| > How would it be beneficial to anyone? Most programmers provide outsourcing services for companies from abroad (including outside of the EU). Low taxes help them - and the umbrella companies AKA software houses - to remain competitive on the global market. So even if they only pay a smaller fraction of their income to the budget, it's still better than if they didn't get the gig to begin with, because the contracts would go elsewhere. > the subcontractor doesn't get any social security. You do get healthcare insurance in Poland; no difference here. You're paying those fees just the same way. You're only required to pay minimum pension charges though, so you have to take care of that yourself. (Objectively speaking, investing your savings in the pension system, of all places, probably isn't an optimal strategy anyway. At any rate, noone stops you from paying more than you're legally required, if you think that it is). > the contracting company has more freedoms with getting/tossing employees, although loses a safety net of subcontractor suddenly leaving or changing prices. It's obviously a trade-off. Being able to let people go without fuss if a customer downscales their budget (I was on the receiving end of this last year) is a competitive advantage. > the government loses oversight of actual corporate structures What do you mean by that? |
So many problems. These are just top off my head:
- Countries should want internally organised production, strong companies with own IP, not one-man "companies" producing IP to external entities.
- Those foreign companies will switch to other countries with better prices (Asia, Africa) any time if their programming scene improves. It's not like they have stakes like when building a factory.
- Lot of people think they can invest better, create a better future pension for themselves. This is often true, and why would we want to allow exits, further eroding the whole system? There should be a base pension fund with everyone involved.
> the government loses oversight of actual corporate structures
To the government the company could be a 5 person shell, while it actually employs/pays salaries of 100s of families. Theoretically you could roll up the contracts, but that would be very complicated.