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Chapter 6: The advantages of the new economic system
Following other advantages occur, too, when we have built above-mentioned new system.
Tax system reforms become possible. That is, banks report the total sum of income which the records of cash bank accounts show to tax offices. Then, the owner of a cash bank account open his own privacy from himself based on records of his cash bank accounts and applies for a tax deduction. Based on above, tax offices perform progressive taxation. As the result, the taxation system becomes glass-faced and the unfair taxation system is broken up. Simplification of office work about the tax payment becomes possible. They introduce the aggregate income tax and substantially the taxpayer number system (cash bank account numbers are suitable for the number). On the basis of these systems, it becomes possible to reform the progressive tax rate and so on in the desirable direction. They will lower tax rate instead of their grasping more percentage of people's income. Also, it becomes possible to make improvement to transfer consumption tax from a cash bank account of the consumer to a cash bank account of the government directly when people do consumption. Tax evasion becomes difficult and tax revenue will increase. They can't grumble because a right to evade tax doesn't exist.
The information on cash bank accounts could be used for crime investigation, too. Because our society becomes more urban and difficulty with the crime investigation is increasing. On the condition that they get the judicial warrant from the authorities, the Diet should open the way to read records on cash bank accounts of the specific person only in the specific date and time for police.
The bigger Japanese economy becomes by donation of the value-capital and economic growth, the more value-capital the government can donate to maintain the economic growth. When that makes room to donate more in the future, we could donate the value-capital for promoting public welfare. That is, they donate the value-capital with constant amount which can be used only for public welfare and medical care (of course, it is possible to buy medicine, too) according to the economic state of the year.
Moreover, they make it possible to save it and transfer to the relatives while they donate the value-capital. I decide to call this the welfare value-capital. By this, we can use the saved value-capital as the fee of nursing and so on in the old age. Then, they train up those who passed the qualification test about public welfare in quantities and bring up welfare industries according to the state of progress of aging and saving. However, they give the welfare value-capital according to the economic state of the year and they can decrease it. Therefore, cyclical adjustment by the welfare value-capital becomes possible.
In the present situation, ant cyclical measure by usual value-capital has priority but when Japanese economy makes further progress and has room to donate more, they should consider donating the welfare-value capital. I think the welfare value-capital is a bonus to the people. It will be necessary to make the new system prepared for the welfare value-capital beforehand.
It is possible to solve trilemma of Japanese economy by the new system. First, it is possible to get rid of the economic slump by the introduction of the new system. With it, some bad loans change to good bonds and the realization of reform of financial systems becomes easier. Still, as the value-capital does not need fiscal resources and we can expect increase of tax revenue by the economic recovery, it becomes possible to solve the problem of financial deficit and the government debts.
I attempt to put the merits of this new system in order from the viewpoint of the people, the state, companies, retail stores and banks. Payment becomes more convenient with electronic money, housekeeping becomes easier by receiving the value-capital, a taxation system is simplified and property management is streamlined. Booms, increase in employment and increase of our income will be realized.
For the state, introducing the cutting-edge system will be anticyclical measures, the new system does not make the finance worse, the restoration of finance of the government becomes possible, the routine works of tax payment offices will be streamlined, there will be increase of the tax revenue, the crime investigation is helped and they can manage the currency. Then, the Bank of Japan can avoid a load of doing anticyclical measures and can concentrate on the duty of " the watchman with prices and currency".
For companies and retail stores, consumption expands, economic growth makes the pie bigger, they could avoid the intricacy of handling usual money, the danger of cash transportation declines and it could be possible to expect the decline of tax rate, too.
For banks, they could avoid the intricacy of handling usual money, they can do businesses by using records on cash bank accounts and they can get the fee for managing cash bank accounts. Conventional systems don't change drastically. Bad loans could change to good bonds.
As above mentioned, the new system has immeasurable merits for the whole Japanese economy, the new system is a realistic policy and we can sufficiently construct it by present technology. Technology beyond the technology used by experiments done extensively on electronic money and electronic settlement isn't needed. The government should promote my policy as a national enterprise. Also, if realizing the stabilization of the financial system, the disposition of bad loans, administrative reforms and so on simultaneously with the construction of new system, Japanese economy must recover forcefully and achieve further leap. If constructing the new system as public investment, construction itself becomes an economic policy for economic recovery, too.
Then, for the enforcement of the new system, simulation by computers will be essential. Also, as it becomes a big reform, experiments may be necessary. How about experiments in Hokkaido or Okinawa? The construction takes time and effort because Hokkaido is wide but they will clearly find its influence on industries. In Okinawa, the construction will not take time comparatively. To make people understand the cutting-edge system, popularization and activities to guide will be necessary to construct.
After constructing the new system on whole of Japan, at first, they admit changes from records on cash bank accounts to currency. Then, after a while, they prohibit changes from records on cash bank accounts to currency. Then, they will have a definite date to prohibit changes from currency to records on cash bank accounts and rob mandatory circulating power of money and annihilate currency. Simultaneously with this process, in the overseas, they change old currency to new currency which can be used only overseas.
In the step that the new economic system in Japan is complete, in the future, we have no coins and bills, and when foreigners bring the new currency into Japan, it will be changed to records on cash bank accounts. Also, at least one terminal will be placed in all families. They should help purchase of PC and acquisition of PC skills.
The new system has a demerit that the value-capital cannot be immediately donated because there is need to construct. The conventional economic policy bridging the interval will be necessary with considerable degree. However, the hope, the new system, can bridge over the tomorrow. My economic policy is progressive but sure economy recovery plan. Japanese people will be able to set their hopes on the future of the cutting-edge system.
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