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Sunday, March 11, 2018

No money, no overseas

The “MK” wrote about the intention of the Russian Ministry of Finance to make “eternal currency by residents of the Russian Federation” people with Russian citizenship who do not live in Russia. “Not compressed strip one…” — apparently, I thought scraping the bottom of the barrel government financiers who have already describles and to pensioners and to unemployed people and to homeowners who sued a separate fee for garbage collection. “Sad Duma suggests it”, responded my associative thinking.

photo: Gennady Cherkasov

Associations arise one after another, and one another sadder. Bad idea to force citizens to report income received by them not at home, and in other countries, again lapped up with the Americans. (“Again” — because over and over again, cursing America, Russia it is imitating, borrowing the worst of the American experience.) There are only two countries that tax on the basis of citizenship, not place of income — the US and Eritrea. Russia wants to become the third.

No considerations of common sense and justice, not even close to lying with such an approach. People should pay taxes to provide financial statements to the authorities where he lives and works, does business or otherwise receives income. The state whose passport he retained, but the territory of which appears occasionally, is not related to his income. It has no right to claim a portion of that income in taxes. It is from understanding this immutable truth of the state of the world has long conclude among themselves agreements on the avoidance of double taxation: people pay taxes only in one country — usually where he is most of the time. But not two the same!

About Eritrea do not know, but about the US and Russia know exactly what they signed such treaties with each other and with various other countries. However, this strangely does not prevent the Americans (maybe Russian bureaucrats God repented to abandon such idiocy) to get their citizens living decades somewhere in Paris, London or Moscow, fill in tax returns, reporting all their foreign income. And then, having received the Declaration, the tax Agency humane resolves not to pay the tax the first hundred thousand dollars earned during the year abroad (or rather, $100 to 800). And tax everything received over that amount.

Among overseas Americans, there are many people who earn or receive from the business more than this amount. Many of them give up my American citizenship, not to be under double tax pressure: the number of renunciations of U.S. citizenship increased at a record pace, last year it jumped by 20% and amounted to 4279. It is safe to predict that if Russia will follow the US example — she sees the same trend.

While Russia needs — certainly not less than America, to attract from abroad the minds and money of expats (fellow countrymen living abroad). They respond poorly to the calls of the Russian authorities to return home. And do not hurry to invest their money in the economy historical homeland. And it happens because of all the creative thinking of the Russian bureaucrats is not aimed at creating incentives, but solely on the seizure of money. No matter who — retirees, property owners, citizens, non-residents, etc.

If the officials were thinking about how to attract money and brains expats in the Russian economy, it has long been studied and applied would be adjusted to the Russian specifics of the Chinese experience. I remember back in the 80-ies in the Soviet press was a popular topic of “overseas” — overseas Chinese money which is already successfully attracted in the economy of the PRC. Since then, the Chinese people have achieved in this area, enormous results, while in Russia this topic is almost non-existent. Why?

There are several reasons. First, the development and implementation of incentives is a complex, long and, most importantly, newsadvance. Secondly, the Chinese are at all times treated his people as his — regardless of where they live — in Russia such relations are not since the Cheka–NKVD. Compatriots abroad — are not, and are strangers, suspicious characters, changed the mother Homeland. In 1948, Konstantin Simonov wrote the line, which, alas, reflect the thinking of the majority of Russians to this day:

Peace is indivisible in black, brown, yellow,
And only on red — us
and white.
On the white, if you look closely,
Their views on all continents sign
On the white, as we remember them from childhood
In the same sense. More in any.
White — those in Africa, in Europe
We are red in the smoke of gunpowder
The last time break through at Perekop
And throw in the sea shore in the Crimea!

Therefore, those who left and their descendants not to make love, need, and expose and ridicule. It must be possible to Rob them financially, to recruit as agents of influence, to use their love to Russia for propaganda purposes — as is happening now with the princes of the House of Romanov and other foreign aristocrats. All the Russian bureaucracy and secret services are doing very well — much more effectively than burdened with the conventions of idealistic Westerners.

But here’s the problem-the thing: it does not contributes to the progress of the Motherland. No durimanova laws-regulations no aggressive overtures against the money of the citizens (and living in Russia, and expats) are not going to benefit anyone or anything except the pockets of corrupt officials. And since in Russia they have great power and influence, and learning Russian just bad — for example, the American model of taxation of expats. But the Chinese experience with “overseas Chinese” is not learning. As a result, the comparison of Russia with China obtained the most depressing.

Investment of Chinese expats in the Chinese economy make up the lion’s share (70% to 80%) of all foreign investment. In 2015, foreign direct investment in the Chinese economy amounted to $136 billion (not including $163 billion invested in Hong Kong, which, too, is part of China). This, of course, even in the amount less than the amount of foreign direct investment in the US economy in the past year to $348 billion But incomparably larger than the Russian indicator 2015 — $6.7 billion for the United Nations Conference on trade and development (UNCTAD), which leads these data also reports that in comparison with the previous year 2014 Russian figure is less than 2.8 times. And brings even more bad figure for the first quarter of 2016…

Say China almost becomes the main investor in Russia. But Chinese investment in Russia last year amounted to $0.89 billion (Russia among recipients of Chinese investment was at the 20th place). Investments of the Russian Federation in the PRC, in turn, amounted to approximately $0.95 billion. the trade Turnover between Russia and China decreased in 2015 to 28%; in the export of Chinese Russia has a share of 2%; Russian exports to China accounted for 10%.

That’s how we “turn to the East.” Strengthen the friendship with the Chinese, trying with them to create a “United front against a unipolar world”, and they… last year, as reported by the Financial Times, Chinese investors have invested in Europe a record $23 billion and US $15 billion And under brisk talks with Moscow on a “fight against dollar monopoly” Beijing quietly recently made the sixth Chinese yuan a reserve currency, the IMF — in addition to the U.S. dollar, British pound, Euro, Swiss franc and Japanese yen. It seems that the international monetary Fund soon will turn to the Bank of Russia with a proposal to make the ruble a reserve currency number seven.

…In the autumn of 1976, when he died, Mao Zedong, and his Communist throne in Beijing ranked, Hua Guofeng. And witty the Soviet people reacted to the actual event in a neighboring state with a joke: “the Armenian radio was asked what would be in China then — after Hua. It said: “Neither Mao nor Hua”.

Forty years later the Russians have every reason to wonder about their own country: “no Money, foreign investors in Russia are not in a hurry, its “Huaqiao” we can not draw — what happens next?” Then, apparently, no money, no “overseas”.


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