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Consumer Investment Tax
Tax the VAT and income taxes obliging government to buy shares of companies you engage with, and retire earlier.
It has long been true, that the standard path to wealth is through
investment, and compounding interest. However, how do you know
what to invest to?
Well, the idea is that what you buy is already descriptive of the stuff
that you need, so why not to automate its production? Welcome to
The investment tax works by adding an extra tax to VAT and income
taxes, requiring the government to use taxes collected to buy the
shares of companies that make the goods that you purchased or
worked for, and distribute these shares back to you.
For example, if you buy a pack of milk, a fraction of the VAT would be
used to buy you the shares of the company that made the milk. If you
get employed in a company, and you have to pay income tax, then the
income tax would be used to buy you the shares of the company for
which you worked, or equivalent publicly traded company.
This way, any decision -- either to buy something, or to work in some
company, would be a long-term investment decision. One may expect
that people would choose to buy products of higher quality, and
choose the workplaces that have better long-term prospects.
People who reach the retirement would simply be those who get the
satisfaction of their needs fully automatic (e.g., if one needs milk, the
amount of shares one owns gets the required amount of milk in
Result - nobody is left behind without passive income.
||The government could be tasked with opening a
Robinhood account in everyone's name and regulating the
card majors to round up every purchase that would
accrue to the individual, much like some banks do now
with card purchases -- rounded to the nearest $1 and
added to a saving account.
||The only additional benefit is that micropayments would
go via stock market investment into national debt
reduction instead of into individual savings accounts.
||I don't have a problem with managing a VAT differently,
but I have issues with a VAT generally and how
governments regulate them more specifically. [bun]
||Is this something that applies only in a B2C context - that
is, at the bottom of commercial food chain?
||Tax has a way of driving behavior, I guess is my point. If a
consumer is to get an equity stake in the companies
whose products and services he or she buys, they have an
incentive to buy more of them (yay capitalism) but also to
buy more of them from the same provider (boo
disincentives to competition). On the other hand, if we
have this operating in a B2B context, that is, through the
VAT food chain, then suppliers may for example find that
being tied into a single customer arrangement (as is the
case for a lot of suppliers into the giant supermarket
chains) becomes less attractive - why would would want
to give the 600lb gorilla who squats on your chest any sort
of equity stake?
||And the retailers themselves may be less than
enthusiastic, with price reductions in stores being at
heart financial promotions, subject to brain meltingly
complex and expensive regulation.