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patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

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Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

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    1. Patrick McKenzie‏ @patio11 19 Jan 2018
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      In a fascinating mix of tax policy, economics, and could-only-happen-in-Japan, Japan has this system called Furosatou Nouzei ("Paying tax to your hometown") which is beautiful and bonkers at the same time: https://www.furusato-tax.jp/about.html 

      6 replies 92 retweets 212 likes
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      Patrick McKenzie‏ @patio11 19 Jan 2018
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      The problem: tax receipts are distributed inequitably among local governments, because everyone grows up and builds human capital in e.g. the countryside but then goes to the city (Tokyo, or Osaka / Nagoya, but really, Tokyo) to earn money, so Tokyo gets all the benefits.

      11:00 PM - 19 Jan 2018
      • 3 Retweets
      • 18 Likes
      • Angry Daenjangnyuh Guilherme de Maio Patricia M Brent Eli Courtwright Tristan Harward Andreas Freund Diego Henrique Michael Hay Alex Hall
      1 reply 3 retweets 18 likes
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        2. Patrick McKenzie‏ @patio11 19 Jan 2018
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          Thus the Furosato Nouzei system: You can choose to "donate" up to 40% of your residence tax to a local government of your choice in Japan. This gets matched with a 1:1 tax deduction against your residence tax the following year. OK, fairly straightforward. But:

          1 reply 6 retweets 30 likes
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        3. Patrick McKenzie‏ @patio11 19 Jan 2018
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          Governments now know that 40% of the residence tax of Tokyo/etc is "in play", so how do they convince you to go through filling out a form to give it to them? Answer: they give you a token of appreciation for the donation.

          1 reply 5 retweets 18 likes
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        4. Patrick McKenzie‏ @patio11 19 Jan 2018
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          The original idea was "Thanks for the money. Remember canned plums, the locally-produced taste of your childhood? Here, have some plums." And that worked for a while... right until some bright soul decided "Hey wait a second... this is *a market*."

          1 reply 4 retweets 33 likes
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        5. Patrick McKenzie‏ @patio11 19 Jan 2018
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          "There is no requirement that you donate to a place you have an actual connection to. Not a bug, that's a feature: assessing connections would be hard and maybe you feel a special connection to the town you met your wife in even if you don't live there. What if..."

          1 reply 2 retweets 19 likes
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        6. Patrick McKenzie‏ @patio11 19 Jan 2018
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          "... what if your special connection to us was We Outbid Every Other Town In Japan Bwahaha?" And oh by God did they execute competently at it. And, predictably, an arms race ensued.

          1 reply 3 retweets 35 likes
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        7. Patrick McKenzie‏ @patio11 19 Jan 2018
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          The current detente appears to be "If you donate $5k we will give you a $2.5k cash equivalent (like e.g. a $2.5k voucher for Japan's largest travel agent)." Rationally speaking they should literally bid the price of a donation to 100% minus epsilon but I think collusion.

          6 replies 4 retweets 27 likes
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        8. Patrick McKenzie‏ @patio11 19 Jan 2018
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          And so now there is a web frontend on this to make sure that as many people take advantage of the system as possible. And you can even see towns specializing in whether they're going for straight-up economic incentives, SEO on that site, etc. Crikey. I could lose a day.

          6 replies 1 retweet 33 likes
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        9. Patrick McKenzie‏ @patio11 19 Jan 2018
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          "For [a donation of approximately $100], we will send someone out to a loved one's grave site within city limits, clean their grave, make an appropriate offering, and send you a photo." I expect opinions will be divided on this but I appreciate the person who thought of that.

          6 replies 4 retweets 75 likes
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        10. End of conversation

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