|Intelligent Systems And Their Societies||Walter Fritz|
Government is a service that we pay for. Today, in most countries, there is a jungle of taxes and exceptions that the average citizen cannot understand. That is silly. Paying the government for its services should be a straight forward and transparent matter. There should be only one tax so that everybody knows easily and exactly how much of his money the government spends. No other taxes shall be permitted at any level of government.
It should be a just tax, meaning that the poor should not pay a higher percentage of their income than rich persons. Also it should be of easy application and difficult to evade.
For all these reasons, it looks to me, that a Value Added Tax (VAT) paid monthly, is the best tax (An expert in taxes can possibly find a better tax).
It seems that governing a person and giving her/him public services and defending her/him, should not cost more than 10% of the income of that person. Since normally the income equals the purchases, that would account for a 10% VAT.
A proposal is to have a 10% VAT for the cost of government and an additional 20% VAT for paying the Social Dividend. This would give a total VAT of 30%. A municipal law, which gets summed up by a provincial and finally a national law, shall determine the exact value of the VAT. Thus the VAT will be uniform throughout the nation.
Due to the increase of automatisation and robotisation, with time, fewer hours will be worked and the income from work will be lower. But, due to the same cause, the profits of the enterprises will increase, and also the dividends that the enterprises distribute. These dividends pay VAT. With this additional income of VAT, the municipalities can pay higher social dividends, and thus maintain the purchasing power of the population and the sales of the enterprises.
If the Municipalities see that the amount they use for the Social Dividend is insufficient to reach the goal of minimum income, they will have to propose a law increasing the VAT.
VAT and multi municipal corporations
Within that municipality where the merchandise or services are sold, the invoice shall be written and the VAT paid. The person or enterprise writing the invoice, as well as that receiving the invoice, has to notify the corresponding municipality. The municipal corporations will make computer comparisons and if a fault is evident, the one responsible will have to pay 10 times the VAT value.
Suppose that there is a multi municipal commercial enterprise which has the following sections, each one in a different municipality: Central offices, purchasing department, raw material stores, factories, stores of finished merchandise and sales locations.
Those sections that do not pay each other and do not emit invoices, do not pay VAT at their municipality. Those that pay for merchandise or services, will have to write invoices and pay VAT at their municipality.
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