Australians may find themselves unable to access the websites of a number of their favourite overseas stores under a plan being considered by Treasury, consumer group Choice has warned.
Under the new tax regulations coming into effect next year, overseas businesses with an annual turnover of $75,000 or more will be required under Australian law to register with the ATO to collect GST on all goods sold, including purchases under the current low-value threshold of $1000.
Sounds like America’s FATCA for which the compliance cost to financial institutions has been roughly estimated by Forbes at US$8 billion a year, approximately ten times the amount of estimated revenue raised.
When you can import a product from a foreign retailer at full price for a single item cheaper than but it from a local retailer who imported in bulk, it tells you to look in the mirror for the problem.
The world is a competitive place and, with a recession looming, only getting more competitive. The days of monopoly price gouging are gone. We all need to get more efficient – whether in purchasing, rent, wages or profit expectations.
Australia thought they would charge Google tax and trumpeted it far and wide. The day after implementation, Google went to Singapore who offered a lower tax rate to the giant.
We no longer deliver groceries on pushbikes, we must all strive for the most cost effective solutions if we are to succeed. Even Amazon has innovated to use drone delivery.
The idiots making laws are like King Canute trying to hold back the waves of progress.
Overseas companies will adapt by refusing to supply -same as FATCA, “We do not want your business, you are too much trouble”
What intellectually impaired person could imagine a network of international accountants shuffling money around to pay taxes in foreign lands? Just the complications of administering it tells you it is doomed. Imagine every country demanding taxes from each other?
If in doubt, add more layers of complexity and stupidity, wrap it in Government inefficiency and pass a law.
Charge $10 a month through taxes and let people torrent and get on with life. Level the playing field by lowering compliance costs and taxes. Rome tried increasing taxes to cover it’s wars, armies and bureaucracy and look where that ended.
Cost efficient methods for service and product delivery should be a booming industry. When was the last time you saw a weaving loom or met a weaver? That’s right, the industry was made more efficient and shipped to Asia. I don’t hear politicians bemoaning the lack of mills and weaving jobs and retailers seem happy enough to buy from China and mark the product up ten-fold but then whine when someone undercuts at nine-fold.
When competition looms over the horizon, they bleat instead of innovating, adapting and changing. We are a global economy and protecting inefficient businesses has been proven not to work so many times.
Less is more. Governments need income, but a simple, streamlined and efficient system is the way, not over complication and stupid rules. We need to lower taxes for all, not just the large corporations. You cannot keep loading taxes on the middle classes – you need to innovate as Hong Kong did when it reverted from British rule.
For those businesses who cannot compete – tough luck. It happened when mills brought in weaving machines, hand loading was replaced with containers and electricity replaced horsepower.
Sadly, efficiency is not a word associated with Government.