LOL now thats irony...

[CosmicCowboy]

Russia doing away with capital gains tax and encouraging private enterprises while the US is going in the exact opposite direction...

http://www.ft.com/cms/s/0/81a03be0-7...44feabdc0.html

Medvedev sees chance for new world order
By Catherine Belton, Charles Clover and Courtney Weaver in St Petersburg
Published: June 18 2010 12:11 | Last updated: June 18 2010 12:11
Dmitry Medvedev, the Russian president, said Moscow was bidding to help lead efforts to build a new world economic order after the old system collapsed in the global financial crisis.

Opening Russia’s annual economic forum in St Petersburg where hundreds of global chief executives have flocked, Mr Medvedev said the renewed interest in Russia this year was a sign of a changing world in which the ins utions of the western-dominated world order had had their day amid thousands of corporate defaults and the threat of sovereign defaults.

“What had seemed untouchable has collapsed. The bubbles that created the illusion of flourishing economies have burst,” Mr Medvedev said. “For Russia this situation is a challenge and an opportunity. We are living in a unique time. And we should use it to build a modern, flourishing and strong Russia ... which will be a co-founder of the new world economic order and a full participant in the collective political leadership of the post-crisis world.”

Mr Medvedev insisted “Russia has changed” in the past year as it sought to pursue a course of “smart politics” that would leverage its compe ive advantages in the raw materials sector, while shifting emphasis towards modernising the economy and focusing on boosting innovation over resources.

Acknowledging that the country still had a great deal to do to meet these aims, Mr Medvedev laid out a series of new initiatives that aim to boost its attractiveness as an investment destination. “Russia needs a real investment boom”, in order to achieve its modernisation goals, he said. To stimulate that, Mr Medvedev announced Moscow would introduce zero taxation on capital gains for companies working on long-term investments starting from January next year and said Russia was improving the legal system to provide better protection for businesses against the long arm of bureaucracy.

He added Russia had already simplified migration procedures to help attract “highly-qualified specialists” working in investment and high-tech sectors into the country.

Responding to criticism that Russia’s approach to building an innovation economy was driven from the top down and state interference could hinder development, Mr Medvedev said the state would concentrate its efforts on fostering a good business climate. “No matter how many state-owned companies we have, modernization will happen, above all, through private business. And only if there is compe ion,” he said. “The state should not tear down the apples from the tree of economics. What the government should do is help grow our apple orchard, develop our economic environment.”

Mr Medvedev said he was cutting the list of strategic enterprises five fold in order to reduce the role of the state in the economy and foster more private initiatives.

[Drachen]

Even I will admit that this is actually very ironic on the surface, but I have two concerns. I would like to see how this is put into practice most specifically how much state control there will be (red tape) and what they will define as long-term investment as well as what other qualifiers they can put in. Secondly, I think it is a lot easier for a country to cut out entire portions of their tax base when they are funded by their ownership of very profitable businesses (oil and other raw materials).

Still, despite these concerns I am very interested to see how this works for them because this could be a tool used to spur growth in our own "green" energy sector, rather than grant money or government research (i.e. 0, or lower capital gains taxes for companies who are actually putting forth more than a cursory effort to invest in renewable energy sources).

[Wild Cobra]

I wonder how many rich American entrepreneurs will be moving to Russia, and we lose even more of a tax break?

[boutons_deux]

Profoundly corrupt Russia is simply enriching the oligarchic/kleptocratic rich, iow, the capitalists who have capital to invest and gains to be made.

[jack sommerset]

[Drachen]

I wonder how many rich American entrepreneurs will be moving to Russia, and we lose even more of a tax break?

Well, I don't know that there will be a rush (at least initially). There will likely be a trickle since there will be initial distrust of the Russian government's ability to cut out the red tape and keep a hands off approach. If it works, great! We have a working model to use in adjusting our own policies.

[ElNono]

I wonder how many rich American entrepreneurs will be moving to Russia, and we lose even more of a tax break?

Please let us know when you find out...

[RandomGuy]

Russia doing away with capital gains tax and encouraging private enterprises while the US is going in the exact opposite direction...

http://www.ft.com/cms/s/0/81a03be0-7...44feabdc0.html

Medvedev sees chance for new world order
By Catherine Belton, Charles Clover and Courtney Weaver in St Petersburg
Published: June 18 2010 12:11 | Last updated: June 18 2010 12:11
Dmitry Medvedev, the Russian president, said Moscow was bidding to help lead efforts to build a new world economic order after the old system collapsed in the global financial crisis.

Opening Russia’s annual economic forum in St Petersburg where hundreds of global chief executives have flocked, Mr Medvedev said the renewed interest in Russia this year was a sign of a changing world in which the ins utions of the western-dominated world order had had their day amid thousands of corporate defaults and the threat of sovereign defaults.

“What had seemed untouchable has collapsed. The bubbles that created the illusion of flourishing economies have burst,” Mr Medvedev said. “For Russia this situation is a challenge and an opportunity. We are living in a unique time. And we should use it to build a modern, flourishing and strong Russia ... which will be a co-founder of the new world economic order and a full participant in the collective political leadership of the post-crisis world.”

Mr Medvedev insisted “Russia has changed” in the past year as it sought to pursue a course of “smart politics” that would leverage its compe ive advantages in the raw materials sector, while shifting emphasis towards modernising the economy and focusing on boosting innovation over resources.

Acknowledging that the country still had a great deal to do to meet these aims, Mr Medvedev laid out a series of new initiatives that aim to boost its attractiveness as an investment destination. “Russia needs a real investment boom”, in order to achieve its modernisation goals, he said. To stimulate that, Mr Medvedev announced Moscow would introduce zero taxation on capital gains for companies working on long-term investments starting from January next year and said Russia was improving the legal system to provide better protection for businesses against the long arm of bureaucracy.

He added Russia had already simplified migration procedures to help attract “highly-qualified specialists” working in investment and high-tech sectors into the country.

Responding to criticism that Russia’s approach to building an innovation economy was driven from the top down and state interference could hinder development, Mr Medvedev said the state would concentrate its efforts on fostering a good business climate. “No matter how many state-owned companies we have, modernization will happen, above all, through private business. And only if there is compe ion,” he said. “The state should not tear down the apples from the tree of economics. What the government should do is help grow our apple orchard, develop our economic environment.”

Mr Medvedev said he was cutting the list of strategic enterprises five fold in order to reduce the role of the state in the economy and foster more private initiatives.

http://www.heritage.org/index/country/russia

Russia’s economic freedom score is 50.3, making its economy the 143rd freest [out of 179 ranked, placing it in the bottom 1/5th]in the 2010 Index. Its score is 0.5 point worse than last year, reflecting reduced scores in six of the 10 economic freedoms. Russia is ranked 41st out of 43 countries in the Europe region, and its overall score is below the world and regional averages.

The Russian economy scores above the world average only in fiscal freedom, in part because of a reduced corporate tax rate that became effective in January 2009. Economic growth has averaged better than 6 percent over the past five years, but overdependence on oil and gas increases the risk of a sudden loss of compe iveness.

State involvement in economic activity remains extensive. Non-tariff barriers significantly increase the cost of trade. Monetary stability is weak, and prices are heavily controlled and influenced by the government. Deterrents to foreign investment include bureaucratic inconsistency, corruption, and restrictions in lucrative sectors like energy. Corruption weakens the rule of law and increases the fragility of property rights.

They have to try something.

Even with the taxes at that rate, the fact that the Russian government thinks little of seizing assets and companies on a whim, makes it a country I wouldn't invest in.

Which would you prefer CC?

No rule of law, or no taxes?

Here is your opportunity to prioritize. Are you rushing out to invest in Russia now?

[RandomGuy]

I wonder how many rich American entrepreneurs will be moving to Russia, and we lose even more of a tax break?

I would be willing to guess:

Very few. See my previous post.

[Wild Cobra]

I would be willing to guess:

Very few. See my previous post.

Is that article before or after the change in Capital Gains taxation?

[CosmicCowboy]

http://www.heritage.org/index/country/russia



They have to try something.

Even with the taxes at that rate, the fact that the Russian government thinks little of seizing assets and companies on a whim, makes it a country I wouldn't invest in.

Which would you prefer CC?

No rule of law, or no taxes?

Here is your opportunity to prioritize. Are you rushing out to invest in Russia now?

I would prefer rule of law, limited central government, and limited taxes.

[RandomGuy]

List of countries by received Foreign Direct Investment

Russia comes in fairly low given its size. Odds are that this newest bit will have little effect until they clean up the rest of their ty market system.

[MannyIsGod]

Is that article before or after the change in Capital Gains taxation?

LOL

Does it matter? The issue isn't taxation when the government just seizes your assets. Why tax what they can just take?

[CosmicCowboy]

LOL

Does it matter? The issue isn't taxation when the government just seizes your assets. Why tax what they can just take?

You mean like BP's 20 billion?

[MannyIsGod]

You mean like BP's 20 billion?

Wow, seriously?

[RandomGuy]

Is that article before or after the change in Capital Gains taxation?

That is before they changed the rate on corporate capital gains. I would assume they still have individual capital gains taxes, since he took care to specify "corporate".

I still have my doubts, despite Russian government protestations to the contrary, that the glaring deficiencies in their legal system and dearth of human capital can be corrected.

It will be interesting to see how their rankings shap up at the end of the year. I doubt much will change.

Feel free to head over there to be an entreprenuer in Russia though. I will stick to China/India.

[Wild Cobra]

That is before they changed the rate on corporate capital gains. I would assume they still have individual capital gains taxes, since he took care to specify "corporate".

I still have my doubts, despite Russian government protestations to the contrary, that the glaring deficiencies in their legal system and dearth of human capital can be corrected.

It will be interesting to see how their rankings shap up at the end of the year. I doubt much will change.

Feel free to head over there to be an entreprenuer in Russia though. I will stick to China/India.

I agree that only time will tell.

I know little to nothing or the corruption over there, but I do believe it probably exists to a high degree. Just think though, if they get their act together, they might actually become wealthy again.

[CosmicCowboy]

Wow, seriously?

Serious as a heat attack. I realize that due process of law may seem like an antiquated concept to knee jerk liberals such as yourself but it really is the cornerstone of a democratic society.

[MannyIsGod]

BP had every right to wait to see how things played out. They went this route because its cheaper for them. Its hilarious to listen to you make BP out to be a victim here.

[RandomGuy]

Serious as a heat attack. I realize that due process of law may seem like an antiquated concept to knee jerk liberals such as yourself but it really is the cornerstone of a democratic society.

So I take it you are as concerned about warrentless wiretapping as I am?

[Wild Cobra]

BP had every right to wait to see how things played out. They went this route because its cheaper for them. Its hilarious to listen to you make BP out to be a victim here.

BP is a victim of the Obama administration.

Granted, they ed up, and will be held accountable. Now that they have been forced to put up billions in payouts, there are now two systems, making it harder to verify that someone isn't getting paid by two claims in two systems.

[CosmicCowboy]

BP had every right to wait to see how things played out. They went this route because its cheaper for them. Its hilarious to listen to you make BP out to be a victim here.

And you know this how? The White House had already announced they were going to do it. , I have no love lost for BP but the precedent is scary. Who's next?

[Wild Cobra]

So I take it you are as concerned about warrentless wiretapping as I am?

That doesn't belong here. However, there is probable clause mentioned in the cons ution for a reason.

[RandomGuy]

That doesn't belong here. However, there is probable clause mentioned in the cons ution for a reason.

Oh. I thought we were talking about "due process of law".

That doesn't include the process of getting a warrant to conduct a wiretap?

[Wild Cobra]

Oh. I thought we were talking about "due process of law".

That doesn't include the process of getting a warrant to conduct a wiretap?

That depends on the level of the law enforcement, and laws they must follow.

BP is not a threat to national security, and does not fall under the presidents powers as the Commander in Chief.