Here are a few ideas that may make some sense. And they can all be improved upon to make more sense and be implemented. You don't have to burden the mass with additional taxes. Look for other ways to balance your budget. To do this, you cannot look ONLY at 2011. What happens after 2011? Will you miraculously be able to balance future budgets?
A novel way to deal with the budget is by borrowing the 2011 short fall from the taxpayers, Problem is, before we lend you the money, you MUST show us a decent projection of income and expenses. You must prove that there is really a way out of this financial crisis. If you can do that, then you can come up with a crisis tax.
That crisis tax can be 5% of gross salary from the workers and 2.5% of sales from the business, That can be for a 3-year period, IF the situation requires it. After that 3-year period, you pay it back over a 4-year period with a 5% interest to offset possible devaluation. The worker, who paid Fls. 3000 over the 3-year period, would get Fls. 3,150 in tax reductions over a 4-year period.
Additionally, change the Turn Over Tax to a Consumption Tax. I believe that government could raise more money and the mass will not be burdened as it is now.
Let me try to explain Importer buys an item for $100 He sells it to reseller for $140 plus 5% sales tax. ($7 sales tax goes to government) Reseller sells it to consumer for $200 plus 5% tax (of that $10, $7 stays with reseller for what he already paid to government and remaining $3 goes to government) In this case, reseller does not have to raise his prices to the consumer and the consumer ultimately pays the tax. All services that are now subjected to TOT would be subjected to the 5% consumption tax.
Clifton R. Wilson
