Posts Tagged ‘france’

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According to the BBC , France’s highest administrative court has suspended a ban on full-body “burkini” swimsuits that was imposed in a Villeneuve-Loubet on the Mediterranean coast.

The court found the ban “seriously and clearly illegally breached fundamental freedoms.”

The ruling could likely set a precedent for up to 30 other towns with similar bans.

Read more here

Chasing Edward Snowden

Anonymous (2016)

Film Review

Chasing Edward Snowden is an extremely well made documentary about NSA whistleblower Edward Snowden’s escape from Hong Kong to Moscow and the role played by Wikileaks and the Hong Kong government in facilitating his escape.

Prior to seeing the film, I was unaware Snowden (under US indictment for treason) had reached out for Wikileaks’ help nor that Putin initially turned down his asylum request when he refused to work for the FSB.

All this changed, when France, under US pressure, denied the Bolivian presidential jet access to French airspace. Acting on false rumors spread by Wikileaks, the US and France believed President Morales had smuggled Snowden onto his plane.

Because the French action contravened Geneva conventions, world opinion turned in Snowden’s favor, persuading Putin to reverse himself and grant his asylum petition.


*FSB is the Russian state security agency that replaced the KGB.

Together: How Cooperatives Show Resilience to the Crisis

CECOP/CICOPA Europe  (2012)

Film Review

Together examines how the cooperative movement enabled tens of thousands of European workers to survive the 2008 downturn. As of 2012, there were 1.5 million co-op workers in Europe. The filmmakers interview workers from French, Polish, Italian and Spanish worker cooperatives. All agree that the traditional capitalist model – in which a financial group loots an enterprise for a few years and abandons it – is obsolete because it inevitably predisposes to financial crisis.

In France, workers converted 150 failed businesses to cooperatives between 2008 and 2012. The first co-op featured is a foundry workers converted with the help of a French organization that specializes in this type of conversion.

The Polish example is a bottling plant that survived Poland’s transformation to a “free market economy” in the 1990s. There were many so-called worker cooperatives in communist Poland, but they were controlled by the state, rather than workers themselves.

The Italian example features the “social cooperatives” enabled by Law 381 in 1991. These are worker-run public-private ventures that provide social services and work integration schemes for the disadvantaged. Italy has a total of 10,000 social cooperatives, and they increased, rather than decreased, staff following the 2008 downturn.

The documentary also showcases the world-famous Mondragon Cooperative Corporation in the Basque region of Spain. Mondragon, which was first started in 1943, is actually a consortium of 100 worker-owned businesses. Ninety-four are located outside of Spain.

Mondragon workers believe they survived the 2008 downturn due to their heavy emphasis on research and worker upskilling. They’re especially proud of the Mondragon electric car project. After the global economic crash, 500 Mondragon workers moved to a new co-op when their original work area shut down.

Paris State of Emergency

Medialien (2016)

Film Review

Paris State of Emergency is a short documentary revealing how French police are using the state of emergency declared in November 2015 to target social justice activists rather than Islamic terrorists.

This has resulted in numerous warrantless house searches by armed SWAT teams, as well as arbitrary arrest and heavy police violence against squatters and peaceful protesters.

French activists find themselves in a similar position as US activists after 9-11 and the passage of the Patriot Act. The latter has targeted vastly more activists than terrorists for surveillance, home invasion and arrest.

The French activists interviewed also complain of heavy infiltration of their organizations by police informants – which explains how French authorities could immediately target key organizers once they declared the state of emergency.

depardieu

French actor Gerard Depardieu

In January, Forbes reported that Facebook’s billionaire co-founder Eduardo Severin had renounced his U.S. citizenship to move to Singapore, where the top tax rate is 20%. The article about millionaires and billionaires fleeing high western tax rates was triggered by French actor Gerard Depardieu’s renunciation of his French citizenship to move to Russia. He chose Russia based on its top tax rate of 13% on individuals and 20% on corporations (except for the oil and gas industry – see below). France had just enacted a 75% tax on millionaires to pay off the 1.7 trillion euros it owes to international banksters. Socialist president Francois Hollande sees taxing the rich as a better alternative than laying off public servants and cutting health care, education, and pensions like Greece, Spain, Portugal, and Italy.

Forbes clearly disagrees. Predictably the article represents the traditional neo-classical economic viewpoint – slashing public services is always a better alternative than increasing taxes on the rich. They also leave out the most important part of the story – namely why income taxes in Singapore and Russia are so low.

The real reason income is taxed at a low rate in Singapore and Russia is because both countries have adopted a modified Land Value Tax (LVT). An LVT is a tax on unimproved land, resources and the cultural commons (e.g. public airwaves). It was journalist Henry George who first proposed replacing taxes on income and capital with a single LVT in his 1879 international bestseller Progress and Poverty. See Progress and Poverty: the Suppressed Economics Classic.

Singapore’s Economic Miracle

Singapore, a flourishing city-state of 5.3 million people, faced massive unemployment and a major housing crisis when it first gained its independence from Malaysia in 1965. Its leaders immediately launched a modernization program funded by an LVT. Although Singapore no longer relies on a single tax, income taxes still remains extremely low with corporate rates between 8.5 and 17%.

Thanks to the LVT, Singapore recovered much more rapidly than western countries from the 2008 economic collapse. In 2011 a 12% increase in GDP enabled them to pay a dividend to all adult citizens of approximately $269 each (total $1.22 billion).

How Putin Saved Russia’s Moribund Economy

Russia’s LVT, introduced by President Vladimir Putin as part of a 2001 tax reform package, falls more heavily on mineral (e.g. oil and gas) extraction than unimproved land. Taxes on oil and gas revenues amount to approximately 45% of net sales (compared to 12 percent in the construction industry and 16.5 percent in the telecommunications industry). Property owners pay a tax ranging from 0.1 – 0.3% on land value (and a comparable rate on state-owned land that they lease).

Experience with LVT in other countries

Hong Kong (1985) – thanks to LVT, enjoys low taxes, low inflation, high investment and high salaries. Often voted the world’s best city for business and the freest for residents. According to Bloomberg’s they, too, paid a $700 dividend to all adult residents in 2011. Unfortunately since rejoining China, Hong Kong has been gradually replacing land and resource taxes with income tax. This has resulted in a return of land speculation and increasing income inequality. The Hong Kong real estate holdings of China’s multimillionaire president Xi Jinping are valued at more than $24.1 million.

Taiwan (1949) – following the Communist takeover of mainline China, Chinese nationalists under General Chiang Kai-shek fled to Formosa (Taiwan), a brutally poor feudal island controlled by a handful of rich farmers. Chiang Kai-Sheck, a follower of Sun Yat-Sen, the first Chinese president and  a great admirer of Henry George, introduced a LVT. When plantation owners found themselves paying as much in taxes as they were collection in rent, they sold off their excess land to peasant farmers. Taiwan went on to set world records with growth rates of 10% per annum.

Denmark (1957) – the small Georgist Justice Party won seats in parliament and a role in the ruling coalition. A year later, inflation had gone from 5% to under 1%; bank interest dropped from 6.25% to 5%. By 1960, 100,000 unemployed (out of a population of 5 million) had found jobs and received the highest average pay increase in Danish history. In the 1960s, a media backlash funded by wealthy bankers and corporations caused the Justice Party to lose its seats. Land taxes were decreased and income tax and sales tax (currently at 25%) drastically increased. Inflation quickly rose to 5% and by 1964 reached 8%. Land prices began to sky-rocket, increasing 19-fold from 1960 to 1981 increasing 19-fold.

Estonia (1990s).- enacted a 2% LVT following the break-up of the Soviet Union. It was much easier to collect than the income taxes enacted by other former Soviet republics, more successful than trying to collect from others, succeeding over 95% of the time. It’s largely the LVT that has enabled Estonia to become the electric car capitol of the world. In addition to installing 165 electric vehicle fast-charging stations country-wide, it provides a 50% subsidy for residents who purchase electric vehicles.

Other jurisdictions that opted for LVT:

  • Ethiopia 1990s
  • Saudi Arabia, Kuwait, UAR – resource-based LVT on oil and gas exports
  • Baja California (Mexico) 1990s
  • British Columbia (1912) – resource-based LVT on forestry
  • Vermont 1978
  • Kansas City 1930s
  • Pennsylvania – Pittsburgh and Scranton in 1975 and 18 other cities following suit in the 1990s. Housing costs and crime in both Pittsburgh and Scranton have trended the lowest in the US, despite the collapse of the steel industry. Both avoided the 2000-2007 real estate bubble and 2008 collapse. Foreclosure rates in Pittsburgh remain the lowest in the country.

Single tax colonies founded by Henry George’s American followers:

  • Free Acres (New Jersey) 1910
  • Arden (Delaware) 1900
  • Fairhope (Alabama) 1894

 

photo credit: igorjan via photopin cc