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There is a certain difference between: A: We pay lots of money to a company based out of country and get nothing back in taxes. B: We pay lots of money to sev

by Moru 13y ago

There is a certain difference between: A: We pay lots of money to a company based out of country and get nothing back in taxes. B: We pay lots of money to several companies inside our own town and get a portion of that back in taxes.

brudgers 13y ago
B: In a global economy, how likely is it that a local company provides the best net value in regard to something like IT?
- fuck_google 13y ago
  It's pretty much certain, if you take taxation, need for continuos development, and long-term competence/competitiveness etc. into account. Especially with the public sector one should look at the big picture, which bean counters sadly seem to be incapable of doing.
josefresco 13y ago
I'm just asking for proof of B. Even though I would argue the portion returned in taxes would be insignificant. I gripe frequently about local towns awarding contracts to entities not within the town/state/region, but I'd like to see some sort of data about how this helped the local economy and wasn't just a xenophobic/isolationist response.
- pbhjpbhj 13y ago
  German income tax rate goes up to 45% (http://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax http://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax). But you get to tax the company on sales [of the software to Munich city], and you get profit based taxes usually. Then you get the taxes from the wages of the workers. Then you get the taxes from the money the software workers spending locally, then you get the taxes from the people servicing those software workers. And so on. If you spend money on something from a local independent company, especially one that has little to pay in terms of inputs and overheads, then the money seems usually to stay local. I wonder how they coped with EU competition law that - from the little I know - seems to require anything paid for with government money to be put to open tender and to not preference origin in the purchasing decision.
walshemj 13y ago
I think the EU might have words to say about option B - procurement over quiet a low level is meant to be blind. See the arguments about who gets to build the new trains for the UK.

by Moru 13y ago

brudgers 13y ago

B: In a global economy, how likely is it that a local company provides the best net value in regard to something like IT?

fuck_google 13y ago
It's pretty much certain, if you take taxation, need for continuos development, and long-term competence/competitiveness etc. into account. Especially with the public sector one should look at the big picture, which bean counters sadly seem to be incapable of doing.

josefresco 13y ago

I'm just asking for proof of B. Even though I would argue the portion returned in taxes would be insignificant. I gripe frequently about local towns awarding contracts to entities not within the town/state/region, but I'd like to see some sort of data about how this helped the local economy and wasn't just a xenophobic/isolationist response.

pbhjpbhj 13y ago
German income tax rate goes up to 45% (http://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax http://en.wikipedia.org/wiki/Taxation_in_Germany#Income_tax). But you get to tax the company on sales [of the software to Munich city], and you get profit based taxes usually. Then you get the taxes from the wages of the workers. Then you get the taxes from the money the software workers spending locally, then you get the taxes from the people servicing those software workers. And so on. If you spend money on something from a local independent company, especially one that has little to pay in terms of inputs and overheads, then the money seems usually to stay local. I wonder how they coped with EU competition law that - from the little I know - seems to require anything paid for with government money to be put to open tender and to not preference origin in the purchasing decision.

walshemj 13y ago

I think the EU might have words to say about option B - procurement over quiet a low level is meant to be blind. See the arguments about who gets to build the new trains for the UK.