Income Tax will be based around the minimum wage salary, which is 8 hours a day over the course of the working week, within the year. Both employees and employers will pay a 10pc public health insurance tax (PHIT). Half of the local / lower tax will be given to the local and regional governments.
| Income | Income Tax + PHIT | Rate |
| Zero - One | 10pc | Local / Lower |
| One - Two | 20pc + 10pc | Lower Middle |
| Two - Four | 30pc + 10pc | Higher Middle |
| Four - Eight | 40pc + 10pc | Higher |
The maximum social security payment per household is 90pc of the minimum wage salary. Additional payments can be created such as housing and disability. The state pension will be half the minimum wage salary.
When giving bonuses, half will go to shareholders as dividends and the other is given to employees. Bonuses can be paid in three ways and must be applied to all employees. Set amount per person, percentage of income or hours worked and a maximum payment cap can be applied. Dividends will be taxed as income per company over the financial year. The equivalent PHIT will also be paid, including the company payment from the same pot.
I'm proposing a four-day working week by removing Monday and having six days during the week. A three-day weekend might not be affordable for jobs that require you to be physically there, such as retail, logistics, travel and healthcare. Holiday entitlement will be four weeks, plus four additional days for Christmas, Boxing, New Years Eve and New Year’s.
Companies will need to setup a head office in each state and will pay business rates to their local authorities. Corporation Tax and Capital Gains will be set at 25pc. Your primary resident's and non-profit residential letting are exempt. There will be no inheritance tax, as the capital gains process will continue with the new inheritors. You also pay no gains if all the proceeds are reinvested.
These assets can be revalued every year and if the average value is higher than the last benchmark it becomes the new one, with a four-year delay. This is averaged by the middle value of the highest and lowest in each financial year.
Every business will have internal company representation, elected by fellow workers. All levels of management are excluded, but senior workers are still included. This could be one worker rep from each store, floor, department etc.
The board of directors will have full control of hiring and firing CEOs and their compensations packages, but worker reps can call for ballots to take strike action with a simple majority. For bonuses, worker reps and shareholders must both agree. In the case of share buy backs, workers reps will have full decision-making authority.
Local worker reps can call for ballots for their own areas. They will stay in their position for four years. This will correlate with political elections and workers can be reps of all four levels. The top four supported candidates will be on the ballot.
Trade Unions will still play a role and the top four by company worker membership will be represented. They can still ballot their members on the three main areas discussed earlier.
People will only be allowed to purchase one residential property within the state they are citizen off. Unless a foreign citizen has significant business interests in another state. If not, stamp duty will be applied to each additional property starting with 20pc, with an additional 10pc per extra property. This is zero if you only own one.
If the property is a rental, then tenancy agreements will have to be 4 years, as well as their fixed term mortgages. Unless the fixed term mortgage was established before the tenancy. Mortgage repayments are only deductible if the rent is solely used to pay that cost, but tenants would be responsible for general repairs and letting agent fees.
Profit rental property will count as being commercial, minus any uncommercial time. If the commercial time was ten years and uncommercial time is five years and your gains is 100,000. Then its 100,000 over 10yrs minus 5yrs or 50pc equalling 50,000. If you or another family member or close friend lives there for free, it counts as primarily uncommercial.
Residential property can only be sold as freehold. The local authority would maintain joint infrastructure, paid by a separate tax. Companies cannot purchase residential property unless they are in the home renovation business, which requires a local authority license.
Properties will be designed for families in mind. They will have at least a lounge, kitchen/dinner, and bathroom. There will either be two large double bedrooms and one single bedroom or one large double and two medium double rooms.