Ingenious tax and policy algorithms for miniaturizing, localizing and democratizing mega-corporate entities - Ed.A green tax policy for sustaining Australia, its citizens and communities
A “green” tax policy could be used to increase the reported profits of business while localizing its ownership and control. By this means local communities would obtain the power to protect their environment. Also, the income of local voters would increase while introducing corporate democracy. The whole nation would become richer as profits to foreigners are phased out.
A green tax could be introduced on a voluntary basis. A lower tax rate could be made available to any investor who registered a contract to transfer ownership of their investments at the same rate that they recovered the cost of their investment from depreciation tax deductions. There would no limit on the profits obtained by investors while they got their money back.
More foreign investment could be obtained while eliminating alien ownership and control of national resources. “Boomerang ownership” would eliminate what Professor Penrose described as “unlimited, unknown and uncontrolled foreign liabilities” for the nation. Because profit-maximizing investors discount the future so much only a small preferential tax1 is required for fiduciary investors in listed corporations to approve a change in corporate constitutions to create a new class of “stakeholder” shares to acquire residual ownership of corporate investments2.
A green tax could be introduced on a voluntary basis. A lower tax rate could be made available to any investor who registered a contract to transfer ownership of their investments at the same rate that they recovered the cost of their investment from depreciation tax deductions. There would no limit on the profits obtained by investors while they got their money back.
More foreign investment could be obtained while eliminating alien ownership and control of national resources. “Boomerang ownership” would eliminate what Professor Penrose described as “unlimited, unknown and uncontrolled foreign liabilities” for the nation. Because profit-maximizing investors discount the future so much only a small preferential tax1 is required for fiduciary investors in listed corporations to approve a change in corporate constitutions to create a new class of “stakeholder” shares to acquire residual ownership of corporate investments2.
Only Australian voters would become owners of the investment being written off by foreign or local investors. Management of the investments transferred need not change. Australian executives and employees who managed the transferred investments would become part owners of them with other citizen stakeholders such as those involved as suppliers and/or customers. An additional incentive for corporations could be an exemption from any increase in their employee superannuation contributions.
All Australians would acquire without any cost stakeholders shares to obtain income without work or welfare according to their patronage as suppliers, workers and customers. Stakeholder shares would be issued in a similar manner as big business grants fly-buy points to customers but extended to workers and suppliers.
Unlike a resource rent or excess profit tax a green tax could provides a way of increasing reported profits of companies without reducing State royalty payments. Government expenditure on welfare could be reduced as income of local citizens increased while also increasing the tax collected by the government as many individuals could be paying tax a higher rate than corporations.
A green tax regime would democratize the national distribution of income and wealth3. It would shrink the size of government as the eligibility for welfare payments and the need for tax collection decreased with every citizen obtaining a guaranteed minimum income from stakeholder dividends. A green tax regime would increase both the equality and level of prosperity in Australia while allowing a zero growth economy to protect the environment.
1 Stakeholder governance: A cybernetic and property rights analysis, available from: http://onlinelibrary.wiley.com/doi/10.1111/1467-8683.00035/abstract
All Australians would acquire without any cost stakeholders shares to obtain income without work or welfare according to their patronage as suppliers, workers and customers. Stakeholder shares would be issued in a similar manner as big business grants fly-buy points to customers but extended to workers and suppliers.
Unlike a resource rent or excess profit tax a green tax could provides a way of increasing reported profits of companies without reducing State royalty payments. Government expenditure on welfare could be reduced as income of local citizens increased while also increasing the tax collected by the government as many individuals could be paying tax a higher rate than corporations.
A green tax regime would democratize the national distribution of income and wealth3. It would shrink the size of government as the eligibility for welfare payments and the need for tax collection decreased with every citizen obtaining a guaranteed minimum income from stakeholder dividends. A green tax regime would increase both the equality and level of prosperity in Australia while allowing a zero growth economy to protect the environment.
1 Stakeholder governance: A cybernetic and property rights analysis, available from: http://onlinelibrary.wiley.com/doi/10.1111/1467-8683.00035/abstract
2 The case for introducing stakeholder corporations, available from: http://papers.ssrn.com/abstract_id=436400.
3 Democratising the wealth of nations, available from: http://ssrn.com/abstract_id=1146062
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See also
Building Sustainable Communities on Ecological Principles
by Shann Turnbull
March 30, 2010
Abstract:
The limited life of biota provides an ecological principle for building a global society composed of self-financing, self-reliant, self-governing communities. Implementation requires communities to limit the life for owning realty, corporations and money. Limited life money and credit created by traders and investors become redeemable into units of local renewable energy. Ponzi banks and unearned income from money are eliminated. Incentives provided to attract foreign enterprises and technology are matched with built-in ownership transfer back to stakeholders resident in the community to terminate draining away surplus profits. Urban land ownership is mutualised to form self-financing Land Banks to halve the cost of new housing and attract commercial investment. This minimises non-residents extracting windfall gains and surplus profits that can make communities financially dependent on higher orders of government. Centralised big government, taxes and banking are replaced with federations of bioregional economies financing nation states that in turn finance global governance.
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Abstract and other links available here: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1402063
Shann Turnbull* PhD, sturnbull@mba1963.hbs.edu *
Principal: International Institute for Self-governance
PO Box 266, Woollahra, Sydney, Australia, 1350.
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