AUTHOR´S EDITORIAL 16/02/2004
A NEW FISCAL SYSTEM


The Governments present the Budgets of Expenses and Revenues that will govern during the fiscal year annually. In the restricted Budgets they are considered the revenues and in function of them they notice the expenses and the investments. They are Presupposed even or with deficit zero, but this system brakes the development. If the budgets are expansible what prevails is the necessities in expenses and investments, independently of the revenues, in which case one goes to the indebtedness. It is a conformist form, accepting a priori that the only form of having enough resources is the taxes, the rates, the exploitation of goods of the State, the indebtedness or for the hidden sale of the national patrimony using the emphatic name of privatizations.
Complementary means exist so that the State gets considerable revenues for their arks, without indebtedness that I denominate the parallel fiscal system.

PARALLEL FISCAL SYSTEM

I define the parallel fiscal as the system of providing revenues to the public arks, of immediate disposition, with back of taxes futures that burden rents of the capital, derived of emergent economic activities and completely unaware to the administration of the State. One of those emergent activities is the massive construction of self-financed housings.
I explain the definition with the following sequence of performances.
1. A census begins dedicated to inscribe the applicants that want to acquire housings to pay in 30 years, with mortgage to 6,75 invariable percent that includes a life insurance to liberate the housing in the event of death of the holder. Rights are also added to other social benefits. With a single inscription the process of the whole described system is valid.
2. Knowing the units of requested housings, we calculate they will ascend the revenues quartely in concept of quotas of paying-off of the mortgages to how much.
3. We proceed to emit Funds to 30 years to 7 percent of constant interest whose paying-off quarterly coincides with the collection of the mortgages in same period, that is to say, so much gets paid so much we pay. With the net value of the emission, previous bid with companies manufacturers, we build the housings in whose operation net revenues emerge for the State that I distinguish like ordinary reservations, dedicated to form the technical reservations of the life insurance mentioned in the point 1. and to the superior education and graduate degrees.
4. The emitted Funds will have the particularity of payment of interests fixed quarterly and unique paying-off to the expiration, with a cousin of 50 percent that is equal to increase the yield per year by 1,66 percent.
5. We establish the paying-off quota quarterly of the emitted Funds, formed by the constant interests during 30 years and for the part dedicated to the paying-off of the capital, also constant, until the final paying-off. This part that I denominate remainders, forms a voluminous mass of capitals that we retain and we dedicate to infrastructures and productive investments whose accumulated yields and capitalized they will reproduce the refund of the Funds amply with the established cousin.
6. The interests that will be paid by quarterly, are yields of the capital and they are subject to the tax that is retained in origin. These revenues for retentions to favor of the State, constitute the parallel fiscal system and they will be used as quota of paying-off of a second emission of Funds whose net value is free revenues, without indebtedness. For this same system you will proceed to a third emission of Funds, and the net value of both emissions, with the name of financial reservations, it will be dedicated to finance the Contract of the workers' Society (to see the topic in the Web), in social improvements, to assure the continuity of the pensions, to invest in I+D and other necessities, among them to eradicate the poverty by means of the continuous work.
7. In the Web it can be studied with details the whole process.

The political enemy

The acceptance and execution of the Project that it supports the parallel fiscal system have two lethal enemies, one of political content and the other of economic interests. In the political order no organized party will admit, for principles, to add in its programs and in its projections, initiatives coming from strange although in private they admit that the proposals are beneficial for the collective. The responsible ones direct of the affected areas they cannot be consented they invade their performance feuds since, of making it, it would evidence their limitations, they would be in ridiculous, they would profane their prestige and, overalls, will be decisive the fear of losing its influence in the party. The only possibility is in the formation of a grouping whose social ends are to develop the parallel fiscal system, aware of the potentiality and quantity of the available resources to make reality the five postulates, housing - work - production - consummate - saving.

The economic enemy

It is formed by two well differentiated groups: the real estate group integrated by a legion of promoters, manufacturers, middlemen, speculators, productive connections and other opaque activities that, on the whole, they are the jokers that intervene in the high price of the housing and in the accumulation of considerable benefits and incredible fortunes.
The setting in march of the parallel fiscal system considers it as a torpedo to the line of flotation of its respective activities. They cannot accept any interference that shrinks their revenues.
The other group constitutes it, in first term, the Banks and bankers with its influences economic, followed by the Institutes of Credit and Saving, and also for the promoters and administrators of the investment Fund, most of doubtful profitability, but that on the whole they manage trillion Eurus product of the saving, a saving rewarded with miserable interests in function of the official types of interest. As compensation, regular of press they inform that the such Bank gets so many millions of Eurus more than its participated or that the Bank which he buys a high percentage of another Bank for thousands of millions of Eurus. I already know that it is their business; the appointment is only to remember that those industrial participations and economic investments of all type that provide them abundant benefits, lean on, in great measure, in the saving of the clients. Impossible they accept that a parallel fiscal system that it offers some you interest of 7 fixed% and an annual increment of 1,66%, base of the emission of the Funds, become another howitzer that drene the bills of the citizens' saving.
Of all the contacts that I have tried to settle down with main actors of the two groups, I have only gotten silence and peace, like in the cemeteries. There them with their conscience and the fallacy of their speeches in favor of I don't know what.

When I affirm that the parallel fiscal system will make possible the development of the five postulates - housing - work - production - consummate - saving, I open up a new period in the organization and well-being of the society. They are not political promises to reach a privilege position but palpable realities. The citizenship, above all, wants freedom and work. To assure full employment in an electoral campaign, it is a sarcasm. I don't promise it, I offer it. The five enunciated economic realities are of immediate, urgent execution, because it urges to go in aid of the poverty. For the one that has solved the economic problems, the poverty is a word more than the dictionary, but the one that suffers it lives in the desperation of the hell.
The construction of housings without limiting the demand believes on of mass, fixed work, without precariousness. With work insured they are solved the family problems and a housing can be bought. The fixed work, as norm, means that the productivity is real and the productivity pushes the consumption because the fixed work allows to balance the homemade budgets and, also, it stimulates the saving. We would be in presence of permanent cycles of production and consumption, that is to say, of economic expansion, without forgetting that considerable resources are generating, I repeat without indebtedness that they will allow to consolidate the State of the Well-being during many half a decade.

In the Web I add the following reflection:

The necessary condition so that the Project prospers it is that these retentions are not computed as revenues in the Budgets of the State. They should have an own administration for the simple reason that you/they originate through an aggressive Program of massive construction of housings whose costs are not left of the Budget of expenses neither they are included in their financing forecasts. Under these conditions the State cannot absorb a direct source of atypical financing to assist its necessities. The revenues for the State should be product of their direct administration. The benefits will find them when the Program contributes revenues due to bigger work, less unemployment and more consumption. The consumption will be the motor of the sustained increase of the economic activity. If the State doesn't invest there is not reason so that it uses the arisen revenues of parallel activities. Their only function should be tuitiva, of support and surveillance for a direct administration of the system, but without abilities of direct absorption of results. Of here he/she is born the demand of two general Budgets, one of Revenues and Expenses of the State and the other of liberation of resources and their continuous investment.

The State will use two systems of administration of resources, parallel and independent: one that executes the General Budgets and another that administers with autonomy the funds provided by the derived financial reservations of a special process of capitalization to you are of which is formed a patrimony for the administrative separation of tax concepts that not of taxes. A form of autonomous financing is creating that anything has to do with the general Budgets of expenses and revenues. We are in a particular case in which the retentions of taxes cannot be considered computable rights in the normal collection because they not arise of a special activity contemplated in the general Budgets. In the system of parallel administration, the States of the European Union will separate this special collection to use it as quotas of paying-off of emissions of Funds. On this point it cannot have any repair, first, because the States benefits of the investments of the reservations that are formed and they are able to create employment and, in second term, the Administrations, for ordinary roads, will increase their collections for the biggest economic activity, impelled by the investments of the financial reservations in concrete community projects, independent of the general Budgets of the States members.

February 16 2004

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Francisco Montaner


Globalizing housing with zero cost