How to double a gross national income, having got rid from the Parasitic Inflationary Taxes.
Tax reform. Constant Rouble.
Excuse me for quality of machine translation.
For doubling for 5-7 years of a gross national income, in general, and standard of living, in particular
(personally), it is necessary to make production fast growing and favourable. With the accelerated growth of
economy interfere the Parasitic Inflationary Taxes (PIT). A PIT "eat" essential parts enclosed in
production of the capitals: constant and turnaround. The businessmen compensate a PIT by decrease (reduction)
the salaries of the hired workers. The state - decrease (reduction) of pensions. Disposals of a PIT need
tax reform, the fixing of the cost price is exacter productions in the tax reporting in Constant
Roubles (CR).
Constant Rouble.
Constant Rouble (CR) - Conditional Unit of Account (CUA). Name of a CUA - CR speaks about its constant
buying power. Its rate is measured in roubles and is changed according to rates of Inflation (Inf).
If the prices for some period will increase in 2 times, also rate of a CR will increase in 2 times (Analogy
to a rate of dollar). The CR most precisely is reflected by (with) changes in volumes of a gross national
income and in a standard of living.
In a CR it is possible:
- to measure real change of a buying power enclosed in production capital, i.e. real arrived or losses
- to conclude the long-term contracts
- to fix the loans and contributions - and it is necessary to fix the cost price in the tax reporting
Final payments in roubles at the rate CR at date of payment. CR - only CUA.
Examples of a PIT
1. Constant Capital (CC)
- A Inf - 0%. The Prices, the cost Price (CP) and rate of a CR do not vary. For example, somebody
has acquired an Industrial Line (IL) in cost of 100 millions roubles (mr) with service life
- amortization 1 year. Cost IL at the end of year is transferred on CP of finish products. Total return 100
mrs - 100%. Losses - in our example of a PIT - 0. It is possible to acquire new IL. -Inf - 100%. The prices, CP and rate of a CR for one year are doubled. In the beginning of year 1 CR =
1 rbl. In one year 1 CR = 2 rbl. New IL in one year 100 mCRs or 200 mrs will cost. CP in the tax reporting,
return or amortization for 1 year - 100 mrs - 50% of cost IL. Losses - 100 mrs - 50 mCRs or 50% of a real
buying power of a CP. It also is a PIT for a CP. If amortization and the cost price was fixed in a CR, that losses would not be at all irrespective of rate
of inflation. Fixing of a CP (suffered costs) in a CR also there is an essence of tax reform.
2. A working capital (WC)
- Inf - 0% . The prices, CP and rate of a CR do not vary. The businessman somebody on 100 mrs has acquired
components. They were not necessary, and in one year he has reseiled them till a CP for the same 100 mrs.
Profit or added cost (AC) - 0. The taxes - 0. Losses - PIT - 0. It is possible at necessities to
acquire new components. - Inf - 100%, I.e. the prices, CP and rate of a CR for one year are doubled. In the beginning of year
100 mCRs = 100 mrs. In one year 100 mCRs = 200 mrs. Somebody reseils components on a new CP, since the prices
were doubled, for 200 mrs, receives imaginary inflationary profit (Or imaginary inflationary AC) - 100 mrs,
pay the taxes (from the imaginary profit?!) - 50% - 50 mrs. He still has 150 mrs or 75 mCRs, on which it is
possible to acquire only 75% of components. Real losses - 25% of a real buying power of a WC. It also
is a PIT for a WC.
The indicated example of a PIT is equal �alf of difference between a new real CP and old, indicated
in the tax declaration. I.e. at a zero Inf of a PIT is not present in general, since. The CP does not vary.
With growth of a Inf the burden of a PIT grows also.
3. The losses from a PIT somebody will transfer on the salary the hired workers. If he will cover the
business, the workers and their families, in general, will stay without a piece of bread.
4. From the indicated examples it is visible, that at a zero Inf of a PIT is not present in general.
With growth of a Inf the burden of a PIT grows also.
TAX REFORM.
Essence of Tax Reform - fixing of a CP in a CR, since the prices, CP and rate of a CR grow according to a
Inf, and businessmen, hired workers and the pensioners in are not guilty. Thus, the economy becomes as
much as possible approached to reference at a zero Inf. It will allow to get rid of a PIT, that will protect
from a Inf of real wages and will ensure preservation buying powers of the capital, enclosed in production:
constant and turnaround. Sense of any economic reform in increase of a standard of living. Differently,
excuse for a tautology, with what in it sense.
Disposal of a PIT
1.1. - Constant capital (CC)
- Inf - 0%. The prices, CP and rate of a CR do not vary. IL - 100 mrs with term of amortization 10 years.
In 10 years on means from amortization it is possible to acquire new IL. The PIT is absent. -Inf - 15%. The prices, CP and rate of a CR annually grow in 1,15 times. In 10 years IL - 100 mCRs =
405 mrs (10*1,15^10 = 404,6) will cost. Real annual amortization (On a decreasing geometrical progression):
1-st year 10% -10 mrs - 8,7 mCRs (10/1,15 = 8,656), 2-nd year - 7,56 mCRs (10/1,152 = 7,561), ..., 10-th -
2,47 mCRs. In the sum for 10 years real The amortization will make 50,2 mCRs - 50,2%. A PIT - 49,8% For the decision of a problem of a CC cost IL and annual amortization are legislatively fixed in a CR.
In the tax reporting the annual amortization is simply recalculated at a current rate of a CR. In this case
somebody will transfer annually on a CP till 10 mCRs. In the sum for 10 years the real amortization will make
100 mCRs, since. A PIT are absent. It is possible, as and at a zero Inf to acquire new IL
The problem of preservation of a buying power of a CC is decided.
2.1. - Working capital (WC)
-Inf - 0%. Somebody makes 100% an advance payment - 100 mrs for future production.
In one year will realize (sell) till a CP - 100 mrs, since the demand has not guessed (there are also losses).
Added cost (AC) - 0. PITs - 0. Probably will enter a new cycle with hope, that this time will guess.
The workers will receive the new order and opportunity to earn, and state - new taxes present in the order - Inf - 15%, i.e. the prices, CP and rate grow for one year in 1,15 times, that approximately
corresponds (meets) to the russian validity. Realization on a new CP - 115 mrs. But AC already 15 mrs, though
actually AC imaginary, the prices that have grown up. PIT - 7,5 mrs - 50% from a AC (sum tax on AC, profit
tax and other; 50% - for simplification)
let's return to somebody. He with the rest 107,5 mrs will enter a new cycle of cost 115 mrs? Or will acquire
the real estate to hand over on hire basis? The hired workers will not earn. They, as well as somebody, are
not guilty in a Inf. The state will not save on the unemployment benefits, also will not receive the taxes
present in the order in volume 115 mrs. By the way, these taxes in some times more PIT (7,5 mrs). And at
decrease (reduction) of the taxes, as is known, is considerably improved collection of the taxes. It is
better to lose on the taxes slightly today, than it is a lot of tomorrow, the day after tomorrow, etc. We shall finish from a WC. If a CP (costs of the businessman) legislatively to record in a CR (100
mCRs), that in the tax reporting it is simply recalculated at a current rate of a CR. A Inf - 15%. The prices
and rate of a CR on the moment of realization grow in 1,15 times. Realization - 115 mrs. Recounted (real, it
becomes also tax) CP on the moment of realization - 115 mrs. AC - 0. The taxes, i.e. A PIT are equal to zero.
As at a zero Inf
The problem of preservation of a buying power of a WC is decided. It is possible to begin a new cycle
productions. Let businessmen risk, the workers receive the salary, and state collects the taxes
and saves on the unemployment benefits.
3.1. - Salary
- Inf - 0 %. The prices and rate of a CR do not vary. Is allowable, you in structure of team of the
builders and designers intend in the course of the year to construct an apartment house, then it to realize
and to earn on life. The team takes the credit, which is obliged to return from 10% by a REAL NET PROFIT, also
makes 100% an advance payment - 10 of a mr for the lease the equipment, components, petrol etc., builds the
house and in one year will realize it for 14 mrs. A AC - 4 mrs. The sum taxes - 50% - 2 mrs (2 mCRs). To the
creditors and team remains pure 12 mrs. To the creditors - 11 mrs (credit plus a net profit). The salary of
team - 1 mr (1 mCR) -Inf - 15 %. The prices, CP and rate of a CR on the moment of realization grow in 1,15 times. Advance
payment - 10 mrs (10 mCRs). Realization 14 mCRs or 16,1 mrs (14*1,15=16,1). AC - 6,1 mrs (5,304 mCRs). The
taxes - 3,05 mrs (2,65 mCRs). From them a real PIT - 0,65 mCRs (2,65 - 2 = 0,65, where 2 mCRs - taxes at a
zero Inf). The rest after tax payment 13,05 mrs or 11,348 mCRs. To the creditors - 11 mCRs. To team - 0,348
mCRs or 34,8% from real wages at a zero Inf. 65,2 % of the salary "eat" a PIT. If instead of the creditors
will be individual businessman, which simply employs team, the real wages, most likely, will be it is even
less. Though the businessmen also groan from the taxes, but the PIT in any case is paid from the salary of
team. Individual businessman they such. They work for real profit or at all do not work. The solvent people
without work will not be gone and suffering the hired workers who have stayed without earnings, and their
family will be main. -Inf - 10%. The real earnings will make 54,5%. A PIT "eat" 45,5%. -Inf - 25%. The Team earns a zero. On a PIT it is necessary 100% of the salaries. The work loses any
sense
It is possible to count variant, when the small team builds the house from expensive components (a CP - 10
mCRs) also sell for 13 mCRs. Then at a zero Inf the salary - 0,5 mCRs. And already at a Inf 11 % - salary
- zero, since. A PIT is equal 0,55 mrs (0,5 mCRs). The Problem of the salaries is decided similarly to example with a working capital.
-Inf - 15%. A CP - 10 mCRs. Realization - 14 mCRs or 16,1 mrs. A CP on the moment realizations - 11,5 mrs.
The AC - 4,6 mrs or 4 mCRs, as at a zero Inf, as was required. The taxes - 2,3 mrs or 2 mCRs. The pure rest
- 13,8 mrs or 12 mCRs. To the creditors - 11 mCRs. To team - 1 mCR. The real wages after tax reform will not
depend on a Inf, since the PIT disappears. Your chances grow by a purchase of an apartment in the same house
repeatedly.
After tax reform production becomes favourable and fast growing. It will create many new jobs. It will
need many experts certain specialities. If your speciality is not in demand, Individual Businessman
(IB) will test You, signs on work and restudy, because it is FAVOURABLE to him. Will pay the competitive
salary. Or you will go other IB, which too wants you give BENEFIT for itself. He would like, that his
nterprise produced a profit, the shares grew in the price. He would like faster to settle up with debts of
ld standing, to collect new to expansion of business. IB with duties works more effectively, because is
afraid to lose that that has. The nature of capitalism is those. The life is those. Than it is more IB, the
more choice. At us already was unique "IB"- state, which paid very small. Partly therefore country has broken
up, the system has exchanged. And for the hired workers main to have an opportunity to change IB, ability and
readiness to be retrained. Or to create the own enterprise, if not it would be desirable to work on IB
It is possible to build factories, to modernize the unprofitable enterprises and to create new jobs. If you
IB, at what tax system you will bring more advantage to yourselves and society?
Tax reform. Practice
A Problem of a CC, which on the majority of the enterprises in some times there is more WC,
it is possible to decide already today without cardinal reform of tax system. The decision of government
suffices about application of a CR in the tax reporting, which confirm Duma - Russian Parliament. And then
a problem CC will be really decidedA Problem of a WC to decide more difficultly than problem of a CC, since all costs it is necessary to
consider in two currencies: roubles and CR. If not is received to decide it at once and for ever, it is
possible in times to reduce its acuteness (witticism). For the beginning it is possible legislatively to
allow indexation of a WC if not daily, not weekly and not monthly, then quarterly. Quarterly indexation is
equivalent to decrease (reduction) of annual inflation in 4 times! As far as thus the burden of a PIT will
decrease! It only first step, but the government owes It to make. The following steps further should
followIndexation of a WC. Inflationary expectations. The long-term contracts.Some years back have read about
economy of USA. It basically works by the orders. It helps Small Business (SB) (60% engaged, 40% of
a gross national income). At SB the size turnaround is limited. The capital (WC), is not present means for
advertising and progress of production. The customers - resellers want to earn and risk the own WC. In
general (common), the role of an another's WC is essential. In turn SB expects percent (interest) minimum
advance payments. In default customer can fast be realized (sold) under the lowered price production to other
buyer to restore the WC and to remain at the interests. Normal distribution is brave also of profits.
Increase of employment and volumes of economy.The Inflationary Taxes are specially named Parasitic. they, in literal sense, parasitize on the
majority of the Russians, braking growth of economy and standard of living. I do not assert, that the state
the main party in fault of inflation. It is a general (common) problem. But the state can and should refuse a
PIT. Why the people should suffer from from what, basically, it is possible to get rid.The constant Currency (Index of the Prices) should be really constant, i.e. to have Rate and
Unchangeable Date of Readout. Only thus it is possible to name it constant. Come across sometimes expression
"in Constant Roubles or Dollars of 1961, 1967 or 2003 Year"
"Has wandered" under the internet slightly before that as has decided to create a site, concerning themes of
Constant Rouble. On to "Constant Roubles, Dollars or Sheikels". Tried to find a mention about Unchangeable
date of Readout. Has not found. Can be badly searched
On to the Inflationary Taxes mentions are. But has not found, as of them to get rid. On different forums
set questions on a CR and the inflationary Taxes. Sometimes answered, that it is all for a long time
it is known, what for to invent "bicycles", but never have named concrete source of the information.
Has found a mention of the interest Rates on an Index of the Prices in Israel. Anything concrete read
about it could not. Has set this question on one of Israeli Forums, but answer has not receivedRUSSIAN ANALOGUE
The mortgage begins with comparison of variants. Here 4 comparative tables with percentage by the rates -
0; 1;... 18; 19%/years and with terms of crediting - 5, 10, 15, 20, 25, 27 and 30 years:
1 - Monthly Fixed Payments (MFP)
2 - Factors of Credit Status (FCS). With the help of a FCS it is possible to expect as the much as possible
allowable sums real estates
3 - Sum of a MFP for all term of crediting
4 - Sum of percents (interests) for all term of crediting
