reply to post by JessicaS
I've been thinking about this for years and I'm pretty sure I've got it. I call it social capitalism.
The system that I call social capitalism does not actually cut out the capital, it merely collects it differently, and rewards the investors
differently: with goods and services rather than a return of capital.
The tax payer is essentially made a share holder in a national company, entitling him to a certain share of the national company's output.
Let us take the example of a hypothetical national biodiesel/ethanol fuel producer.
At the startup, the target output of the producer is determined and the participating segment of the population is identified. The cost of achieving
the target output is divided among the participating population (those who will use the product) in proportion to their projected use.
The project is undertaken and the participants are given accounts from which they may draw (and within set limits, overdraw) their portion of the
supply of the product, with no cost at the pump, as they have already paid for it via their taxes.
At the end of the year, the accounts are balanced in a process which could be compared to filing a tax return (though the use of accounts makes it far
more automatic). If your share of the product (consumption) has exceeded your share of the investment (taxes paid) you owe. If your share of the
product is less than your share of the investment, you are owed.
Because no investor has taken a profit, but the people have invested with the motive of attaining a good at cost, the price is reduced. This reduces
the need for aggressive redistribution of wealth. Progressivism, as well as a deterrent to waste, can be achieved through a progressive scale of
charges for over-use, which can either be flat-rate, or variable based on the income of the individual.
So if I use 110% of my share, and each of my two brothers uses only 95% of his.
On a non-progressive system, I would pay 10% of my original investment at tax time, and each of my brothers would recieve 5%, thus the system
encourages them to make ends meet through thrift.
On a slightly progressive system, I might pay in proportion to my overuse, times 2. Thus I would pay 20% of my initial investment, and each of my
brothers might recieve a refund of 10% rather than 5%. Thus their thrift recieves an extra progressive reward and my overuse recieves a penalty.
A more progressive system could take our incomes into account. Perhaps for every 10% above the median household income that I earn, the penalty for
overuse goes up, and for every 10% below median income that my brothers earn, their refund for underuse goes up.
So if the median income is 60k, and I earn 100k, but my brothers each earn 20k, perhaps they get 50% more refund and I get 50% more penalty than
described above.
In that case my 10% overuse times 2 equals a 20% penalty, + 50% for income adjustment, so I pay an overage equal to 30% of my initial investment
rather than the flat rate of 10%, and their rebate is 15% rather than the flat rate of 5%.
This might operate across many essential industries as well. So if I overuse on fuel, but i underuse on electricity and water, my accounts are linked
so that I don't end up pushing a bunch of paper and sending and recieving checks, but they just offset and i end up having to send one payment or
recieve one rebate. Thus if my improvrished brother has a long commute to work and can't get ahead on the fuel, saving in other areas might offset
that.
So there's the system in general. I haven't crunched the numbers- i just tossed out example figures. I don't know what the rates would have to be
and therefore I can't design a progressive system for it that wouldn't put anyone in a bind- I'd need realistic numbers to see all of the
eventualities and to design incentives and penalties that wouldn't end up being windfalls or shackles to anyone.
Also there are a few general principles that go along with my idea.
The first is that socialized programs must never compete with or share the burden with market programs. That's the problem with healthcare in
America. The best people and products will naturally gravitate to the more lucrative private system, resulting in substandard service for those using
the social program. Furthermore the existence of a private aspect preserves redundancies and overheads that socialism is supposed to avoid.
Second: A social program that doesn't take big capital out of the loop isn't really socialism- it doesn't do anything that a tax credit wouldn't
do, and it does it less efficiently. If the government taxes you for a service, then subs it out to a for-profit company, you are being raped. Just
for the record, you are, at this very moment, being raped when it comes to defense spending, courtesy of both mercinary firms like Blackwater and
manufacturers like General Dynamics.
Second, Part B: It is stupid and wasteful to tax an entity which derives its income from tax dollars. The government pays General Dynamics to build
tanks, then taxes General Dynamics for profiting. Why not wiave those taxes and demand a price cut which equivalent to the amount normally paid in
taxes, plus half the amount that General Dynamics spends preparing its taxes? Any entity which is allowed to exist after the implementation of part 2A
must be handled in accordance with this principle.
Third: "Social Capitalism" is for non-differentiated necessities. Electricity is electricity and fuel is fuel, but when you apply it to chicken, how
do you decide who gets the drumstick?
Four: Profit motive must be preserved through outcome based pay for individuals in a position to innovate. Capitalists rely on trickle-down. They hope
that if they give profit motive for innovation to investors that investors will push CEOs and CEOs will push engineers. you don't need investors for
that. The government can offer profit motive to the engineer and he'll probably do even better under that system, because he is never in a position
of working without thanks, no matter how stupid his boss is.
Five: A large capitalist sector, particularly for luxuries or for customizable necessities, is desireable for the purposes of self-organization. It
also provides a good tax base for progressive support of socialized industries.
The private sector is very motivated and very good at figuring out how many people want a red Ford Ranger with charcoal interior and a four cylinder
with manual transmission and a highway gear that makes the dang thing stall at every stop sign, plus no airconditioner or powersteering. There would
be no such creature in a command economy, unless the country were poor as hell. Only the private sector would take it upon themselves to make a couple
hundred of those pathetic little things just to get the business of a few practical guys like my grandpa.
Lets not even get into how bad the government would be at socializing trivial items like softdrinks. Good luck finding a bureaucrat who is passionate
about effectively managing the supply of diet cherry vanilla dr pepper sold in a six pack of wide mouth cans. I'm guessing that stuff would only be
available at the fountain, if at all, if some dang accountant were running the show.