I think everyone feels and knows that something must be done to simplify the taxation process. The republican candidate Herman Cain came up with a simple 999 taxation system roughly to mean 9% individual tax, 9% sales tax and 9% company tax.Well it is simple enough right?
Let me tell you something interesting about this number 9. When you multiply all other numbers in the decimal system except zero (1-8) by 9 and add all the digits of the result you got till you reach a single digit number, you arrive at the number 9 again! We can say that all other numbers in the decimal system finally end up as 9 – hence the number 9 is a black-hole of all other decimal numbers!? Or does it represent Circle of Numbers?
We all know the Herman Cain has a distinguished career as a mathematician. Is he conjuring a 999 taxation system that can eventually supersede all other taxation systems in the world?
Let me stretch this 999 plan a little bit to the entire world – world consisting of FIVE elements that we all exist on: Fire, Air, Land, Water and Space. UN security council also has FIVE nations as permanent members. Theorizing the possible extension of 999 plan to all these five nations, are we close to having a global taxation system that can truly make this world as one nation with one taxation, removing all types of trade barriers across nations to achieve one global economy with one global currency? Am I dreaming here or stretching this too far from reality? If you say I am dreaming, how did Europe come up with a single currency across all European countries? Is it not the case that the Internet is making a global economy possible, realizable and implement-able?
In any case, the anomalies that exist now in trading are because of the ways in which the taxation is implemented differently in different parts of this world. Or is it simply because of the way in which we have translated the goods and services that a nation provides – in its monetary terms? The answer is, yes.
Hence, it is possible to conclude that a good taxation system is necessary to make these goods and services more valuable when compared to similar services provided by other nations. However, a good taxation system also means the governments do need to exist to provide support to valuable infrastructures for transportation, security, education and governance of the nation.
Be it be 999 plan from Cain, or be it be a plan borrowed or gleaned from other taxation systems around the world, the contribution to taxation needs to be equitable irrespective of the estimated or perceived income of an individual or an organization. Don’t we see many charitable organisations receiving funds in varying amounts depending on the wealth of an individual? If so, why not taxation be the same way if the governments can be perceived as charitable organizations providing roads, security, education and governance?