These are related proposals, but unlike the negative income tax concept, basic income is a universal and unconditional payment. Basic Income pilot project has just begun in India: http://binews.org/2011/08/opinion-two-pilot-schemes-in-india/ A Basic Income project in Nambia: http://www.bignam.org/ A small Basic Income project in Brasil: https://www.facebook.com/BIGQUATINGAVELHO?v=info Harry
From: Jouni Valkonen <[email protected]> >To: [email protected] >Sent: Saturday, August 6, 2011 8:36:43 AM >Subject: [Vo]:[Political OT]: Global negative income tax > >Global negative income tax > >There would be radical sounding, but very plausible solution for all >war and absolute poverty related social problems. That is ca. $1000 >annual negative income tax for each adult citizens of Earth >indifferently on their past history or current wealth. > >This may sound radical idea, but actually it is not. If it's pros and >cons are carefully weighted it really has no meaningful counter >arguments. As total global GDP is around 76 teradollars, it would >require only 9% total tax rate for each countries. This is not too >much, if it is considered that typical Western European Citizen would >pay $4000 annual tax, but would also receive back one quarter of that, >i.e. $3000 net payment or 6% of her income. > >To understand that there is no counter arguments, but only prejudices >might be hard, but it should not be that. One thing is that these cost >figures would not last very long, because third world countries would >receive huge relative boost for their national economy and that would >eventually lead to more even income distribution and thus less unjust >economic burden for rich countries. > >In order to participate to this program there should be strict zero >tolerance for war in any form, because there is no such thing as >justified war. There should be also required at least nominal >democratic elections and somewhat bureaucracy free markets. Also there >should be possibility to collect efficiently at least 9% of national >GDP taxes in order to pay each country's share of common cake. Right >now even Greece has difficulties with this due to its intensive and >inefficient bureaucracy and thus extensive black economy. > >With these requirements all willing countries or economic zones would >rise very fast from the economic black hole what is caused by >intensive absolute poverty, continuous civil wars, inhumane dictators >and lastly but certainly not for least intensive government >bureaucracy for any means for people to employ themself as >entrepreneurs. This is by no means trivial notion but poverty and wars >cost absolutely gargantuan amount of money for the global economy, >because warring and poor people are deprived almost totally from the >effective labor opportunities. > >This is why poverty is itself just a huge cost with zero benefit, but >it is better to ensure basic needs for all people, so that they can >have their time left for doing something productive (like doing >IT-work and buying iPads) and not using their time for trying to >survive as farmer-gatherers in the slum. Also this is why total cost >of negative income tax is always greatly positive, because it >increases effective purchasing power due to more even distribution of >wealth. And jobs and especially rich people's pay rolls are strictly >depended on total effective purchasing power of the poorest majority >of people. > >It is somewhat surprising to see how simple is this solution to solve >all global social problems that were thought to be insoluble, because >old people thinks that social welfare and development aid for third >world countries should be strictly need based. Also this would greatly >increase globalization and after all, we do have only one planet. And >is this solution socialistic? Not at all, because this would >practically force global economy to be vastly more capital driven than >current state, where huge amounts of tax moneys are collected and they >are spent to the socialistic megaprojects such as antigravity driven >b2 bombers. Negative income tax will always return every collected tax >dollar back to market and it increases effective purchasing power. >Therefore the cost for global economy is essentially zero, if not >positive as it increases total effective purchasing power by >distributing resources more evenly. > >For these reasons and many more arguments global negative income tax >should be perfect companion for E-Cat that they both have possibility >end all basic need related social problems once and for all! > >—Jouni > > > >
