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Just a very stupid idea...
Geneva is center of a big Franco-Valdo-Geneva area. Like a local centralized Paris, but with awful traffic between French and Swiss border. Because net salaries are so high in Switzerland. But surprisingly, raw salary, all charges included, is not that expensive compared to France. Because the Geneva state is much less greedy than the French state.

Hmm, what would happen if VAT, company and salary taxes were as low in Haute-Savoie than in Geneva? Net salaries and purchasing power would suddenly jump up. People living in that area would not need to cross the border to get good salaries, hugely reducing the border road traffic from France to Switzerland. Even people from Valais could go work in Evian or Thonon instead of Geneva. Even people from Bout du monde could go working in the Archamps activity zone. Indeed, the houses prices would jump up as well, as much more people could affort it. And people could come from far to cross daily the border of Haute Savoie to work there.

* Is that really science fiction?
* Is anything completely wrong in what I wrote so far?
The text you are quoting:
Geneva is center of a big Franco-Valdo-Geneva area. Like a local centralized Paris, but with awful traffic between French and Swiss border. Because net salaries are so high in Switzerland. But surprisingly, raw salary, all charges included, is not that expensive compared to France. Because the Geneva state is much less greedy than the French state.

Hmm, what would happen if VAT, company and salary taxes were as low in Haute-Savoie than in Geneva? Net salaries and purchasing power would suddenly jump up. People living in that area would not need to cross the border to get good salaries, hugely reducing the border road traffic from France to Switzerland. Even people from Valais could go work in Evian or Thonon instead of Geneva. Even people from Bout du monde could go working in the Archamps activity zone. Indeed, the houses prices would jump up as well, as much more people could affort it. And people could come from far to cross daily the border of Haute Savoie to work there.

* Is that really science fiction?
* Is anything completely wrong in what I wrote so far?

GuillaumeTelDec 19, 2007 @ 16:15
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Re: Just a very stupid idea...
Post 1
Well, here are my thoughts:

First, the awful traffic has several other causes, amongst them:
-Housing shortage in Geneva encouraging people to live in France;
-Awful transborder public transportation, even to and from densely populated areas like Annemasse;
-Very scattered housing in France, making it difficult to operate profitable bus lines;
-In fine, absence of a real regional authority who could adress these problems globally.

Second, when it comes to comparative advantages, it’s not only about taxes and VAT, it’s about the whole business environnment – not a lot of firms, for example, are willing to relocate in a country where people are supposed to work 35 hours a week and where it’s very difficult to fire an employee even if they do an awful job.

So if you follow your idea to the end, it means: Haute-Savoie and Pays de Gex should adhere to Switzerland.

Sounds a good idea to me, but I’m not sure that the French would see it this way... What do our fellow French Glocalers think?
The text you are quoting:
Well, here are my thoughts:

First, the awful traffic has several other causes, amongst them:
-Housing shortage in Geneva encouraging people to live in France;
-Awful transborder public transportation, even to and from densely populated areas like Annemasse;
-Very scattered housing in France, making it difficult to operate profitable bus lines;
-In fine, absence of a real regional authority who could adress these problems globally.

Second, when it comes to comparative advantages, it’s not only about taxes and VAT, it’s about the whole business environnment – not a lot of firms, for example, are willing to relocate in a country where people are supposed to work 35 hours a week and where it’s very difficult to fire an employee even if they do an awful job.

So if you follow your idea to the end, it means: Haute-Savoie and Pays de Gex should adhere to Switzerland.

Sounds a good idea to me, but I’m not sure that the French would see it this way... What do our fellow French Glocalers think?

Bustan_A, Dec 19, 2007 @ 17:39
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Re: Just a very stupid idea...
Post 2
Hi, friend.
As an "economist" I suppose that it is not possible for France because of the "soft corruption" prospective - that is, they would NOT pay more salary even if the taxed are lower, because of that, and the prices of the houses would rise "too much proportionally to the income rises".
just a quick reaction...
a good idea of dissolving traffic though!
Helena.
The text you are quoting:
Hi, friend.
As an "economist" I suppose that it is not possible for France because of the "soft corruption" prospective - that is, they would NOT pay more salary even if the taxed are lower, because of that, and the prices of the houses would rise "too much proportionally to the income rises".
just a quick reaction...
a good idea of dissolving traffic though!
Helena.
HelenaTravel, Dec 19, 2007 @ 18:25
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Re: Just a very stupid idea...
Post 3
Well,
Sure not only the tax is involved, the labour law and liberalism counts also much.
As well the infrastructures, the staff level of education.
My proposition may then be 'equivalent taxes', but also same level of labour law, as easing employee disposal encourages employee recruitment (due to the lower risk in case of market downtrend).

Actually, I dont think that Haute-Savoie would ever suscribe to be one canton of the confederation, even if that would give more weight to the French-speaking area, and boost the Geneva economy and cooperation.
Secondly, no country willingly gives up part of its country. We keep the Corses even if they are more troubles than anything else... (I expect some spiky reactions to this remark :-)
The text you are quoting:
Well,
Sure not only the tax is involved, the labour law and liberalism counts also much.
As well the infrastructures, the staff level of education.
My proposition may then be 'equivalent taxes', but also same level of labour law, as easing employee disposal encourages employee recruitment (due to the lower risk in case of market downtrend).

Actually, I dont think that Haute-Savoie would ever suscribe to be one canton of the confederation, even if that would give more weight to the French-speaking area, and boost the Geneva economy and cooperation.
Secondly, no country willingly gives up part of its country. We keep the Corses even if they are more troubles than anything else... (I expect some spiky reactions to this remark :-)

GuillaumeTel, Dec 19, 2007 @ 19:28
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Re: Just a very stupid idea...
Post 4
I dont think that house price increase risk is at all part of the salary level.

It's rather offer and demand: usually companies give as less as possible to maximize profit, only when it is not possible to hire anybody, prices (sorry, salaries) go up. Of course the salaries usually dont go below the minimum wage (except excessive use of internships), and upper the point where the employee costs more than the extra money he allows to cash in.

If income taxes decrease, profits go up and the market is better, which attracts more companies, generates more competition, reduces unemployment and makes recruitment more difficult. Then salaries go up as employees have more opportunities.

Zug and Obwald have made that bet and they have so much attracted new companies that their initial loss of tax income has been more than compensated.
The text you are quoting:
I dont think that house price increase risk is at all part of the salary level.

It's rather offer and demand: usually companies give as less as possible to maximize profit, only when it is not possible to hire anybody, prices (sorry, salaries) go up. Of course the salaries usually dont go below the minimum wage (except excessive use of internships), and upper the point where the employee costs more than the extra money he allows to cash in.

If income taxes decrease, profits go up and the market is better, which attracts more companies, generates more competition, reduces unemployment and makes recruitment more difficult. Then salaries go up as employees have more opportunities.

Zug and Obwald have made that bet and they have so much attracted new companies that their initial loss of tax income has been more than compensated.

GuillaumeTel, Dec 19, 2007 @ 19:41
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