Paypal.com is No Longer a Good Way to Pay India Workers
I know American Citizens do not care about India, but you should, what is happening in India will eventually happen in the USA. (Moreover, World). The governments, banks, and taxation systems will force you to pay taxes on Internet Money.
Suddenly today, India workers are contacting me, they are angry, confused, and worried the government of India or Paypal.com is going to keep or take their money from them. HoboTraveler.com is a global employer; I regularly pay employees in India monthly salaries. We switched payments to Xoom.com in February of 2010 because problem of the first problems with Paypal.com.
"Paypal India Update:
With effect from 1 March 2011
1) Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services.
2) Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction."
From comment on Hobo Blog Post
Top Seo India
I wrote in February 28, 2010:
Paypal.com India Suspends Payments 2010
Elubo, Ghana West Africa --- Saturday, January 29, 2011
What is motivating the India Government?
India and the majority of underdeveloped countries on the planet, roughly 85 percent of the planet are not able to collect taxes from citizens properly. This causes them to attack, gouge and extract fees from the easy sources, stopping only before the "Riot Level" of Taxation, any higher and the people riot in the streets.
What is happening today in Tunisia, and Egypt is related to this tax problem.
List of simple ways of collecting tax or money:
1. Import Export Fees
2. Toll Road Fees
3. Applications for Visas
4. Bribes (It is a tax, which pays wages of police, mayors, etc.)
5. Lotteries - Indirect tax or voluntary tax.
6. Multi-national Companies
8. Governments of World giving Money to Help
9. World Bank Loans that are forgiven
10. Construction Permits and Land Taxes
To further the problems, the leaders of countries on average put about 25-50 percent of this money collect directly into their own pockets, stealing the money from citizens.
One 1 in 17 India Citizens Pay Taxes
The one person that was caught by the India government is paying all the taxes for the other 17 that was not caught and forced to pay taxes.
- 1,191,000,000 people in India
- 595,500,000 are Taxable
- 35,000,000 people actually pay taxes in India
The workers in India are trying to remove all their money from Paypal.com accounts. It was being used by many as a safe bank account, now the India worker feel,
"Paypal.com India is not safe."
What do I feel as a Global Employer, the same, Paypal.com regularly shuts me off, I am afraid to access it outside the USA. I sat on the telephone for one-hour in Kenya, trying to get them to turn back on my Paypal.com account.
Paypal.com is a good system and a bad system, sadly Paypal.com theory is this,
"We keep your money until we know what to do."
Paypal.com made it close to impossible for India workers to get their money out of Paypal.com in February 2010, now in February of 2011 there is finally something decided a year later. This is not just Paypal.com, it is also the government of India.
I have told my coder in India,
"Any electronic transfer can be taxed."
"You have no choice, India will tax you money."
Now, these employees also want me to pay cash, and keep payments off the records. This can endanger my business; I must report what I do to the USA government. As a smart employer, I look for legal loopholes, survival of the fittest business management.
There are hundreds of tax loopholes, both legal, and the ones where we never are caught. There is also the "I am too small" for the government of the USA to come after me. However the noose is tightening, eventually all electronic transactions will have some small piece of the pie given to the government.
The USA is Not an Island, it Needs the World
I have lived outside the USA now for 13 years; the USA does not compete in a Global Market. This will eventually backfire and cause wider, longer and deeper economic problems for the USA. 9-10 percent unemployment may be the standard from now on, it is highly possible that the USA just becomes one big "Detroit, Michigan."
I know readers, I know my Father, he does not like that I hire India workers. He is American, he want me to,
"Buy and Hire American."
I want to, but am I suppose to be the one idiot that buys an American car, when a car made in India is 10 times cheaper. Am I suppose to hire use arrogant American Tech workers that will quit on a moments notice, and want 30 times more per hour than an India worker.
No, the USA will survive; it is the job of the USA people and government to compete with the world. If an India worker can sell services cheaper than an American worker can, then obviously the American worker needs to say, life is a competition and accept this.
Nobody wants unfair competition, but to stop competition is not American.
1 in 5000 Internet pages makes enough money to live on, this means 4999 page will just make a noise, whimper and fail. As the 1 in 5000 that earns money, has employees, it is obvious why I succeed.
"I hire workers that I can afford, I cannot afford USA workers."
I recommend everyone obey and pay taxes, obey the rules of life. Use your brains, do not take short cuts, but if nobody else is paying, then obey the standards set by the group until you are forced.
India is forcing people to pay taxes, well, I have been to India, they need to pay more taxes so they have money to pay the workers to clean the place, it is dirty.
The Electricity Went Off in Cocoville Hotel in Elubo
It is a new world, people truly can work from anywhere with a mobile office, I am location independent, I am living the dream. It is fascinating to me; I am going to finish this small post from a makeshift desk in a Hotel in Elubo, Ghana. I can look out from my porch and watch women washing their clothes almost naked. A border city, nothing works well, this is the Wild West, a trilingual city, there is every tribal and business language here, and it is a mix of cultures.
Nevertheless, here I am, a small global employer, hanging out with a Cote d’Ivoire girl. The electricity was just cut, probably because nobody pays bills, they steal electricity. but I have two computer batteries. I then am able to access the Internet with a USB Wireless Internet Modem from MTN Ghana.
The world is smaller, but we are a big family, I am just on the other side of the planet from you. I am proud to be American; it is the country that allowed to learn, to aspire, and to dream a big dream.
"To live and work anywhere."
I need to transfer money globally, and I want the moneychangers to be controlled. Note, I use Xoom.com, I can set up regular bank to bank transfers of the salary, it feels safer, it is for sure easier than Paypal.com. But it is an electronic tranaction, it will be taxed.
Getting the workers paid is first priority when you have an outsourced worker or personal assitant as Tim Ferris promotes in the 4-hour work week.
Andy Graham in Elubo, Ghana, one of them nowhere to be, but anywhere I want to be places.
BBC Reforming India's maddening tax system
Paypal.com Suspends India Payments
Paypal.com is No Longer a Good Way to Pay India Workers