The unit of account for tax is the currency of the relevant sovereign. Most contracts for income are denominated in that unit of account, even if it is not there is often a highly liquid market (FX) between units of account.
Most wealth is not stored in assets where the unit of account is that of the sovereign. This counts double for assets with a physical location.
This isn't something that can be easily hand-waived away.
My understanding is that you say that taxing things denominated in a foreign currency is difficult? But why? I already pay taxes on my capital gains denominated in a foreign currency (for example dollars). There are official government exchange rates for tax reasons, published daily. I don't see anything to hand wave here, because there's no problem.
Not parent-poster, but I imagine the most difficult cases involve non-public stocks or non-fungible physical assets. Consider the problem of: "Someone purchased an irreplaceable ancient urn for $1m and put their parents ashes in it, what's that in taxable wealth today?"
It's too easy for people to offer hypothetical prices they'll never have to execute on. You could establish a price by forcing people to sell anything to the highest bidder, but that kinda explodes any conventional idea of property, and now the government is spending all its time running a trillion sketchy auctions while no human has time to do productive work anymore because your neighbor is trying to buy your car for $1 and you need to arrange a more-plausible offer before you lose it.
Apologies, in an attempt to be precise I have used convoluted language.
The point I'm trying to make is that assets such as land are not denominated in any currency and typically end up being held for such large amounts of time with such substantial transaction costs that's there would be a large cost involved in knowing what the value of the thing being taxed is.
If I pay you $100k, £100k or ¥100k we can use spot rates to work out how many € that is within much less than 1%.
If I own a piece of land how would you answer the question, "what should the value for taxation be?"
If you go with the last transaction price then this will have a substantial impact on properties that haven't been sold for a long time and encourage people to enter into transactions that look like sales but aren't (such a 999-year lease).
Leave it up to a government agency to decide and this agency will come under huge pressure to favour one type of activity over another. How do you value land owned by the government? What if that land is privatised? The UK's attempts to deal with this when it privatised BT completely destroyed the fibre to the premises industry in the UK for years.
The House of Lords is the most democratic hereditary system in the world. The 90 of the 92 heredities are elected from amongst the available candidates.
I am not claiming nomadic hunter gatherer societies were safe spaces, but there is a recurring misconception: people assume the nomadic lifestyle was harder and less desirable, otherwise humans wouldn't have made the transition to agrarian society.
Could perhaps slavery possibly be the bigger reason agrarian lifestyle "outcompeted" the nomadic lifestyle?
It's easy to proclaim a higher mean life quality in agrarian society if we discount the lives of the slaves.
With nomadic tribes, there is a constant churn of neighbor tribes, so hypothetical nomadic slavery would be much easier to escape than say the Roman Empire, where only near the boundaries of the Empire one might durably escape.
In an agrarian society neighboring villages etc use the same kinds of marks to discriminate the slaves from the citizens, so even if you escaped your master and the village, you'd end up needing to pass countless other villages which would recognize your assigned status, and turn you in for some reward / improved bilateral relations / ...
Today countless research indicates that permaculture, agroforestry, etc. are more productive than monoculture.
It is perfectly possible for nomadic cultures to be more efficient, and to provide more free time (a dangerous thing, since infighting and warring takes time), yet be "outcompeted" by systems of slavery!
For the leaders (of either nomadic tribes, or agrarian empires), the agrarian empire affords much more fruits of course!
This is an idea I have not encountered before but makes an enormous amount of sense. I wonder how one would create a hypothesis that could then be shown or not I the archeological record.
Slavery was certainly an integral part of both the Ancient Greek and Ancient Roman societies. It has historically been associated with the concept of a person being property which rather requires that one has a concept of property.
Some hunters have elders rather than dedicated full time priests, and they can veer more rabbinical; they've got the stories and pass down the classics as food for thought and discussion.
On a superstition v superstition basis it's hard to get a photo finish between them and a Bishop.
Religion is not exclusive to agrarian societies. Indeed, much of proto-indo-European religion (ie the OG “sky father” [1]) was developed on the steppes in a pastoral lifestyle.
An observation here that wasn't quite made but in my opinion is supported by the narrative.
If you raise enough capital (whether social or financial) to run for 3 years then you can run for 3 years. If your bets are paying off 2 years in you can stick with the plan - no one will care how you used the capital in year 1 and 2 if there is a payoff in year 3.
There is another risk: you run for 2 years and prevent a major problem that would bite the company in year 3 or 4. However because the problem never happened nobody knows how much you saved everyone and so you don't replace all that capital you used up.
Every company I've worked for has regular meetings where they honor the people who stayed late to get the release out the door (I work in embedded systems where upgrades often mean flying someone with a USB stick to a remote location without cell service - thus bug free releases are important since upgrades are expensive). I can't help thinking every time that if the rewarded person had just done their job 6 months ago they wouldn't have had the bug in the first place.
I guess it takes a visionary management to recognize the value of disasters that were prevented.
Who is worth more? The person that quietly removes scrub brush and other fuel on the ground in the years before the forest fire starts, or the person that comes in once the fire starts and using lots of equipment and effort puts the fire out. Often the latter person gets the accolades, the former is a thankless task.
If a company lacks visionary leaders like that, then one must wonder if the company has much of a future anyway.
> I guess it takes a visionary management to recognize the value of disasters that were prevented.
I think you should change “visionary” with “competent” here.
This industry has been talking about how bad it is to have “hero devs” for decades, maybe since it’s ENIAC beginnings. After a few decades, you’d think this would filter up to management.
If you change your example from brush clearing to garbage removal it becomes pretty clear: who should get more accolades, the guy who takes out the trash or the guy who stays up all night treating the infections? Both. It’s management that fired the custodial staff who should be canned.
Management knows in the abstract. However they also know the value of awards and shipping - both of which can be in conflict. They do not know how to resolve this conflict.
Everyone says the thing they're working on is critically important. Who's right?
More work gets done for less if you wait until the 11th hour and fix the real problems last minute rather than fix everything ahead of time, much of which will turn out to not have needed fixing.
Yeah there's risks involved but at the limit it makes some sense.
Who is right is the wrong question here (not that your point is wrong - it is correct in some situations but not the one I'm talking about). This is a case where the features we need for the release were planned in advance and management signed off on them - by definition getting the feature done is right (even if it turns out customers don't want it, at this point we have committed as a company). However there are always a few bugs that become last minute stop ship issues that should have been prevented long ago.
I forget the exact details, but we had a bug that prevented logging in to the app for a large subset of users.
The engineer that caused the bug ended up staying late and fixing it. He was treated like an absolute hero by management, even though it was his fault in the first place. (Don't worry, we all fully understood it wasn't just his fault. The whole system failed and he wouldn't have been harshly judged for the problem.)
From then on we joked about adding bugs on purpose so that we could all get similar treatment.
They're pretty common, yeah. 10% of the continental US, 90% of Alaska, most major bodies of water (70% of Earth), etc. When you factor in spotty service rather than 0 service (e.g., enough noise and contention that you can't load a text-only search result page in a normal browser for 90% of the day) the situation is much worse.
It's definitely a high risk high reward strategy but if you have the context from being the space for years and you've done your due diligence by speaking to your customers before you build things, you reduce the risk significantly.
Of course the risk can never be zero though and luck definitely played a role in past successes.
Most likely it costs a lot because there isn't enough frequency of demand for it for more than one company to offer the service thus there is no supply. However, as it is a regulatory requirement the severity of demand when it appears is near infinite.
Having done UL certification before, this is exactly how it is.
During the process we forgot/missed that the product serial needed a single letter appended to the end to denote that it was the UL compliant version. We caught this after paying $15k for just recertification with new parts, no testing, only paperwork.
We went back to UL and told them about the mistake. They charged us $5k to open a new case just to append a "-5" to the name of the product on a handful of documents.
> so that decisions about the railways we use are made closer to us
I believe this is a mistranslation of "so that decisions about the railways we use are made by me" or more precisely "so that decisions about the railways we use are made by the sort of people that like attending committee meetings and working their way up the inside of political parties"
The privatisation was very likely botched, however, it was not as if it was done in a secret - the "fire sale" only happened at "rock bottom prices" with hindsight. The nationalisation itself was fairly botched and it is hardly as if the decimation of Britain's railways implemented following the Breeching Report (completed on a nationalised rail system) was particularly effective.
> For most of the industrial era, you could assume that any large physical operation, like a warehouse, would need a certain number of human bodies to move boxes and drive forklifts.
Were there forklifts for most of the industrial era? Given they were invented in 1917 (according to ChatGPT), No.
Unfortunately, I don't think it is "playing by the rules" to get a career specific education.
The unit of account for tax is the currency of the relevant sovereign. Most contracts for income are denominated in that unit of account, even if it is not there is often a highly liquid market (FX) between units of account.
Most wealth is not stored in assets where the unit of account is that of the sovereign. This counts double for assets with a physical location.
This isn't something that can be easily hand-waived away.
reply