ADOPT THE CENTRELINE SYSTEM OF GOVERNMENT

A system of government which will eradicate unemployment and poverty and will provide an environment better suited to free open market trading conditions. Based on economic and not political ideals.

The people in the community will enjoy

1 Free health for the family

2 Free education for the children

3 A good standard of living with low housing costs

4 No fear of recession

5 A low rate of inflation

6 A liveable pension at the end of the day

7 No personal taxes

ALL FOR SOUND ECONOMIC REASONS AND NOT FOR SOCIAL OR WELFARE REASONS AND THEREFORE SUSTAINABLE.

FOR THE BUSINESS COMMUNITY

1 A strong market base

2 No fear of recession

3 The ability to produce goods and services at the lowest cost enabling businesses to compete in local and overseas markets

4 A good labour force because of the above and the ability to hire and fire.

5 Very strong incentives to invest with no taxation.

DOES THIS SOUND LIKE UTOPIA?

CAN WE ASK FOR ANYTHING MORE?

WHY THIS SYSTEM WILL WORK

The system has a basic Value Added Tax system of taxation. VAT as it is generally known is a tax that is raised by the business sector and is eventually paid by the consumer when he purchases goods and services. It is a tax that is paid by business enterprises on their sales and is passed on from manufacturer to wholesaler/distributor to retailer when it is eventually born by the consumer.

This system creates what is termed a Tax Haven and is highly attractive to investors. The business sector is extremely attractive because it will be highly competitive.

What has never been recognised under existing systems is that in addition to VAT all items carry additional hidden taxes such as income tax on employment, social service costs, company taxes and includes local rates, toll fees and various licences.

In other words the consumer is already paying all the taxes in the prices that they pay.

The system recommends stripping the taxes (which include income taxes) out of business expenses so that production costs are at their lowest level and businesses can compete. These taxes are added back into the VAT (the hidden taxes) so that foreign imports share equally in the tax burden,

It must be noted that every country in the world would need to change to this system in order to compete and it is far easier to change to this system than to try to reach agreements with trading partners on conforming to certain other methods of taxation.

The consumer is the community which forms the population of the country and the VAT would be applied at various levels starting with low rates on basic living requirements to higher rates on luxury items. All items would carry some tax.

The government should then need to maintain a cost structure that would fit this revenue income. The tax change would result in a saving of some 20-30% in immediate government expenditure. The government would need to balance its budget. In this regard because it is collecting tax to cover future pensions it should never be in deficit and should have a surplus from which to borrow for capital developments. Of note is that once we appreciate that the consumer is the major taxpayer then it becomes obvious that the health of the economy revolves around the spending power available in the country. It requires that people should work for a living. Both business income and government income is dependent on the spending power available.

Both government and business will appreciate the benefit of paying a reasonable wage for work in order to maintain a market place in that country and people will come to the realisation that they need to support local industry to maintain employment levels.

THE SYSTEM PROVIDES THE INCENTIVES TO ALL TO MAINTAIN HIGH EMPLOYMENT LEVELS WITH A GOOD STANDARD OF LIVING. WITH THE COMMUNITY PAYING THE TAX THE CONCENTRATION OF GOVERNMENT EFFORT WILL BE TO ENSURE FULL EMPLOYMENT WITH A REASONABLE STANDARD OF LIVING.

See how the economy really works.