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Why SO COMPLEX?
Just TAX the revenue merchants!|
and keep low tax for the middle class, workers, farmer/rural gentry, underclass.
Basically INCOME will eventually reach such proportions:-
(1) Revenue Merchants - 15% to 20% of GNP (currently very high, process and manufacturing export state - probably 35% with large stakes by foreign revenue merchants investing in China)
We have 30% top rate income tax - or 5 to 7% of GNP - enough to run the Bureaucracy and pay for the Infrastructure Construction! We can gain more as many Revenue Merchants are STATE OWNED - dividends, or collect indirect tax - such as Value added taxes - that adds up to 10% of GNP! Additional spending can be created via STATE minting of new funds during downturns!
(2) Middle Class - when fully develop, will have 30% to 35% of the GNP. (currently it's less probably 20%)
As they represent about 20% of the most active citizens in the population, they will find way to reduce tax to be paid. Generally, we can only collect 10% of the income or 3% of GNP, (the rest indirect via Revenue Merchants - expecially PETROLEUM, COAL, HYDRO, GAS, supplies and in China value added tax)
The income/direct tax, voluntary contribution/levy collected should be used for SOCIAL SECURITY purpose!
(3) The rest of the population.
We should have an income of at least 45% to 55% of the GNP. We'll probably get around 5% direct tax or 2.5% of GNP, and the rest via revenue merchants. (currently from data "leaked" by China - it's 38% for workers, probably 7% for farmers!)
The income/direct tax - levy must be used for SOCIAL SECURITY purpose!
Social Security budget includes
(1) Free or nearly free Basic Health care
(2) Free or nearly free Basic Education.
Retirement investment fund, salary levies should be recycled back to the community in form of
(3) Retirement lump sump at age 50 or 55 (so they can enjoy before becoming too unhealthy)
(4) Old Age Pension - survival money for food and utilities!
(5) Insurance for disabilities, accidents, and even a limited unemployment payment when in between jobs!
[ Last edited by greendragon at 2011-6-9 04:01 PM ]