Trade war tactics, Part 9: Taxing remittances to make effective tariffs

Trade war tactics, Part 9: Taxing remittances to make effective tariffs.

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No. 1xx).

The engagement in the trade war between two opponents countries relies mostly on tariffs. The remittances sent home by immigrants can actually weaken the effect of tariffs. Taxing the remittances is a logical way to extend the effect of tariffs.

#trade war, #tariff, #remittance, #tax

1. Remittances sent home by immigrants.

Every years immigrants sent home remittances to help their relatives still in their poor original (third) countries. These remittances may be used by their relatives to live in some third country V. There (in country V) the cheapest goods may be bought, resulting in remittances from country A can be used to buy goods manufactured by its opponent (country C).

If the remittances sent home by immigrants in country A is significant then the currency from country A still support the export of its opponent (country C).

2. Taxing remittances to make tariffs more effective.

Immigrants may not like it [1,2,3] but taxing of those remittances may be necessary. It is reasonable for country A to tax the remittances leaving its soil. It is quite reasonable if the tax is reimbursed to the payees when their relatives can produce proof that they used that money to purchase solely goods exported from country A with proof of TRACEABILITY.

3. Numerical example.

Immigrants from country V come to A and work there. The immigrants send back to country V an amount of $100,000. Country A should make a tax of $10,000 on that remittance, so that only $90,000 leave the the soil of country A.

If the immigrants can give the proof that all the money had been spent in country V  to purchase goods which had been imported from A or made in A then the immigrants can get back their $10,000 tax. Therefore the immigrants had sent $90,000 remittances to their country V with NO tax.

In effect, this tax would make people in country V buy $90,000 of goods imported or made in country A. The money would not be spent on goods made by the opponent country C.

References:

[1]. https://transferwise.com/us/blog/foreign-remittance-meaning-taxes

[2]. https://blogs.worldbank.org/peoplemove/why-taxing-remittances-bad-idea

[3]. https://ourworld.unu.edu/en/why-funding-a-us-mexico-wall-with-a-remittance-tax-is-a-recipe-for-disaster

RELATED Social Issues Blogs

magnifier horizontal

, , , , , , , , , , ,

, , , , , , ,

Latest

Social Issues Blogs, , , , ,

Click here for my other blogs.

divider43.jpg

polymeraust100dollars

Click here go to Divider63D400 Home Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Government may be behind Bubble Markets

Government may be behind Bubble Markets

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.109).

 

#bubble market, #market crash, #share market, #investment mania, #capital gain, #tax, #duty, #government,

Government may be behind Bubble Markets.

The arguments here use data and laws for only Australia but they are supposed to be applicable to other similar countries.

1. Government makes money on all transfer of wealth and all betting.

Let us say that any share trading market is only a place with zero sum for gains, just like a legalized casino (but with less requirements for transparency and fairness). There will always be winners and losers.

The government collects stamp duties on all transfer of wealth (ownership of shares) and betting (based on Contracts for Index Trading and Call and Put Options for shares).

The winners pay stamp duties and taxes on capital gains. The losers can ONLY deduct their capital losses against any current or future capital gains OF THE SAME NATURE!

That means you cannot deduct capital losses from shareholdings against capital gains in gold investment!

If a shareholder get very dispirited and decide never to own shares again, the Government win on the capital gain taxes he already paid on his IMAGINARY gains (during the growth of the Bubble)!

2. Government collects non-refundable stamp duties and capital gain taxes on all form of IMAGINARY capital gains.

During the bubble phase, most capital gains are imaginary and the government is quite happy collecting stamp duties and capital gain taxes on those imaginary capital gains!

3. There is more trading during any crash.

A crash of any market is only a (equitable or otherwise) transfer of wealth.

The computers for Share Trading have been overloaded and shut down in past crashes due to hectic trading. There will be obligations to complete the transfers of wealth after the trading.

A government always collect more stamp duties during crash despite its lip service that it shares the anguish of losers.

4. Australian government has been pumping up bank shares.

a. It allows shareholders to bet that bank shares would rise (by buying Call options and Selling put options) but penalize those shareholders who have “Put options” (by disqualifying them from offsetting company taxes against their personal income taxes)

b. It prohibits day traders (of shares) from selling first and buy back later the bank shares they don’t have. However it does not stop day traders from buying first resell later with the money they may not have ! (You are not allowed to sell in the morning the overpriced bank shares and buy them cheaper in the afternoon to fulfill the obligation caused by the contract in the morning).

5. Conclusion.

Just follow the money then people can see that Australian government benefits more from Bubble Markets than from “Fair Markets”. It may advise caution to investors but actually it may enjoy the money it collects from Bubble Markets of any form (for shares, real estates, bitcoins, tulips, gold, etc…).

Therefore it may be unnatural to expect a government to stop the growth of any bubble in its markets. It may actually have lent a hand to their growth!

Figure: Predicting a share market crash is really difficult.

Figure: Tulips (currently at $2 a bulb).

Figures: 1 ounce gold slab.

References

[1]. A satirical guide to signs of an impending crash for small investors,

[2]. Signs-pointing-to-an-impending-crash-for-small-investors,

[3]. Bitcoins-tulips-sparkling-diamonds-fiat-moneys-and-gold,

[4]. http://riggedgame.blog/2018/02/06/largest-cryptocurrencies-plunge-50-80-372-bn-gone-in-1-month-will-it-hit-the-us-economy/

[5]. http://riggedgame.blog/2018/02/11/the-game-truly-is-rigged-admits-economist-magazine/

Added after 2018 Mar 05:

[6]. https://riggedgame.blog/2018/03/05/democrats-gutting-wall-street-reform-follow-the-money/

[7]. https://www.thestreet.com/investing/why-red-hot-ipo-market-will-soon-bring-financial-carnage-14665587

[8]. https://dailyreckoning.com/you-should-fear-the-emerging-market-debt-bubble/

[9]. https://counterinformation.wordpress.com/2018/09/14/central-banks-have-gone-rogue-putting-us-all-at-risk/

[10]. https://wolfstreet.com/2018/09/18/just-how-exuberant-is-the-junk-credit-market/

RELATED MONEY Blogs

, posted on 17 April 2017 ,

, posted on 07 May 2017 ,

, posted on 10 Jun 2017 ,

moneyd20.jpg

The Parasites of Western Economy, Part 5: Company Asset Strippers and Conspirators posted on 13 August 2017 ,

moneyd20.jpg
, , , Cashless bartering for survival, Federal Reserve Bank charges undeserved fees to Americans., A satirical guide to signs of an impending crash for small investors, Your fiat money (Part 2), Your fiat money, Bankers given outrageous incomes by their boards, Signs pointing to an impending crash for small investors,Bankers earn more than interest margin on secured loans, Can most pension funds last?, … all

Click here for my other blogs on SURVIVAL

Click here to go toHome Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]