The New Physiocratic Platform

Platform Principles:

• Tax products of nature and land value, NOT taxes on productive property, using other taxes only in case land value taxation is inadequate” (see ULT)
-> with an allowance local governments and regions to incentivize local architectural guidelines to showcase their culture

• To the extent any other taxes might be needed, there should be negative net taxation on personal incomes/savings (see our Three Pillars), to replace an ineffective and bureaucratic welfare system; and negative net taxation on productive business (see Sectoral Banks), giving small business a voice, and to mitigate against the weaponization of trade; use progressive consumption taxes (see Ben Cardin’s PCT) as a backup, NOT taxes on production – to preserve the fiscal balance in the face of an aging population, and to reverse the artificial distortions that tilt the economy toward consumption over production & savings

• End corporate welfare & reverse economic distortions
-> eliminating subsidies, bailouts, uncompensated environmental use, special licenses, privileges, and other means of rent seeking and monopolization

• Absolute transparency
-> including the strongest possible anticorruption measures, an open land registry, and budgetary transparency

• Replace bureaucracy with automatic mechanisms (see our Automatic Mechanisms)

• Long-term vision instead of impromptu fixes (see our Platform and book)

Economic Reform

• Recognizing that land value taxation is the least harmful tax and that taxes on products of human effort should be minimized
• A shift away from taxes on earned incomes, towards taxes on unearned incomes (land, environment, and negative externalities)
• Return our income tax and magnify our wages through the introduction of a National Income Supplement, which is part of the New Physiocrats “Three Pillars” programs
• Extend the National Income Supplement to include homemakers and the short term unemployed
• Return corporate tax revenues back to business via Sectoral Banks, an automatic mechanism in the New Physiocratic economy
• Return Capital Gains tax back to the markets through Assisted Savings Program (ASP) accounts
• Replace state-pensions with ASP accounts (one of the Three Pillars), to magnify peoples’ savings and investments
• Give all citizen-residents a share in the nation’s unearned & natural wealth through a National Dividend (one of the Three Pillars)
• Replace minimum wage laws with the New Physiocrats’ Three Pillars programs of direct cash transfers
• Replace an overregulated labor market with maximum flexibility, training, and income security
• Implementation of a Unified Location Tax (ULT) to encourage rapid development with a focus on Basic Essentials and stunning architecture
• Employ powerful incentives to encourage long-term thinking throughout the economy and government
• Introduction of new management incentives to guarantee fair pay from employers
• Democratization of physical and visual space with an allowance for local governments to incentivize their local architectural guidelines and regional style
• Entrench rights to private property and earned income
• Introduce permanent institutions to lead a substantial effort to increase peoples’ purchasing power, by driving down the cost of Basic Essentials
• Achieve greater self-reliance and broad economic diversification by reversing economic distortions with the use of Sectoral Banks
• Constitutional fiscal rules on spending, taxation, monetary policy, and deficits, to minimize public debt and eliminate corrupt/influential spending during election periods
• Introduce a constitutional government taxation and spending cap at a percentage of GDP, not including taxes/transfers from the Three Pillars program
• Introduce constitutional limits on state ownership, direct intervention, and bailouts; ensure it’s consigned to the initial phase of introducing the New Physiocratic platform
• Employ a program to maximize the dispersal of labor market information, such as wages and job availability
• Mandate that industry sectors, under Sectoral Banks, each have their own training programs which ensure employment
• Create an employer of last resort, to provide temporary employment in public works when all else fails, and to prevent an overextension of monetary/fiscal policy to achieve political goals
• Tax short term capital inflows, with the revenues funding ASP accounts and Sectoral Banks
• Introduce a bill of rights for business, including maximum time limit on registering a business, and protections for private property and against injustice
• Replace both protectionism and unfair trade practices with the New Physiocrats’ Compensatism, to ensure compensatory measures are applied evenly and not granting special privileges
(compensating for unethical and anti-market practices, including slave labour, endemic subsidies & distortions, and large scale environmental destruction. It is in contrast to protectionism, which serves a different purpose, and ultimately tends to promote rent-seeking firms. Any compensation would have to be rules-based and applied evenly rather than being sector-specific)
• Eliminate planned obsolescence through packaging information, tax incentives, and introducing ratings and awards for durability
• Far-reaching monetary reform to prevent unsustainable debt levels
• Grant the central bank with a wider array of monetary tools, accompanied by better metrics to target to prevent the reliance on debt-inducing interest rate levers and QE. Ensure that it’s rules-based and automated rather than discretionary, similar to a k-percent rule.
( it is our belief that inflation measures are too narrow, that inflation has been hidden in large asset-price increases, and that in part because of this, debt has spiraled out of control. We think debt levels should be a closer followed metric when it comes to central banks’ mandates. It is also our view that capital requirements should be greatly increased, as an alternative to the current policy of overregulation, which has worked just to stifle competition and entrench the current players in the market, creating large, shaky, uncompetitive banks with tremendous systemic risk.)
• Protect central bank independence allowing it to meet its new targets without political interference
• Introduce a 30-hour work week, with an official effort to maximize the population’s free time, while freeing/deregulating the labour market so that it can clear effectively. Working hours can be reduced by replacing rules on hours of operation and introducing flexibility. Additional hours would be paid as overtime.
• Streamline bankruptcy courts and cap wait times for cases
• Introduce the South Korean model of net neutrality and network infrastructure
• Enhance urban density through the ULT
• Prioritize smart grids and cutting edge infrastructure, with targets to minimize commute times, maximize free time for the population, and create a real market for energy
• Limits and targets on regulatory and compliance costs for small business, included in the bill of rights for business
• Introduce targets to maximize the dispersal of information to ensure a functioning market
• Ending licenses as much as possible, and creating rules to ensure they don’t reappear to create a means for special interests and oligopolies to emerge

Political Reform

• Introduce the most comprehensive and effective crackdown on corruption and waste in history, and create permanent anti-corruption & audit institutions to solidify the progress
• Tremendous simplification of bureaucracy and introduction of e-governance to replace the vast majority of paperwork
• Practice the utilization of policies based on empirical evidence, adapting governance policies from other nations achieving the best results
• Give official weight in government institutions to the importance visual space, particularly architecture
• Change to a quadriacameral legislature, which acts as a forum for individuals, economic sectors, and societal sectors to work together to meet the nation’s goals
• Ensure that the interests of long-term thinking and elimination of corruption and waste have significant representation in parliament
• Enshrine the independence of the judiciary into the constitution, as a prerequisite to economic reform
• Ensure multi-purposing of military spending (e.g. for scientific, educational, and development purposes) to reduce waste
• Ensure that proposed policies can be devolved to the local level

Social Reform

• Official policy to respect and learn from history and tradition
• Complete legalization, regulation, and taxation of drugs and prostitution
• Publicly funded schools with vouchers, where students can choose their school instead of being tied to one district
• Replace summer holidays in schools with a form of national service to gain a sense of exploration as well as locational and social mobility
• Recognize the role of marriage in the current age demographic crisis
• Comprehensive marriage reform to ensure a more lasting union, and with fairness and justice being a top priority
• Recognize the valuable role of those who choose to raise children at home, and expanding the National Income
Supplement to them
• Constitutional respect for free speech, expanding it to all public property including universities / education facilities
• Compensation for infringements on privacy such as big data to contribute to the national dividend
• Immigration policy focused on bringing in those who are needed and desired, rather than clouded by age demographic needs
• Introduce a New Physiocratic “Progress Index” as a new principal metric for success, alongside usual GDP and unemployment measures, complementing the economic reform
• Allow school choice with a voucher system (for schools which meet standards) to ensure every child can attain the best possible education regardless of background
• Strong constitutional support for civil liberties