13.3 A Better Tax System
275
is growing exponentially. A short time ago, it amounted to 3% of the overall energy
consumption, but by the year 2030, the percentage is expected to be above 20%.
24
Most importantly, however, we should realize how much less taxes we would have
to pay
– if there was no inflation,
– if we did not have to pay interest rates on government debts,
– if we would not have to spend a lot of money on defense,
– if the tax system would be simple and effective,
– if administration would be digital and slim.
In such a system, the taxation level would drop dramatically. In fact, if we managed
to establish world peace, military spending would drop and prosperity levels would
raise significantly. A Tobin tax
25 on financial transactions is already being discussed
for a long time, and in some European countries, it seems to be on the way.
26 When
the next financial crises looms, a reset of the financial system would be unavoidable.
Debts would have to be forgiven. And a simplification of administration would be
surely possible, if we had a new social contract, including basic income.
13.4 Universal Basic Income
With the next wave of automation, based on robots and AI, many expect dramatic
changes in the job market. Some even expect mass unemployment. This is often
framed as dystopia. However, it could also be a chance to liberate humanity. Robots
could do dirty, dull and dangerous work for us, and provide us with the basic goods
and resources needed for our every-day life. This would allow humans to focus on
social, environmental and cultural issues.
Many have proposed basic income as a means to take away the existential threats
connected with the digital age. To some extent, it would be the “helicopter money”
that the central banks have been talking about so many times, but never had the
courage to introduce. Everyone would get it, so these payments would not have to
be administered and approved.
Universal basic income would have many benefits:
27
24 How to stop data centres from gobbling up the world’s electricity, Nature (September 12, 2018)
https://www.nature.com/articles/d41586-018-06610-y.
25 See https://en.wikipedia.org/wiki/Tobin_tax.
26 Watered-down Tobin tax could enter into force in 2021, Euractiv (June 11, 2019) https://www.eur
activ.com/section/economy-jobs/news/watered-down-tobin-tax-could-enter-into-force-in-2021/.
27 From unthinkable to universal: Universal basic income gains momentum in America,
The Economist (August 8, 2020) https://www.economist.com/united-states/2020/08/08/universalbasic-income-gains-momentum-in-america.
275
is growing exponentially. A short time ago, it amounted to 3% of the overall energy
consumption, but by the year 2030, the percentage is expected to be above 20%.
24
Most importantly, however, we should realize how much less taxes we would have
to pay
– if there was no inflation,
– if we did not have to pay interest rates on government debts,
– if we would not have to spend a lot of money on defense,
– if the tax system would be simple and effective,
– if administration would be digital and slim.
In such a system, the taxation level would drop dramatically. In fact, if we managed
to establish world peace, military spending would drop and prosperity levels would
raise significantly. A Tobin tax
25 on financial transactions is already being discussed
for a long time, and in some European countries, it seems to be on the way.
26 When
the next financial crises looms, a reset of the financial system would be unavoidable.
Debts would have to be forgiven. And a simplification of administration would be
surely possible, if we had a new social contract, including basic income.
13.4 Universal Basic Income
With the next wave of automation, based on robots and AI, many expect dramatic
changes in the job market. Some even expect mass unemployment. This is often
framed as dystopia. However, it could also be a chance to liberate humanity. Robots
could do dirty, dull and dangerous work for us, and provide us with the basic goods
and resources needed for our every-day life. This would allow humans to focus on
social, environmental and cultural issues.
Many have proposed basic income as a means to take away the existential threats
connected with the digital age. To some extent, it would be the “helicopter money”
that the central banks have been talking about so many times, but never had the
courage to introduce. Everyone would get it, so these payments would not have to
be administered and approved.
Universal basic income would have many benefits:
27
24 How to stop data centres from gobbling up the world’s electricity, Nature (September 12, 2018)
https://www.nature.com/articles/d41586-018-06610-y.
25 See https://en.wikipedia.org/wiki/Tobin_tax.
26 Watered-down Tobin tax could enter into force in 2021, Euractiv (June 11, 2019) https://www.eur
activ.com/section/economy-jobs/news/watered-down-tobin-tax-could-enter-into-force-in-2021/.
27 From unthinkable to universal: Universal basic income gains momentum in America,
The Economist (August 8, 2020) https://www.economist.com/united-states/2020/08/08/universalbasic-income-gains-momentum-in-america.