The internet provides the means to easily, efficiently and quickly implement a simple product transaction tax in which all transaction of goods and services pay the same fee to support the cost of economic stability upon which all transactions depend. The "same fee" is the percentage of the gross domestic product which public services costs. If public services cost 10% of the economy then the product transaction tax would be 10%. An online form is provided to capture transactions which are not automatically taxed through the financial system.
In a world of currency dishonesty between not only individual income but also national economies, a simple product transaction tax is not enough to correct past wrongs and prevent future currency abuses so as to prevent economic, social and political chaos. To correct affairs and prevent chaos, a luxury/liberatoin tax is needed which adjusts currency rates to prevent unfair economic transactions. Essential to understanding the need and justification for a real-time luxury/liberation tax is an understanding of time in the inflatonary cheapening of currency.
The time analysis of currency dishonesty can be found in an agricultural analogy. Consider a farming community with hundreds of average people and one rich person. Suppose the rich person quietly buys the seed corn for next year's crop so as to distill alcohol. Which is the price that should be placed on that seed corn?
The regular price of corn?
The cost of supporting a population that will suffer famine and starvation when there are no crops the following year?
The honest, existential cost of the corn is one that covers the total cost and ramfications of that the transaction. The honest price for the rich person to have the luxury of alcohol is the cost to liberate the population from future suffering.
Points of interest from this analogy
Profit: Does the seller of the seed corn have a true profit? Only if one wants to be guilty of semantic slippage, that is, using words opposite of the original meaning. The word "profit" comes from Latin (pro esse) which means foward existence or forward time. If a transaction creates one hour of time--the real currency, a profit only exists if the seller/solver receives 30 minutes of wealth and the buy/sufferer receives 30 minutes of wealth. A profit depends on the Golden Mean between the extremes where the seller overcharges or the buyer doesn't pay. Of all the people affected by the sale of the seed corn, do they pro esse or regress? The population regresses to an existence of suffering when rich people are allowed to buy luxuries without taxes.
Progressive or regressive de facto taxation. Luxury purchases without liberation taxes is not progressive taxation but regressive taxation, that is, the more you make and spend, the more you tax others into a regressive state of existence. This happens not only in a farming community where seed corn is used for alcohol but in a global community where dollars are used for frivolous luxurious manufacturing in Third World nations that have their agriculture system disrupted and destroyed. A timist does not look a transaction out of temporal context. A timist does not say a girl skipping high school to prostitute herself has made a profit.
Free Market arguments: Like the word "profit," free market is a phrase that has suffered semantic slippage. Too many people in positions of power would say that the sale of seed corn and the sale of teen porn were instances of a free market, adding, "I'll buy you a drink or the girl if you agree." Does the sale of the seed corn increase the total freedom of the farming community? No. Does the teenager selling her body increase her freedom? No. As there can be no profit in a transaction without all participants going forward equally nor can a transaction be an instance of free market unless the participants equally achieve greater freedom. In fact, free market and profit are synonymous. (Interestingly and logically, one can only claim pride in an action that is truly free market and profitable for a simple reason: Profit and proud both come from pro esse.)
Globalization and 3rd world countries: Anyone who cares about the survival of civilization and humanity should recognize that the above corn/alcohol analogy fits the impact of globalization on Third World countries. Not only is agricultural economies being disrupted and destroyed, but prostitution has become the norm: Asia, South America, Mexico, India, etc. One can imagine the rich man calling his seed corn alcohol a liberating experience. Ironically, the suddenly cash-flushed Indian economy is called a " (HREF=inc040127WSJ) liberization " a rejection by the suddenly rich kids of their parents and society's values ... like a drunk who has lost his values. The developed countries, particularly the United States, is screwing up the world through globalization. And, who in America has become the mother of all economic Madams? Walmart.
You have no cornbread. Then get drunk: Because of globalization--the intertwining of all economies--the coming collapse will be universal. Unlike the economic thiefs of the Soviet Union, Nazi Germany and other dictatorships, there will be no safe havens in Switzerland, Brazil, Argentina, etc. The world is not only about to see (HREF=inc) global civil war but will see massive, widespread class warfare in which the hungry, unemployed masses everywhere maim, mangle and murder the rich and their families. Like the names of the 9/11 victims, there will be too many Ekaterinburg to notice. Who keeps count of the names of victims and massacres in Sudan today? Who Will be to blame? The greedy, mad cancers who were not happy with enough money to buy a livetime of survival but needed multiples of fortunes that are like the multiples of nuclear weapons needed to destroy humanity. If humanity dies, it will be from financial madness, not nuclear MADness. The rich don't realize that using their money power to buy politicians and tax favors is living beyond their means. They are creating a cancer that will consume them.
The proposed universal luxury/liberation tax via the lifehour exchange system is not without precedence. Public education was funded by taxes to liberate the poor from their deprived states. Did the rich who were taxed benefit? Yes, they received an increase in public and private services from an educated mass: doctors, engineers, scientists, etc.
As it develops with more and more input, the new global currency will automatically impose a tax on transactions between different economic units in which the richer currency pays a higher price so as not to disrupt and destroy the poorer economies. The collected taxes will be used through a democratic agency to fund problem-solving to raise the level of existence in the poorer country.
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