Thursday , June 17 2021
Home / Tag Archives: Law

Tag Archives: Law

Nach dem Gleichgewicht auflösen

Swiss-based multinationals such as commodities trader Glencore will receive subsidies and other incentives under plans Switzerland is drawing up to maintain its competitive tax rates, even as the country prepares to sign-up to the G7’s new plan for a global minimum tax on big businesses. Bern is consulting its cantonal governments — which set their own corporate tax rates — to examine how measures such as research grants, social security deductions and tax credits could create a “toolkit” to...

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Austin Vernon on El Salvadoran bitcoin acceptance, from my email

Sent this to [redacted, a man of substance] yesterday. LN = Lightning Network, Bitcoins layer 2 scaling solution based on channels: As far as I understand it, everyone using LN in El Salvador has primarily been using Strike. Classic crypto conundrum in that they had to centralize to get it to work. There is a Twitter thread with the CEO where he shows they had to block their software using most non Strike LN nodes because there were so many failed payments....

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The coming regulation of bank crypto

A $100 exposure in bitcoin would result in a minimum capital requirement of $100, Basel said. The standards would apply to assets created for decentralised finance (DeFi) and non-fungible tokens (NFTs), but potential central bank digital currencies were outside the scope of the consultation, it added. Here is more from the FT.  While that is an entirely understandable move, the net result will be to hinder the incorporation of crypto into the traditional banking system, and speed the growth...

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Bitcoin as legal tender in El Salvador

Here is FT coverage, I still feel I don’t know the whole story, but bitcoin will be legal tender and furthermore: The government will set up a trust at the Development Bank of El Salvador to enable automatic conversion of bitcoin to dollars. The law will take effect 90 days after its publication in the official gazette. “The entry of bitcoins will be equivalent to an increase in the country’s monetary supply, which will temporarily boost El Salvador’s economic activity, but will also...

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The IRS tax data leak

Sometimes I wonder if I should blog on topics where I feel most of you already know what I think.  I’ll just say this.  The information was stolen illegally, yet on Twitter so many intellectuals were crowing about the disclosure.  (Did some of those same people condemn the theft from Biden Jr.’s laptop?  How many of them, in other contexts, will defend strong rights of privacy?  I guess that right is for everyone except rich people who create a lot of jobs and output.) ProPublica...

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Should gambling be functionally separate from professional sports leagues?

In my latest Bloomberg column I consider the NBA: A conservative estimate is that sports betting in the U.S., both legal and illegal, amounts to about $150 billion a year. How much of that is on basketball is an open question, but the NBA generates about $8 billion of revenue a year. It is quite possible that betting on the NBA already generates more revenue than the NBA itself, so integrating betting money into the sport could have a major influence. The appeal of all this betting money...

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John Stuart Mill on the Californian Constitution

From 1850: The Californians have not been solely occupied with “the diggings.”  They have found time also to construct a set of institutions…It is worthy of remark how instantaneously any body of American emigrants, as soon as they have formed a settlement, proceed to make a constitution; though European authorities of no small account in their own estimation, are never tired of assuring us that constitutions cannot be made.  But while these sages are stoutly denying the...

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Some points about corporate tax

Written from the British context: Should the system be changed to one where companies are taxed on all the profits they make from their sales in the country? There are a few downsides to this. First of all it would be very hard for one country to switch to such a system without getting the rest of the world to do it too. If we did it unilaterally it would open up more differences between national tax regimes and so create, rather than reduce tax avoidance loopholes. It is also far from clear...

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The new proposal on corporate tax synchronization

The G-7 nations have coordinated (NYT, FT here) to announce a minimum corporate tax rate of 15%.  Even if seen through, that doesn’t mean all rates must be at 15% or higher, rather if a rate is at 5% another country (the home base country?  the countries where the customers are?) gets to tack on another 10% to make the total take 15%.  That limits the incentive to post very low rates in the first place, by checking the gains from tax haven strategies. One perennial question is whether...

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The regulatory cicada culture that is American

As millions of cicadas began emerging in Loudoun County about two weeks ago, Chef Tobias Padovano at Cocina on Market in Leesburg began foraging for the noisy insects and serving them in tacos. That is, until last week when a customer ordered and ate the cicada tacos, only to later complain to the Loudoun County Health Department, which then forced the restaurant to temporarily stop serving them. Victor Avitto, an environmental health supervisor with the Loudoun County Health...

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