Jump to navigation Jump to search

Taxation Methods

Government Funding

Invoice / Bill

The Government service can issue an invoice and negotiate payment terms.

Taxation

Taxation systems are payment collection backed by force. The people want a system that is fair as possible. What follows are a few common options:

Land Value Tax

One option is to allow "buying" and "selling" of the land. Perhaps, those that choose to "own" the land, that is, to use it to the exclusion of their brothers and sisters in a defined area, would be charged a rental fee by their brothers and sister. The record keepers would keep track of who has rented which plots and find a way of valuing those plots. This fee might be a percentage of the value of the land After collecting the rent money, it is used to pay the soldiers and records keepers. It is then further divided up based on the number of Citizens and then distributed to each Citizen each year. This assures the even the lowly Bard a basic income since he was unable to "own" land while in Town.

There would be the questions of what to do about the improvements each one had made to the land. For example, in some cases, oil and minerals would require significant investment to unearth and make into useful objects, should not the brothers and sisters who labored unearthing such treasures, receive some just compensation? So again, a percentage of the natural resources, the land, may return to the pool, but not necessarily a percentage of the improvements, which would be retained by those who erected the improvements.

Over time, as the value of the land increased, it would create a situation where people would be forced off "their" land since they'd no longer be able to afford the taxes, IF the land "owners" didn't keep up with more abstract methods of earning a living such as mercantilism. There may be ways to deal with this - such as providing exemptions for homesteads or in some cases agriculture. For a more detailed discussion see: Harmonious Tax Reform

Property Improvement Tax

Can be oppressive in areas that lose value (e.g., where the factories move out) - takes time to catch up to the actual values. Taxes a man's labor via improvements to the property.

Sales Tax

Regressive Tax unless basic goods are excluded. Places limits on production as well. Taxes a man's labor.

Tariffs on Imports

Penalizes people who rely on cheaper imports and may also limit economic growth possible from cheaper imports

Income Tax

Taxes labor as well as profits made from capital gains via interest or sales.