Hong Kong question

[Siege]

Why so many economic freedom indexes place Hong Kong on the very top or near the top?

Is Hong Kong really the land of economic opportunities?

[garbon]

Yes. Go shack up with the Monos.

[Jacob]

It is, if you have the ability to seize them. Not everyone in Hong Kong turns out to be a winner.

[The Minsky Moment]

As long as you don't sell books . . .

[Monoriu]

1. We have low tax rates.  For corporate, it is 16-17%.  For individuals, the max is 15%, though in practice only the top 0.1% pay that much.  Half of the working population pays no taxes.  The other half often pays less than 10%.  It is also a salary tax, not an income tax.  So stuff like dividends, interest, lottery winnings etc are not taxed.  No sales tax.  There is no US style Social Security or state pension.  You are on your own in retirement.  Government spending is like 20% of GDP, compared with the usual 40-50% in the western world.  There is no collective bargaining, and union membership is very low. 

2. Hong Kong is extremely expensive.  The rent levels are very high, and the banks are reluctant to lend money to new businesses.  HK banks generally rely on mortgages and credit card loans.  They don't really lend money to start-ups.  Having said that, you can make a decent living if you make it to the professions and senior management.  The old knowing somebody or having a connected father trick works best.  But otherwise, you can still make it if you do well in the exams.  Plenty of poor people score well in the exams and go on to become successful lawyers and doctors. 

[Monoriu]

As long as you don't sell books . . .

Depends on which kind of books

[CountDeMoney]

It is, if you have the ability to seize them. Not everyone in Hong Kong turns out to be a winner.

Siegy thinks he's got a good chance by taking the civil service exam and making nifty cascade patterns on the ScanTron answer sheet.  200 POINTS FOR JUST WRITING MY NAME = BONUS

[Monoriu]

It is, if you have the ability to seize them. Not everyone in Hong Kong turns out to be a winner.

Siegy thinks he's got a good chance by taking the civil service exam and making nifty cascade patterns on the ScanTron answer sheet.  200 POINTS FOR JUST WRITING MY NAME = BONUS

In Hong Kong?  I am not aware that he knows Chinese, though he will of course ace the English part.  He also doesn't have a Hong Kong ID card. 

[CountDeMoney]

I can't wait until we nuke you.

[viper37]

I can't wait until we nuke you.

You don't have to.

Stir up trouble in HK.
Wait for China's response.
Mount a pro-HK propaganda campaign.
Attack Beijing to protect HK from the Evil Empire.
Wait for China to firebomb HK.

[Monoriu]

You don't have to stir up trouble in Hong Kong.  We are already stirring up trouble ourselves almost every day

The Panama papers happily revealed that a lot of the relatives of senior party officials have moved to Hong Kong, and they have bought up tons of stuff here.  So firebombing Hong Kong isn't exactly consistent with their interests.  They still need Hong Kong to an extent, though it is a matter of debate if they need HKers. 

[11B4V]

It is, if you have the ability to seize them. Not everyone in Hong Kong turns out to be a winner.

Siegy thinks he's got a good chance by taking the civil service exam and making nifty cascade patterns on the ScanTron answer sheet.  200 POINTS FOR JUST WRITING MY NAME = BONUS

There's an exam....

[Josquius]

Do chinese still believe in jew magic?

[Siege]

1. We have low tax rates.  For corporate, it is 16-17%.  For individuals, the max is 15%, though in practice only the top 0.1% pay that much.  Half of the working population pays no taxes.  The other half often pays less than 10%.  It is also a salary tax, not an income tax.  So stuff like dividends, interest, lottery winnings etc are not taxed.  No sales tax.  There is no US style Social Security or state pension.  You are on your own in retirement.  Government spending is like 20% of GDP, compared with the usual 40-50% in the western world.  There is no collective bargaining, and union membership is very low. 

2. Hong Kong is extremely expensive.  The rent levels are very high, and the banks are reluctant to lend money to new businesses.  HK banks generally rely on mortgages and credit card loans.  They don't really lend money to start-ups.  Having said that, you can make a decent living if you make it to the professions and senior management.  The old knowing somebody or having a connected father trick works best.  But otherwise, you can still make it if you do well in the exams.  Plenty of poor people score well in the exams and go on to become successful lawyers and doctors. 

Thank you. That's a great set up. Low government expenses and low taxes always win. A little surprised that corporate taxes are higher than individual taxes, but the salary tax vs income tax probably explain the economic boom, as observed from outside.

I favor a flat tax rate for everyone and no corporate taxes, since I see it as double taxation, but the salary tax plus corporate tax seems a very effective solution to achieve the same goal of a low tax drag on the economy and a higher circulation rate for investments.

[Monoriu]

Do chinese still believe in jew magic?

What do you mean by Jew magic?