Viser arkivet for stikkord tax

Scaling of tax income/expenditure.

We subsidize that which give a tax income in the future. More specifically in this case we subsidize making children because more population provides more tax income.
This is a practice that provides diminishing returns. I will explain how.

Things scale up differently. For example, weight of a bone scales up as a volume (X*Y*Z), but the strength of a bone scales up as a surface (X*Y), because the strength of a bone is that of the cross-section of the bone, but the weight is that of a three-dimensional structure of bone-molecules.
Similar differences in scaling up exist in society. More importantly for our case, how the infrastructure and population scales up.
The population scales up in an exponential curve. And there’s really not much to limit growth in industrialized countries, not taking future housing and infrastructure into account.
The work-ability of the population does not increase exponentially at the same time as the population. Each new child has to grow for X number of years before the child can join the workforce. So While you can double population in 7 years, if you did so, you would have at least 50% of the population consisting of 1-7 year old children that can’t join the work-force for another 10 or so years.
Infrastructure also has problems with scale. Road-networks gain capacity as a function of area used, with slight diminishing returns due to an increasing number of stops and traffic-lights etc. Electricity grids gain capacity as a function of area of the cross-section of the connection between the consumer and producer. Water and sewage gain capacity as a function of height from source to destination as well as pipe cross-section area.
Buildings also do not scale linearly. So as population increases housing becomes more and more expensive at an increasing rate, not even counting psychological market forces, and hospitals become exponentially more expensive to build and run as they grow in height and area.
If how all these things scale up are put on a chart it is easy to spot the cause of many of the problems we have today. Algorithms can also be used to calculate optimal population growth/stagnation/decline. There may be conditions in which a declining or stagnating population provides an improvement in the potential tax-income-growth/tax-expenditure-growth ratio (I say potential to indicate that this tax income/expenditure growth is only based on population growth, infrastructure growth, etc, not tax law or actual welfare expenditure).
The country with the highest potential tax income growth to potential tax expenditure growth ratio is the country that can increase the quality of life of its citizens most in a set time period.

Another emerging series of technologies together termed Rejuvenation Biotechnology will allow scaling up of the lifespans of populations with drastic consequences. It is a competitor to subsidizing children to ensure future tax income.
Children costs 20 years of growth and education and tax cuts to parents, and then start at the bottom in pay-scale. If however a 60 year old person is made to be 40 years old, that person will have the paycheck of a 60 year old and tax-expense of a 40 year old. This may sound far-fetched, but it does not require reversing growth or spinning the planet backwards. Because growth stops at around age 25, the only thing that changes the body after that is accumulation of 7 types of damage. One substance that accumulates over time is 7-Ketocholesterol, it accumulates in the cells and eventually makes the cell-processes not function properly like they do when you are young. All that is required to “reverse age” is all else being equal to remove some of that 7-Ketocholesterol. No understanding of the underlying system that made the 7-Ketocholesterol is needed, and no intervention in how the body actually works is needed. It is like removing rust on a car to make it usable for another ten years, instead of going into all the expenditure of making a new one.
This also does not have the increased tax expenditure from all the things that must be scaled up when scaling up population by childbirth.
Over the next hundred years Rejuvenation Biotechnology will become the main way that governments assures and predicts future tax income. The fools who do not will die of 7-Ketocholesterol and leave the world to the new superpowers: The nations that successfully controls the health of their population can have the most welfare, lowest taxes, best business incentives, largest and most modern army, all at once.
Any nation (even poor ones) that implement Rejuvenation Biotechnology will outclass the best possible nation that does not implement Rejuvenation Biotechnology.

For more information about Rejuvenation Biotechnology, read the book Ending Aging, by Aubrey de Grey, PhD. And click the bar at the top of the screen and donate to Sens Research Foundation, who are in the process of developing a way to remove 7-Ketocholesterol from humans safely.

EDIT 02 August 17:14. Changed a piece to better convey the point without an inaccuracy in how populations scale. The new section reads as follows:
The population scales up in an exponential curve. And there’s really not much to limit growth in industrialized countries, not taking future housing and infrastructure into account.
The work-ability of the population does not increase exponentially at the same time as the population.

NAV is there to NOT distribute money?

The Norwegian welfare system is elegant in its stupidity. Much of the employees in the welfare office believe they are there, getting paid with tax-payers money, so that they can prevent people from getting money, that they get paid to NOT hand out money. But perhaps they are correct, perhaps it is better to not hand out too much money. Lets:

1. Fire all “NAV”-employees and save the wages they would get.
2. Give the doctors and psychiatrists the ability to decide if you should have sick-pay.
3. Get the employers to tell people without work what they have to do, what they have to learn, to get a job in the employer’s corporation.
4. Tax the corporations 1% on profit extra if unemployment is 1%, 2% tax if the unemployment is 2% etc, and use that money to pay the unemployed.

PS: I would also:
5: Top income tax bracket 3 at 950 000 NOK per year and up, at 18%.
6: Spend the money from top income tax bracket 3 on medical research to extend life.