Friday, December 30, 2005
PROPOSAL FOR MODERN APPLICATIONS OF KNOWN TAXATION REGIMES IN CANADA AND CUBA
December 30/ 2005, at Montreal
____________________________________________________________________________________ With the advent of real problems on this planet, Political Economists will propose to governments, new thinking, a means to engineer fiscal and monetary reforms, hopefully simple to understand, seen to be fair, and useful to taxpayers because in its value is a measure of their social behaviour as citizens.
Interestingly, in Canada and in Cuba, there is an opportunity for a government of strong will to make changes to the way we identify with present forms of taxation, which these countries need politically to reform disparities, for different reasons, for their well being and for the credibility it promotes worldwide.
Canada has, with its GST a tax which if applied indirectly would not be onerous to taxpayers if, as a means, at payment, citizens see the cost of their precise consumptive act. Because Canada has absolutely one of the best Departments of Finance and Revenue globally, it is possible for them to undertake the costly and complex analysis which would be required to provide a model which can tax different levels of production, distribution, raw materials and service differently, while accounting for their particular contributions due, toward the remediation of the externalities affecting this country's safety, well being, and/or environment, as two components to the final buyer: a total price, the tax inherant, as a sum in that total price. The consumer therefore, will weigh products of equal total cost most likely by the tax inherant, promoting technical innovation amongst competitors, toward goods which may cost more to make, but which in their consumption are less harmful, and by fair exchange for others, older products would continue to be sold profitably in sufficient quantities of demand, even if they continue to be of more harm.
Cuba too has a population prepared to be taxed in entirely differant ways. The people of both countries are highly educated and motivated toward equitable social-exchange. Therefore, with an effective tax model toward their policy, as a people who consume, the Income Tax becomes available to be a means for these taxpayers to identify the contribution they make in favour of Good Government. With few deductions, and calculated by a percentage of total income, it will not require to be changed often, and more than likely lower than 12%. Other programs related to income, promoting saving/financial goals, whether charged as a premium, or by term, have a venue in this model. Most importantly, as a system of taxation, it promotes pride, and a conviction toward nationhood, being stable, of low cost, and equal, easily associated with the principal, one man one vote, it is unlikely to be evaded.
Combined, these two models, configuired in this way, provides a set of tools for national governance that can factor and effect for its population: an aim to live better, their need for a rule of law. The challenges involved make all governments everywhere wary of change from rules which work, long established and accepted by them, to a taxation system which depends on government to provide accurate guidance in the performance of their actuarial skills. Needless to say, panic and contraversy would envelope a society which retroactively sells products like cigarettes and gasoline, with externalities of extraordinary cost, at their real value. However, but by having calculated their value, a debate will open with the opportunity to acheive these goals through consensus, and in the long term, these issues have a much greater chance for mitigation, and a greater chance to be resolved.
With the Canadian election slated to be a fierce competition for social reform this January, it is unlikely to result in debate on ideas as progressive as this one, but "New", like Kyoto will not change the world, neither will Mr. Harper's anticts to lower the GST, and in so doing, making the tax easily changed. Perhaps with a minority government for Paul Martin, and a loyal opposition led by Jack Layton, there would be enough statesmanship in their Parliament to deliver effectively, to the Family of Man, and to the Canadian people, the genesis of an idea of such historical importance, either way, I must be dreaming far away, ther'll be nothing more than tinkering, I say.
Your comments are greatly enjoyed, thank-you. c.'05, Basil Vasiliou, Ville Emard, editorial credit due, all rights reserved strictly.
____________________________________________________________________________________ With the advent of real problems on this planet, Political Economists will propose to governments, new thinking, a means to engineer fiscal and monetary reforms, hopefully simple to understand, seen to be fair, and useful to taxpayers because in its value is a measure of their social behaviour as citizens.
Interestingly, in Canada and in Cuba, there is an opportunity for a government of strong will to make changes to the way we identify with present forms of taxation, which these countries need politically to reform disparities, for different reasons, for their well being and for the credibility it promotes worldwide.
Canada has, with its GST a tax which if applied indirectly would not be onerous to taxpayers if, as a means, at payment, citizens see the cost of their precise consumptive act. Because Canada has absolutely one of the best Departments of Finance and Revenue globally, it is possible for them to undertake the costly and complex analysis which would be required to provide a model which can tax different levels of production, distribution, raw materials and service differently, while accounting for their particular contributions due, toward the remediation of the externalities affecting this country's safety, well being, and/or environment, as two components to the final buyer: a total price, the tax inherant, as a sum in that total price. The consumer therefore, will weigh products of equal total cost most likely by the tax inherant, promoting technical innovation amongst competitors, toward goods which may cost more to make, but which in their consumption are less harmful, and by fair exchange for others, older products would continue to be sold profitably in sufficient quantities of demand, even if they continue to be of more harm.
Cuba too has a population prepared to be taxed in entirely differant ways. The people of both countries are highly educated and motivated toward equitable social-exchange. Therefore, with an effective tax model toward their policy, as a people who consume, the Income Tax becomes available to be a means for these taxpayers to identify the contribution they make in favour of Good Government. With few deductions, and calculated by a percentage of total income, it will not require to be changed often, and more than likely lower than 12%. Other programs related to income, promoting saving/financial goals, whether charged as a premium, or by term, have a venue in this model. Most importantly, as a system of taxation, it promotes pride, and a conviction toward nationhood, being stable, of low cost, and equal, easily associated with the principal, one man one vote, it is unlikely to be evaded.
Combined, these two models, configuired in this way, provides a set of tools for national governance that can factor and effect for its population: an aim to live better, their need for a rule of law. The challenges involved make all governments everywhere wary of change from rules which work, long established and accepted by them, to a taxation system which depends on government to provide accurate guidance in the performance of their actuarial skills. Needless to say, panic and contraversy would envelope a society which retroactively sells products like cigarettes and gasoline, with externalities of extraordinary cost, at their real value. However, but by having calculated their value, a debate will open with the opportunity to acheive these goals through consensus, and in the long term, these issues have a much greater chance for mitigation, and a greater chance to be resolved.
With the Canadian election slated to be a fierce competition for social reform this January, it is unlikely to result in debate on ideas as progressive as this one, but "New", like Kyoto will not change the world, neither will Mr. Harper's anticts to lower the GST, and in so doing, making the tax easily changed. Perhaps with a minority government for Paul Martin, and a loyal opposition led by Jack Layton, there would be enough statesmanship in their Parliament to deliver effectively, to the Family of Man, and to the Canadian people, the genesis of an idea of such historical importance, either way, I must be dreaming far away, ther'll be nothing more than tinkering, I say.
Your comments are greatly enjoyed, thank-you. c.'05, Basil Vasiliou, Ville Emard, editorial credit due, all rights reserved strictly.
