Assume population is 65 million, each year assign a value to each person of £100,000 creating an annual net asset of £6.5 trillion. Could equally be £200,000 per annum, or any desired figure.
Each UK Citizen is then entitled to an annual tax free dividend as follows:
0 to 18 years £10,000/annum into a trust fund, payable in full on or after 18th birthday (after 16th birthday with parental authority) + annually accrued interest of 5%
18 to 50 £10,000/annum + £5,000/annum to married couple*
50 + £20,000/annum + £10,000/annum to married couples*
* Married allowance retained if one partner widowed, lost if couple divorce
Couples, or single parents with children would receive an additional £5,000 per child, but only for up to two children.
People who are not UK citizens, who are imprisoned (common law victim crimes), or those earning in excess of £100,000/annum (£50,000/annum for public sector on final salary pension scheme) not entitled to dividend. Individual cases will be assessed if caring for elderly, infirm or handicapped for instance. OAP’s unable to support themselves in fully funded care homes with no loss of dividend.
Dividends of criminals in prison, paid either to victims of their crime, or into a victim support fund, payments continue to criminal once sentence completed.
Unbelievable amounts of money could be generated (all intrinsically backed) if everyone was backdated based on their age, so someone who is 50 would have created £5 million in national nett worth in their lifetime and would receive a backdated dividend of £500,000 tax free.
People should be treated as assets of the country and not liabilities, with that change in perspective the state would be empowered to look after its people and not its corporations and business interests, a people centric attitude.
If dividends are made too high then it would be difficult to induce required number of people to work. Everyone would gain additional benefits through elimination of taxation, replacement of pension and elimination of most existing debt.
There would no longer be a concept of employed or unemployed, along with the attached stigma of the latter. With the elimination of most forms of taxation and all existing debt, everyone would be reset to a relatively comfortable living standard. There would be no need to work as the dividend would provide everything required for everyone to live comfortably as long as they act responsibly with the money they receive. However, for many this would not be enough for the standard of living they would require and so work for those people becomes an option to boost their income. They would simply work part-time or full-time as required to give them the income they require to live the life they desire. People could elect to work a 3 day week, allowing them an extra 2 days a week to pursue leisure activities or hobbies. Alternatively a person could elect to work 3 months or six months a year and not the remainder. Companies would be encouraged and incentivised (tax breaks) to promote job sharing, and wherever possible working from home and/or what is commonly known as ‘hot-desking’. Anyone electing not to work would not be seen as a drain on the nation, they would still generate the same nett worth as anyone else, and would take no more than anyone else is equally entitled to receiving. What they would have to appreciate is that is all they are entitled to unless they are prepared to give something in return for additional money and benefits. The elimination of VAT on most items would reduce living costs by almost a 1/5th immediately.
The increase at age 50 of dividend reflects that it may become more difficult for some to find suitable paying income, and that for many it is an age at which they can retire in relatively good health and mobility. It is not a retirement age and so no-one would be compelled to stop working. The extra income (doubled) allows no loss of standard of living; many would be able to stop working or could reduce their hours as best fits their requirements.
Earnings in addition to annual dividend
No-one can be compelled to work more than 40 hours a week lawfully, but individuals can choose to work as many hours as they wish. Of course no-one is compelled to work at all.
Anyone committing to work a total of 13 weeks (520 hours) in a year (totally discretionary) on community work (childcare, caring for elderly, litter clearing etc.) will receive an additional £10,000 per annum. These can be worked in whatever way the employee prefers, but must be completed within one calendar year. Nominally 520 hours (13 x 40).
Anyone choosing to work (no one can be compelled) earns at the following rate of tax:
0 – 50,000 Zero tax
50,000 – 100,000 10% tax non accumulative
100,000 – 200,000 20% tax (no longer eligible for annual dividend)
200,000 + 40% tax (no longer eligible for annual dividend)
In excess of £100,000/annum earnings no longer receive annual dividend, until retirement.
A single person can thus earn up to £60,000 (£50,000 + dividend) per annum (or £20,000 min for 13 weeks work) and pay no direct tax and a married couple could have a combined income of £130,000/annum and pay no direct tax. At 50+ this would increase to £70,000 for a single person and £150,000 for a married couple.
Someone earning £60,000 per annum would pay only £1,000 in tax (£10,000 at 10%), someone earning £200,000 would pay £25,000 (£100,000 at 20% plus £50,000 at 10%), which is probably around ¼ of what they would pay now. The more you earn the more you pay, as it should be.
Non-citizens pay no tax up to £10,000 per annum and then 25% up to £50,000, then 50% thereafter up to £500,000 then as above, and receive no dividend entitlement. This includes all commonwealth countries citizens, including Australia, New Zealand, Canada and South Africa, permanent or contract staff. Similarly, they receive no annual dividend.
Any non-citizen having lived in UK for 5 years will have entitlement to apply for nationality, if they have worked their case will be much stronger and they would need to agree to sign the social charter.
The Public Sector
The prime minister should be the highest paid public servant (let’s say £250,000 per annum) and no other public sector employee should earn in excess of 80% (£200,000) of the PM. All public sector employees’ earning in excess of that amount currently would be taxed at 100% for the amount over. MP’s should receive a salary of £100,000 per annum, ministers £150,000 per annum and cabinet ministers £200,000 per annum. Senior civil servants and QUANGO executives would be paid a maximum of £200,000 per annum. Teachers, nurses, police and firemen would have a minimum basic salary of £50,000 per annum when fully qualified. All existing pension scheme arrangements will be maintained and honoured, but no new entrants will be accepted into final salary index-linked schemes.
All government departments, councils and QUANGOs will be assessed for correct staffing levels, particularly administrative staff with full justification required.