THE CENTER LINE SYSTEM OF GOVERNMENT 

COMBINING THE BEST OF CAPITALISM WITH THE BEST OF SOCIALISM

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A system of government which will eradicate unemployment and poverty and will provide an environment suited to free open market trading conditions. 

 
All for sound economic reasons and not for social reasons and therefore sustainable.
 

Does this sound like Utopia?
Can we ask for anything more?
 

WHY THIS SYSTEM WILL WORK  
 

The system has a basic single Value Added Tax system.  VAT as it is generally known is a tax that is eventually paid by the consumer when he purchases goods and services. The tax is paid by business enterprises on their sales. It is passed on from manufacturer to wholesaler/distributor to retailer and it is eventually born by the consumer.
 
What has not been recognized under existing systems is that in addition to VAT all items carry additional hidden taxes such as income tax on employment, social service costs and company taxes. 

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

It follows that people earning low incomes pay low tax and people earning high incomes will pay more tax.  At present many countries have a VAT system with a tax rate of around 15% and under this system, bearing in mind that hidden taxes can account for another 10 – 15% it is expected that the general rate of tax would be in the region of 25 – 30% .  See Taxation to see why this should be and why it is necessary.  

The Government would then need to maintain a cost structure that would fit this revenue income. This would require the government to balance its budget and the number of members of parliament to be restricted to what is affordable.   

It would be in the government interest to maintain a high level of employment with a high standard of living to maximize government income.  Its success or otherwise could be judged by its results.  No other system provides this obvious incentive to government to keep the community in employment.

In discarding the income tax system government provides the incentive to business and employees to perform, and at the same time maintain a competitive cost structure. Entrepreneurs will be encouraged and businesses will expand with the realization that they will not be penalized by taxation and will have an assured market place. (See TAXES)     

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 the people will come to the realization 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.
  

For more detail and why this system works to achieve the necessary results, please contact: 

 
pwbailey@mweb.co.zw