*Please note this is a rough draft and needs a lot of work but the guiding principle are intact.
The Future of Taxation
| At ten years of age my dad and I were walking towards the bus depot as I came upon my first parking meter. My father explained! And I asked, who gets the money? He said the government. But I thought we paid taxes to operate the government, I said. He goes, Well, They claim to use the money for our benefit, but mostly, it goes to their coffers. What a coffer? Ironically, he gave me the same answer he gave me for hemorrhoids. SON, you don’t need to know that, and the day you do, you’ll know. |
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Conclusion, that’s or money! |
At the turn of the 18th century a US commerce secretary realized if workers, at the factory were paid good wages they would be able to buy the goods produced. Henry Ford followed suit and started this whole trend. Nowadays another revelotion is afoot as robots are staged to overtake most tasks of production.Since the government taxes labor as a mean to tax productivity the tax base will dry up.
Consider a 'Quick Mart' in New Jersey with only "self check out". Without employees a whole series of compliance issues are avoided, such as workman insurances, employee taxes and other government enforced expenses.
Robot = ELECTRIC BILL.
The Government presents a disincentive to hire a human over a robot.
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With robots the productivity tax base will whither. Corporations will show a higher profit to employee compensation ratio. Silicon Valley pay their employees large salaries to obfuscate this fact. Facebook is just basically computers running with staff for maintenance and improvements. An Amazon warehouse will eventually be fully automated. Can I build a robot and send it to the factory?
Is the factory owner the only one that should benefit from robotic revolution?
Will prices drop due to over-supply/demand. Will China turn their robots to produce convenience for thier masses? |
Should the productivity of a robot belong to all of mankind? |
A caller on the Sir Michael Medved’s show was screeching about Sarah Palin Oil Revenue distribution to the citizens was representative of Communism.
Hum! Very interesting, so what is the difference? |
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Right now all of the money is being sucked up by Silicon Valley with no means of recirculation within the community. Robots will exubate this problem as workers are not needed for production. So in a sense we have to develop another way to tax productivity and then decide who should benefit from the proceeds. Traditionally taxes are not intended to recirculate money. Circulation of money is the blood of a vibrant capitalistic society.
What is the point of Government and Governmental taxes?
Security of citizens is really the only purpose of government. However, they also get stuck with non-profitable vital projects such as trash and water. They also undertook large municipals projects such as railroads and bridges. This would be a conservative dream small limited government.
More progressive positions believe Government should serve the people with a sense of social justice. Communism and the welfare society implemented these ideals with spectacular failures of humanity. Most of European countries are now social democracy. At their basis they forgo liberty for equality and for some reason the human spirit is diminished.
Here is the plan.
Let just say that all corporate revenue, productivity tax, mineral rights, patent services, tariffs… basically all government income are first regarded as the people’s money. As with any new thought it may sound confusing at first, just hang there by the end you will be demanding it. I’m presenting a new precept so we can embrace the robotic revolution. And to fully enhance the human spirits.
Not my skin, I want Chips in the game!
The Plan Foundation
Basically we divide the revenue into three pots.
1/3 for me
1/3 for government overhead expense
1/3 discretionary spending(coffers)
We start with the coffers and descrestionary spending because there will be assholes in any system and in this way they will have a way to get funding without corrupting the whole system. This is where political corruption begins. In order for “K” street to get half of their money they will have to solicit the people. Term Limited Congress task now becomes vetting approving of such organizations and provide the people a method to direct their money either to individual organizations or mutual fund type programs. This will include both public and quasi governmental type of organization.
The human behavior modification to this could be monumental and lay the groundwork for a Star Trek like society. It takes down all of today’s cultural wars as I can direct money to what I see fit. A side component to this is all corporations will have to issue dividends. And if some of these organizations I parse my money to turn a profit can benefit me in the way of dividends.
The Governmental portion of the coffers money will be appropriated to any way they see fit. In a sense what they may consider important and where the public is not contributing. So now the legislation is also soliciting their constituents for money.WOW?
So who are the coffers?
The term “K” Street refers to neighborhood in Washington DC where the lobbyist live. They’re on both sides of the issues, both good and bad of all ideologies, I’m just asking them to come to the people too. While some institution may fail others will rise to serve better. Other issues may be a bridges, hockey rink, hospitals, addiction/recovery, schools…. The government approves the organizations that may petition the people.
1/3 Me
* this math is completely off. In order to proof the math I based my tax principle against the federal budget. However, the numbers are in line. in a sense since the budget reflect a majority of welfare payments they would have to be backed out.
| Yearly Federal expenditure |
Monthly Federal Expenditure |
Population |
Monthly expenditure per person |
1/3 per person |
| $ 4,094,000,000,000 |
$ 341,166,666,667 |
321,400,000 |
$ 1,061.50 |
$ 353.83 |
Just taking the corporate tax revenue into consideration, 1/3 rounds to $300 a month per every citizen young and old. Lets start with this number, but it will be higher when you consider other revenues, state and local municipalities.
So everyone receives a baseline of $300 a month. If I was destitute, homeless or ran out of unemployment compensation, I could eligible to receive 2/3 ($600). If I was severely handicapped or terminal illness I could receive 3/3 ($900) A mother of three will get $900 without working. Which may sound good, if you think that way.
The other option would be to leave the money in your account which can be invested into anything, even without congress approval. Akin to a pretax IRA. So the mother of three would choose to keep it their accounts for college, wedding or retirement all while receiving dividends.
Labor TAX?
Taxing labor is out until a threshold of 5 times the poverty rate. That is, if you’re living good, a small sloped tax rate will be applied all the way up to 20% for over a million dollars. It should be easy to manage a highly successful life in this environment. This will change the whole dynamic of working in such a positive way.
There can be no disincentive or unintended consequence concerning labor.
Since the government does not have to do any societal's heavy lifting (welfare) how much money does it need now? Is a sense the federal budget will drop by 60% as the needs are met with this new pro-humanity approach. And yet we have room for coffers to petition without total corruptions. Money will circulate aggressively around society. Everyone has a chip in the game. Watch how fast coal, gas, oil exploration and pipeline starts once the people know their getting a piece of the action. The welfare recipient finally has a way out.
National sales tax. Is a way to tax production since taxing labor is harmful in so many ways. and will serve to be a governing twrottle to keep everything in balance.
Oh the possibilities are endless…