Plan B – 4

Funding Government

My intention is that government should be funded by an income tax. This is a dirty concept in the milieu of libertarian economics but what I propose is very different from what you are thinking. There is a new “twist” to it that has not been tried before. This new gambit makes the income tax a mechanism of control over government that is totally absent in today’s governments. That mechanism is …

– Collective Consensus –

A flat rate tax is imposed on the people by the people themselves to fund whatever government services are required. By continuous vote (as in the former case with representatives), the percentage of income given to the government may be reduced to least acceptable percentage over time. If no government service is needed, the percentage will drop to zero and the government will cease to operate.

There is a transition problem.

What we have now cannot be eliminated instantly because of the disruption to the economy. The ship of state cannot be driven like a speedboat else it will break up killing those aboard. Turns, acceleration, deceleration and docking cannot be accomplished except by gradual means. The welfare state must be dismantled concurrently with the creation of productive jobs by the free market. The complete transition may take more than ten years (but certainly not more than twenty).

If the chain of command structure I have proposed were to be put into place, they should initially impose a tax burden similar to what is inherited from the previous system. Thereafter, it is reduced as quickly as possible to much lower levels and the decision making process should then be handed over to the taxpayers themselves.

So, if the initial tax burden were fixed at 50% … then lowered over, say, five years to 10% … it could then be given over to the judgement of the individual taxpayer who would then reduce it to its lowest limit by collective vote. That is, each voter enters his rate preference by computer … those numbers are all added together and divided by the total number of voters to obtain the average rate preference … and that’s what the tax will be … for that day. The rate must change at least daily to reflect the wishes of the voters. The tax rate taken out of your paycheck would be the average for that pay period.

Thereafter, feedback mechanisms would control the rate. If services flagged, the rate would rise. If the free market could provide better service in any venue, the rate would go down as the service was handed off to them from government.

There must also be a mathematical damper on rate changes.

When the rate determination is handed off from the chain of command to the taxpayers, they must not be allowed to crash the ship through inexperience. So, a maximum rate of change of the tax rate must be set up. If the people want the tax rate to go to 0%, the effects caused by the absence of government must be experienced by the people to assure that their judgement is not premature.

Getting rid of government completely must occur gradually over a span of at least twenty years. Everyone must see that it is the right thing to do … not just be told. They must see for themselves (over time) the consequences of their decisions and judge whether it be good or bad upon fair reflection.

Distributing Taxes to the Agencies of Government

The chain of command decides what to do with the taxes it collects and gives an accounting in real time of what it is doing with those monies. That accounting must be visible to anyone wishing to view it on his computer. There is a suggestion mechanism to obtain feedback. Polls are taken continuously on every major expenditure.

The difference I propose here is … Division by Percentage … rather than by amount.

The total monies taken in by government is always the same.                  It is exactly 100%.

To achieve an automatically balanced budget, we simply distribute it by points to various agencies and those agencies divide their portion further by smaller points … and the entirety is always kept to 100% total. The government spends only what it takes in as it is taken in.

If the amount goes too low to maintain a service, that service may appeal to the chain of command to increase their percentage at the expense of some other agency. Or, they may appeal to the general population to “up” the overall tax rate to cover increased costs. If they cannot do this, they must diminish their services. Whatever the outcome, it will ultimately be, by definition, the free and uncoerced will of the people.

Now, we simply collect the taxes … without force. How?

go to Page 5

Intro Page

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