I been recently pondering what might be the best tax system. I kept in mind that this tax system should have advantages for state, companies and for all people. Not people only.
What I came up with is that people should only pay taxes on what they spend rather then earn. The reason are:
- People are in encouraged to save money. This I view as good because the money that is saved in a bank will be invest by the bank them selves. Also People will Have the chance to invest.
- If people save money it is saver just encase of an economic collapse. This intern will make the people who saved much better of. As the economic fail everything goes on sale thus the people who saved can make better investments to temporally disabled economies.
- Also this is fair for all classes as the more you spend the more taxes you pay. The poor can buy much thus they have lower taxes.
At what rate the expenditure should be at I have no idea. I was thinking it should be at the same rate. As it will be fare for all businesses.
I also added on that companies should no be taxed at all. This is so:
- Cost of products goes down.
- fair for all businesses everyone taxed the same (which happens to be none). Startup and corporations are on the same playing field.
- Companies are encouraged to move to your country. Thus hire employment rate.
Disadvantageous of this is.
- Potentially too much immigration due to Companies moving in. Thus forming an unstable culture that can ruin a county. for example company culture doesn't fit with the locals, thus creating friction as it might be viewed as racism.
- People can buy stuff true there companies thus avoiding tax.
- Denser population as people move in with there Companies. in some areas this might become too much.
Other Effects that I think might happen.
- More people can afford buying houses. Making housing more scarce. Thus housing prices goes up. Thus more tax to the county as people are spending more. All this making a healthy cycle of people investing and the county benefiting. This might not work for the poor.
I feel that I might have some blind spots making this plan not so great.
Can you please give my your feedback.