Post 5 of 20: Free Capital for Employee Masses!

        A major impediment against MC (mega co-op) style mass entrepreneurship (masses owning capital shares in MC corporate groups) as basic anti-poverty tactic is the ultra-low mass salaries & incomes that cannot possibly afford purchase of MC capital shares.  Philippine employee masses for instance earn salaries that afford near bare-subsistence lifestyles, at rates 1/5 to 1/10th of 1st World equivalents. Filipino masses saving for capital becomes a near impossibility under such conditions.  How do we dismantle the impediment?  One way is for the State to provide 'free capital' to all taxpaying employees in such manner as to obtain in return tax proceeds and other income at 20-50x current levels.  Here's how the scheme works:

         ME Infinity Formula 2: PITCOS Law (Target: Enable employee and managerial masses to obtain 'free capital' from State.).  

    [Current local & national govt leaders & their millions of supporters] who wish to end [mass poverty] thru [creation of good jobs] for [all levels of Phil. poor] in [endless million-level yearly manner] conduct political action towards [passage & implementation] of [a Personal Income Tax to Co-op Shares (PITCOS) law] whereby [the Bureau of Internal Revenue] authorizes [State and private banks] to collect from their contact employees [5-10 years' equivalent in monthly personal income tax deductions] provided [said banks grant to said employees] a sum equivalent to [the 5-10 years' total of such future collections] for use in purchasing [mega co-op capital shares chosen by the beneficiaries].  Provided further: [For low-income employees] who are tax exempt (earning P250k/yr or less) [said banks shall grant] [a sum equivalent to [12% of monthly salaries x 10 years] chargeable to [the State Treasury] representing [a return of said employees' future Value Added Tax payments]  that will be normally added to [almost all their purchases of goods & services] such grant similarly intended to [buy capital shares in mega co-ops] of [said employees' choosing].  Said provisions shall thereby raise on macro view [endless trillions in mass-owned mega co-op capital] that multiply 10-20x in wealth-making capacity thru [multi-million peso investments from local private & State corporations & agencies] and are together doubled by [foreign joint venture capital investments] from [1st World techno companies] & further greatly expand project assets thru [State-guaranteed equipment & materials loans] from [trillion-$ UN/World Climate Change Funds] with loan terms at [60-75% project cost, 10-year revolving term & 5yr grace] provided [all projects thus developed address global warming] in effect creating each year [millions of new Phil. agroforests, farms, ranches, factories & other businesses] from [large to micro scale] that together create [millions of jobs yearly for Phil. poor] plus [endless trillions in profit dividends & in capital stock shares' values] going to [PITCOS beneficiaries (employee masses) & allied companies as investors] plus [endless trillions in State tax collections] at [20-40x current levels] plus [endless billions of $s in interest income for involved green Funds] plus [endless billions of tons in yearly sequestration of atmospheric CO2 & methane gases] versus [global warming] as a consequence of [billions of dollars flowing to the Philippines yearly] as [foreign joint venture investments & equipment loans] from [1st world tech companies & UN/World Green Funds]

    Q1: How should low-income employees benefit from the PITCOS law?  A1:  All local employees earning P20,800 monthly or less are exempt from income tax, hence not qualified for the regular PITCOS Free MC Shares scheme.  Above said rates are taxed at net 15% to 35%, hence qualify.   However, like all buyers, all low income earners pay 12% Value Added Tax almost each time they buy goods and services.  Since all mass purchases come from personal income, VAT impositions  to employees are actually a form of personal income tax.  The State must hence return future VAT tax payments in the form of free MC shares of the beneficiary's choosing equivalent to 12% of monthly income times 10 years as anti-poverty subsidy.  The scheme will add more trillions in MC capital and develop an 'enforced' & permanent culture of investment in MCs among all income-earners.  For their part, all MC corporate groups earning out of 20-50 export-oriented joint venture companies per group will afford high dividend rewards to investors while creating millions of high-salary jobs that will draw jobless & low-income employees into employment with MCs.  High education in Science & Technology becomes affordable to the employed former bottom masses who are typically Primary & Elementary level.  MCs, State & Academe must set up Working Student programs for said employees, with Mass Entrepreneurship & employee group business operation courses & team invention requirements included in the higher levels.  Successful invention teams that license their technologies to mega co-ops for world-scale sales will thereby likely become millionaires.  In due time, all employees should be earning 1st World level middle class incomes while enjoying full benefits from perpetual operation of the PITCOS law.

    Q2: How will the State recoup its 'lost' personal income tax proceeds?  A2: All MC investments will create green JV projects in millions that qualify for UN/World Green Fund equipment and materials loans at 60-75% project cost.  Once granted, Phil. Customs will be flooded with billions of dollars in equipment and materials imports, all taxable.  As MCs & their joint ventures set up their thousand-hectare agroforests, resorts and resort schools, infrastructures, industrial factories, residential condos as well as mini hydropower, geothermal, steel and metal parts-making plants, etc., the resultant upstream and downstream industries (construction, services, retail, etc.) together with the 'basic' industries will together yield quadrillions of pesos in all manner of tax proceeds and other State incomes.  Current State incomes derived from corporate income tax, capital gains tax, State banks' interest income, State corporations' profits, road tolls, sales taxes, real estate taxes, mining and quarrying fees, franchise and monopoly shares, State land rents, taxes on luxury items, and scores more impositions should  consequently multiply 30-40 times. 

    Q3: How will the PITCOS law further help address mass poverty?  A3:  All MCs must require Primary and Elementary level employees (the expected bulk of joint venture employees) to study to College Science, Engineering & Technology courses offered by the Philippine Academe's distance study programs aided by State. MCs should require their foreign joint venture experts to teach advanced technologies to local trainees & academic professors.  Advanced skills & stepped-up work experiences will promote the former poor into increasingly higher corporate posts towards the middle and upper classes. Peer pressure & MC Movt cultures will build a saving and investment habit among the masses beyond the PITCOS program especially when they can now afford purchase of capital shares out of savings. Indeed expenditures lose hard-earned incomes, while savings for investment expand it.  'Respect' shall no longer come from buying all-imported luxuries (a current middle & upper class culture) to impress people. Instead the masses will enjoy the silent confidence created by possession of high savings, stacks of corporate shares that earn high dividends, profit shares from small employee group 'sideline' businesses related to mega co-ops, ability to afford all manner of pre-need plans, residential ownership, affordability of middle class lifestyles, and lifetime participation in MC programs towards redemption of hordes more of bottom poor.  The spiritual fulfillment of masses & their local/foreign allies sharing skills & resources to create jobs for helpless poor should in due time not be limited only to the Philippines but spread throughout the 3rd World.

     Read next post: How employee & managerial masses may acquire more free capital thru a law that respects labor's role in creation of credit worthiness that brings as much as 98% of assets that employees use for creation of profits.  (For Android cellphones, swipe screen up & down, tap arrow at left of title, and tap Post 6: More Free Capital for Employee Masses!)

    For Question & Answer procedure, tap Post 19: Time to Act! Help Promote Our Mega Co-op Movement!

    For comments: email fermin4megacoops@gmail.com