Even though there may be turnover and market potential, VAT is, unfortunately, and, in many respects, disadvantageous in the start-up sector. It makes market entry more difficult. Large companies or internet platforms sometimes are only VAT-compliant for themselves. Not for their members. Even though we do expect exactly that of these heavy market participants. In a bank-oriented state economy, the presence of authoritative figures is necessary. However, VAT is not the subject of discussion here. Those in positions of authority bear the ultimate responsibility, but they should not act as obstacles preventing new companies from entering the market. Market power should mean inspiring new entrants. In this way, start-up businesses will move on to thrive and foster healthy competition, driving innovation and progress in the industry. Numerous endeavours could hold more value. In the present day, the quest for the ultimate super product has become paramount, leading to a decline in the number of players in the market. The dominant entities tend to operate with limited accountability, keeping their activities concealed mainly from scrutiny.

Diverse Opinions, More Competition or Swissness Means VAT-Compliance

Encouraging more competition is essential. Unfortunately, as a society, we have neglected this principle for many years, resulting in either a state-controlled or planned economy. Economic experts primarily emerge from the banking or education sectors, often needing more practical knowledge concerning VAT. This practical understanding could be more appealing to the majority. Regrettably, VAT authorities seem disconnected from real-world dynamics, showing little flexibility and prioritising cooperation between state-related companies and cantonal Banks, such as the Zurich Cantonal Bank, which enjoys an unfair regional advantage and would be bailed out nationally during emergencies. These constructs create an isolated environment. The same is evident when using agriculture to safeguard personal pensions, and traditional products are no longer in demand.

No long-term strategy

In the long run, such calculations are unlikely to work out. In the truest sense of the word, “the cart is being driven more and more up against the wall”. The landings will be less and less soft from year to year. Additionally, much performance and value creation are also lost yearly. Many are (still) doing well. Abuses are less noticeable. Those on payrolls prefer to say nothing. The “decomposition” is creeping. Concealing, we make a “good face to the bad game”. Market forces remain undermined. Socialist systems even overtake us here and there. Who can and wants to do something? No one wants to take responsibility. In the upper echelons of management, people know how to spend money well. But without ever being “asked to pay” for mistakes. The responsible professional groups are even idealised and celebrated. Although, in the end, everyone must “foot the bill”. According to the motto: “Don’t worry, we are doing well, and the train will keep rolling. Progress will come – even if real innovations and competition fail to materialise”.

More Human, rational and factual?

Although the competition is already significant, it doesn’t imply that things should be made more accessible. Unfortunately, some of the best ideas, talented individuals, and role models fail to thrive due to political intrigues or systematic obstacles. It is crucial not to compromise the principles of justice and a healthy rule of law. Dishonesty, cheating, or malicious slander for serving purposes should not be tolerated. Harming competitors by leveraging inappropriate contacts should never be an option. This is precisely why arbitrators must ensure fair framework conditions. For a functioning rule of law, independent controls and actors must be in place to uphold integrity and fairness.

Are you exercising digital, regional and national rights?

Citizens must be able to exercise their rights. This is not the goal of the industry or the financial sector. We could even shrink the shortage of skilled workers. State employees and education sector employees are fighting for their position and pension. Those within the highest compensation segments have little interest in change. They deflect and prefer to save the climate with gas and oil projects. Photovoltaics or wind energy are not sustainable and workable. And, in this way, coal and concrete mining companies unfortunately remain.

Are solutions available?

Even so, there are possibilities. Many framework conditions are right. The energy turnaround is a reality. The health of all increases further, and forest areas will grow. In principle, we have a system that should promote responsible action. Many call it behavioural economics, which will allow for a sustainable GDP. Yet, this means a fundamental change starting with power and wage structures. Thus, we should move away from the state economy fast. VAT authorities and accounting systems need fair, impartial audits of accounting requests conducted with good intentions, without bias or ulterior motives. Revenues would increase because accounting would be more consistent.

Future vision

Group and municipal rulings could become less lucrative. So, municipalities, farms or even banks would submit their VAT accounts. Such a concept could lead to sustainable and continued prosperity. For this reason, work would pay more, and market forces would play better. There is even more value and leverage potential when we follow this path.


    4 replies to "Situation analysis – shrinking the skilled labour shortage in a health way"

    • Kim

      How do you concretely suggest should the move away from state economy take place? What alternative do you suggest?

      • SC&B

        It needs to be attractive to comply with the law. People who follow the rules should benefit more. A turnover is not per se good for society or the GDP. When more market participants comply with fundamental regulations like the VAT or taxation principles per se, we will see diversity. Healthy competition and achieving climate goals become possible when the government, health & education, and last but not least, the finance sector are more compliant with regulations which are mandatory for everybody else.

    • Karol L

      How can we work on leading people to access the information so they can uderstand propperly what is going on with taxes and where these point? We need to urnderstand that there is no advantage on nit having the opportinuty to grow as society when goverment is not in agreemnt with the need of their population?

    • Hugo

      I think that this approach, offering preferential rates for startups, might encourage their entry and growth.
      Additionally, fostering collaboration between established companies and startups could create an environment where competition coexists with support. Balancing VAT requirements with innovative solutions could indeed lead to a more vibrant and inclusive market.

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