Canada Kicks Ass
Monetary & Taxation Reform

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Scott Yee @ Fri Jan 27, 2012 10:22 am

- I purpose to eliminate all federal taxation, and allow provincial governments to tax up to 90% of the old federal taxation rate, so Canadians would get at a 10% tax cut; no longer having to deal with Revenue Canada, and the elimination of the GST/PST

- The removal of all federal personal and corporate taxation will be replaced with a population-based funding system (government issued money)

- Canada has an estimated population of 34 million, and I believe the federal operating budget for 2011 is $280.5 billion. Now lets say all personal and corporation made up exactly $100 billion of the federal budget. Under a population based-budget of $3,000 per person, that would equal $102 billion

- Because your looking at the creation of $102 billion into the economy, all of the increased provincial taxation will have to be extinguished. The only other way to do it, is to lower the % created by the government, so the provinces could keep more of that taxation revenue (oh though it would be less bureaucratic to also remove all provincial and municipal taxation, to be funded through a population based-budget, leaving just a single level of taxation to extinguish money issued by government)

- But for the first year of this new monetary system, provincial taxation rates will stay the same, so there can be a personal and corporate tax holiday

- As this will cause inflation, the fractional-reserve system will be reinstated to be governed by the BoC, and the reserve ratio to be set at the % needed to be taken of the banking system, therefore currency levels stay the same

I would say 99% of Canadians have no clue how our monetary system works. Which means if you are reading this, you are probably one of them, and therefore have no clue what I just said.

The $20 in your wallet is created by the government, (fiat money or bank notes) which makes up about 5%, give or take, of the money supply. Which means 95% of the money supply is created by the banking system through personal debt. (bank credit)

When a bank issues a loan of $250,000, that bank credit increases the money supply, but once that loan is paid back to the bank, that principal is extinguished, and can only be replaced by someone else taking out a $250,000 loan from a bank. Hence, if there is no debt, there is no money.

Which means we have a debt-based monetary system. And because there is interest on that debt, there is more debt in the world than there is money. So even if it was possible to payoff all the debt in the world, because debt creates money, there would be no money, if there was no debt.

This is how we have recessions, because if people lose confidence in the economy, people stop spending and borrowing, and if there is no debt, there is no money.

- All levels of government will be banned from borrowing. Only the federal government can order the BoC to issue more money, in a time of a natural disaster, etc

- Eliminate the penny, nickel, dime, quarter, and half-dollar, leaving just the loonie and toonie in circulation

- Canada’s total debt stands at $572 billion, and I believe debt-servicing charges from all levels of government in 2010 was $63 billion. I will seek an international agreement on debt forgiveness between governments; at the very least, drop all future interest payments between governments, and start paying off the debt

Now just encase it crosses your mind, yes, the government could take out $100 billion per year from the banking system, therefore paying off Canada’s debt in 6 years, without causing inflation, but that $100 billion would be at the cost of the Canadian economy, because that money is not being used in the economy.

- If a bank falls under their reserve ratio because of higher cash withdrawals, and other banks feel it is too risky to give loans to that bank, and that bank doesn’t want to call in any of its loans, then the bank will now be able to borrow from the Bank of Canada interest free

- Look into the idea of ending perpetual debt, and instead have a one time fee of the total sum of the loan

When the banking system and other financial institutions crash the system, they then go to government to bail them out, and as the government has to borrow its own money, there is interest on it, therefore putting the debt on the back of the public, and then countries like Greece has to sell their public assets to those who crashed the system.

So now the question to all of you is, what type of monetary system do you want? You can choose to continue with the money as debt system, where government spending is funded through taxation and borrowing.

Or you can choose to have the federal government create its own money to fund services, while having lower taxes because all levels of government will no longer be allowed to borrow money, which means future governments will be debt free.

The only reason why the banking system shouldn’t be nationalized, is because if it was run by the government, you’d have bureaucrats and politicians controlling the system, therefore the politicization of the banking system. That is why the banking system needs to be run by a third party, which is the private sector. Therefore, banks need to make a profit to pay their employees, interest on deposits, and to pay themselves, plus with commercial banks and credit unions competing against each other, it is probably the better system at the end of the day.

   



DrCaleb @ Fri Jan 27, 2012 10:34 am

How is Magical Unicorn Land this time of year?

   



Lemmy @ Fri Jan 27, 2012 10:37 am

Poll option #4: "You're a kook; go study economics for a few years." :P

   



martin14 @ Fri Jan 27, 2012 10:40 am

The bong is strong with Scott

   



Scott Yee @ Fri Jan 27, 2012 11:29 am

To Martin14: That's funny.

To DrCaleb: Nice and sunny.

To Lemmy: Everything I stated is true. You just lack an understanding on how our banking system works.

   



Lemmy @ Fri Jan 27, 2012 11:36 am

Scott Yee Scott Yee:
To Lemmy: Everything I stated is true. You just lack an understanding on how our banking system works.

BA (Guelph), MA (UWO), PhD (MIT)..where'd you study economics?

   



DrCaleb @ Fri Jan 27, 2012 12:55 pm

Lemmy Lemmy:
Scott Yee Scott Yee:
To Lemmy: Everything I stated is true. You just lack an understanding on how our banking system works.

BA (Guelph), MA (UWO), PhD (MIT)..where'd you study economics?


Poseur.

You need to study economics at random websites put up by people who are bad with numbers in order to understand what he's talking about. Doctorates at MIT and being a Professor of Economics for decades. . . *ptooie!*

   



Scott Yee @ Fri Jan 27, 2012 12:59 pm

I've cleaned it up, to make it easier to understand what I am saying. Never mind about the tax holiday for the first year, as it all depends on when the system was to be changed, blah, blah, blah.

The $20 in your wallet is created by the government, (fiat money or bank notes) which makes up about 5%, give or take, of the money supply. Which means 95% of the money supply is created by the banking system through personal debt. (bank credit)

When a bank issues a loan of $250,000, that bank credit increases the money supply, but once that loan is paid back to the bank, that principal is extinguished, and can only be replaced by someone else taking out a $250,000 loan from a bank. Hence, if there is no debt, there is no money.

Which means we have a debt-based monetary system. And because there is interest on that debt, there is more debt in the world than there is money. So even if it was possible to payoff all the debt in the world, because debt creates money, there would be no money, if there was no debt.

This is how we have recessions, because if people lose confidence in the economy, people stop spending and borrowing, and if there is no debt, there is no money.

- I am purposing, government issue and extinguish its own money supply, no different than what the banking system is already doing

- So the federal, provincial and municipal governments would no longer collect taxation to pay for government services. Instead, there will be a single taxation rate, to extinguish money

- A population-based funding system will be used to decide how much the federal, provincial and municipal governments would get for their operating budget

- Canada has an estimated population of 34 million, and I believe the federal operating budget for 2011 is $280.5 billion. Now lets say all personal and corporation made up exactly $100 billion of the federal budget. Under a population based-budget of $3,000 per person, that would equal $102 billion

- As this will cause inflation, the fractional-reserve system will be reinstated to be governed by the BoC, and the reserve ratio to be set at the % needed to be taken of the banking system, therefore currency levels stay the same

- As there would be no more GST/PST, eliminate the penny, nickel, dime, quarter, and half-dollar, leaving just the loonie and toonie in circulation

- All levels of government will be banned from borrowing. Only the federal government can order the BoC to issue more money, in a time of a natural disaster, etc

- Canada’s total debt stands at $572 billion, and I believe debt-servicing charges from all levels of government in 2010 was $63 billion. I will seek an international agreement on debt forgiveness between governments; at the very least, drop all future interest payments between governments, and start paying off the debt

Now just encase it crosses your mind, yes, the government could take out $100 billion per year from the banking system, therefore paying off Canada’s debt in 6 years, without causing inflation, but that $100 billion would be at the cost of the Canadian economy, because that money is not being used in the economy.

- If a bank falls under their reserve ratio because of higher cash withdrawals, and other banks feel it is too risky to give loans to that bank, and that bank doesn’t want to call in any of its loans, then the bank will now be able to borrow from the Bank of Canada interest free

- Look into the idea of ending perpetual debt, and instead have a one time fee of the total sum of the loan

When the banking system and other financial institutions crash the system, they then go to government to bail them out, and as the government has to borrow its own money, there is interest on it, therefore putting the debt on the back of the public, and then countries like Greece has to sell their public assets to those who crashed the system.

So now the question to all of you is, what type of monetary system do you want? You can choose to continue with the money as debt system, where government spending is funded through taxation and borrowing.

Or you can choose to have the federal government create its own money to fund services, while having lower taxes because all levels of government will no longer be allowed to borrow money, which means future governments will be debt free.

The only reason why the banking system shouldn’t be nationalized, is because if it was run by the government, you’d have bureaucrats and politicians controlling the system, therefore the politicization of the banking system. That is why the banking system needs to be run by a third party, which is the private sector. Therefore, banks need to make a profit to pay their employees, interest on deposits, and to pay themselves, plus with commercial banks and credit unions competing against each other, it is probably the better system at the end of the day.

To Lemmy: So you see, what I want to do, is no different than what the banking system is already doing. To piss on my system, is to piss on the current banking system.

Check mate, I win the debate!

   



DrCaleb @ Fri Jan 27, 2012 1:07 pm

[popcorn]

   



Lemmy @ Fri Jan 27, 2012 1:15 pm

Scott Yee Scott Yee:
To Lemmy: So you see, what I want to do, is no different than what the banking system is already doing. To piss on my system, is to piss on the current banking system.

Check mate, I win the debate!

I'm not pissing, nor want to piss, on anyone or anything (I was going to add a caveat about pissing on a Habs' jersey, but I already dry my ass every morning with a Canadiens' towel). It's Friday night. Let's go hit the bong and listen to some old Velvet Underground records.

   



raydan @ Fri Jan 27, 2012 3:37 pm

I worked 23 years in the banking industry... I had a laugh reading your post Scott. :lol:

   



CDN_PATRIOT @ Fri Jan 27, 2012 3:43 pm

Scott Yee Scott Yee:
Check mate, I win the debate!


There was a debate? [huh]


-J.

   



Regina @ Fri Jan 27, 2012 3:59 pm

Your village called........................

   



2Cdo @ Fri Jan 27, 2012 5:02 pm

DrCaleb DrCaleb:
Lemmy Lemmy:
Scott Yee Scott Yee:
To Lemmy: Everything I stated is true. You just lack an understanding on how our banking system works.

BA (Guelph), MA (UWO), PhD (MIT)..where'd you study economics?


Poseur.

You need to study economics at random websites put up by people who are bad with numbers in order to understand what he's talking about. Doctorates at MIT and being a Professor of Economics for decades. . . *ptooie!*


But Scotty is an honours grad from Wiki U! :lol:

   



Canadian_Mind @ Fri Jan 27, 2012 5:18 pm

Scott Yee are you fucking inbred?

The 20 in your wallet is not money the government made. It is merely a representation of wealth and value, a position that used too and still kind of is occupied by gold.

Printing more money does not make more wealth and value. The wealth and value represented by money stays the same, just that the amount of money representing it increases. So yes, now you can say it is worth more money, or conversely, you could say that the money is worth less. Either way, it's called "Inflation," and doing it on a rapid basis, ala post WWI Germany, or Zimbabwe, is called Hyperinflation.

While printing money will get the government out of debt, it will collectively make you and I and all of us very poor. Just as poor as if the government just up and took all the money they needed to pay off the debt right out of everyone's pockets.

Now that you've had this little economic lesson, courtesy of CKA, kindly fuck off with your idiocratic lunacy.

   



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