Today with Government

Good day October 22, 2011,

Thank you for a great day, I got to relax in my date with my wife. Able to watch my TV shows and spend quality time with my life.

Today I want to blog is government.

Government is a body of people who creates regulation to promote order and happiness to the group.

I live in the Philippines and our Government really sucks. From Cory till now, I can't say anything beyond them but most probably they are all the same except Marcos but he got bad stuffs too.

Now in my view, I can see only few rules that could help a country to grow.

1. Rules to protect peace and order and upholding the laws

2. Promote good business environment for better livelihood for the people

3. Encourage on investing in the country for the future.

If I were the president these are the things I would do for our country

1. Redo the Tax code (simplify) no more rates cause it is never accurate

2. Restrict outflows of cash from the country on people going out of the for pleasure

3. Rework the government salaries and benefits (simplified and higher)

4. Planned the Philippines for 100 years projects and let other president adds but not remove.

5. Regulate the value of the country money to control inflation.

6. Concentrate on the main street economy and the stock exchange would follow too.

Ok now let me explain the details on how I should go about this plan.

1. We would need a single national ID for all Citizen. All born would immediately have a Identification Number or code that would be their life number , tax number,SSS numbe and other government number.

This ID would serve as a regulatory control on entering and exiting the country and any transaction there of.

Now all information gathered would be kept in a central database and a different government agency for security. There should be 3 secure bases on which data are kept.

This new system would help government monitor and have a sufficient information on what is really going on the country. But no specific data would be recorded or seen by others.

Example if there are 56 people who bought a Toyota Vios, then the data would transmit to the government agency that monitors economic conditions. It will state how many are males and what ages they have. In what city they live. But not disclosing who and exactly where.

Now this serves as a tax ID connected to the BIR which enforce people and encodes tax penalties.

Example a person would pay his or her taxes during a date thru a bank deposit
With a specific amount. This is how the new tax code should look like:

Person ages 18-21 - Php 5,000 tax
Person ages 22-25 - Php 8,000 tax
Person ages 26-29 - Php 12,000 tax
Person ages 30-35 - Php 15,000 tax
Person ages 36-39 - Php 20,000 tax
Person ages 40-45 - Php 25,000 tax
Person ages 46-50 - Php 18,000 tax
Person ages 51-55 - Php 15,000 tax
Person ages 56-60 - Php 12,000 tax

These are flat tax that each individual should pay. Every year. There could be an option on monthly payments and early payment discount.

If an individual wants to own a car here is the additional tax a year a person or business entity should pay

Automobiles worth 0-1,000,000

1 car - Php 10,000
2 Cars - Php 18,000
3 Cars - Php 26,400
4 Cars - Php 34,000
5 Cars - Php 40,000
6-infinity cars - each add 10,000 from the 40,000

Automobiles worth 1,000,001-2,000,000

1- Car - 20,000 tax
2 Cars 36,000 tax
3 Cars 52,800 tax
4 Cars 68,000 tax
5 Cars 80,000 tax
6- infinity every car add 20,000 from 80,000.

2,000,001 - 3,000,000

1 Car - 30,000 tax
2 Car - 52,800 tax
and so forth.....

As the example states that as one have more expenses they would need to pay more in taxes. In terms of economic stand point it would promotes saving but I would say it good. Government should also encourage growth by means of people spending. Lowering Taxes on certain industries would encourage people to spend on which industry per year. Now of Business Taxes, it would also be the same as taxes in individual. All businesses would need to pay a yearly tax to the government. They would also need requirements to be insured for fire and other acts of God.

Here is the basic Tax code for individual business. Regardless if they earn on the first year or not.

Year 1 - 50,000 a year
Year 2 75,000 a year
Year 3 - 100,000 a year

Year 4- on wards to infinity - Php 150,000

Now each business would have limitation base on business tax code.

If they want their business to own a place pay x amount of tax base on the square meter. The square meter would come from the title of the land from the city government records.

Now if the business wants to be listed on the stock exchange they would pay X amount a year additional from the individual business tax.

Any additional taxes will be base on the operation of the business. If the business wants to be in franchising hence they would add another fee.

Now farming and fishing are also businesses so they would also need to pay the net individual business tax. Now here are some bigger adds on utilities businesses. Like water electricity and transportation, banking as well. They would be in a higher tax code. Cause of monopoly. Now I will let the congress formulate a better tax flat tax cause they are smarter but the concept is all tax is categorized.

Here are the bread and butter of the tax code system that I proposed.

1. Any money that will go outside of the Philippines would have a limit and a rate and time constraint.

An entity will pay 20% of taxes of the total money sent. Limiting to 50,000 USD higher amount would correspond a higher rate. On a single send. An individual is limited to send a 1,000,000 USD per year Applies to Business only. 20,000 USD for individuals per year.
No tax will be collected. if the money is send to the Philippines.

Any person who buys the stocks in the Philippines Stock exchange would not need to pay a single tax.

All transaction on the SEC is monitored and carefully analyze.

Penalties
An individual that don't pay a year tax would need to spend a month in jail and 1,000 hours of community service. If upon capture he promise to pay thru a bank he would pay 5% percent penalty annually missed.

A person who payed a person a cheque and bounced, that person will be jailed per day the check is not payed to the payee.

My jail management would be easy they will all work for the government business free of labor in exchange of daily 3 meals. They will all be rate on their performance. Better performance they would be able to ask for parole.

Here are just some ideas that got me thinking.......