In Germany, we pay a solidarity tax....which is basically a 5.5 percent tax on income tax revenue....corporate gains.....and corporate taxes. It adds up to 12 billion Euro a year, or $16 billion dollars.
This week....some German guy took this special tax up to the state regional court.
You see this is a funny tax of sorts....started in 1998, because the wall came down and East Germany had to be rebuilt. The political guys started this and it was to be a temporary tax.....but no one wrote a end date. And folks now admit that the money just goes into a bucket.....not necessarily used for Eastern construction.
The state court this week.....agreed. They said this is a stupid idea and can't continue forever. However, this will likely continue onto the German supreme court....maybe in six months.
There are dozens of hidden taxes like this...that people simply tend to just forget about and simply pay. I've come to hate it...it probably robs me of about $800 a year.
Wednesday, November 25, 2009
GM's Stumble
The GM dudes have been busy for the past week in Germany....trying to mend fences with Opel and the German government. Things haven't worked that well.
There was this 1-star press conference yesterday. The GM guy was gushing and acting like a hooker at a VFW convention....everything is working out and GM is surging ahead. He wanted everyone to know that the Kaiserslautern plant is to absolutely stay open....and to become a state-of-the-art complex....worldly development.....blah...blah....blah.
I sat there laughing. It was the crap you'd hear in Detroit and Newsweek would report it with a fantastic car in the background.
No one is truly believing much of anything that GM says.
Today, we learn that the Saab deal....a core part of GM in Europe.....has fallen through. The Saab guys.....losing money left and right because of the high cost of building the typical cars they make.....were supposed to be sold off to a Swedish company that makes luxury cars. This company....Koenigsegg.....is apparently backed by China's Beijing Automotive Industrial Holding Ltd (BAIC). It would be safe to say that BAIC has the real money in this deal and wants technology from SAAB. Apparently, the safe view of SAAB surviving is zero.
A basic word on SAABs....for those of you who've never driven the vehicle. It is a high-class car, with great handling in snow and ice. You can't find a single model for less than $25k....which tends to make this unaffordable for the common guy. In my entire village....there might be one. I worked with a guy who bought one....took out the rear seat entirely.....and basically had this huge tank-like vehicle with tons of room for taking cargo. The neat thing is that they make diesel versions and the car can last forever....but when it does break....where the heck do you get parts? Sweden?
So sit back and watch GM sweat in Europe.
There was this 1-star press conference yesterday. The GM guy was gushing and acting like a hooker at a VFW convention....everything is working out and GM is surging ahead. He wanted everyone to know that the Kaiserslautern plant is to absolutely stay open....and to become a state-of-the-art complex....worldly development.....blah...blah....blah.
I sat there laughing. It was the crap you'd hear in Detroit and Newsweek would report it with a fantastic car in the background.
No one is truly believing much of anything that GM says.
Today, we learn that the Saab deal....a core part of GM in Europe.....has fallen through. The Saab guys.....losing money left and right because of the high cost of building the typical cars they make.....were supposed to be sold off to a Swedish company that makes luxury cars. This company....Koenigsegg.....is apparently backed by China's Beijing Automotive Industrial Holding Ltd (BAIC). It would be safe to say that BAIC has the real money in this deal and wants technology from SAAB. Apparently, the safe view of SAAB surviving is zero.
A basic word on SAABs....for those of you who've never driven the vehicle. It is a high-class car, with great handling in snow and ice. You can't find a single model for less than $25k....which tends to make this unaffordable for the common guy. In my entire village....there might be one. I worked with a guy who bought one....took out the rear seat entirely.....and basically had this huge tank-like vehicle with tons of room for taking cargo. The neat thing is that they make diesel versions and the car can last forever....but when it does break....where the heck do you get parts? Sweden?
So sit back and watch GM sweat in Europe.
Monday, November 23, 2009
Green Micky D's?
From the Local today….an interesting article:
I paused there for a while…wondering what the heck green meant in this case and how any company could arrive to this logic. Then I realized that this was McDonalds….and basically, it was a weird attempt to grab headlines. Kinda like going from old Coke to new Coke.
Maybe someone will notice but I would imagine that if you asked a 1,000 German customers if they notice anything different about the exterior of McDonalds….less than two will say anything. It’s pretty much a waste.
My guess is that the CEO tasked them to come up with something to counter German arguments about the deforestation or environmental issues. This was probably the best that they could do.
At German branches of the US fast-food chain, the famous golden arches will be emblazoned on a green background, rather than its usual red, McDonald's Germany vice-president Holger Beeck said.
The change will be made on all new and refitted restaurants "out of respect for the environment," Beeck told the Financial Times Deutschland.
I paused there for a while…wondering what the heck green meant in this case and how any company could arrive to this logic. Then I realized that this was McDonalds….and basically, it was a weird attempt to grab headlines. Kinda like going from old Coke to new Coke.
Maybe someone will notice but I would imagine that if you asked a 1,000 German customers if they notice anything different about the exterior of McDonalds….less than two will say anything. It’s pretty much a waste.
My guess is that the CEO tasked them to come up with something to counter German arguments about the deforestation or environmental issues. This was probably the best that they could do.
Sunday, November 22, 2009
The Train Story
Its a fascinating short story today...our big boys here in Germany...the Deutsche Bahn....have a new contract to build a huge high-speed railway...worth billions....in Qatar and Bahrain. They might eventually get over $25 billion out of the deal. The line? Basically runs from Doha in Qatar....to the city airport....and on down to the Bahrain region (like ending at the airport there).
I sat there for a while...trying to visualize actual residents and citizens of either country...riding the rail. Frankly....we are talking about a 15 mile bridge having to be built between the two...and about sixty miles of actual track on land.
The riders of such a rail...well....once you start pondering on this...you begin to laugh. You would think there would be a ferry between the two...being barely fifteen miles apart...but no...there is no current ferry. If you want to travel...you go by private boat, fly over, or just drive via Saudi Arabia (but no booze or hotties please).
If you asked most folks around there....they have various ways of making the trip already....and I doubt that the public is listing this as a top three problem. On the other hand...both have tons of money sitting there...from rich Saudis who come over and have "fun" in their republics...so they might as well spend the money on something.
The German train guys? They have to grinning from ear to ear right now. They will have real profit to show for the next five years and maybe...just maybe...someone will see this grand railway...and get the idea to build one somewhere else.
I sat there for a while...trying to visualize actual residents and citizens of either country...riding the rail. Frankly....we are talking about a 15 mile bridge having to be built between the two...and about sixty miles of actual track on land.
The riders of such a rail...well....once you start pondering on this...you begin to laugh. You would think there would be a ferry between the two...being barely fifteen miles apart...but no...there is no current ferry. If you want to travel...you go by private boat, fly over, or just drive via Saudi Arabia (but no booze or hotties please).
If you asked most folks around there....they have various ways of making the trip already....and I doubt that the public is listing this as a top three problem. On the other hand...both have tons of money sitting there...from rich Saudis who come over and have "fun" in their republics...so they might as well spend the money on something.
The German train guys? They have to grinning from ear to ear right now. They will have real profit to show for the next five years and maybe...just maybe...someone will see this grand railway...and get the idea to build one somewhere else.
Saturday, November 21, 2009
Brits Out
There are twenty-five thousand British soldiers in Germany today.....all in the region around Dusseldorf. It's part of the effort left over from the cold war.
Today, the right-wing folks in the UK.....said in the run-up of the election....where Gordon Brown is expected to lose....that they intend to draw down all of the twenty-five thousand troops. Altogether....with their families....it's maybe forty thousand Brits in the region.....and another fifteen thousand retirees.
For the region....it's a major financial loss. The Germans will sit there and fret over this for the next year or two....until it finally occurs. It'll likely take four years for the Brits to figure out where to put these guys and build the barracks.
The question will be if the Obama administration views this in some downsizing fashion as well....by 2012....announces it's own version of this....to pull out of Germany finally.
Today, the right-wing folks in the UK.....said in the run-up of the election....where Gordon Brown is expected to lose....that they intend to draw down all of the twenty-five thousand troops. Altogether....with their families....it's maybe forty thousand Brits in the region.....and another fifteen thousand retirees.
For the region....it's a major financial loss. The Germans will sit there and fret over this for the next year or two....until it finally occurs. It'll likely take four years for the Brits to figure out where to put these guys and build the barracks.
The question will be if the Obama administration views this in some downsizing fashion as well....by 2012....announces it's own version of this....to pull out of Germany finally.
Friday, November 20, 2009
The K-town Game: Cancelled
Here in the K-town area….there was a little bit of excitement over the upcoming “friendly” game between the Kaiserslautern soccer club (a second-league club, but the best we have in the region)….against the LA Galaxy soccer club. For those of you without soccer knowledge…..it’s probably the best soccer club in the US….but barely a match for any real German soccer club.
There was to be this game on Thanksgiving night, and they figured to fill up all of the stands with Americans from the local community and Germans who wanted to watch a pretty good soccer match.
Today, the LA Galaxy guys announced that it was cancelled.
Apparently, the promoter of this….IMC Group….didn’t put the effort that the LA Galaxy was expecting…into this game and the anticipated series of games in Germany to make this all work successfully. At least, that’s what the Galaxy guys say.
The other side of this is that IMC did work out a number of local events for the Galaxy guys to get press coverage….meet American GI’s….give a training seminar to local American kids….etc. They had Lenny Kravitz arranged for part of the half-time show, along with another German country and western band.
The ticket sales? Well….that’s what folks aren’t talking much about. I’m guessing that advanced sales of stadium tickets were better than three quarters sold. The hype on base had done ok.
As for other games in Germany? The rumor is that no other major team in Germany was interested in a “friendly” match with the LA Galaxy guys. IMC ran into a brick wall with various potential matches. The logic of a second-league team playing the Galaxy guys….only met success because of the massive American population in K-town and probably attaching Lenny Kravitz to the half-time show. Otherwise, it was not going to draw much of anything.
Our biggest exciting event in K-town in twelve months….canceled.
There was to be this game on Thanksgiving night, and they figured to fill up all of the stands with Americans from the local community and Germans who wanted to watch a pretty good soccer match.
Today, the LA Galaxy guys announced that it was cancelled.
Apparently, the promoter of this….IMC Group….didn’t put the effort that the LA Galaxy was expecting…into this game and the anticipated series of games in Germany to make this all work successfully. At least, that’s what the Galaxy guys say.
The other side of this is that IMC did work out a number of local events for the Galaxy guys to get press coverage….meet American GI’s….give a training seminar to local American kids….etc. They had Lenny Kravitz arranged for part of the half-time show, along with another German country and western band.
The ticket sales? Well….that’s what folks aren’t talking much about. I’m guessing that advanced sales of stadium tickets were better than three quarters sold. The hype on base had done ok.
As for other games in Germany? The rumor is that no other major team in Germany was interested in a “friendly” match with the LA Galaxy guys. IMC ran into a brick wall with various potential matches. The logic of a second-league team playing the Galaxy guys….only met success because of the massive American population in K-town and probably attaching Lenny Kravitz to the half-time show. Otherwise, it was not going to draw much of anything.
Our biggest exciting event in K-town in twelve months….canceled.
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