EASY : THE GOVERNMENT RECOGNISES THE MAN IN THE STREET THE MAIN TAXPAYER AND THEN THEY WILL ENSURE THAT HE WORKS FOR A LIVING.
IS THIS AS CRAZY AS IT SOUNDS? NO, IT IS ACTUALLY CORRECT BECAUSE HE IS ALREADY THE UNRECOGNISED MAIN TAXPAYER AND IT IS A FACT THAT POVERTY AND POOR PEOPLE MAKE FOR A POOR COUNTRY.
There is only one real answer to Poverty and that is to adopt the CENTRELINE SYSTEM OF GOVERNMENT. Contrary to all the Political, Economic and Taxation methods we know on a full analysis it will be found that there is only one way that economies work, and there is only one tax payer. We need to clear our minds of the antiquated Political and taxation systems we have today, and start again. Capitalism and Socialism should be discarded. It is all in the hands of the Government.
Basically every country comprises three segments being a community of people, a government and a business sector. It starts with a community of people without which neither of the other two segments exist. The government and the business sector are there to look after the needs and wants of the community. The government is there to make the rules by which the community lives and the business sector produces the goods and services required by the community.
Many believe that the economy is about the business sector. It is not, it cannot survive without the community. Businesses will sell their products to people, to other businesses to governments around the world but the end product of all businesses is the sale of goods and services to consumers wherever they may be. At the end of the day Countries must also balance their exports and their imports.
Businessmen are in business to make profits and to this end they look at the economics and efficiencies of production, they advertise to sell their products but do not look deeper to see how and where it ends with the consumer which it will do.
The Centreline System works on a VAT system of taxation because it has been found that while businesses will pay most of the taxes they incorporate those taxes in the prices that they charge. Income tax and other taxes paid by employees just increase the cost of employment and are often paid twice. The prime example is income tax which is deducted from the employee wage but it is the gross cost that is charged to the costs of production and if the employee buys the products from the business he will pay that tax again in the price he pays.
It becomes essential for these taxes to be taken out of the system and lower production and government costs so that their country’s products are competitive in the market place.
The tax base will grow with the spending power of the community and business turnovers will grow with the spending power of the community. Then comes the realisation that the community must work for a living. The economic performance of a country is not all about GDP and in any event GDP should grow with the growth of population.
The original tribal systems required the community to work together. The communist system states that people work to contribute and take accordingly and if you don’t contribute you don’t eat. Many countries have unemployment benefits and those people who do not work are a burden on those that do. In todays world we find that tax systems will give benefits to companies that improve their production through technology and put people out of work whereas they should actually pay more. Business has to make itself efficient but it also needs to ensure its market place.
The objectives of the Centreline System are to reduce employment costs and to this end taxes are removed and health and education services are free and the costs of production lower to ensure competitiveness. Any country on this system will attract investment because of the taxation policies. However it is vital to allow freedom of operation and avoid corruption. The Socialist System gives power to Governments. The saying is that Power corrupts and ultimate power corrupts ultimately must be appreciated and it should be accepted that Government Ministers and employees have limited knowledge and so be given limited powers to avoid many of the pitfalls of Africa where many of the leaders have been taught communist and socialist ideals and where the levels of corruption are high.
As populations grow and production technology improves so the problem of unemployment grows and it is a problem that governments and the business sector need to tackle. Robots do not consume goods and services.