Territorial tax system – Atlantic Storm http://atlantic-storm.org/ Thu, 17 Nov 2022 11:40:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://atlantic-storm.org/wp-content/uploads/2021/05/cropped-icon-32x32.png Territorial tax system – Atlantic Storm http://atlantic-storm.org/ 32 32 Scottish windfarm offshore crew fired for foreign labor https://atlantic-storm.org/scottish-windfarm-offshore-crew-fired-for-foreign-labor/ Thu, 17 Nov 2022 11:40:24 +0000 https://atlantic-storm.org/scottish-windfarm-offshore-crew-fired-for-foreign-labor/

Offshore crew members at a Scottish wind farm have been made redundant in favor of using foreign labour.

Letters seen by Energy Voice confirm that Solstad Offshore, an energy supply company, has laid off the 36 workers it hired through the ERSG agency to work on the Normand Navigator in favor of a workforce- cheaper foreign work.

The crew of 36 was to man the key Norwegian-registered supply vessel, the Normand Navigator, working on the Neart Na Gaoithe offshore wind project in the Firth of Forth off Fife.

The alternative crew would be “largely Filipino” and will work for “significantly lower rates of pay”, according to RMT union regional organizer Jake Molloy.

Solstad and ERSG were asked to comment on the case, first reported by the Herald.

It is understood that the move follows a visa extension for migrant offshore wind workers.

In 2017, the then Home Secretary granted a concession to immigration rules, allowing the employment of foreign nationals who join vessels engaged in the construction and maintenance of offshore wind projects in territorial waters. British.

The concession will expire at the end of April next year.

This kind of action cannot be tolerated!

Mr Molloy told Energy Voice: ‘I understand the company claiming they pay minimum wage, but we have experience of contractors paying well below that rate and as low as £3.60 from time.

“But aside, the fact that they’re ferrying workers halfway around the world is a direct contradiction to UK and Scottish government commitments to a ‘just transition’ creating thousands of good, well-paying jobs. in a green recovery!

“It demonstrates that we are millions of miles away from that, and that in fact the exploitation of low-wage workers to increase already huge profits is the order of the day!

“And at a time when we consumers see our energy bills continue to climb, this kind of action cannot be tolerated!”

Father-of-three left out in the cold as Christmas approaches

A dismissed worker contacted RMT about this “tragic situation”.

He has lived in Scotland with his family for 17 years and worked as an offshore steward for over nine years.

This contractor signed a “12 month contract with the ERSG and decided to work on the Solstad Offshore, ‘Normand Navigator'”.

“Several times” he checked with an ESRG representative if the work would last for the planned 12 months and he “received assurances that it would be a long project”.

For this reason, the contractor in question refused further work in favor of job security, he wrote: “I am a father of three children and I cannot afford to be unstable, especially during the holiday season.”

The father-of-three told RMT: ‘The first slight doubt that came to mind from the ERSG was that I had to sign a contract that said I had to pay to transfer my money earned £60 for each transfer .

“I have also been informed that I have to sign another contract with Payworx and that I will be paid in the UMBRELLA system. There was no mention of this before.

“No one has explained to me or my colleagues (there are several of us) what this system consists of.

“We are advised that this is required by the UK Government and there is no other option.

“We stayed, I was manipulated into being employed by the umbrella company and there is no other option.

“I didn’t know I would have to pay the employer’s NIN and TAX!”

Despite his reservations, the entrepreneur continued.

“The day before boarding the ship we were accommodated in a hotel in Newcastle, two strangers in one room, which was very uncomfortable and unprofessional,” the father wrote.

When asked about the living situation, the entrepreneur was told by an ESRG official “it was easier for them to organize it that way”.

He added: “No one asked anyone for their opinion on this.”

Pay issues

As well as a lack of transparency in how contractors would be paid and “uncomfortable” accommodation, the father-of-three also faced problems receiving his salary.

“Throughout the contract period, no one has given us clear information about how many additional taxes and fees will be charged to us,” the contractor said.

“ERSG and Payworx employees avoided this topic like the plague.

“Throughout the contract, despite the ERSG’s avoidance of answering uncomfortable questions, we worked to complete our tasks.

“We were convinced that we had jobs for the next 12 months.

“One day, after 2 weeks of work, there was information from the previous team that there were problems with paying the money on time.

“Some of my colleagues checked whether we really had to be paid under the umbrella scheme and there were also reports that this was not true. The company denied it.”

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Almost new fiscal rules for an old Europe – Enrico D’Elia https://atlantic-storm.org/almost-new-fiscal-rules-for-an-old-europe-enrico-delia/ Fri, 11 Nov 2022 04:02:02 +0000 https://atlantic-storm.org/almost-new-fiscal-rules-for-an-old-europe-enrico-delia/

The proposed new fiscal rules could represent modest steps from the status quo. But they are going in the right direction.

A appointment in which Europe should mitigate the Maastricht Treaty’s excessive emphasis on fiscal discipline (defotoberg/shutterstock.com)

The European Commission has adopted a communication to the European Parliament for the upgrading of the budgetary rules associated with the economic and monetary union, suspended since 2020 due to major economic shocks. The commission’s intention is to design a “simpler, more transparent and effective framework, with greater national ownership and enforcement, while enabling strategic investments and reducing high public debt ratios in a realistic way.” , progressive and sustainable”.

The proposal is the result of lengthy negotiations and public consultations, beginning well before the pandemic and the energy crisis and involving economists, governments and other institutions. Jan Priewe reviewed the main proposals that were on the table this week in Social Europe. The next step is the discussion of the commission’s proposal by the governments of the Member States and the European Parliament.

The main objective of the new regulation is to oblige Member States to reduce public debt along a more achievable (and credible) trajectory than that set out in the Stability and Growth Pact. This prescribed a reduction in the debt-to-gross domestic product ratio by 1/20th of the amount exceeding 60% of GDP each year, keeping the “structural” budget deficit close to an esoteric threshold called the medium-term objective. (WTO). .

Involved and ineffective

The committee admits that the current pact had a strong focus on fiscal discipline rather than growth, as expressed even in the position papers of three orthodox European governments (Spain and the Netherlands jointly and Germany). She also admits that the sanctioning procedure was so complicated and inefficient that while almost every member state broke the rules at least once in the past decade, none were actually sanctioned. A simple look at the multi-tiered “pyramid” of steps needed to implement the excessive deficit procedure (in the 2019 edition of the Pact Committee’s ready review) shows why this happened. Additionally, the MTO is notorious for its volatile and incorrect guidance to national governments, helping to amplify rather than smooth the business cycle.

Thus, the committee decided to focus on a more transparent measure to assess deviations from prudent fiscal policy, the “expenditure benchmark”. This is total government expenditure net of discretionary revenue, excluding interest payments and cyclical unemployment-related expenditure. The reference makes not however exclude capital expenditures, as proposed by many stakeholders and academics.

Formally, the 1/20th debt reduction rule, the “structural” budget deficit based on the controversial “output gap” measure and the MTO thus disappear from the new European budgetary framework. The 3% ceiling for the budget deficit is maintained (as it is prescribed by the Treaty on the Functioning of the European Union) but this would be assessed over a four-year period, instead of being an annual target exposed to short-term fluctuations. disturbances.

Stable and durable

The national debt reduction plans prescribed by the new rules would then (deliberately) have the same average duration as a government, four years, and would only be revised in exceptional cases. Thus, each government would pass on a healthy fiscal position to the next. The commission proposes a unified approach (probably very similar to the current methodology) to these multi-annual programmes, although they are subject to modification by Member States in the framework of bilateral negotiations. There would be annual targets for net government spending, instead of budget deficit, consistent with projected revenue, debt reduction and GDP.

In the committee’s view, plans still need to ensure that the debt-to-GDP ratio is placed on a stable and sustainable downward path under unchanged policies, and that the budget deficit is below 3% of GDP for the next ten years. years, although with some relaxation for moderately indebted countries. Member States are classified as highly indebted (and at high risk) according to a methodology inspired by the International Monetary Fund, whose main benchmark is a debt-to-GDP ratio above 90%.

The plan can be extended over a period of seven years if the Member State undertakes to implement a program of reforms and investments recommended by the commission. Each Member State must submit an annual report on the implementation of the plan. In assessing progress, the committee would (seriously) take into account other issues included in the procedure concerning macroeconomic imbalances, such as unemployment and territorial disparities. Independent national and European fiscal councils would play a greater role in assessing deviations from the plan.


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The penalty system would also change. The excessive deficit procedure would be maintained for breaches of the 3% rule (and opened and closed mechanically for high-risk countries). Nevertheless, fines would be reduced, while a suspension of European funds (including the Recovery and Resilience Facility) and certain reputational sanctions would be introduced, such as the summoning of a Minister of State before the European Parliament .

Misleading assessment

An embittered observer might say of the new rules what a character in a novel Il Gattopardo (The Leopard) said of Italian unification: “If we want things to stay as they are, things will have to change. The “expenditure benchmark” appears to be a reformulation of the “structural” deficit benchmark, and the “potential output” replaces the controversial “output gap” to adjust fiscal policy to the economic cycle in the ten-year debt projection. The commission will likely consider some variants of the OMT when proposing and evaluating stabilization plans. Heavily indebted countries can hardly deviate from the plans designed by the commission, to avoid negative reactions on the financial markets, which is not so different from the effects of the “enhanced surveillance” envisaged by the current pact.

Discriminating between Member States according to their level of risk would be a reasonable approach if debt accounting were perfectly comparable between Member States. Yet debt measured by the Maastricht Treaty standard can offer a misleading assessment of the risk each country presents.

Consider the liabilities of public enterprises classified outside general government expenditure (notably public investment banks). According to Eurostat, in 2020 these liabilities varied as a proportion of GDP, with the conventional Maastricht debt-to-GDP ratio in brackets, thus: Greece 171% (206%), Germany 101 (68), Netherlands 89 (55) and Italy 65 (155). When the first ratio was higher than the European average, the published debt ratio would represent a comparative underestimation and vice versa.

The European Union’s average official debt was around 90% of GDP in 2020, at the threshold of high-risk designation under the new regime. But that would rise to 156% with the inclusion of these other liabilities, making Germany a high-risk country, unlike Spain, even though its public debt is 120% of GDP.

Moreover, at least two points are missing in the commission’s proposal. The first is the coordination of national policies, required by the significant repercussions of budgetary policies on European economies. Thus, the new rules could still be pro-cyclical and risk propagating recessions in the EU, as low-debt countries are still not encouraged to pursue expansionary fiscal policies.

Second, the “expenditure benchmark” implicitly continues to assume that the fiscal multiplier – the impact on national income of public expenditure – is zero: otherwise, it would be pointless to monitor expenditure without taking into account the effect on income and GDP. Yet austerity is recognized as counterproductive when the debt-to-GDP ratio multiplied by the fiscal multiplier exceeds one.

Significant Achievement

A fair view, however, is that attempting to reform the pact after 25 years is a significant achievement in itself. Another piece of good news is the recognition that fiscal consolidation is not achievable without economic growth and that imbalances other than the fiscal deficit need to be seriously considered.

The pursuit of multi-annual targets could encourage forward-looking structural policies rather than short-term legislative measures (sometimes distorted by the showmanship of public accounts). Rising reputational costs and streamlining penalties for deviations from plans provide strong incentives for governments to be accountable to citizens.

The motivation to increase public investment and implement structural reforms is still weak – retaining only a postponement of fiscal consolidation – but it is a way to focus on the quality of public spending and encourage more productive use of tax revenues. Linking European installations to the results obtained, as in the NextGenerationEU programme, is a good practice. Finally, the new proposal (almost) erases from European jargon the 1/20th rule, the output gap and the OMT.

Of course, on many points, improvements are necessary. But we are on the right track.

Enrico D’Elia is an economist who has worked, among others, for Eurostat as well as for the Ministry of Finance, the Statistical Office and the Institute of Economic Analysis of Italy. He has written over a hundred articles on macroeconomics, corporate and household behavior, inflation and economic forecasting. The opinions expressed here are entirely his own.

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EU gas deal with Azerbaijan is strategically myopic and hypocritical https://atlantic-storm.org/eu-gas-deal-with-azerbaijan-is-strategically-myopic-and-hypocritical/ Sat, 05 Nov 2022 03:13:56 +0000 https://atlantic-storm.org/eu-gas-deal-with-azerbaijan-is-strategically-myopic-and-hypocritical/

It was a year of historic change in Kazakhstan with President Kassym Jomart-Tokayev launching a wave of democratic reforms in the country to create a freer and fairer society. Among these changes are fundamental reforms to the system of government, creating more transparency and accountability, electoral reforms, as well as reforms in almost every other area of ​​life – including the environment and renewable energy sources. (SER).

Tokayev’s green economy plan

Kazakhstan presented its ambitious “2050 Green Economy Plan” along with the 2060 Carbon Neutral Declaration, a commitment to the 2030 Global Climate Agenda. In 2013, Kazakhstan adopted a plan to transition to a green economy and 2016, Kazakhstan signed the Paris Agreement committing to reduce greenhouse gas emissions.

Indeed, despite its resource-rich terrain and access to fossil fuels, Kazakhstan has a long history of developing RES to help alleviate the energy challenges of our time, enshrined in Kazakhstan’s legislation since 2009. As Kazakhstan prepares to future considerable increase in the use of energy, the government has already launched projects to put in place more sustainable and environmentally friendly solutions. In October 2022, President Tokayev stressed the importance of increasing RES, noting that several projects are being developed in the Almaty region, including a wind farm in the Shelek corridor, a hydroelectric power station in the district of Raiymbek and the hydroelectric station of Bartogai in the district of Yenbekshikazakh. .

In the aftermath of Kazakhstan’s convincing steps towards decarbonization, the World Bank also showed its support: “We are ready to help the government green the economy through technical advice and investments in all sectors”, said said the World Bank’s Vice President for Europe and Central Asia. Anna Bjerde. With the current global energy market instability, it has never been more important than now to innovate in the energy sector.

142 renewable energy installations

Already, there are 142 renewable energy installations in Kazakhstan, with an installed capacity of 2332 MW. There are also 48 new energy projects on the agenda for 2025, including 13 hydroelectric plants, 34 wind turbines and 12 solar stations. As a member of

implementation of these projects, 350 billion tenge will be invested in technology, an additional 2.5 billion kWh of green energy will be generated, and more than 2,000 temporary jobs and 400 permanent jobs will be created.

In addition, Kazakhstan will soon deploy 10 new renewable energy installations, with a total capacity of 290.6 MW. Estimates indicate that by 2025, the national share of renewable energy will be 6%, 15% in 2030 and up to 50% in 2050.

Evidence from recent years also indicates that these goals are by no means far off. At the end of 2021, the volume of electricity produced by renewable energy installations amounted to 3.69% of total electricity production, an increase of 30% compared to the same period in 2020. At the end in the first half of 2022, the volume of electricity generated by renewable energy facilities amounted to 4.24% of total electricity production, an increase of 17% compared to the same period in 2021 .

In addition, experts estimate that there is a potential of 920 billion kWh per year from wind energy, 62 billion kWh from hydroelectricity and a huge potential for solar energy in the southern regions of Kazakhstan that receive 2,500 to 3,000 hours of sunshine per year. In short, there is no limit to Kazakhstan’s potential for RES.

Attract investment in new technologies

Beyond the projects already ordered, Kazakhstan is making every effort to attract investment and new technologies. The Ministry of Energy has also announced plans to launch a new Renewable Energy Auction, to be held annually, and conduct special RES auctions for electricity storage.

The international auctions for 2018-2021 were conducted in electronic format for renewable energy projects with a total capacity of 1,710 MW. 196 companies from 12 countries participated in the auction: Kazakhstan, China, Russia, Turkey, Germany, France, Bulgaria, Italy, United Arab Emirates, Netherlands, Malaysia and Spain. This year, the auction is expected to take place from November 3 to 29, with the total installed capacity auctioned being 690 MW.

These auctions have made possible transparency in the process of selecting projects and investors and, on the other hand, have enabled more efficient technologies and projects which have minimized the impact on tariffs for end consumers of the implementation service of renewable energy installations.

$613 million RES projects

Kazakhstan has managed to sign several critical agreements and memoranda with international financial institutions, amounting to approximately $613 million to move these RES projects forward. Investors from 10 countries around the world, as well as major financial companies

institutions such as EBRD, AfDB, Asian Infrastructure Investment Bank,

and DBK, are currently working in Kazakhstan’s green energy sector. In addition, large companies such as Eni, TotalEren, ACWA Power, Masdar and Havel, which have already implemented projects in Kazakhstan in the past, intend to further develop

renewable energy projects and have invested in the sector.

While Kazakhstan’s RES efforts have already yielded positive results, the Ministry of Energy, together with interested parties, will continue to promote RES by developing technical requirements for RES projects using the storage system. of electricity, by improving the development mechanism of small-scale RES. , regulating the mechanism for concluding bilateral contracts between RES and consumers (including miners) and providing incentive mechanisms for large hydropower plants.

Together, these steps and new cutting-edge RES technologies can alleviate pressures on Kazakhstan’s existing electricity grid and help Kazakhstan achieve its green energy goals within the international community.

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Rallies for Cassius Turvey nationwide; RBA warns of ‘severe recession’ after latest rate hike; the Minister of Foreign Affairs will sign an agreement against human trafficking https://atlantic-storm.org/rallies-for-cassius-turvey-nationwide-rba-warns-of-severe-recession-after-latest-rate-hike-the-minister-of-foreign-affairs-will-sign-an-agreement-against-human-trafficking/ Wed, 02 Nov 2022 08:55:25 +0000 https://atlantic-storm.org/rallies-for-cassius-turvey-nationwide-rba-warns-of-severe-recession-after-latest-rate-hike-the-minister-of-foreign-affairs-will-sign-an-agreement-against-human-trafficking/

Here is an overview of international news:

Korean Peninsula

South Korea claims that North Korea fired a total of more than 10 missiles off its east and west coasts.

The launches came hours after North Korea issued a veiled threat to use nuclear weapons to make the United States and South Korea “pay the most horrific price in history” for their large-scale military exercises underway.

South Korea fired three missiles at North Korea’s maritime border, in response to what it called an “effective territorial invasion”.

Brazil

The administration of Brazilian President Jair Bolsonaro has signaled its willingness to cede power, two days after losing the election to rival Luiz Inácio Lula da Silva.

There had been speculation the far-right incumbent could challenge the result based on the fact that he spent months saying the only way to lose Brazil’s presidential election was if it was rigged .

On Tuesday (Brazilian time), he gave a speech at the presidential palace, saying, “I have always played within the four lines of the constitution.”

However, he did not congratulate his opponent or concede explicitly.

Bolsonaro then had a private meeting with Supreme Court Justice Luiz Edson Fachin.

After the meeting, Fachin made a video that aired on local media and quoted Bolsonaro saying, “It’s over. So let’s look ahead. »

United States

Former Democratic President Barack Obama warned on Tuesday that “more people are going to be hurt” due to the erosion of basic civility and democratic standards, after the House speaker’s husband was attacked by a man brandishing a hammer.

“This growing habit of demonizing political opponents creates a dangerous climate,” Obama said, blaming elected officials who fail to reject violence, downplay it or inflame the situation with fiery rhetoric.

“If that’s the environment we’re creating, more people are going to get hurt.”

Ukraine

The United Nations Security Council has scheduled a vote on a resolution that would create a commission to investigate unfounded Russian allegations that Ukraine and the United States are carrying out “biological military” activities that violate the convention banning use of biological weapons.

Ukrainian President Volodymyr Zelensky called on the world to respond strongly to any Russian attempt to disrupt Ukraine’s grain export corridor.

A deal brokered by the United Nations and Turkey in July had ensured safe passage for ships carrying grain and other fertilizer exports, but Russia pulled out of the deal over the weekend, saying that she could not guarantee the safety of civilian ships due to an attack on her black ship. Sea fleet.

With AP, Reuters

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Kishida aims to strengthen defense and fight against bureaucratic sectionalism https://atlantic-storm.org/kishida-aims-to-strengthen-defense-and-fight-against-bureaucratic-sectionalism/ Fri, 28 Oct 2022 23:00:00 +0000 https://atlantic-storm.org/kishida-aims-to-strengthen-defense-and-fight-against-bureaucratic-sectionalism/
The Yomiuri Shimbun
Prime Minister Fumio Kishida, center, addresses an advisory group in Tokyo on October 20.

Prime Minister Fumio Kishida has set himself several goals to strengthen Japan’s deterrent capability. One of these goals is to increase the defense budget over the next five years to meet the North Atlantic Treaty Organization target of 2% of gross domestic product. Historically, Japan has limited its defense spending to less than 1% of GDP. The budget increase to 2% will mark a historic shift in Japanese defense policy. No significant objections to this goal exist within the ruling Liberal Democratic Party, although there is debate about how Japan will achieve this.

Kishida aims to meet Japan’s 2% target by introducing a new definition of defense spending under the “NATO standard” of accounting. This means that the national defense budget would include some already existing items that Japan does not currently count in defense spending, such as the Japan Coast Guard budget and the science and technology budgets of other ministries and agencies. Some members of the PLD fear that the new concept will artificially increase the defense budget. However, these members probably don’t understand Kishida’s real motive in introducing the concept.

On September 30, at the first meeting of a group of experts to discuss Japan’s national defense capabilities in depth, Kishida stressed, “We must break bureaucratic sectionalism and consider strengthening the overall defense system, including the use of research and development in the public and private sectors and public infrastructure where possible.

At the panel’s second meeting on October 20, Kishida asked government departments and agencies to consider a new framework in which budgets related to research projects and public infrastructure would be counted as defense-related expenditures.

The key concept here is to “break bureaucratic sectionalism”. The JCG and the Maritime Self-Defense Force should strengthen their collaboration to handle the situation in the Senkaku Islands, where many Chinese ships are intruding into Japanese territorial waters around the islands. Discord between the JCG and the MSDF hampered the operations of both for years. However, the time has come when the JCG can no longer be seen simply as an arm of law enforcement unfit to participate in a Senkaku contingency. A JCG officer recently told me that there are many things the JCG must do when a contingency arises. And an MSDF officer recently told me that the MSDF supports strengthening the JCG. He also hopes that the defense budget and the JCG budget will increase, which is why he strongly supports the concept of a unified defense-related budget.

Kishida has also set his sights on research and development spending. The entire government budget for science and technology exceeds 4 trillion yen per year. The Ministry of Defense receives only 4%, while the Ministry of Education, Culture, Sports, Science and Technology receives 49%. Experts point out that there are many areas in the budgets of other departments that would overlap with defence. But so far, no significant collaboration exists between the research and development projects of these ministries and the field of defence.

The main reason is avoidance on the part of bureaucracy and academia, both of which fear any association with memories of Japan’s pre-war buildup in the early 20th century. At that time, military authorities forced academics to cooperate in the development of weapons.

But 77 years have now passed since the end of the war. The situation surrounding research and development has changed dramatically. In recent years, “dual-use” technology with military and civilian applications has become more prominent. Major countries, including the United States and China, are now consolidating dual-use research and development under a whole-of-government approach. Japan must do the same.

Of course, the government’s fiscal situation affects these proposed reforms. Japan’s gross government debt, including central and local government debt, to GDP ratio is not only higher than any other major advanced country, it is the highest in the world. Therefore, the government must carefully craft the budget to be as effective as possible.

Kishida understands this situation well. At the September 30 panel meeting, the Prime Minister noted that “even in an emergency, we must prevent the credibility of our nation and the lives of our citizens from being compromised.” A nation usually needs to issue government bonds in the foreign market when it goes to war. Japan did this during the Russo-Japanese War. Yet obtaining financial resources to increase the defense budget will not be easy.

If Kishida decides to raise tax rates, he will surely face backlash from voters. To boost the defense budget, the government must probe the sentiment of its citizens. Kishida credited himself with the “ability to listen” to the audience. Now Kishida must demonstrate his ability to persuade the public of the need to defend Japan and what it will take to do so. Japan’s future depends on every citizen’s serious reflection on these pressing issues.

A close aide told Kishida, “If you succeed in strengthening Japanese defense capabilities, including obtaining counterattack capabilities, that will be your legacy.” Kishida agreed. The government will revise three defense documents, including the national security strategy, by the end of this year. The documents establish the size of the defense budget and the content of the nation’s defense capability. The PLD and Komeito, its ruling coalition partner, have started talks on the issue. At the September 30 meeting, Defense Minister Yasukazu Hamada stressed, “We have little time left. We must act immediately and achieve a drastic reinforcement of our defense capabilities within five years. The next two months will be critical in determining the long-term direction of Japanese security policy.

Of course, the government’s fiscal situation affects these proposed reforms. Japan’s gross government debt, including central and local government debt, to GDP ratio is not only higher than any other major advanced country, it is the highest in the world. Therefore, the government must carefully craft the budget to be as effective as possible.

Kishida understands this situation well. At the September 30 panel meeting, the Prime Minister noted that “even in an emergency, we must prevent the credibility of our nation and the lives of our citizens from being compromised.” A nation usually needs to issue government bonds in the foreign market when it goes to war. Japan did this during the Russo-Japanese War. Yet obtaining financial resources to increase the defense budget will not be easy.

If Kishida decides to raise tax rates, he will surely face backlash from voters. To boost the defense budget, the government must probe the sentiment of its citizens. Kishida credited himself with the “ability to listen” to the audience. Now Kishida must demonstrate his ability to persuade the public of the need to defend Japan and what it will take to do so. Japan’s future depends on every citizen’s serious reflection on these pressing issues.

A close aide told Kishida, “If you succeed in strengthening Japanese defense capabilities, including obtaining counterattack capabilities, that will be your legacy.” Kishida agreed. The government will revise three defense documents, including the national security strategy, by the end of this year. The documents establish the size of the defense budget and the content of the nation’s defense capability. The PLD and Komeito, its ruling coalition partner, have started talks on the issue. At the September 30 meeting, Defense Minister Yasukazu Hamada stressed, “We have little time left. We must act immediately and achieve a drastic reinforcement of our defense capabilities within five years. The next two months will be critical in determining the long-term direction of Japanese security policy.

Political Pulse appears every Saturday.




Michitaka Kaiya

Kaiya is an editor in the political news department of the Yomiuri Shimbun.


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Canada’s premiers turn up the heat in new campaign for more health funding – National https://atlantic-storm.org/canadas-premiers-turn-up-the-heat-in-new-campaign-for-more-health-funding-national/ Wed, 26 Oct 2022 11:00:17 +0000 https://atlantic-storm.org/canadas-premiers-turn-up-the-heat-in-new-campaign-for-more-health-funding-national/

Canada’s premiers are stepping up political pressure in their efforts to get Ottawa to increase federal health transfers to provinces and territories.

Premiers have launched a new publicity campaign through the Council of the Federation, which includes all 13 provincial and territorial premiers, aimed at increasing public pressure on Prime Minister Justin Trudeau to meet with them and negotiate a higher federal contribution to health care costs.

“As federal health care disappears, so do our doctors,” reads an ad, underscoring the provinces’ position that federal health funding levels “continue to decline.”

Read more:

Canadian premiers call for increased health care funding from Ottawa

“Provinces and territories are doing their part, but we need the federal government to restore health care funding now to keep our systems strong,” the ad continues.

The story continues under the ad

The campaign, which launched on Monday and includes ads online, in print, on the radio and on billboards, comes as provinces face their own calls for urgent action in the face of significant pressures exerted on health systems across the country.

An exodus of health care workers, especially nurses, from the public system, nationwide shortages of family doctors, continued waves of COVID-19, and influxes of patients in need of mental, home or long-term health care. duration are all factors that have led to emergency room closures, health worker burnout and calls to deal with a health care “crisis”.

The delivery of health care is a provincial responsibility, but the Council of the Federation, made up of Canada’s 13 prime ministers, is using its new advertising campaign to launch the health care hot potato in Ottawa, affirming the long-term viability of Canada’s health care systems “cannot be sustained as long as the federal government’s share of health care funding continues to decline.

Read more:

Premiers brace for protracted battle over increased federal health care funding

“To ensure the tests, procedures and other health services Canadians need across the country – when they need them – they should no longer have to wait for federal action,” said Manitoba Premier Heather Stefanson, in a statement. Stefanson is currently Chairman of the Council of the Federation.

Premiers have demanded a $28 billion increase to the Canada Health Transfer, which they say will increase the federal contribution to health care costs from the current 22% to 35%.

The story continues under the ad

Ottawa argues that the premiers’ figures do not represent the full extent of the federal government’s total investment in health care, because provincial tax points and other specific bilateral agreements on mental health and home care is not taken into account.

“If you look at the numbers and do the math correctly, the actual percentage of federally funded public health spending is around 35%, we’re already there,” Health Minister Jean-Yves said. Duclos to journalists during a press conference. conference in Manitoba last month.


Click to play video: “Ontario Premier calls for 'Team Canada' approach to health care crisis”


Premier of Ontario calls for ‘Team Canada’ approach to health care crisis


He said arguing over percentages is a “futile debate”.

“The most important debate is the important fight for (healthcare) workers…it’s the outcomes for healthcare workers that matter because when we do that, we get the right outcomes for patients,” did he declare.

Additionally, Trudeau said he wants to see more “tangible results” from the $45.2 billion that provinces and territories will already receive this year for health care before discussing any increases to the Canada Health Transfer. health.

The story continues under the ad

In the past, “huge investments” by provincial and federal governments have not always brought about the needed improvements, Trudeau told reporters in July.

But that hasn’t stopped the Premiers from calling for a “First Ministers’ Agreement on Sustainable Health Care Funding” as part of their publicity campaign.

While it’s no surprise to see premiers trying to unload some political heat on Ottawa on an issue that has become a major pressure point, the campaign is somewhat “dishonest” in that it oversimplifies a complex issue, says Katherine Fierlbeck, professor of political science at McCulloch. at Dalhousie University and chair of the department.

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Health Care Workers to Premiers: Find Solutions to ‘Crisis’, Don’t Just Ask Ottawa for Funds

“It’s just not about pumping more money into the system,” she said. “It’s how the money is used.”

If, for example, Ottawa gives more funding to the provinces and they use it to increase the salaries of doctors and nurses, they will end up competing for the same shrinking pool of health care workers, said Fierlbeck.

It also does not address Ottawa’s concerns that an increase to the Canada Health Transfer would not include specific targets or performance measurement tools to ensure the money is spent where it is most needed, she added.

Provinces often balk when Ottawa tries to tie strings in health care funding, leading to political stalemates like the one currently at play between the provinces and the federal government over health care funding.

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That’s why it might be time to think about putting in place a different mechanism to ensure greater accountability over healthcare spending and take politics out of the equation, says Haizhen Mou, health policy expert and professor at the Johnson Shoyama Graduate School of Public Policy at the University of Saskatchewan.

She mentioned the Australian Commonwealth Grants Commission, an independent body that advises the Australian government on how federal funding should be distributed to ensure equitable access to services.

Read more:

‘Real disconnect’: Provinces and feds point fingers as Canada’s ER crisis continues

Ottawa wants to see “tangible results” from the provinces on health care, but has been vague about who would measure those results and how they would be evaluated.

If Canada had its own independent body to collect data from the provinces, measure the performance of provincial and territorial health systems, and advise governments on the best distribution of health care spending, it could ease tensions between Ottawa and the provinces. who object to Ottawa telling them how to run their affairs, says Mou.

“This type of governance body can probably provide a better mechanism for managing the fiscal relationship (between Ottawa and the provinces),” she said.

“If we have performance metrics, we should probably let a third-party type organization design the metric, monitor it, and provide some sort of neutral judgment on whether a promise meets a condition. “

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Colleen Flood, research chair in health law and policy at the University of Ottawa, says Canada has a “fragmented accountability” system that only gives voters the chance to vote against a government that fails. they are not satisfied with their health system or the way it is managed.

She echoed the memorandum of understanding by saying that an independent office could provide Canadians with another accountability mechanism, but she suggested that a Canadian Patient Ombudsman could play that role.


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Ford, Maritime premiers want more details on federal dental program, but focus should be on health care crisis


“It does not directly solve the problem, but perhaps a constant spotlight on the problems that Canadians are experiencing will help to reverse the situation, to ensure greater accountability on the part of the provinces for their management of the health system, and also reveal where they definitely need more funding,” Flood said.

Meanwhile, talks between the federal and provincial governments on health funding have continued over the past few months.

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In February, Canada’s health ministers met and identified several health workforce priorities, including accelerating pathways for internationally trained health professionals, improving and leveraging data on health personnel, staff training and support, and mental health support, Health Canada said in a statement Tuesday to Global News. .

These priorities were reiterated at another meeting in August, with a commitment to update on progress at their next in-person meeting with Duclos in two weeks in Vancouver.

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Competence and Offenses in the Metaverse https://atlantic-storm.org/competence-and-offenses-in-the-metaverse/ Tue, 18 Oct 2022 15:09:37 +0000 https://atlantic-storm.org/competence-and-offenses-in-the-metaverse/

If someone attends a pop concert in the metaverse from their home in the UK, where the metaverse is hosted on a South Korean server, the artist sings from their home in the US and tickets are sold by a concert organizer based in Canada, it is difficult to determine where the concert is taking place and which court(s) might have jurisdiction to hear claims for losses resulting from this concert.

In the ninth article of our series, we explore how courts might approach this issue of identifying an appropriate jurisdiction for disputes arising from the Metaverse.

Cross-border litigation

When someone believes that their rights have been violated and they want to enforce those rights or seek some sort of remedy to compensate them for their loss or injury, they turn to the courts and tribunals. Where there is no cross-border element to the claim, the claimant’s local courts and tribunals should normally assume jurisdiction over the claim. Where there is a cross-border element (for example, the defendant in the claim resides or carries on business in another country), things can get complicated. Countries generally have rules in place to help their courts determine whether, and on what basis, they can exercise jurisdiction over a dispute. These rules are generally inspired by the principles of the United Nations Charter such as sovereign equality, non-intervention and territorial integrity. In addition, some countries are parties to international conventions regarding jurisdiction in cross-border disputes and, in some cases, the recognition and enforcement of judgments rendered in such disputes. Collaboration in this area continues: it was only in 2019 that the Hague Judgments Convention was concluded.

Matters become more complicated, however, when the alleged events or conduct take place outside the physical world. The dominance of the Internet, for example, has led countries to adapt their legal frameworks and create new laws to address disputes arising from its use. It is unclear how these laws will apply to the avatars that inhabit the metaverse and the trading of digital assets, such as non-fungible tokens (“NFTs”), that occur there. English courts, for example, have recently shown themselves willing to exercise jurisdiction over a claim relating to NFTs held in a marketplace operated by a US company, on the grounds that the NFTs are arguably property under of English law. The court held that the location of NFTs is the place where their owner is domiciled. Similarly, we have seen UK tax authorities seize NFTs as part of tax evasion. This is a rapidly developing area of ​​law and there are real possibilities for international jurisdictional disputes.

Crimes in the Metaverse

The choice of jurisdiction depends to some extent on the nature of the dispute. In the context of tort wrongdoing, jurisdictional rules generally require some degree of nexus between the wrongdoing and the country in question. Under the recast Brussels regulations that apply in the European Union, for example, jurisdiction for tort actions is determined by reference to the place where the damage occurred or the place of the wrongful act that gave rise cause this damage. In England and Wales, similarly, the courts may exercise jurisdiction provided that the damage is suffered in the jurisdiction or the damage results from an act committed there.

One wonders how these principles would apply to wrongdoing in the Metaverse. However, given the metaverse’s potential uses for socializing, working, gaming, shopping, commerce, and entertainment, it is likely that crimes will be committed in this virtual space. For instance:

  • A dishonest trader selling goods in the metaverse may commit the offense of deception if they falsely state that the goods they are selling are the goods of a (usually well-known) third party. The harm caused here relates to the right of the third party to the goodwill of his business, and the plaintiff is that third party.
  • The tort of misrepresentation (also known as negligent misrepresentation or the tort of deceit in other countries), where misrepresentation is relied upon to cause loss, could also become common. For example, a company may purchase advertising “space” at a pop concert held in the Metaverse based on false claims made by the concert organizer about the visibility of that advertising space.
  • The tort of negligence may also be relevant if the courts recognize new situations where a duty of care might arise in connection with the conduct of avatars in the metaverse. Metaverse providers could themselves be subject to legal duties of care, at least in Britain if the Online Safety Bill is enacted, if not as a result of regulation by other countries as well .

In each of the above areas, the courts will need to determine the location of the wrongdoing and identify the perpetrator of the wrongdoing. Various considerations will apply. For example, the court may have to determine whether an avatar can be given separate legal personality or be treated as an independent tortfeasor. It seems more likely at this point that an avatar’s statements and conduct are attributed to the person controlling it, but if ever an avatar exercised independent decision-making (i.e. had a artificial intelligence), the issue could become more complicated.

It will also be interesting to see how the courts determine where the “damage” caused by a tort lies. It will probably depend on the facts of the case. For example, if the third-party merchant in the surrogate scenario described above was also a real-world merchant, courts would have to determine whether the damage occurred in the metaverse, the real world, or both. Meanwhile, if the third party operated only in the metaverse, the courts would have to consider whether the damage occurred only in the metaverse or instead of its ultimate (human) beneficial owner. The question would be even more complicated if the company were a product of AI. Similarly, if the locus of both wrongdoing and harm were the metaverse, could existing concepts of jurisdiction be stretched to accommodate that tort?

Finally, there is the intriguing possibility of the creation of a unique set of courts or tribunals exclusively to hear claims arising from behavior taking place in the metaverse. Under this system, countries could each agree to cede jurisdiction over these matters – or certain categories of them – to “metaverse courts”. Such a system could help manage claims where there are competing jurisdictional claims between courts in different countries. The metaverse courts could themselves operate within the metaverse. There is no serious public debate about such an approach yet, but as the Metaverse takes shape in the coming years, it could be part of the discussion.

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14 Paraguayan Startups in 2022 You Should Watch Now https://atlantic-storm.org/14-paraguayan-startups-in-2022-you-should-watch-now/ Fri, 07 Oct 2022 17:09:28 +0000 https://atlantic-storm.org/14-paraguayan-startups-in-2022-you-should-watch-now/

Paraguay ranks 91/131 in the Global Innovation Index (IGI) 2022. If we look at global tech giants like Facebook, Google, Uber or even regional giants like Pedidos Ya or InfoCasas from Uruguay, this number could indicate a Paraguay that is a few steps behind in innovation. That’s why we set out to prove the number wrong and found 14 creative, innovative, scalable, and highly competitive startups.

One of Paraguay’s strengths is that it is safer than its neighboring countries and its tax system has many advantages. Without going into too much detail, Paraguay has a territorial tax system, which means that companies are only taxed on income obtained in the country, with no taxation of income obtained abroad. In addition, dividends distributed by resident companies to their resident partners are exempt from tax provided certain conditions are met. However, there are not all the advantages; the small size of its market makes it more difficult for local startups to develop.

We leave you now with 14 Paraguayan startups that stand out in 2022.

1.Fiweex

Fiweex is one of the largest WiFi marketing networks in the region, with operations in Paraguay, Chile, Argentina and Colombia. Since 2015, they have been developing a network of free access and unique registration for users, now available in +1,500 establishments in LATAM.

Fiweex has created a system where companies can turn their wifi into a marketing tool. This ‘social wifi’ allows the user to connect to the company’s network, filling out a form where they share some of their data and, once inside, the company can offer their products and offers .

With this system, companies offer a service to users at the same time that they can gain followers on their fan page, Instagram and even generate TripAdvisor ratings or visits to your website. When the client returns to the company, he no longer has to fill in the registration form but benefits from a personalized welcome.

With over 15 million registered connections, Fiweex helps companies know, understand and communicate with their customers in a targeted way, generating intelligent segments and communications that help companies sell more, more often and to real customers.

2. TAX!

TAXit! is a fintech company that enables tax processing and payment online, from a web page or via a mobile application. It is the first application in Paraguay to offer this service. It also offers its users information on their tax situation, the digital backup of all their receipts, the possibility of carrying out tax queries, and the advice of tax experts.

David Caballero, Víctor Cálcena, Pablo Santacruz and Carlos Zapata founded the startup in 2013. Five years later, it already had more than 5,000 users and its current challenge is to become an essential tool for large companies.

3. Reva

Reva is an online marketplace for athletes as well as a powerful management system for sports facilities. Founded and managed by Guillermo Arce, the Reva platform allows sports enthusiasts to book their spaces to practice their favorite activity: from tennis and paddle tennis courts to football pitches. Everything is managed through its application, available for Android and IOS.

The platform puts users in direct contact with sports centers and owners of practice areas. This system has advantages for both parties, as it allows centers to reach more customers and fans to access more options and to manage the reservation in a practical and fast way. Users can also buy other sports supplies in the app’s e-commerce.

4. Possible technology

Posibillian Tech is a tech startup that designs social experiences through technology, redefining social entertainment. The company founded and directed by Juan de Urraza works in various branches of the entertainment world, although the most striking thing is that it uses disruptive technology in the field of geolocation, which allows it to add differential value to each of its productions.

One of his latest releases was the game Fhacktions, a location-based multiplayer mobile game set in a cyberpunk future controlled by factions of pirates. It combines location-based games, real-time battles, and RPGs.

Posibillian Tech is a company committed to designing unique social experiences through technology, redefining social entertainment.

5.Tokyo

Toky is a startup founded in 2015 by Óscar Sánchez and Carlos Ruiz Díaz. At the time, the company presented a revolutionary system through which users could receive phone calls simply by sharing a link. This system avoided having to publish his telephone number. Additionally, calls could be made directly from the web.

The start-up was accelerated by Telefónica’s Wayra Mexico and now offers a range of connectivity-related services, allowing companies to manage calls as if they had their own call center.

Toky is a cloud phone system for startups and businesses of all sizes. It allows any business to set up a call center in minutes, even with a single agent. Toky offers its customers to call for free with just one click on their website and answer calls from computers or smartphones.

6. Increase

Aumenta is a startup specializing in the development of augmented reality applications and solutions. This feature adds extra value with videos, audio, images and animations, encouraging interaction and driving more traffic for its customers. Aumenta’s clients range from communications, educational, institutional, and anyone looking to establish dynamic communication with their users.

The startup is the brainchild of young entrepreneurs Aldo Orué and Hugo Acuña, and has received several awards such as the Startup Innovando Award 2016.

7. Goiko

Goiko is an online loan search engine that connects users directly to financial institutions. This fintech is the brainchild of entrepreneur Luis Urrutia, current CEO of the company. It is a free service for users and easy to access as loans can be accessed from the web or mobile app. Goiko provides financial and educational information that allows users to compare each loan so they can choose the best one for them. It also guarantees its customers the confidentiality of their data.

In 2019, the startup won the Outstanding MSME of the Year award at the II National MSME System Forum. It is free and available to users around the clock, bringing financial institutions to a much wider audience with fair prices.

8. Monchis

Monchis is a delivery app that works with both local businesses and franchises like Pizza Hut. Companies can offer their products through this application, which has more than 70,000 customers throughout Paraguay.

Monchis does not charge companies to be part of its catalog, but only takes a commission on each sale. In this way, it was able to grow to offer, through its application, more than 10,000 dishes including all types of food.

The company has been able to replicate a model that has worked for years in other European and American markets. A strategy rewarded by the Ecommerce Award 2019.

9. VUM

MUV is a mobility technology startup, similar to Uber or Cabify. The company was founded by Sergio Mura, led by a group of young Paraguayan entrepreneurs, and is owned by Click SA, a company founded with Paraguayan capital.

MUV’s goal is to help cities become smarter, more inclusive and with more transparent spaces. It is therefore committed to promoting this ecological mobility alternative, putting users in contact with private drivers who wish to earn additional one-time income.

The company launched a new version of its app last year, designed to meet the demands and needs of its more than 400,000 users and 6,000 drivers. The company’s next goal is to internationalize the service.

ten . Abitapp

Abitapp is software designed for building management and administration. Its main objective is to make life easier for owners and occupants through mechanisms of transparency, communication and conflict resolution.

Through a mobile application, users can access accounting, administration, make payments, reserve common areas, send requests, receive notifications from the administration, consult the rules of procedure and vote.

The startup is the brainchild of entrepreneur Alessandra Vallese and has so far raised $10,000 in a closed funding round through the Crunchbase platform.

11. Parkea

Parkea is an application created by Pablo Callizo, Rodrigo Parra and Rocío Parra that allows drivers to reserve a parking space in the city. This solution helps citizens and contributes to reducing CO2 emissions while making urban traffic more fluid.

Their system connects parking space owners looking to make money with drivers looking to save money, time and effort when parking in public spaces and parking zones. high demand parking.

12. Colega

Colega is a mobile communication tool focused on schools, teachers, parents and students. This edtech, directed by Luis Talavera, Edgar Rodriguez and Giovanni Patrón, seeks to provide solutions to the various problems that arise in the world of education. The startup has been able to pivot during the pandemic, bringing together the needs of institutions, teachers, students and parents. The application allows online courses, adapting to the needs of each school and subject. It also acts as a manager and diary for teachers, parents and students, noting tasks or preparing notices.

A solution for students and educational institutions, as they benefit from quantitative and qualitative analysis of students and classes, thanks to the software of the application.

13. Kili

Kili is the first streaming platform in Paraguay. Winner of Cervepar’s Impulsa innovation competition, Kili Video responds to the need to access national and Latin American content in one place, quickly and easily. It aims to promote the dissemination of Paraguayan audiovisual works, as well as to provide space for emerging creators.

14. TIVA

TIVA is a cloud management and intelligence solution adopted by more than 500 companies and 4000 users. TIVA is a company founded in 2010 and composed of two business units: Business Solutions and Telecom Solutions. The company offers two major products: Vox Center, adopted by the public telecommunications company of Paraguay. and BIMS, a SaaS platform for enterprises.

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Who cares about GNP or GDP? https://atlantic-storm.org/who-cares-about-gnp-or-gdp/ Fri, 30 Sep 2022 20:10:00 +0000 https://atlantic-storm.org/who-cares-about-gnp-or-gdp/

What is the difference? Gross National Product (GNP) and Gross Domestic Product (GDP) are total sums of the monetary value of goods and services produced over a certain period of time. The first refers to what is produced by the Philippines or by Filipinos, anywhere; while the latter refers to what is produced in Philippine territory.

GNP is generally higher than GDP because it includes the value produced by the very large number of Overseas Filipino Workers (OFW). It counts, at a minimum, remittances from OFWs to their families back home, monitored by the banking circuits. These remittances are very important: the SWS surveys show that the families surveyed receiving remittances abroad are always better off in terms of economic indicators.

On the other hand, GNP should not count remittances from foreign companies doing legitimate business in the Philippines for profit to their home offices, or from foreign expatriates to their relatives back home. I wonder how much it costs; I doubt it’s insignificant.

The Western Philippine Sea. The territorial waters of the Philippines produce a value that should be counted in both GDP and GNP. The value of fish and other marine catch must be included, whether caught by Filipino fishermen or by foreign poachers.

The monetary value of the services rendered by the artificial islands created by China in the exclusive economic zone of the Philippines must be accounted for in both GDP and GNP. It does not matter that the value acquired by the intrusion is sold; what matters is that it can be monetized.

Philippine Offshore Gambling Operators (Pogos). The value created by Pogos should be included in our GDP. What the operators and their employees hand over to China is not part of the Philippines’ GNP, but of China’s GNP. I wonder if China cares to count the value of a service (gambling) that is legal to produce in the Philippines but illegal to produce in China, and yet is transferred via the internet for consumption in China.

The added value in production is at the same time an income. A production unit, such as a commercial enterprise or a family farm, engages in production by taking things outside of it (such as raw materials purchased from outside the unit) and applying its internal resources (such as its workers and non-human assets) for them, thereby adding value to external inputs.

The value of the unit’s output is its external cost plus the value added through wages, salaries and benefits paid to its internal resources. GDP is the aggregate of the values ​​added to the production units on the national territory. It is therefore also the aggregate income earned within the production units.

Dividing it by the population gives GDP per capita, loosely called “income per capita”. This does not mean that everyone earns the same amount; it is only what everyone could receive if the total revenue was shared equally.

Instrumental products versus beneficial products. While some commodities – such as food, liquor and entertainment – ​​are personally consumed and valued for their own sake, other commodities – such as policing, vaccinations, naval patrols, weather forecasts and the system judiciary – have value because they allow production units (as well as consumption units such as households and individuals) to operate more efficiently than if they were absent.

These enablers are instrumental rather than ultimately beneficial products; they are part of the social capital of the community. In an exercise counting in GNP only the costs of public education, health, labor and social protection, the balance – called net beneficial product – was only three-quarters of GNP , and its annual growth rate was one percentage point lower than that of GNP (see Leonardo Sta. Romana III, “Indicators of Economic Well-Being,” in my book, “Measuring the Development of the Philippines,” Development Academy of the Philippines, 1976).

So many GNP/GDP forecasts are made by banks. The reason why so many public, private and international banks regularly make NBI/GDP forecasts is, I think, because of the very strong correlation with their results. Regardless of which specific sectors of the economy grow, growth overall means a greater need for banking services as a whole. This means a greater base for government tax revenue and makes bank lending to government safer.

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KPMG overview and overview https://atlantic-storm.org/kpmg-overview-and-overview/ Wed, 28 Sep 2022 08:44:56 +0000 https://atlantic-storm.org/kpmg-overview-and-overview/
KPMG Partner Tom Woods summarizes the general direction of the 2023 budget

The 2023 budget was introduced by the Minister of Finance as a “cost of living budget” with the stated aim of helping individuals, families and businesses cope with rising prices.

The Minister also acknowledged the need to find a balance between helping citizens in the face of the rising cost of living and guaranteeing the stability of public finances in the face of possible future economic shocks. To this end, the Minister confirmed that €2 billion this year, and €4 billion in 2023, will be directed to the National Reserve Fund.

In summary, the tax measures announced amount to €1.1 billion out of an overall budget envelope of €11 billion.

To help individuals and families deal with inflationary pressures, a number of tax measures have been announced, including the following:

  • An increase in the standard rate threshold from €3,200 to €40,000
  • An increase in the 2% USC rate band from €21,295 to €22,920
  • Increases in personal, salaried, earned income and home help tax credits

A temporary business energy support scheme is to be put in place to help businesses over the coming months. Eligible companies will be able to recover 40% of the annual increase in their energy bills up to a monthly cap of €10,000 per transaction.

The Minister highlighted the importance of tackling the housing crisis and climate change, resulting in a number of measures announced, including:

  • The extension of the Help-to-Buy system until the end of 2024
  • The introduction of a rental tax credit of €500 per year
  • Reinforcement of the pre-letting charges regime for lessors
  • The introduction of a tax on vacant housing
  • An increase in the carbon tax on petrol and diesel of €7.50/ton offset by a reduction in the fee from the National Agency for Petroleum Reserves
  • The introduction of an accelerated depreciation scheme for farmers for the construction of modern slurry storage facilities

For the future, the Minister has undertaken to prepare a medium-term roadmap for the reform of personal taxation following the conclusions of the recent report of the Commission on taxation and social protection.

Overview of the 2023 budget
To help individuals and families cope with inflationary pressures, a number of tax measures have been announced

The Minister also reaffirmed Ireland’s commitment to the OECD International Tax Agreement by ensuring that the minimum effective tax rate for businesses with a turnover of over €750 million is set at 15% and seriously considering options for moving to a territorial corporate tax system.

The total budget envelope of €11 billion was provided against an economic backdrop of inflationary pressures (projected at 8.5% for 2022) and slowing domestic growth (projected modified domestic demand of only 1. 25% for 2023).

With the focus on cost of living measures, it was widely expected that there would be a limited number of tax measures to maintain our attractiveness to foreign investment and entrepreneurs in the year to come. It is hoped that these policy objectives will receive attention in future budgets.

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