True Meritocracy

Taxation & Public Goods

Taxes are an integral part of the current economic system, and we will always need some way to fund public goods. The big problem with taxes is that they are often perceived as illegitimate, inefficient, handicapping, parasitical, demotivating, unfair, and a host of other negative connotations. In other words, taxation needs major reform! 

Guiding Principles:

General Incentives

  • Regarding all taxation: carrot > stick
  • Demand stringent ROI from tax money
  • Incentivize diversified investing
  • Don’t punish ambition, and don’t reward sloth

 

Modernization

  • Drastically digitalize and automate public administration
  • Global standardization, cooperation, and integration

 

Tax Reporting

  • Don’t burden regular citizens with tax reports/calculation
    • Automate and simplify tax system
  • Promote international standards for tax reporting
  • Discourage tax evasion
    • Some use cryptocurrencies to avoid taxes

 

Legitimacy

  • Explore innovative ways to reduce taxes
  • Only maintain taxes with public legitimacy
  • Always first try to find alternative to tax increase
  • Avoid tax-related “warfare” between states and business

Sustainability 

  • Taxes need to make sense in longer-term picture

 

Meritocratic Dynamics

  • Accept both upward and downward social mobility
  • Limit heritability of wealth: tax and investing incentives
  • Make sure wealth tax does not discourage ambition

 

Preventing Idleness

  • Encourage transition from welfare to work/studying

 

Public Goods for 21th Century

  • Explore ways to make basic internet a public good
  • Make crucial necessities public goods
    • E.g. emergency services, infrastructure, etc.

 

Sharing-Economy

  • Integrate sharing-economy into overall economy