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Joined 2 years ago
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Cake day: October 19th, 2023

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  • No, it is not.

    Suppose I am a billionaire intent on paying as little in tax as possible. I own or control a huge company (or some other investments) whose profits I want to benefit from. Under current US tax laws, I could purchase a citizenship of a country with lenient tax laws, move there, and then renounce my American citizenship. All the shares of American companies I would sell to an American holding company, which I register in Delaware (which has very low corporate tax). That holding company would then be owned in full by a company which I register in a tax haven country like the Cayman Islands. I have the American company give ownership of things like the company’s intellectual property to the holding company, which it leases back to the original company. When the original company makes profit, the holding company then charges the original company for use of intellectual property, equal to the amount of profit I want to take. This money then flows to the Cayman Islands company, free of tax as it is a business expense. The Cayman Islands company then pays this money to me as salary or as dividends, on which I pay an extremely low tax rate as a legal citizen of the tax haven country.

    Under a system where the ultimate beneficial owner of money earned in the US is subject to tax, all this holding company nonsense would be meaningless because it would actually not evade any tax liability at all. This could be enforced by taxing the flow of money leaving the US (e.g. funds transferred from the American company to the Caymanian company would be taxed as if the Caymanian company were myself).








  • You are half right and half wrong.

    The Government controls all media. There are no major independent news organisations in China. Therefore, they won’t allow negative press about it to spread.

    Because the news and social media only ever have good or at worst neutral news about the Government, never critical news, the result is that people think the Government does a good job governing.

    At the same time, the poverty alleviation and anti-corruption efforts of the CCP have indeed brought millions out of poverty (even though that poverty is largely a result of bad leadership decisions by the same CCP in the past) and eliminated most forms of petty corruption. That is something that the Government makes sure everyone knows about and is always talking about. And to their credit, it isn’t wrong.

    I do not and will not suggest that popular support for the Government would be anywhere near what it is now if it weren’t for the Government’s propaganda efforts and the suppression of speech, dissent, and criticism.


  • In China, the level of trust people have in the Government is very high compared to the US and Europe. That is the reason why this policy would work and would have reasonable public support.

    In the US or Europe, a policy that seems reasonable but could be exploited by the Government for political control is a bad policy. In China, people have already sort of accepted that the Government is pretty secure in its position so it really doesn’t need to suppress speech in roundabout ways; if the intention is to suppress speech then they will be explicit about it by using the words “this threatens state security” or “this is offensive to public morals”. The thing about being a secure authoritarian regime with reasonable popular support is that you don’t need to come up with pretexts to suppress speech or dissent. You can just say “this threatens our power” and put a stop to it. If the policy states the goal is to stop uninformed people from spewing nonsense on the Internet then people will accept that to be true, and the reality is that it probably is what the goal is.