Puzzling low tax-GDP ratio

[Wergeland]

The tax collecting system itself is not upto date. Bereucracy is too corrupt. Tax officers can be bought. Digitalization of tax system is the solution.

In Norway, tax is automatically drawn from employee salary, the employer is obliged to transfer it to government accounts every month. Same with enterprise tax and eployment tax. The entire responsibility is placed at the employer.
Police and tax officer follow up with strict controls.

There are layers of control organs that ensure everyone do their job properly.

Taxing of property is billed every month to households by local municipality.

BD system is archaic by comparison afaik

 

[nang2]

If you talk socialism, it is Japan which is more socialist than China when considered how it handles people's welfare. Outwardly it is a pure capitalist country, but if you think social welfare matters, Japan is a socialist country that will outbid China.

China is a one-party Capitalist country and Japan is a democratic and socialist country. But, I am not sure UK or Japan which one started first the socialistic traditions.

Equating social welfare with socialism is a common mistake. The key feature of socialism is the extend in which the state manages people's private lives. Social welfare only covers a part of it. Of course, extending welfare coverage to the extreme will eventually lead to socialism. However, the common social welfare practice in the West and Japan focus most on the medical and income support while still leaves a large part of private lives alone, such as the migration, the family planning, etc, etc. In China, well, you should know the difference.

 

[BananaRepublicUK]

Investments in infrastructure is by the govt because individuals do not have that much of money to invest. So, a govt has to collect an optimal amount of taxes.

When infrastructures are built, the tax money circulates among many stockholders such as factories that supply cement, rods or other construction materials. A large part of this money also goes to the workers.

This is how economy grows.

Instead of the government borrowing from the banks - let the banks directly fund it.

Chinese would love to build and own infrastructure in Bangladesh. Let them ignore India’s concerns.

 

[bluesky]

Instead of the government borrowing from the banks - let the banks directly fund it.

Chinese would love to build and own infrastructure in Bangladesh. Let them ignore India’s concerns.

So, instead of talking to non-bank posters here, please talk to the bank executives to get involved in the civil engineering projects with their millions.

And ask them to get admission to an engineering university and get at least fifteen years of practical experience.

They may not find it attractive doing design/ stress analysis in the office, all those hundreds of mathematical formulae and codes and standards. They may hate also the construction works under the Sun.

Counting other people's hard earned money on the table in the A/C rooms may be more lucrative to them.

 

[BananaRepublicUK]

So, instead of talking to non-bank posters here, please talk to the bank executives to get involved in the civil engineering projects with their millions.

And ask them to get admission to an engineering university and get at least fifteen years of practical experience.

They may not find it attractive doing design/ stress analysis in the office, all those hundreds of mathematical formulae and codes and standards. They may hate also the construction works under the Sun.

Counting other people's hard earned money on the table in the A/C rooms may be more lucrative to them.

Why do the banks need to have those expertise in-house?

They should fund private investors - on an interest/equity basis?

In the U.K. most infrastructure is now built by the private sector. Funded by large investment banks.

Few ones that are built by the government have huge cost overruns e.g. the ridiculous HS2 rail project.

Do you think the U.K. government build telecom, water and electricity infrastructure?

You are a product of the 1960-70s - era of failed big government experiment.

 

[bluesky]

Why do the banks need to have those expertise in-house?

They should fund private investors - on an interest/equity basis?

In the U.K. most infrastructure is now built by the private sector. Funded by large investment banks.

Few ones that are built by the government have huge cost overruns e.g. the ridiculous HS2 rail project.

Do you think the U.K. government build telecom, water and electricity infrastructure?

You are a product of the 1960-70s - era of failed big government experiment.

Perhaps, you are mistaking BD same as the UK. In BD, the govt has already borrowed $128 billion worth of BD Taka. Bank vaults are almost nil. If you go to withdraw over a certain amount, the manager will request you to wait for a few minutes. He would send someone to borrow from another nearby bank.

So, what is your new proposal to make BD banks solvent again.

 

[BananaRepublicUK]

Perhaps, you are mistaking BD same as the UK. In BD, the govt has already borrowed $128 billion worth of BD Taka. Bank vaults are almost nil. If you go to withdraw over a certain amount, the manager will request you to wait for a few minutes. He would send someone to borrow from another nearby bank.

So, what is your new proposal to make BD banks solvent again.

Government borrowing from banks is a big mistake!

Bank lending is there for businesses and people.

We cannot undo the past. But we should ban it going forward.

Government should only borrow by issuing bonds to ordinary citizens.

That then incentivise citizens to become more active in the activities of the government.

That is much more “democratic” than voting.

Government typically borrows mostly from the middle class through bonds - middle class in turn holds the government to account.

Big government is always bad!

Especially in corrupt south Asian countries. Where politicians deflect by using race and religion as wedge issues.

Our banks have become the piggy bank of the chetona mob

You should go to bd and beat the crap out of them

 

[Destranator]

Why do the banks need to have those expertise in-house?

They should fund private investors - on an interest/equity basis?

In the U.K. most infrastructure is now built by the private sector. Funded by large investment banks.

Few ones that are built by the government have huge cost overruns e.g. the ridiculous HS2 rail project.

Do you think the U.K. government build telecom, water and electricity infrastructure?

You are a product of the 1960-70s - era of failed big government experiment.

You need to get out of this simplisitic "big govt bad" libertarian la la land mindset - the govt has to be big in some sectors and small in others.
Private sector only cares about profit - they do not give a damn about public interests unless held at gun point by the government. Free market cannot take care of everything. The govt has to keep stepping in where profit motive alone is not sufficient to achieve the best outcomes for the public. Be eternally grateful to the UK politicians who gave birth to NHS for not buying into Libertarian drivel.

Somalia is what you get when you live up to Liberatarian small govt wet dreams.

 

[BananaRepublicUK]

You need to get out of this simplisitic "big govt bad" libertarian la la land mindset - the govt has to be big in some sectors and small in others.
Private sector only cares about profit - they do not give a damn about public interests unless held at gun point by the government. Free market cannot take care of everything. The govt has to keep stepping in where profit motive alone is not sufficient to achieve the best outcomes for the public. Be eternally grateful to the UK politicians who gave birth to NHS for not buying into Libertarian drivel.

Somalia is what you get when you live up to Liberatarian small govt wet dreams.

I respect your views. You want our government to be like the Scandinavians

That will not happen.

Hence I trust the profit motive as imperfect as it is.

Somalia’s problem is Wahhabism not free market.

 

[Destranator]

I respect your views. You want our government to be like the Scandinavians

That will not happen.

Hence I trust the profit motive as imperfect as it is.

To be able to trust profit motive, you need adequate competent and ethical business leadership - this is non-existent in BD. Keep Rana plaza in mind whenever you think of profit motive running the show in BD - "small govt" in this instance left Fire & Life Safety managment and compliance at the hands of business owners.

We need a highly regulated capitalist market with strong social safety nets.

The Scandinavian model is a bit far fetched for Bangladesh at the moment but we can adopt aspects of it in terms of welfare.

We need low corporate taxes, high personal income taxes for the wealthy, tax holidays for new industries, etc..

 

[BananaRepublicUK]

To be able to trust profit motive, you need adequate competent and ethical business leadership - this is non-existent in BD. Keep Rana plaza in mind whenever you think of profit motive running the show in BD - "small govt" in this instance left Fire & Life Safety managment and compliance at the hands of business owners.

We need a highly regulated capitalist market with strong social safety nets.

The Scandinavian model is a bit far fetched for Bangladesh at the moment but we can adopt aspects of it in terms of welfare.

We need low corporate taxes, high personal income taxes for the wealthy, tax holidays for new industries, etc..

You might think I am heartless but at this stage of our development we need low regs.

And that means few tragedies will happen.

It’s the price our downtrodden have to pay to lift our country out of poverty.

One day we will build a monument to them.

It will be more glorious than the pointless “bhasha andolon”.

The factory workers are our true heroes - equal to the liberation warriors.