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by Tade0 34 days ago
India recently reached below-replacement fertility rate - if examples from other countries are anything to go by, sooner or later the Indian government will implement aggressive anti-brain-drain policies.

Germany has relied on immigration since the 1960s at least. The immigrants won't save them now, as there are too many factors working against that.

-USA can offer higher wages.

-EU members to the east can offer significantly lower taxes for specialists and lower costs of living in some respects.

-As mentioned before, India itself might be facing shortages soon enough.

Personally, I'm not seeing it.
1 comments
ponector 34 days ago
>> government will implement aggressive anti-brain-drain policies

Cannot see this happening anywhere except maybe North Korea.

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Tade0 34 days ago
Perhaps we have different definitions of "aggressive".

In my country software engineers can enjoy a tax wedge of 15%, or even 8% if they're lucky enough to have formalities go through.

The tradeoff is virtually no state pension, but nobody believes that it's going to be substantial anyway.

This was enough to keep a huge number of people from emigrating, as western Europe outside of the UK doesn't provide such incentives (quite the opposite, actually).

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joe_mamba 34 days ago
>In my country software engineers can enjoy a tax wedge of 15%, or even 8% if they're lucky enough to have formalities go through.

Poland/Bulgaria?

That's a rare privilege in the EU. Most western EU nations don't allow such legal tax avoidance loophole for workers. It's the exception rather than the rule.

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ponector 34 days ago
10% difference in income tax will not affect brain drain. But can make outsourcing from Poland to India a bit less attractive. Also local salaries are lower. Unless one directly working as a contractor to the western company it makes a little difference.

Also worth mentioning 12% income tax in Poland is not for the employment contract, but for business-to-business contract. Add mandatory social contributions and insurance and it will be 20-22%, which is still a good total tax rate.

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joe_mamba 33 days ago
I don't think that contradicts what I said.
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