The world
of today is rough and teaming in hatred. The world must unite as common
people. must be found, and language is
a commonality and a uniting factor. Every state of the Ilanistic nation should
have two languages. One language should be the native language of that state,
and the other language should be English. English was chosen because it is one
of the three international languages along with French and Spanish. Of the
current major industrialized nations, English is the primary language of at least
three of those nations that include Great Britain, Canada and the United States
of America. Even most people that wish to do international business or
communicate for international education learns to speak or write in English.
Politicians
do not run this world, as the politicians would have us believe. This world is
ran by economics and the politicians attempt to take credit when the economy is
doing great, but yet distance themselves from the economy when the economy is
doing poorly. The economies of the world must be left to incorruptible
businessmen. The government should make sure the businessmen are acting
honestly. The government should not interfere in the daily operations of
businesses.
Power
corrupts, but absolute power corrupts absolutely. The government must make sure
businesses and government officials are not corrupt, the government must not
infringe upon the liberties and rights of the individual.
Businesses
are given the emphasis at the beginning because as long as the economy is doing
well, nationalism is not going to be a strong factor until the citizens acquire
and believe their nationalism is Ilanist, regional nationalism should not be a
factor after that time.
The Rights
These rights are given to every human being by the creator however
the creator reveals himself to each individual. They are as follows without any
order. No right is less important than
the other. All are important.
·
The Right of Life unless due process of the law denies this person
of free unhindered travel. Each person should be given the opportunity to live
their life without intentional harassment from the government or from
individuals. If an individual makes an intentional harassment, all attempts
should be made to that individual that he is committing harassment. As long as
an individual makes an apology and or restitution is made if the action causes
financial problems, then the action will be as a debt being paid to society. If
no attempts are made to correct the harassment, it is the responsibility of the
government to protect the harasee's rights from the harasser. The harasser can
be forced to repay their debt to society at a fair and reasonable cost as
determined by society through the courts.
·
The Right of Liberty which everyone should be allowed to present
his own opinion without fear of retribution unless the opinion is of a hateful
and violent nature with an intended and/or an actual audience of more than two.
·
The Right of Property which cannot be taken away from the
individual but the individual can be required to relinquish his property at a
fair and reasonable price to the state to allow for the improvement of society.
In this context, property is referring to land.
·
The Right of Health for each citizen and visitor is guaranteed
health care. The visitor will be responsible for a fair and reasonable expense
if the visitor is not in the state on official business of a company within the
state, or a person on official government business.
The government and society must make all
attempts to guaranty these rights for ALL citizens regardless of ethnic
heritage, economic status or political affiliation
How does a state
obtain an Ilanistic State in a non-utopian world?
Economics is what runs the state and not
the ethnocentrism of some politicians. If ethnocentrism ruled, then a minority
would be created, and all people have the same rights as human beings. During
times of economic chaos, ethnocentrism might temporarily gain control, but will
only lead to future chaos, both economic and social. Two examples of this are
Nazi Germany and the former Soviet Union.
Businesses must take the health and
welfare of the workers into consideration. The workers are also partial owners
as described later. Businesses and not only the government, must be willing to
help the individual achieve all four rights. If the worker has a job, then only
three of the rights are met. To help the workers obtain the right of health;
the board of directors of a company will employ one or more doctors for the
workers of the company. The company may choose to pay for salaries of doctors
at a medical clinic to meet the health care needs of the workers and society.
Taxes
Everybody hates taxes, but taxes are an
evil of life. Without taxes, the services the government provides to the
citizens would be unavailable. The tax system and the social system should work
in conjunction so the tax system does not make the rich richer and the poor
remain the same, which more or less means the poor are poorer. This is a brief
explanation of how taxes should be levied. This type of tax system is to put
everybody on fair and even playing field. The tax system does not start levying
taxes until a certain wage has been met. Making the employer responsible for
the collection of taxes should discourage tax evasion. The employer will be
responsible to go to jail if tax evasion occurs. The tax system presented here
is not representative of any tax system currently in operation in the world.
Taxation of both the people and the
businesses are detrimental to the well being of the society. If a business is
taxed, the people pay for the taxes, because the businesses will only raise the
prices of the good or service to make sure the level of profit desired will be
achieved, but if taxes are not levied against a business, prices might fall.
In this plan, many items that need to be
adjusted to the culture were intentionally missing or should be changed. The
marked numbers are in this documentation for explanation purposes only.
The amount of money it takes for a
family of two to have a subsistence living should not have the salary taxed,
but any salary made above that amount should be taxed above 50% increasing to 90%. Taxation
increases should not be a linear increase, but a geometric polynomial increase,
where the business can calculate the amount of tax to withhold by the use of an
equation, and not by some arbitrary tables.
Assume the equation for the collection
of taxes should be a non-linear equation (powers greater than 1 in the
equation); where x is the wage and y is the minimum wage and C is a constant,
as defined by the government. This tax system does not take into account people
working two jobs above minimum wage. Taxes should not be a burden to the people
that wish to get an extra job. The government should not hinder the desire for
a person to increase his economic standard. It would be the responsibility of
the employer to collect these taxes and forward the money though the external
auditor to the government.
Examples:
A person makes 150 curriencies per week.
The subsistency level is 100 currencies. So the person is making 1.5 time the
level of subsistency. Taxes do not occur until the salary reaches the level of
subsistency, 1.5-1.0=.5 or 100 X .5=50 currencies taxed.
50 -The amount to be taxed
X50% -The tax rate to be levied
25 -The amount taken for taxes
Therefore, instead of
making 1.5 times the subsitence salary (150), the person makes is making 1.5-.
25 =1.25 (150-25=125) times the salary for subsistence or a tax rate
(.25/1.50) X100%=16-2/3% taxed.
If the person is making 101.5 times the
average salary (10150), then the subsistence salary would be removed for
taxation of this salary; therefore he would pay tax on 100.5 times the average
salary. The salary above the additional subsistence salary would be taxed at
the maximum rate of 90%, but these increases would be on increment of multiples
of the subsistence salary. Since 90% became a constant at the higher amount,
then the 100.5 would be taxed at 90% as defined by the table that is not
arbitrary, but for explanation purposes, a straight linear increase will be
used. The table listed is for educational purposes only and can be found in Appendix A.
One hundred times the salary has an additive tax rate of 69.30% or
10000X69.30%=6,930
50X90.00%= 45
6,975
The person would pay 6,975 in taxes out
of 10150 or 6,975/10,150X100%=68.72%
Even with the additive tax the person
would still be making about 30 times more than the salary needed to have a
standard (subsistence) living.
This is a way for the government to
supplement its income from profits made by the businesses. Medical rights,
education and other social services have to be taken care of by the government
and businesses for the citizens of this country.
It will be shown later that businesses (corporations)
are not taxed. Businesses will give up 50% of the profits made during the year
to the employees and the government. Private ownership of businesses will be
taxed according to the above format. Businesses are never taxed. Businesses
havee a desire to achieve a certain rate of return, taxes will only be an
increase in the price of the product or service.
Company Organization
Each business must have an internal rate
of return (IRR) greater than the inflation rate. If the rate of return is less than
the inflation rate, the business is losing money, therefore, the factory would
have to downsize or give less money in wages to each individual worker for a
temporary time until the company becomes more profitable. This would be
feasible since the worker will be paid a dividend at the end of the quarter or
year as discussed later.
Each worker shall be paid a weekly
salary. This salary is a payment for 5-1/2 days, but the worker is required to
work 5 days per week. The worker can work for a full day every two weeks on his
day off without extra compensation. He does not have to work the extra time,
but each individuals time is divided by the total hours of all employees. That
number will be the workers share of the dividends. Therefore, if a worker only
work the extra one day every other week. He will be working 2288 hours per year
while the person that works 5 days a week will only work 2080 hours a year.
This means the dedicated worker that worked the extra days will make 10% more
in dividends than the worker that did not work extra time.
An Example
I have used currencies in place of any specific currency.
If a company has 100 workers, and half
of the workers work extra, and the other half does not work extra. The total
hours worked for the factory is 218800 hours.
(2288
hours/employee)(50 employees)+(2088 hours/employee)(50 employees)
114400 hours+104400 hours
218800 hours
The bonus working the extra days
(2288 hours/218800 hours) X 100%=1.07%
The bonus without working the extra days
2080 hours/218800 hours X 100% =.97%
If a factory makes 50,000 currencies per
year, the amount reserved for the employees will be 10000 currencies per year.
Each employee that worked extra hours
would make 104.5 currencies or 110% of the worker that did not work the extra
time. The worker that did not work the extra days would only make 95 currencies
or 90.9% of the worker that worked the extra time.
The numbers listed were for explanation purposes only. The
numbers do not correlate to any real situation.
More Structure
of Businesses
For the government to achieve the task
of 40% of the stocks for the government and 20% of stocks for the workers,
certain elements of the law must be made to protect those who own the
companies. If the government would enter into a company and take the 60%, it
would only cause chaos and inequality between people, and would only lead to
armed conflict. Since an Ilanistic economy is capitalism made humane, the
government cannot force the current owners to relinquish ownership of stocks
but three laws must be made.
1. Companies must be given time to
expand the amount of stock so 60% is divided as previously stated. One calendar
year should be adequate to meet this objective. Each time a company expands the
total shares in the company, the government receives all the expanded shares or
enough to maintain the 60% holding by the government.
2. The government must not interfere with
the decisions of a company unless the company has shown continuous loses for
one year and six months. The government must allow the marketplace to define
which companies will survive. After that period of time, the company should not
have enough money to survive and the capitalistic economic system will prevail.
Forty percent of the members on the
board of directors must be workers of that company. A worker may only be on the
board of directors for 3 years. After that time, the workers cannot be on the
board of directors for a minimum of three years and the worker can be on the
board of directors for a maximum of 9 years.
The length of the term, and how workers
are elected to the board of trustees should be left to the workers of that
company, and not the management of government. The workers will choose the way
the members are designated to the board of directors, but the members must be
workers at that business. The stockholders of the company elect the rest of the
members of the beard of directors. The weight of shares owned by a person will
remain the same. (See Example)
The health and safety of the workers is to
be entrusted to the workers that are on the board of directors. The full board
of directors cannot understand the health and safety concerns of the workers.
It will be the full board of directors' responsibility to implement the plans
of the workers. If a fair attempt is not made on implementing the plan of the
workers, it is the rights and duty of the workers on the board of directors to
have an outside arbitrator work out the differences. A five to ten year plan to
implement the ideas is not an unreasonable time limit, although some of the
ideas could go into effect immediately.
If the company has fallen on hard times,
it is the responsibility of the workers to take care of the workers. A
reduction in pay for the entire workforce is more preferable to temporary or
permanent layoffs. The explanation of why this is preferable to layoffs has
already been stated, and explained in the previous example. The employees of
the company will receive quarterly or annual investment bonds for the amount of
profit made by the company.
3. The third law that must be made is the
government must protect the individuals right to start his own business. A
person may start a business with receiving a maximum of 50% and a minimum of
20% from the government. The government will receive the same percentage as the
government invested in the business, but once the business becomes incorporated
and/or has over 25 employees, the same rules as has been stated on existing
businesses apply to newly incorporated businesses.
The financial records of the company
should be open to government auditors once a month. If after 5 years, and the
auditor finds no profitable months, the owner will be told to return to a job
as soon as possible. All assets of the company are forfeited to the government.
If the company cannot make payments of
minimum wage to the employees. The needed money will be taken out of the
government portion with the interest being charged is equal to the inflation
rate of the nation plus one percent compounded once at the end of the year. The
owner is required to make this payment of debt.
If a government prosecutor determines
that an owner tried to defraud the government and therefore the people with
failed and corrupt businesses, it is the responsibility of the government to
prosecute the owner with a minimum of one year of unpaid work for the
government while the owner has another job (2080 hours of unpaid work for the
government to be completed within 5 years). All assets of the owner will be
forfeited to the government and any wage above minimum wage will be forfeited
to the government until all debts with interest are paid. This interest will be
2% over the inflation rate compounded daily.
An Example:
A company has 1,000,000 shares of
outstanding. Of those 1,000,000, and 600,000 shares are held by the government.
A person owns 10,000 shares out of 400,000. His right to vote is limited to
10,000 ballots out of a total of 400,000 ballots.
The stockholders elect 60% of the board
of directors. A single stockholder may vote for 50% plus one additional seat on
the board of directors on a single ballot. This is to prevent one person from
gaining too much power on the board of directors and therefore, in the company.
The same person has 10,000 ballots for
voting for the board of directors, which has 29 members. So on the person's
ballot, he is allowed to vote for half of 29 on any one ballot, 14.5 rounded up
to 15. This person may vote for a maximum of 15 people as acceptable on the
board of directors. He could have 5,000 ballots where he votes for 15 people
and another 5,000 ballots where he votes for 15 different people or any other
combination.
The health and safety of the workers is
to be entrusted to the workers that sit on the board of directors. The full
board of directors is responsible for making a true attempt to carry out those
plans. A plant that may have a number of years to implement will still be a
plan if the reason for not doing the plan sooner is because of feasibility
problems.
Education
The only way the country will be able to
improve the technology is through education.
Every citizen should be given the
opportunity to complete higher education after secondary school. In order to
guaranty that the ideals of the Ilanistic country continues, a strong defense
must work hand in hand with education.
Upon completion of secondary education
the person will be drafted into the military for up to one year or it could be
as few as a few months. During this time, training to build self-confidence and
other life skills will take place. For the country to remain free, the people
must fully understand how to defend themselves and their country.
After the enlistment, the citizens can do many things, three of
which are as follows:
1. Enlist for regular military
duty.
2. Leave the military with their
skills to study at a university while receiving grants and loans backed by the
government
3. Enter the workforce with the
skills and confidence learned in the military
During this year or less, a small
payment of wages will be made, and the government will determine the payment.
The reason for not paying a standard (subsistence) wage is because all expenses
for subsistence will be paid by the military and the citizen would receive
skills and training for future opportunities at no cost to the citizen.
© CRN 1999
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