Taxes and tariffs are financing mechanisms for states, so that the state has the money to pay government employees and maintain their facilities.
The problem of taxes is that the State, because it is the sole supplier of State services, becomes a monopoly and as we know from experience, monopolies they tend to be inefficient, unproductive and costly, due to lack of pressure that forces them to be efficient. Monopolies are a violation of the Fundamental Laws of Economics.
How do we solve that problem?
The first is have very clear the Purpose of the New Society and Definitions, with the clear roles of the companies, which clarifies the true source of social security. To have clear well, the model that has shown that Pure Capitalism, Healthy Capitalism works.
Understand the new model of social security Universal Minimum Income and Basic Insured Salary. Understand that there is not exist incorruptible supervisor and the value of transparency The Problem of the Supervisor and Common Error in Social Relations and Accept that citizens must assume their responsibilities Citizen Stewardship and Fascism.
Therefore, we must:
- Facilitate the work of companies.
- Seek to have competition in the services of the State and,
- Be fully transparent to facilitate the operation and citizen audit.
- Offering clear and simple rules, which eliminate the discretion of the State. Eliminating sources of corruption and bureaucracy.
In order to facilitate the work of companies and reduce the state bureaucracy, all companies pay the same percentage of taxes, without discounts of any kind. It proposes 15% to 20%, which is a low amount and attractive for companies.
Value Added Tax
The value added tax is a tax that makes companies take part in the tax collection work of the state, creating jobs of friction that do not produce benefits to society. That is why this tax is eliminated.
These are the taxes that apply to products that come from abroad. Many believe that this tax is beneficial to local businesses, as it gives them an advantage, and that generates employment.
And partly they are right, but the truth is that this tax what it does is to raise prices to all citizens, this is part of the reason why a car in Venezuela or Brazil cost up to 30% more than abroad, a 30% that have to pay the millions of citizens, and only benefits a few companies.
Moreover, in our model, companies are not employment agencies, so that reason is totally discarded. In any case, since the State is interested in knowing that it crosses customs, an import tariff of 2% is proposed, for everything, without exception.
Inheritance and Royalties Tax
This is the tax that is paid when a relative dies and his property passes to a relative or when someone decides to give a good to another person. For the first degree of consanguinity 5%, for other grades 10%, and royalties equal to 10%. Without exceptions.
The products that we do not want to promote in society, such as alcohol, tobacco and drugs, are discouraged with high taxes, 200% 1,000% are possible values and are fixed for each type. Example:
- Alcohol 200%
- Cigarettes 300%
- Marijuana 400% .
Property for sale
It is a progressive tax, that is to say increases as the incomes of the citizens measured in minimum salaries increase. The one who earns the most, pays more.
We propose to start in 5% up to 30%, with a fine gradual scale until reaching the top.
- A minimum wage 5%.
- Two minimum wages 7%.
- Three minimum wages 9%. Thus reaching 20 minimum wages or more 30%.
These taxes must be fixed by each mayoralty, and are additional to those already mentioned. The Alps can compete with each other, as in the case of Switzerland.
Punishments for evading taxes
Punishments for avoiding taxes, should be both fines in money, and in social discredit. In another article we will develop this issue of prisons, but the idea is that punishments be paid with money and social discredit, and if you do not have money, in equivalent working labor and social discredit.
Transparency and Speed in Customs
All the customs, as well as the rest of the government, would have a network of public cameras at key points, in order to ensure transparency. Customs operations will be carried out on the Internet in order to be able to make a public audit. And customs times will be guaranteed by the state.