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Shazback
Jan 26, 2013

steinrokkan posted:

The devil is in details. You have probably never dealt with tax forms if you think it's possible to put together a simple algorithm for collating a report spanning decades and multiple countries. Even collecting and processing tax data for a single year is such a loving endeavor it takes hundreds of people just to sample the data from a single country.
I see now that I misconstrued your previous statement.

I don't think what Varoufakis said he did is remotely possible and/or realistic, and if it was done it was only through so massive simplifications and assumptions that it would be meaningless.

But if we take him at his word and he really did do in a matter of months what other countries have yet to achieve, then his plan is still rubbish, which is the point I wanted to make. Plenty of countries have regular "past tax payment windows" or similar things that grant waivers from prosecution, but they don't wait to have finished compiling an impossible tax database to do these things.

quote:

Especially after being out of office, what would be the point? And since everybody in the Troika hated his guts, wouldn't they want to trumpet any deception by Varoufakis up to the high heavens? That's what gets me about it, the fact that there was absolutely no follow up from nobody. That's the thing that doesn't make any sense.
The point? Portray the Troika in a bad light, and him in a good one? It's likely that it's not an outright lie, that he was creating a database of past bank records. But all the practical problems we've mentioned above probably meant that the data in question was from only a couple banks, woefully incomplete, and his claims that they identified XX billion € in tax evasion have a massive asterisk next to them. The Troika or anyone else doesn't follow up on it because it's a boring technical discussion and there's a limited amount of time and energy that people are prepared to spend to investigate Varoufakis' claims, especially when the result is so grey that it's almost certain he'll be able to say "you see, I didn't lie, all the things I said were factually correct" whilst saying all the caveats or problems in the analysis and the data would have been solved post haste were it not for the Troika.

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lollontee
Nov 4, 2014
Probation
Can't post for 10 years!

Shazback posted:

I see now that I misconstrued your previous statement.

I don't think what Varoufakis said he did is remotely possible and/or realistic, and if it was done it was only through so massive simplifications and assumptions that it would be meaningless.

But if we take him at his word and he really did do in a matter of months what other countries have yet to achieve, then his plan is still rubbish, which is the point I wanted to make. Plenty of countries have regular "past tax payment windows" or similar things that grant waivers from prosecution, but they don't wait to have finished compiling an impossible tax database to do these things.

Yeah, but I don't recall any other case of a state abolishing bank secrecy. If you have to individually request every single person's bank details to be released by court order, you can't really build such a database.

Shazback posted:

The point? Portray the Troika in a bad light, and him in a good one? It's likely that it's not an outright lie, that he was creating a database of past bank records. But all the practical problems we've mentioned above probably meant that the data in question was from only a couple banks, woefully incomplete, and his claims that they identified XX billion € in tax evasion have a massive asterisk next to them. The Troika or anyone else doesn't follow up on it because it's a boring technical discussion and there's a limited amount of time and energy that people are prepared to spend to investigate Varoufakis' claims, especially when the result is so grey that it's almost certain he'll be able to say "you see, I didn't lie, all the things I said were factually correct" whilst saying all the caveats or problems in the analysis and the data would have been solved post haste were it not for the Troika.

Well if you say so, it's nice to get some small concessions at least. Working pretty hard there to convince yourself though.

Shazback
Jan 26, 2013

Friendly Humour posted:

Yeah, but I don't recall any other case of a state abolishing bank secrecy. If you have to individually request every single person's bank details to be released by court order, you can't really build such a database.
Yes, bank secrecy is so sacro-sanct that FATCA doesn't exist, and Switzerland, Luxemburg and the Cayman Islands are world renowned for the bank secrecy that exists everywhere else.

lollontee
Nov 4, 2014
Probation
Can't post for 10 years!

Shazback posted:

Yes, bank secrecy is so sacro-sanct that FATCA doesn't exist, and Switzerland, Luxemburg and the Cayman Islands are world renowned for the bank secrecy that exists everywhere else.

Huh?

Yinlock
Oct 22, 2008

GaussianCopula posted:

Reminder: This is an idea from the genius who proposed to equip students and tourists with Google Glasses to fight VAT tax evasion.

He now had a task force that found at least €67 billion of evaded taxes through a "simple algorithm?"

Again, this assumes that the CAPTAINS OF INDUSTRY aren't all hilariously-corrupt morons.

They're not very smart, and they have so much money that they don't have to be. It turns out that for a businessman being a terrible human being is a perfectly viable alternative to being actually good at business.

(not defending that google glass thing though)

lollontee
Nov 4, 2014
Probation
Can't post for 10 years!
https://www.youtube.com/watch?v=B6vV8_uQmxs&t=1348s

Here's Mark Blyth talking about what actually happened with Greece and the rest of Southern Europe. Good lecture overall, highly recommend it.

Arglebargle III
Feb 21, 2006

Jesus after watching that talk and his predictions for the future of European politics I'm really glad the United States has a monopoly on force. :stare:

Arglebargle III fucked around with this message at 02:42 on Jul 2, 2016

Arglebargle III
Feb 21, 2006

Wow so he's saying the austerity campaign hosed main street so hard that investment had nowhere to go and therefore the central bank had no purchase for inflation to start and that's why we're in this secular stagnation scenario 6 years later? Thanks a lot European leaders.

TheDeadlyShoe
Feb 14, 2014

A Buttery Pastry posted:

The political implications of bringing to light massive disproportionate systemic tax evasion among the rich in an EU country seems pretty obvious. Much better to just have the Greeks remain a big undefined blob of cheats, rather than have people exactly like the ones celebrated in the rest of Europe stand out as leeches.

It's not just having them be willing to hand over data, it's getting it in a usable form too, and making it all work together. Particularly old data. Maybe I am overestimating the difficulty in doing this, but it just sounds like a massive loving undertaking.

well, they are just assembling a database. The banks have presumably already done the hard work of getting their data into useable form, since the banks themselves use the data. You don't need the data to work together on the fly or anything, you just need a one time import and collation that amounts to 'how much income did X person get in each year of concern?' Then you compare that to your spreadsheet of declared income and taxes paid. If you do not strap any bells and whistles on (like say the stuff youd actually need to determine if people were delinquent rather than running a query thru ur ramshackle database) then it would be p simple.

TheDeadlyShoe
Feb 14, 2014

A Buttery Pastry posted:

The political implications of bringing to light massive disproportionate systemic tax evasion among the rich in an EU country seems pretty obvious. Much better to just have the Greeks remain a big undefined blob of cheats, rather than have people exactly like the ones celebrated in the rest of Europe stand out as leeches.

It's not just having them be willing to hand over data, it's getting it in a usable form too, and making it all work together. Particularly old data. Maybe I am overestimating the difficulty in doing this, but it just sounds like a massive loving undertaking.

well, they are just assembling a database. The banks have presumably already done the hard work of getting their data into useable form, since the banks themselves use the data. You don't need the data to work together on the fly or anything, you just need a one time import and collation that amounts to 'how much income did X person get in each year of concern?' Then you compare that to your spreadsheet of declared income and taxes paid. If you do not strap any bells and whistles on (like say the stuff youd actually need to determine if people were delinquent rather than running a query thru ur ramshackle database) then it would be p simple.

A Buttery Pastry
Sep 4, 2011

Delicious and Informative!
:3:

steinrokkan posted:

You are assuming that just because they are indifferent to the economic contributions of the lower classes, they are upholding some sort of symbiotic relationship of capitalist subjects in general, when in fact the hierarchy of class relations doesn't preclude the disintegrative effects of capitalist contradictions on relations within the capitalist class itself, which would be destructive without the moderating role of the capitalist state. Just because they pursue a predatory strategy in their relations to one class doesn't mean their predatory behaviour has been sated, and doesn't factor into their relationship with other classes.
I'm not saying at all that they can't still compete with each other, I'm saying that on the issue of taxes, they have no reason to as long as they can foist it upon the working class. It's not in their interest to create the precedent of "the state" (successfully) going after tax evaders, even if that state is not their own, and even less so if the people they would be targeting are business partners and friends. Yes, they compete, but not along national lines. There's no reason a Greek and a German couldn't work together to gently caress over another Greek, or German for that matter.

TheDeadlyShoe posted:

well, they are just assembling a database. The banks have presumably already done the hard work of getting their data into useable form, since the banks themselves use the data. You don't need the data to work together on the fly or anything, you just need a one time import and collation that amounts to 'how much income did X person get in each year of concern?' Then you compare that to your spreadsheet of declared income and taxes paid. If you do not strap any bells and whistles on (like say the stuff youd actually need to determine if people were delinquent rather than running a query thru ur ramshackle database) then it would be p simple.
Assuming the banks had already done the hard work, yeah, I suppose it might not be such a major undertaking after all.

orange sky
May 7, 2007

For those that think it's pretty far-fetched that tax evasion plays a huge role in the crisis in the southern countries:

http://www.jornaldenegocios.pt/opin...m_impostos.html

TL:DR - The 1000 richest families in Portugal, in a regular economy, should pay 25% of the total IRS income. They pay 0,5%.

Absolutely nothing is being done to fight this. There's no public discussion about this because all the media companies are owned by those same families.

Also, virtually all of the companies in the PSI-20 pay their taxes in Amsterdam. If we keep robbing each other in Europe there's no austerity that can save us and you're simply stupid if you think it can.

E: Also, in that article:

quote:


A situaçăo năo é uma fatalidade, pode remediar-se "desde que haja vontade política", sendo certo que o grupo de funcionários do Fisco que estava a trabalhar neste tema até 2014 foi entretanto desmantelado (palavras de Azevedo Pereira).

quote:

The situation is not necessarily a fatality, it can be solved "as long as there's political will", but the workgroup the IRS had working on this subject up until 2014 was disbanded.

orange sky fucked around with this message at 09:31 on Jul 2, 2016

lollontee
Nov 4, 2014
Probation
Can't post for 10 years!

Arglebargle III posted:

Wow so he's saying the austerity campaign hosed main street so hard that investment had nowhere to go and therefore the central bank had no purchase for inflation to start and that's why we're in this secular stagnation scenario 6 years later? Thanks a lot European leaders.

Yup, and the best part? Completely unnecessary, completely pointless.

suck my woke dick
Oct 10, 2012

:siren:I CANNOT EJACULATE WITHOUT SEEING NATIVE AMERICANS BRUTALISED!:siren:

Put this cum-loving slave on ignore immediately!

Friendly Humour posted:

Yup, and the best part? Completely unnecessary, completely pointless.

But what about ARE BALANCED BUDGET? Surely that must, by itself, count as a moral good (unless you're a degenerate Southerner).

GaussianCopula
Jun 5, 2011
Jews fleeing the Holocaust are not in any way comparable to North Africans, who don't flee genocide but want to enjoy the social welfare systems of Northern Europe.
The big deficiency in Blyth commentary on the Eurocrisis is that he doesn't understand moral hazards and the political process or his willful ignorance of those areas.

lollontee
Nov 4, 2014
Probation
Can't post for 10 years!

GaussianCopula posted:

The big deficiency in Blyth commentary on the Eurocrisis is that he doesn't understand moral hazards and the political process or his willful ignorance of those areas.

Thanks for this totally meaningless platitude.

Cat Mattress
Jul 14, 2012

by Cyrano4747
Since for the time being the UK is still a European country, have a dumb joke.

Gort
Aug 18, 2003

Good day what ho cup of tea

Friendly Humour posted:

https://www.youtube.com/watch?v=B6vV8_uQmxs&t=1348s

Here's Mark Blyth talking about what actually happened with Greece and the rest of Southern Europe. Good lecture overall, highly recommend it.

Thanks for posting this, I watched it all.

YF-23
Feb 17, 2011

My god, it's full of cat!


orange sky posted:

Also, virtually all of the companies in the PSI-20 pay their taxes in Amsterdam. If we keep robbing each other in Europe there's no austerity that can save us and you're simply stupid if you think it can.

And of course in this arrangement it's the Dutch who think they have it too hard and should leave the EU.

Arglebargle III
Feb 21, 2006

GaussianCopula posted:

The big deficiency in Blyth commentary on the Eurocrisis is that he doesn't understand moral hazards and the political process or his willful ignorance of those areas.

What? The standard talk he gives has a section on moral hazard.

Arglebargle III
Feb 21, 2006

His thesis on politics is that government has been defanged by organized capital after the 1970s jarred them into collective political action to raise their income share. It makes a lot of sense to me since you know... there's been a huge small government pro capital ideological movement since the late 1970s called neoliberalism built on new political alliances funded by the capital class. There's a clear inflection point in policy in the late 1970s that you can see in all sorts of data, from wages to c level management compensation to life expectancy in the American working class.

TheDeadlyShoe
Feb 14, 2014

the biggest holy poo poo thing in that video is the euro ratio of bank assets to GDP

i didnt know it was that large.

Arglebargle III
Feb 21, 2006

Indeed Bro.

lollontee
Nov 4, 2014
Probation
Can't post for 10 years!

TheDeadlyShoe posted:

the biggest holy poo poo thing in that video is the euro ratio of bank assets to GDP

i didnt know it was that large.

There's a reason why our politicians haven't talked about this. They prefer snappy twwets

YF-23
Feb 17, 2011

My god, it's full of cat!


Arglebargle III posted:

His thesis on politics is that government has been defanged by organized capital after the 1970s jarred them into collective political action to raise their income share. It makes a lot of sense to me since you know... there's been a huge small government pro capital ideological movement since the late 1970s called neoliberalism built on new political alliances funded by the capital class. There's a clear inflection point in policy in the late 1970s that you can see in all sorts of data, from wages to c level management compensation to life expectancy in the American working class.

For anyone interested, David Harvey's A Brief History of Neoliberalism goes into how that sort of thing happened in the USA, the UK, and China.

Baxta
Feb 18, 2004

Needs More Pirate
I'm a bit late to the party but you can absolutely write an algorithm to determine expected tax from a bunch of bank data. Designing software to automate audits were part of my previous job and we often had to do things like what was being discussed.

At its simplest, one of the implementations went through company cash accounts vs declared p&ls, income statements, cash flows and statement of accounts (among whatever other data) and would flag an expected amount based on that.

It was definitely a guesstimate and the flag was never shown to the companies but it was a pretty good way to find who should be looked into.

LemonDrizzle
Mar 28, 2012

neoliberal shithead
It's received comparatively little attention due to certain other events, but Italy's banking system is kind of on fire and Renzi's telling the Commission to go gently caress itself and its banking union: http://www.ft.com/cms/s/0/e3b53640-4108-11e6-9b66-0712b3873ae1.html#axzz4DLBF39tg

quote:

Italy is prepared to defy the EU and unilaterally pump billions of euros into its troubled banking system if it comes under severe systemic distress, a last-resort move that would smash through the bloc’s nascent regime for handling ailing banks.
Matteo Renzi, the Italian prime minister, is determined to intervene with public funds if necessary despite warnings from Brussels and Berlin over the need to respect rules that make creditors rather than taxpayers fund bank rescues, according to several officials and bankers familiar with their plans.
The threat has raised alarm among Europe’s regulators, who fear such a brazen intervention would devastate the credibility of the union’s newly implemented banking rule book during its first real test. In the race to find workable solutions, Margrethe Vestager, the EU’s competition chief, has laid out options for Rome to address its banking problems without breaking the bail-in principles of Europe’s banking union.

http://www.wsj.com/articles/brexit-exposes-eurozones-weak-spot-italys-banks-1467567131

quote:

Brexit has made what was already a serious Italian banking crisis worse. Italian banks are sitting on a combined €360 billion ($401 billion) of bad debts, equivalent to about a quarter of gross domestic product. This includes €200 billion of loans to borrowers now judged insolvent, which banks have on average written down to 45% of their nominal value but which the market appears to value at closer to 20% of their nominal value, which implies the system is short of around €40 billion of capital.
Now thanks to Brexit, the market fears that hole may be even larger. Lower Italian growth forecasts point to higher loan losses while falling government bond yields increases pressure on bank margins. Shares in many Italian banks slumped by more than 30% after the Brexit vote and some now trade on multiples of as little as 0.1 times net book value, according to Morgan Stanley estimates, raising doubts about their ability to raise capital from the market.

Under new EU rules that came into force in January, no public money can be used to support failed banks until private-sector creditors accounting for 8% of the bank’s liabilities have been bailed in. A bank-backed private-sector fund, Atlante, recently established to facilitate bank rescues, has already been forced to use half its capital to buy shares in two lenders after their attempts to raise equity from the markets attracted zero interest.
If Italy is forced to stick to the rules, it could face multiple bank failures, which could mean heavy losses for many ordinary retail savers, who own up to €250 billion of bank bonds. When the Bank of Italy imposed losses on €750 million of junior debt as part of the rescue of four small lenders in December, it prompted a furious political backlash. A similar backlash now could make it all but impossible for Prime Minister Matteo Renzi to win a referendum promised for later this year on the constitutional overhauls that have been the centerpiece of his administration. If he loses, he has vowed to quit.

Pochoclo
Feb 4, 2008

No...
Clapping Larry
Italy's situation is very very similar to Argentina's in 2001. Usually, the value of Italy's currency would tank, banks would restrict movement of money for the masses, some would crash, some would move out, then the government would restructure debt aggressively, cue in vulture funds, etc.
However, with the Euro and the EU, I have no idea what will happen. I don't think Germany will allow Italy to tank the value of the Euro. Anyway, it's bound to be a crisis, I have developed a biological sense for those.

awesome-express
Dec 30, 2008

Jesus just allow fiscal transfers already

GABA ghoul
Oct 29, 2011

awesome-express posted:

Jesus just allow fiscal transfers already

Let me tell you a story about an ant a grasshopper, my son. It will blow your mind about all this fiscal transfer nonsense.

Dawncloack
Nov 26, 2007
ECKS DEE!
Nap Ghost

awesome-express posted:

Jesus just allow fiscal transfers already

If (benefitsGermany = False) {
ECposition = gently caress NO;
return ECposition;
};

orange sky
May 7, 2007

Yeah we have solidarity up until that point in the curve where you can't make immediate money with that solidarity.

LemonDrizzle
Mar 28, 2012

neoliberal shithead

awesome-express posted:

Jesus just allow fiscal transfers already
As I understand it, fiscal transfers wouldn't actually help here - the Italian government could swing a bailout with its own resources if it needed to. The problem is that the rules of the European banking union dictate that failing banks cannot be propped up with taxpayers' money unless investors and depositors are bailed in first, which means that the banks' bondholders and retail investors (read: Joe Schmo and his current account) would be the first to lose out.

LemonDrizzle fucked around with this message at 09:10 on Jul 4, 2016

GaussianCopula
Jun 5, 2011
Jews fleeing the Holocaust are not in any way comparable to North Africans, who don't flee genocide but want to enjoy the social welfare systems of Northern Europe.
Maybe if the Italian banks would not have spend all their earnings on dividends they would not need tax payer money.

Or they could bail in their creditors, who are enjoying higher interest rates because of the risk, instead of using tax payer money.

They are in the current situation because Renzi has no clue how to govern his country and needs to make sure no one gets angry before his referendum in October.

Riso
Oct 11, 2008

by merry exmarx
Requiring the owners of the bank to chip in for the bailout seems pretty sensible else they learn nothing but the state will take care of their reckless behaviour.

A Buttery Pastry
Sep 4, 2011

Delicious and Informative!
:3:
1. Nationalize the bank.
2. The state is now the creditor.
3. Bail-in
4. Bail-out.

double nine
Aug 8, 2013

"we'll loan you the money. At interest. Or say goodbye to your voter's savings."

Randler
Jan 3, 2013

ACER ET VEHEMENS BONAVIS

LemonDrizzle posted:

As I understand it, fiscal transfers wouldn't actually help here - the Italian government could swing a bailout with its own resources if it needed to. The problem is that the rules of the European banking union dictate that failing banks cannot be propped up with taxpayers' money unless investors and depositors are bailed in first, which means that the banks' bondholders and retail investors (read: Joe Schmo and his current account) would be the first to lose out.

That doesn't sound too bad considering that Joe Schmo's current account is covered by FITD while bondholders should always be at the end of the creditor line.

His Divine Shadow
Aug 7, 2000

I'm not a fascist. I'm a priest. Fascists dress up in black and tell people what to do.
What's the least damaging way of getting rid of the euro? Can't there be a controlled non-murder way of going back to individual currencies here? Can there be some kind of project to split the euro into regional euros or national euros? Is there a way, at all?

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Pluskut Tukker
May 20, 2012

His Divine Shadow posted:

What's the least damaging way of getting rid of the euro? Can't there be a controlled non-murder way of going back to individual currencies here? Can there be some kind of project to split the euro into regional euros or national euros? Is there a way, at all?

A euro breakup would most likely result in a combination of the mother of all financial crises in the peripheral countries and the mother of all credit bubbles in the core. There's a reason that even after 7 years of crisis Greece still hasn't abandoned the euro, and it's that it would be far more stupid and suicidal than Brexit.

The EU took seven years to prepare for the creation of the euro, and had a three-year transition period to fully adopt it for the first participating countries. I suppose it could be done a bit faster than that but the indirect economic costs would probably run into the trillions.

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