Handover of Power - Finance E-Book

Andreas Seidl

• Herausgeber: Books on Demand
• Kategorie: Fachliteratur
• Serie: Handover of Power - Global Version
• Sprache: Englisch
• Veröffentlichungsjahr: 2022

Seitenzahl: 195

Beschreibung

Finances rethought Do you sometimes worry that your descendants will be able to afford less in the future? And do you also want an investment that will bring you and your environment long-term profits? What financial policy can protect domestic purchasing power from global redistribution on the financial market? This book tells us: ... how a Central Bank with four Note-issuing Banks can ensure full employment and stable prices because four currencies hedge each other against risk. ... how a state budget can manage without debts and be distributed by the population in an annual voting process. ... which path the savings can take if there is a state bank with accounts for generations as well as stock exchanges for domestic citizens' companies and ideas. After 20 years of work on this book series, Andreas Seidl thus ventures a step towards founding a party. In doing so, he entertains his readers both intellectually and visionarily. If this work can give you hope, inspire you or move you to action, it has fulfilled its purpose. Available in German and English

Leseprobe

For You

Volume 1: Summary

Volume 2: Derivation

Volume 3: Constitution

Volume 4: State Organisation

Volume 5: Digital

Volume 6: Media

Volume 7: Labour

Volume 8: Planned Economy

Volume 9: Social Market Economy

Volume 10: Barter Economy

Volume 11: Free Market Economy

Volume 12: Finance

Volume 13: Innovation

Volume 14: Education

Volume 15: Health

Volume 16: Infrastructure

Volume 17: Security

Volume 18: Justice

Volume 19: Foreign Affairs

Volume 20: Integration

Volume 21: Family

Acknowledgements

My thanks go to my family and friends who have made me who I am today. Special thanks to all those who supported me in writing this book. I would like to thank all my classmates, teachers, fellow students, lecturers, demonstrators, activists, colleagues, companies and countries with whom I have had the privilege of sharing the experiences from which all the ideas in this book have emerged. I would like to thank the staff of Books on Demand for their kind helpfulness. I thank the citizens of Seligenstadt for the harmony and solidarity in which I was able to write.

Foreword

This policy concept contains a variety of proposals for possible political reforms. It can be peacefully and democratically adapted to any current political system of any state in the world, but also to political systems in families, clubs, associations or companies. Wherever humans make or submit to rules that manage living together, the following proposals can be helpful. Readers who find the proposals so helpful that they would like to implement them together with like-minded people can contact the author. The contact form on the last page can be used for this purpose.

Faults and defects

I ask for your understanding that this volume was not professionally proofread. I could only afford professional proofreading for the summary. Spelling errors and unfortunate phrasing may therefore occur. As soon as this volume has sold enough to pay for a professional proofreading, it will be done. After that, a new edition will be published.

English version

Please understand that this volume has been translated automatically. I could only afford a professional translation for the summary. Poor wording and spelling errors may therefore occur. In case of doubt, the German version shall prevail. As soon as this volume has sold enough to pay for a professional translation, it will be done. After that, a new edition will be published. It was more important to me that no one in the world should have an information advantage than individual translation errors in the complete work.

References

If something has been quoted directly, it is set in italics. If the headings contain footnotes, the sources for direct and indirect quotations apply in the chapter for which the heading stands. Otherwise, quotations or source references are directly at the word or at the end of the sentence or paragraph. This book contains parts of text based on the Federal Constitution of the Swiss Confederation of 18 April 1999 (as of 12 February 2017), abbreviated to BV1 and the Constitution of the Canton of Bern of 6 June 1993 (as of 11 March 2015), abbreviated to KV2.

If the constitutional paragraph, or individual paragraphs thereof, are based in whole or in part on extracts from the BV or KV, this is indicated in a footnote. The references to the corresponding footnotes for constitutional paragraphs are usually found after the heading of the affected chapter and sometimes in the body of the text. Articles used in the Swiss constitutions are listed in the footnote with a number after the title of the constitutional paragraph. Example: §123 Sample title: BV Art.123, KV Art.123.

All internet sources are fully cited in the footnotes. They were last accessed on 30.09.2021. All literature sources are also listed in full in the footnotes.

All references to tasks undertaken by other ministries and described in more detail there are given in footnotes. Example: Model Ministry - 1.2.3 Model Chapter.

All footnotes are to be viewed in comparison to the respective source, so-called indirect quotations. Direct quotations are set in italics, but hardly ever occur. The source reference is intended to enable further investigation and to take copyright into account.

1 This is not an official publication. Only the publication by the Swiss Federal Chancellery is authoritative. https://www.fedlex.admin.ch/eli/cc/1999/404/de On 14.12.2021

2 This is not an official publication. The Bernese Official Collection of Laws is authoritative. https://www.belex.sites.be.ch/frontend/versions/2420?locale=de#ART71 On 16.12.2021

Table of contents

Goals of the Ministry of Finance

Departments

2.1 Central Department

2.1.1 Staff

2.1.1.1 Staff remuneration

2.1.2 Organisation

2.1.2.1 Audit services

2.1.2.2 Budget management

2.2 Management Department

2.3 Budget Department

2.4 Finance Department

Tasks of the Ministry of Finance

3.1 Theory of the state as a company

3.1.1 Citizens as consumers, owners and workers

3.1.2 Economic cycle

3.1.3 Advantages

3.1.4 Goals

Tax Office

Tax policy

5.1 Value added tax

5.1.1 Payment methods

5.1.2 Scope

5.2 Business tax

5.2.1 Entrepreneurial activity

5.2.2 Business forms

5.2.3 Cash

5.2.4 Shares

5.2.5 Sales tax

5.2.5.1 Example cash in circulation

5.2.6 Profit tax

5.2.6.1 Example securities trading

5.2.7 Business taxes in the economic forms

5.2.7.1 Double taxation

5.2.7.2 Tax harmonisation

5.2.7.3 Switching tax

5.3 Tariffs

5.3.1 Tariffs with emerging and developing countries

5.4 Tax on assets

5.5 Tax account

5.5.1 VAT account

5.5.2 Company tax account

5.6 Tax Directory

5.7 Company Auditing Agency tax auditor

5.8 Tax reduction

Unconditional Basic Income

6.1 Machine fees

6.1.1 Calculation of the machine fee

6.1.1.1 Human labour costs

6.1.1.2 Costs for machine work

6.1.2 Automation fund

6.1.3 Funds of the Unconditional Basic Income

Budget consolidation

7.1 Financial and burden equalisation

7.1.1 Regional specifics

7.2 Savings deposits

7.2.1 Compound interest

7.3 Debt conversion

7.4 Debt reduction

7.4.1 Debt reduction options

7.5 Balancing the business cycles

7.5.1 Business Cycle Compensation Fund

State revenues

8.1 Taxes

8.2 Fees

8.3 Assets

8.4 Profits

8.4.1 Offices and authorities

8.4.2 Natural monopolies

8.4.3 People’s Innovation Company

8.5 Debts

8.6 Increase money supply

8.7 Principles for the distribution of state revenues

State expenditure

9.1 Financial plans of the ministries

9.1.1 Visualisation on the intranet

9.1.2 Review of the financial plans

9.2 Cabinet draft budget

9.3 Budget Committee

9.4 Election campaign

9.4.1 State television broadcasts

9.5 Budget vote

9.5.1 Ballot paper

9.5.2 Rejections

9.5.3 Basic amount

9.5.3.1 Change costs

9.5.3.2 Reduce costs

9.5.3.3 Reject service

9.5.3.4 Distribution of business taxes

9.5.4 Project amount

9.5.4.1 Favourite projects

9.6 Tax game

9.6.1 Goals

9.6.2 Levies paid

9.6.3 Distribute expenditure

9.6.3.1 Satellite view

9.6.3.2 Control bar

9.6.3.3 Search

9.6.3.4 Presentation of the services

9.6.3.5 Updates

9.6.3.6 Rating

9.6.4 Statistics

9.6.5 Import of the voting data

9.6.6 End of the game

9.6.7 Game variants

9.7 Audit Court

9.7.1 Data

9.7.2 Measures

9.7.3 Citizen concerns

Central Bank

10.1 Allocation of money

10.2 Goals of the Central Bank

10.2.1 Price stability and full employment

10.3 Tools of the Central Bank

10.3.1 Banknote privilege

10.3.2 Debt

10.3.3 Exchange rates

10.3.4 Securities trading / open market transactions

10.3.5 Currency reserves

10.3.6 Lender of last resort

10.4 Note-issuing Banks

10.4.1 Goals of the Note-issuing Banks

10.4.2 Tools of the Note-issuing Banks

10.4.2.1 Key issue rate

10.4.2.2 Deposit base rate

10.4.2.3 Minimum reserve rate

10.4.2.4 Foreign exchange transactions

10.5 Living Standard Index

10.6 Determination of the Gross Domestic Product

10.6.1 Barter Economy

10.6.2 Planned Economy

10.6.3 Social Market Economy

10.6.4 Free Market Economy

10.7 Determination of the price level

10.7.1 Quantity equation of money

10.7.2 Gross Domestic Product deflator

10.7.3 Shopping baskets

10.7.4 Innovations

10.8 Measures in the event of inflation or deflation

10.8.1 Inflation

10.8.1.1 Demand pull inflation

10.8.1.2 Supply-pressure inflation

10.8.1.3 Full employment

10.8.1.4 Imported inflation

10.8.2 Deflation

10.8.2.1 Exchangeable bonds

10.8.2.2 Decline in consumption

10.8.2.3 Decrease in investments

10.8.2.4 Decrease in assets

10.8.2.5 Decline in wages

10.8.2.6 Decrease in trade restrictions

10.8.2.7 Decline in state expenditure

10.8.2.8 Missing foreign trade

People’s Bank

11.1 Accounts

11.2 Financial services

11.3 Foreign trade

11.4 Change of assets between economic forms

11.5 Citizen account

11.5.1 Current account

11.5.2 Tax account

11.5.3 Call money account

11.5.4 Savings account

11.5.5 Children’s account

11.5.6 Pension account

11.5.7 Generation account

11.6 Company account

11.6.1 Current account for companies

11.6.2 Tax account for companies

11.6.3 Savings account for companies

11.7 State account

11.8 People’s Stock Exchange

11.8.1 Trade

11.8.2 People’s shares

11.8.3 People’s bonds

11.8.3.1 Government bonds

11.8.3.1.1 Real estate bonds

11.9 Ideas Stock Exchange

11.9.1 Innovation bonds

11.9.2 Innovation shares

11.9.3 Licence share

11.9.4 Period of validity

11.9.5 Product shares

11.10 Risk

11.11 Funds

11.11.1 People’s Fund

11.11.1.1 Equity funds

11.11.1.2 Bond funds

11.11.2 Real estate funds

11.11.2.1 Building savings contract

11.11.3 Domestic funds

11.12 Investment Department

11.12.1 State investment

11.12.2 Staff of the Investment Department

Switching to the new system

12.1 Tax Offices

12.2 Tax restructuring

12.3 Legislative reforms

12.4 Introduction of the People’s Bank

12.4.1 Statutory pension insurance

12.5 Nationalisation and privatisation

12.6 Debt conversion of existing public debt abroad

12.7 Conversion of the old ministries

Contact form

1 Goals of the Ministry of Finance

All the objectives of the Ministry of Finance are to give the people power over the state’s financial resources. The people are given the power to determine revenues through laws and expenditure through the budget vote.

One of the objectives of the Ministry of Finance is to administer the revenues and expenditures of the state in a way that is at least balanced and as profitable as possible. With the help of taxes, the People’s Bank, Central Bank, Note-issuing Banks and the Audit Court, the budget is monitored and used for the benefit of the people. To make the responsibility for the people clear, the Finance Minister and the heads of the People’s Bank, Central Bank, Note-issuing Banks and the Audit Court are directly elected. Full employment, stable prices, long-term growth in the standard of living, the constant support of the people with means of payment, low taxes and fees, and protection against economic crises are goals pursued by the Ministry of Finance. The Ministry of Finance is increasingly saying goodbye to the goal of full employment, in the same measure of advancing automation. It supports a sufficient supply of means of payment through the Unconditional Basic Income.

In order to keep the work comprehensible to the people, the Ministry of Finance organises the budget management in an entrepreneurial and direct-democratic way. The cost-covering prices with a profit mark-up for state services are entrepreneurial, the annual budget vote is direct-democratic.

2 Departments

The departments are divided into sub-departments and enumerations are usually considered as their individual units. Many tasks of some departments are completely taken over by other ministries as a service.

2.1 Central Department

Part of the Central Department is the Reception Office with the Courier and Mail Room, which directs all concerns, broadcasts and visitors to the appropriate place in the ministry.

2.1.1 Staff

The Human Resources Department is responsible for staff development and planning. For this purpose, it takes care of the recruitment of junior staff, intern and trainee programmes as well as the selection procedures for employees and special selection procedures for applicants with disabilities. For politicians and employees, the department prepares a job plan. In all its tasks, it works in voting with the personnel board.3

All other personnel matters are transferred to the respective ministries. The Ministry of Education is responsible for the training and further education of employees for the state service.4 The Ministry of Labour takes over the service law.5 This includes the labour and collective bargaining law for employees in the state service, remuneration, personnel administration of all careers and employees, flexitime, holiday and sickness records, working time with or without flexitime in part-time or full-time at the place of work or in home work. The Ministry of Infrastructure provides housing assistance for all state employees.6

The Ministry of Education provides childcare for all employees in the state service.7

The Ministry of Health is responsible for the occupational health service.8 It ensures occupational health management, deals with the treatment, education and prevention of occupational accidents, controls and provides occupational health and safety through the health auditors9 of the Company Auditing Agency10.

2.1.1.1 Staff remuneration

In the Pay Office, salary, expenses, travel costs and relocation costs for all ministries are settled directly with the employees through their account at the People’s Bank. For this purpose, the Ministry of Finance provides all state employees with a request for payment application via their current account. The employees have to fill out the application and are automatically transferred the specified amount. A copy of the application is sent to the affected ministry and to the Ministry of Finance’s payroll office, which sorts the application and the remittance slip into the ministry’s expenses to be audited by the audit services.

2.1.2 Organisation

The ministries of media, security, justice, finance, labour, state organisation provide audit services for quality management in the ministry, evaluation of work performance, revenues and expenditures, as well as corruption prevention, sabotage protection and, if necessary, disciplinary matters.11

The Ministry of Labour regulates procurement law and ensures corruption-free state orders and procurement.12 The Ministry of Education is in charge of the language service for translating conversations or texts.13

The Ministry of Digital Affairs supports the supply of Information Technology.14 In voting with the Procurement Office of the Ministry of Labour, it takes care of the procurement, provision, maintenance and service of technical devices and software. Much of this is produced in-house to ensure data protection in information and communication technology. Information technology and digitalisation officers audit and advise the ministries. Digital appointment calendar and documentation services are provided as well as a digital policy archive including a library.

2.1.2.1 Audit services

The Ministry of Finance uses its tax auditors to check whether funds have been improperly used, embezzled or evaded. They are deployed in the annual audit of the Company Auditing Agency15 and in the monitoring team of the Surveillance Television. The Audit Court is another independent audit service. The audits examine the account movements of citizens, activities of companies and ministries. These audits are used for quality management and protection against sabotage, as well as for evaluating the circulation of money and preventing corruption. If violations are found, this results in disciplinary matters, the course of which and compliance with them are also examined.

2.1.2.2 Budget management

The budget procedure and budget law are regulated in the chapters on state revenues, tax policy, budget consolidation and state expenditure. The personnel budget, departmental budgets, costs and treasury are settled via the state account at the People’s Bank. All cost centres flow into the budget planning for the coming budget vote as forecasts for revenues and expenditures in the coming year. The Tax Office is responsible for the budget management of all ministries.

2.2 Management Department

The Management Department is the minister’s department. With his office team, he provides policy planning and analysis for his ministry and coordinates the relationship between the nation and the municipality through exchanges with his deputies in the municipalities. He initiates cooperation with other ministries or citizens in committees and is supported by the Ministry of State Organisation.

The Ministry of Media Affairs, through its media service, provides press and public relations for the ministry, moderates civil dialogue, trains or provides a spokesperson for the minister, writes speeches and texts on request, and ensures the implementation of conferences and events.16

The Ministry of Digital Affairs is responsible for digital management and thus provides departmental management. It automatically produces business statistics, staff surveys and the current state of research through statistics. It automatically forwards proposals to the affected or empowered state employees. In document management, it ensures digitalisation and that ministries share forms with each other.17

2.3 Budget Department

The Budget Department operates the Tax Office. In cooperation with the People’s Bank, Company Auditing Agency and the Ministries of Labour and Economic Affairs, it coordinates the levying and moving in of business taxes, value added taxes, taxes on assets and tariffs. For tariffs, the department additionally cooperates with the Ministry of Security. It coordinates the payment of Unconditional Basic Income and the reduction of taxes.

It oversees the Unconditional Basic Income, Automation and Business Cycle Compensation funds. It coordinates fiscal consolidation procedures with the municipalities and ministries. It ensures the aggregation of all necessary data from the ministries to calculate their revenues from taxes, fees, assets, profits and debts on a monthly basis.

It coordinates the timely and complete submission of the ministries’ financial plans and hands over the draft budget to the cabinet. In cooperation with all ministries, it organises the budget committee, the election campaign and the budget vote for the distribution of state expenditure. It ensures the digital requirements for measuring and distributing state expenditure in cooperation with the ministries of digital and media.

It monitors the independence of the Audit Court and is obliged to provide it with all data that it can also inspect or generate.

2.4 Finance Department

The Finance Department ensures the operation of the Central Bank, Note-issuing Banks and the People’s Bank. In cooperation with the Ministries of Labour and Economic Affairs, it drafts legislation for the Central Bank, Note-issuing Banks and the People’s Bank. The Finance Department, in cooperation with the Company Auditing Agency, is responsible for supervising the financial institutions to ensure that they comply with the applicable laws and calculate the economic ratios correctly. Otherwise, it safeguards the independence of the Central Bank and Note-issuing Banks from non-state or foreigner interests and the autonomy of their directly elected heads. It reports doubts to the Minister of Finance, who can intervene in the work of the monetary institutions with the majority approval of his deputies or the people.

The People’s Bank has a special role because it is not independent, but is used by the citizens and ministries in their interest. The Finance Department coordinates the People’s Bank’s relations with the other ministries and the citizens. It oversees the operation of the People’s Stock Exchange and the Ideas Stock Exchange, as well as the management of funds for the people, real estate and foreign investors, and whether the work of the Investment Department complies with the law.

3 Ministry of State Organisation - 2.1.1.1 Personnel board

4 Ministry of Education - 2.1.1.1 Education and training for the state service

5 Ministry of Labour - 4 State enterprises, 13 Labour Directory

6 Ministry of Infrastructure - 2.1.1.1 Housing assistance for state service employees

7 Ministry of Education - 2.1.1.2 Childcare for state service employees

8 Ministry of Health - 2.1.1.1 Occupational Health Service

9 Ministry of Labour - 20.7.2 Health auditor

10 Ministry of Labor - 20 Company Auditing Agency

11 Ministries of Media, Security, Justice, Finance, State Organisation - 2.1.2.1 Audit services

12 Ministry of Labour - 6 Procurement Office

13 Ministry of Education - 2.1.3 Language Service

14 Ministry of Digital Affairs - 2.1.2.1.1 Supply of Information Technology

15 Ministry of Labor - 20 Company Auditing Agency

16 Ministry of Media Affairs - 2.2.1.1 Media Service

17 Ministry of Digital Affairs - 2.1.2.1 Digital Service

3 Tasks of the Ministry of Finance

The ministry is responsible for financial, economic and tax policy. In doing so, it coordinates its policies with the ministries of labour and economy. Especially the structural issues of tax policy are clarified with the ministries of economy in order to ensure a consistent structure through the existence of all four economic forms. Based on the data collected, the Ministry of Finance conducts research in order to be able to estimate taxes, make analyses of the economy, monitor the growth of the money supply, the Living Standard Index and state revenues, and intervene if necessary.

The task of the Ministry of Finance is to ensure the sustainability of financial, economic and tax policies among citizens, companies and ministries. Sustainability is considered to be at risk if one or more economic forms suffer an economic downturn, cases of illness accumulate, the intranet cannot guarantee its legally secure networking, the infrastructure is dilapidated, occupational safety is at risk or innovations are delayed. It is the task of the Ministry of Finance, together with the Ministries of Economy, Health, Digital Affairs, Infrastructure, Labour and Innovation, to clarify where the cause lies and whether too little or too much money plays a role in the cause. If money plays a significant role, the Ministry of Finance is responsible for remedying the situation. If citizens file a complaint before an administrative court, the Constitutional Court or the Court of Human Rights, which is related to the tasks of the Ministry of Finance, the Minister of Finance is considered the defendant.

The national budget is administered by the Ministry of Finance. This includes collecting the revenues from taxes, profits and debts or savings, checking them and disbursing the revenues to the ministries. The disbursement is made according to the distribution decided in the annual budget vote.

3.1 Theory of the state as a company

Analogous to the theory of the state as an entrepreneur of the national economy18, the Ministry of Finance occupies a key position to fulfil the idea of a democratically run company. The basic state organisation resembles the organisational structure of a company, or rather a corporation with a parent company that administers the revenues and many subsidiaries that generate the revenues and thereby also consume part of the revenues as costs. The Ministry of Finance takes on the role of the parent company and ensures that the state budget can post an annual profit, but is at least balanced.

This form of enterprise must be thought of as if there were subsidiaries that work for the market, i.e. for the people, and other subsidiaries that are service providers for the parent company, for example the Ministry of Digital Affairs when Information Technology is affected.