Some Thoughts on Simplifying Some Policies
Any sufficiently modern and advanced country should be able to run its government entirely on basic algorithms. Need more money to pay the bill, raise taxes, want a larger army determine what to do. And still be able to offer all citizens a good life, and in fact the life they want to live.
All you have to do is look at the relative lack of difference major policies have on the average person outside of money. There are then knock on effects but those could easily be avoided.
An economy and government should be simple in the grand scheme of things for a modern country
- Reward those who contribute, fairly
- Help those who have no choice
- make opportunities available for everyone
- Let people live their lives
This is not some call to eliminate billionaires, but rather to look at rewarding what we should reward vs just being lucky. And put some real ideas for using algorithms for government, not just ideas that benefit some corporation.
Tie Congressional Pay to GDP
While I don’t love GDP as a metric, it is helpful and many people accept it. So why not tie congressional pay to the per capita GDP, say some multiple of it like 1.5 or 2 or even 3x. This would incentivize congress, at least in theory, to increase the per capita GDP and not just the overall GDP. This could obviously have some problems but is better than letting Congress determine their own pay.
Taxation Based on GDP
Similar to the congressional pay idea, we could also do taxation based on the same GDP per capita or median income. Simply base the tax rates on how many multiples of the GDP per capita your income is at, no having to set the tax rates each year. These tax rates should also change based on how large the deficit is.
Corporate Tax Rates Based on Good Things
If we want to incentivize corporations to pay their workers more, why not give them a tax cut to do so. This would first start with a simplification of corporate tax law, to some higher base tax rate with options to reduce it based on different positive incentives.
Lower CEO to Worker Pay Ratio: If the CEO or other executives in a company are being paid closer to normal workers then lower their tax rate.
Employee Owned: If a company is owned primarily by its active “normal” employees then it should pay less in tax, as more of its benefits have the possibility of going to the employees rather than the executives.
Tax Based on Number of Employees: Tax larger companies at a higher rate than smaller companies. This would in theory incentivize companies to be more focused a few areas rather than trying to do everything.
None of these are particularly complicated, but would simplify setting tax rates and incentivizing corporate practices without having to have complicated policies.