President Dmitry Medvedev knows exactly how to cut the 30% payroll tax.
I read this article and was surprised, because Russian President Dmitry Medvedev knows exactly how to cut the payroll tax to 0%.
The concept of changing Russia’s current western economic system to one of “Work Credits” was given to him in 2010, two years ago. I know because I mailed it to him.
Why should Russian President Dmitry Medvedev be interested in moving to a new Russian based “Work Credit” society?
I have a question for President Dmitry Medvedev and all of the Russian people.
This question could be easily asked of any country leader and the their citizens.
What are you going to do when your fossil fuel energy reserves run out in 6 years time in 2018?
You may ask what does this question have to do with Russia’s payroll taxes?
Let me tell you.
What is Russian society going to do when they can no longer drive their cars to work, drive their trucks to deliver food, and drive their farm equipment to sow the fields and collect the harvest?
What is going to happen to Russian employment then?
This question does not only pertain to Russia, it pertains to the United States, Canada, and every single European country that exhausts its oil supplies by 2020.
Where is Russian President Dmitry Medvedev going to get his 30% payroll tax from then?
Russian President Dmitry Medvedev knows exactly how to reduce the 30% payroll tax.
Russia like all other countries in the world is going to have to change how they run economically.
The most valuable asset in any country is its citizens and their ability to do work that benefits their community, city, region and country.
The financial concept is called “Work Credits”.
1. “Work Credits” assign an economic value to each Russian citizen that will compensate them for work that it is performed that benefits their community, city, region and country.
Where do “Work Credits” come from?
“Work Credits” are created by the very existence of a Russian citizen and their ability to do work that will benefit their society (community, city, region and country) and added to the central Russian money supply.
The Russian government calculates the value of “Work Credits” for their country / society and adds it to their money supply. In effect the Russian money supply is completely redefined.
Russian citizen value = (100 years – Age) * $50,000 (as example)
Russian Money Supply = (100 years – Median Age) * $50,000 * Russian population
Russian Capital Account = Russian Money supply * 7%
Used for country infrastructure projects, government, medicare, national defence.
Median Russian Age = 38.7 years
Russian population 2011 = 138,739,892
http://www.indexmundi.com/russia/demographics_profile.html
Russian citizen value = (100 years – 38.7) * $50,000 (as example)
Russian citizen value = $3,065,000
The average life time value of Russian citizen in a Russian “Work Credit” based society is $3,065,000. (Based on a yearly valuation of $50,000 a year)
Russian Money Supply = (100 years – 38.7) * $50,000 (as example) * 138,739,892
Russian Money Supply = $425,237,768,980,000 = $425 trillion
Russian Working Capital Account = $425,237,768,980,000 * 7%
Russian Working Capital Account = $29,766,643,828,600 = $29 trillion
The Russian Working Capital Account is used for country infrastructure projects, government, medicare, national defence. Based on current statistics it is $29 trillion a year in a Russian “Work Credit” based society.
2. Benefits of a Russian “Work Credit” based financial system.
“Work Credits” eliminate unemployment, poverty and homelessness in Russia.
“Work Credits” empower Russian citizens to do the work they want and love to do that will benefit their community, city, region and country.
“Work Credits” recognizes and values the economic value of each Russian citizen to contribute to their society in whatever way suits them best.
“Work Credits” are valued completely independent of a nation’s energy resources.
“Work Credits” allow a country’s population to keep working in harmony when the nation’s fossil fuel energy reserves are depleted.
“Work Credits” dramatically reduce economic crime.
“Work Credits” dramatically reduce corruption, which is another form economic crime.
“Work Credits” eliminate the need for a pension / retirement system.
“Work Credits” eliminate the need for an unemployment system.
Instead “Work Credits” create the need for an employment system directing Russians towards work projects and job opportunities that need filling.
Russian government salary expenses drop by 80% because each government employee now comes with a built in economic value.
Russian industry salary expenses drop by 80% because each employee now comes with a built in economic value.
Russian taxation drops by 80%.
There is NO NEED for any Russian payroll taxes.
Young Russians can band together to create their own companies that will benefit their society.
“Work Credits” DO NOT require growth.
As fossil fuel energy resources become exhausted and food supplies decline, Russia’s population can adjust while still being gainfully 100% employed.
Social financial security of Russia’s population is 100%.
A Russian mother or father can stay at home to raise their young children is so desired.
Russian children are now paid to go to school to become as educated as possible and their assist their parents with day to day expenses.
Russian children are now paid to go to elementary, middle and high school.
Russian children are no paid to go to college and university.
Mostly importantly “Work Credits” empower all Russian citizens to work at projects and tasks that will benefit both themselves, their creativity and their society at large. Work tasks that DO NOT require growth, but will maintain a stable population that can survive on the arable and natural resources available.
3. Growth is glowing to slow all over the world between 2015 and 2030.
Worldwide oil resources will begin to become exhausted between 2015 to 2030.
As oil resources become depleted, worldwide growth will STOP and then begin to decline.
Worldwide population will also begin to decline during this period due to starvation.
Worldwide population will need to adjust to the reduced food and energy supply.
4. Mankind has lived for tens of thousands of years without an oil industry. It will adjust again to life without cars, trucks and mass agriculture. This will be the new reality of 2020 – 2030.
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Current statistics for Russia’s oil reserves and depletion numbers.
Russia has 6 years of domestic oil supplies left based on current production rates.
Oil Production: 10,120,000 bbl/Day [2011]
Oil Consumption: 2,740,000 bbl/Day [2011]
Proven Reserves: 74,200,000,000 bbl/Day [2011]
Days of oil production remaining = (74,200,000,000 / 10,120,000) = 7,332 days (100% retrieval)
Years of oil production remaining = 7,332 / 365 = 20 years (100% retrieval)
Oil resource exhaustion = 2012 + 20 = 2032 (100% retrieval)
Days of oil production remaining = (74,200,000,000 * 30%) / 10,120,000) = 2,200 days (30% retrieval)
Years of oil production remaining = (2,200 / 365) = 6 years (30% retrieval)
Oil resource exhaustion = 2012 + 6 = 2018 (30% retrieval)
It is completely unrealistic for a country to extract 100% of its oil reserves, unless these figures have been inflated by 70% to recognize the oil that cannot be extracted. Under normal conditions 25% of oil reserves can be extracted. For the case of this comment I will be optimistic at 30% retrieval.
Based on current oil reserves Russia will deplete its reserves in 2032 with 100% depletion.
More realistically Russia will deplete its reserves in 2018 with 30% depletion.
http://www.globalfirepower.com/country-military-strength-detail.asp?country_id=Russia
In conclusion:
Russian President Dmitry Medvedev can reduce Russian payroll taxes to 0% by switching the Russian economy to a “Work Credit” based model.
The benefits for Russian society are enormous.
Arnold Vinette
Ottawa, Canada