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        Opinion / Blog

        The best solution for honest capitalism

        By KIyer (blog.chinadaily.com.cn) Updated: 2015-05-07 15:08

        At the outset I must stress that I believe a combination of socialist and capitalist policies is best for society to thrive and prosper. 

        In the capitalist area of society, I want to outline my idea of an ideal and fair tax system. 

        Firstly, I would like to address the capitalist portion as it relates to the socialist portion. 

        One necessity for addressing some of the socialist portions of a good society would be for the State to provide facilities and resources to all citizens, with variations depending upon individual needs, but by and large, spread over a population; it is possible to calculate average costs per individual, plan and budget for these. The social responsibility for individuals would cover areas such as security (policing), infrastructure (roads, water, electricity and these days Internet), defense and health (medical facilities).

        As one would expect, profit from capitalist ventures is taxed and funds a portion of socialist policies. But it does not need to be entirely so. There can be common owned assets that function in a capitalist manner to provide employment and benefits.

        Now I want you to consider the following questions. I am asking them to provoke thought and for us to question the meanings of terms normally associate with them. I find that things are not straightforward as we like to think they are.

        1) Would we agree that the socialist portion tries to address the varying and common needs of people not able to fend for themselves in society, those that are not productive citizens - such as children, the disabled, sick and elderly? 

        2) Would you agree that the responsibility to support and pay for them should be equal upon the rest of the population?

        3) When it comes to social services such as policing, water, roads, defense etc that society provides, do you agree we all should get the same irrespective of income?

        I mean, you don't surely agree to a person paying more taxes getting better police protection, more access to public roads, more public facilities than others, do you? When we see some “rich people” or “celebrities” or people with influence being showered with government funded resources, it makes us mad. Why? Did any or many of them pay a lot more in taxes? Would it not be fair then, if they got back more?

        4) Do you also agree that people that work harder or contribute more are more enterprising, should rightly keep their earned wealth? 

        Then why do we tax the wealthy more? Even if it is a percentage of their earnings of profit, governments use the specious logic - they made that much under the system and that their fair share of tax should be higher! No, people should make their wealth through their own efforts government should only provide a level playing field and same laws for everyone. Ideally, everyone would pay equal taxes - an equal, fixed amount, not even a fixed rate or percentage of their earnings. Why is a harder working, honest richer person more liable to pay for others? Yes, that is the law now, but let us mentally question why that is fair? If it is not, let us acknowledge at least, even if we cannot change it.

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