An example of "solidarity tax" from a model trisectoral "
In models bi and tri-sectoral precedents (which represent simplification of national accounts tables, with notations personal AMOR depreciation of physical capital, MAT for intermediate consumption, SAL for wage income and profits for PROF) it is easy - and important - to note that the sum of CA sectors of production is obviously much higher than the GDP (due to the various exchanges between sectors during the process).
may also be noted that this evidence had almost certainly led the Major Douglas (father of the Social Credit), before the invention of Input-Output Tables of National Accounts, to suggest the use of discount generalized to fund the difference between CA and value added.
The question of the Social Dividend, or Minimum Income Dignity.
That being noted, or recalled, we can now ask what is the best way to "distribute" means to purchase those not involved (such as employees or shareholders) in the production process.
Several methods can be , a levy on prices (that is to say about CA), a tax on capital employed, a levy on the value added, or a levy on profits only. Let our model
"improved" from the model
"AMOR PROF SAL" became:
"AMOR MAT PROF SAL, which can be written: AMOR
PROD = ADP + + + PROFi SALI, for i varying from 1 3 or with arbitrary data:
PROD1 = 2100 = 700 + 400 + 750 + 250 (Area "capital goods")
prod2 = 1500 = 250 + 450 + 600 + 200 (Area "consumer goods")
PROD3 = 1400 = 800 + 450 + 100 + 50 ( This "Sector 3" Virtual is the production of intermediate goods, the only constraint on the MAT, or intermediate consumption, CI, at least if one starts with a stock3 zero initially, is that PROD3> = MAT1 & 2 & 3 )
It would AMOR1 & 2 & 3 = 1750, MAT1 & 2 & 3 = 1300 which STOCK3 = 100 (which remains "too many" of these materials "consumables" are not used in the process) and SAL1 & 2 & 3 + PROF1 & 2 & 3 = 1950 (another way of defining value added, or GDP)
production "net" amount after what has been "consumed" in the various production processes, is therefore less PROD1 AMOR1 & 2 & 3 more STOCK3 (= PROD3 - MAT1 & 2 & 3) more prod2, that is to say least 1750 over 2100 over 1500 = 100 1950
In this first context, no REX, or RMD, or Social Dividend is available .
So how do intervene?
We will discuss here what is the simplest conceivable, if not put into practice, ie the equivalent of a CSG or VAT solidarity, which will therefore look like a Value Added Tax , that is to say, the wages paid and expected profits. In
more tickets allocated in recent years Minimum Income Dignity (MSY), I suggested that MSY could be 25% of value added, other proponents of the REX (Basic Income ) suggest that 15% would be "the" right number, but no matter here.
Without changing the current level "accounting" of the production sector, we're going to cut wages and profits of a certain amount, which will "finance" REX, or RMD, or Social Dividend as follows:
Using previous data, we will have:
PROD1 = 2100 = 700 + 400 + (750 + 250) * (1-tauxRMD) + (750 + 250) * tauxRMD
PROD1 = 2100 = 250 + 450 + (600 + 200) * (1-tauxRMD) + ( 600 + 200) * tauxRMD
PROD1 = 2100 = 800 + 450 + (100 + 50) * (1-tauxRMD) + (100 + 50) * tauxRMD
The RMD will be distributed or REX therefore equal to:
( SAL1 & 2 & 3 + PROF1 & 2 & 3) * tauxRMD or, if we are here to simplify the calculations, a tauxRMD 20%, to 1950 times 20%, or 390, salaries and profits have been reduced by the same amount.
value added has obviously not been modified, it remains equal to 1950 (one can imagine that these are the 1950 billion euros of French GDP), but the fifth of this value added, or GDP, is now attributed to persons "inactive" or at least not employed in the various production processes.
Looking back on the money question raised by the supporters of Social Credit, the finance workflow simply become (with tauxRMD = 20%):
PROD1 = 2100 = 700 + 400 + (600 + 200) + (150 + 50) (where RMD1 = 200)
PROD1 = 2100 = 250 + 450 + (480 + 160) + (120 + 40) (where RMD2 = 160)
PROD1 = 2100 = 800 + 450 + (80 + 40) + (20 + 10) (where RMD3 = 30)
other words GDP is still equal to 1950, with (SAL + PROF) 1 & 2 & 3 = 1560 and:
DividendeSocial or REX 1 & 2 & 3 or RMD 1 & 2 & 3 = 360 = GDP * tauxRMD. The Social Dividend
can be "financed" a priori, or, which is probably better at the end of the production process, when the "means to purchase" must meet the supply of goods (and services ).
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