Budget: Switch Your Government
December 9th, 2009 | Published in Uncategorized | 2 Comments
Ever had awful service in a restaurant? Been overcharged at the till in a Supermarket? Had your phone company rip you off while you were roaming on Holiday?
Infuriating, isn’t it. You do at least have the pleasure of taking your business somewhere else however. The same cannot be said for your government.
Like it lump it, no matter how uncleanly the hospitals or how backward the public transport, you pretty much just have to grin and bear it. Or do you?
When we switch business from one provider to another, we see it as a healthy part of the free market process. It helps companies to shape their service and improve their offering. We don’t really have the same feedback to government. Elected officials are primarily an overpaid complaints department and while they have power, the mechanisms of government are so unweildy, that the feedback loop is almost non-existant.
Your feedback will be far more keenly felt if you hit them where they are hitting you – the pocket. Given you are reading my blog, I take you to be an high functioning, well mannered, erudite asset to the country. Rather than give out about the taxes and the poor service, and if you really have the courage of your convictions, you have to leave and withdraw your tax contribution and expertise. Give it to a competing economy that deserves it more, and in the process, help make Ireland a better place to live.
But isn’t leaving a bit drastic? Well here are a few ways to soften the blow for you.
- You (hardly) have to pay any personal tax: Having lived in Argentina for the last five months, I can tell you that the cost of living here is about 1/3 of that at home. That means that the local tax thresholds are way lower. That means, in terms of purchasing power, the 40% tax threshold of €35,400 translates to €100,000 of purchasing power. Can you imagine paying 20% on a €100,000 salary in Dublin? Better still, if you can stay out of the country for 183 days, three years coming, you don’t need to pay income tax at all.
- You don’t have to make any VAT returns: Dove tailing nicely, the VAT registration threshold is €37,500. This means, if you can find a cash-flow of just under that with a high margin (such as selling time as a programmer/architect/other).
- Bring your friends: Telcoms really has come a long way. One long time coming innovation that is fast coming up the tracks is video conferencing. Its been 13 years since I had my first teleconference involving roughly €400,000 worth of telecoms infrastructure. After all that, it managed only to switch to whoever happened to be picking their nose at the wrong time in the call. Now however, telepresence is almost among us. Using Google video chat we’ve had hours of arguments with family and friends back home. At times you really do start to forget that they are so far away and I can see the time when keeping up with friends via teleconference will really be possible. It may seem a little weird, but I do see keeping in touch with friends becoming more of a possability. It is not quiet teleporting, but it is getting close.
- Have it both ways: If you do get fed up for the red wine, sunshine and great steaks, you are about 15 hours and €800 away from home. Out of your €35k budget you can put €7 towards tax, €20k towards living and still have €8k to pop home once or twice or three times a year.
That is all you need to poke one in the eye for the Irish government. Just sit back and relax and wait for a couple of years until they come groveling back, begging for attention.
Okay, so that won’t happen, but next time you find yourself complaining, remember you have a choice.
December 10th, 2009 at 7:15 pm (#)
Right on James.
I remember the first time I realized there was a “market” for governments – it’s something most people could never fathom. And you’re right, because the cost of switching governments is fairly high, it creates an inefficient market (also known as governments can get away with lots of stuff because they know people are stuck – kinda like if there is only one cable television provider in town).
Have you heard of the Seasteading Institute?
http://seasteading.org/book_beta/Why%20they%20belong%20on%20the%20ocean.html
These guys are taking a radical approach, and want to build new countries on movable ocean platforms in international waters. Essentially to create a free market of governments where it’s easy to switch (float away to another colony) if you aren’t happy and also to spark innovation in government (it’s rare we see new ones come out, and the only way to start you own is through a military coup or war which means high barriers to entry).
Pretty crazy stuff, but it would be cool if it worked
December 11th, 2009 at 1:24 am (#)
Well that is taking it to a new level. Setting up a new state is a little beyond me. I guess though, for the likes of you and me anyway, there are loopholes we can fit into. The longer we are down here, the fewer reasons we can see for heading back any time soon. Having said that, I’m writing this from an airport lounge as we head back for a couple of weeks. We have 1 tv and 1 radio interview lined up as well as good potential sales meetings – none of which we can really do from the Southern Hemisphere – yet.