The Role Of The Systemic Project Foundation
The Western Capitalist Democracy Model:
The National Government Deficit has a braking action on the national economy.
To provide services to the Nation the Government must raise Taxes. The natural evolution of the economy and the natural effect of the resulting inflation take the services cost on a rising upward spiral. The cost of government services rises. The Government increases the Taxes on Companies and Citizens to cover the increase cost.
Because of rising Taxes, Companies and Citizens get poorer and the volume of Tax receipts goes down – so the Government must borrow more and then raise Taxes even more. In a few words this is the negative self re-enforced cycle of the western economic model.
Such cycles lead – without fail – to major wars and destructive revolutions.
The resulting extraordinary unleashing of unrestrained violence eradicates most of the wealth of the upper class (the Rich as they are labelled today) as evidenced by the statistical analysis in the works of Thomas Piketty, Robert Gordon, John Maynard Keynes, Eric Beinhocker, Adam Smith, and many others.
The Marshall Plan Model:
In the 1945 time frame, the USA and Europe, as well as Asia, came out of World War II with a crushing debt burden which was threatening to push the whole world governance models towards Communist Tyrannies.
The financial Marshall Plan and the equivalent MacArthur Plan changed all of that.
One of the side-effects of the Marshall plan was to wipe out the debt of the USA and European Countries and that of some Countries in Asia with the MacArthur Plan.
Because the debt burden was wiped out of the Western and Asian economies, the World was allowed to start a 50-years cycle of quasi continuous economic expansion. How the debt was financially wiped out, in a “natural manner”, is a separate subject discussed elsewhere.
The World is today faced with the same economy-crushing debt burden as in 1940 – 1945. However, increasing the Tax intake without changing the Tax rates will generate a Government Budget surplus which will in time decrease the debt.
The Systemic Project Foundations And Their Impact On National Debt:
The Goal of our proposed Systemic Project Swiss Foundations is to boost the economy by creating a multitude of taxable events, of sufficient magnitude, as a by-product of large Humanitarian and / or Infrastructures Projects implementation:
- Contrary to common practice the Systemic Foundation will seek to pay maximum Taxes instead of trying to avoid taxation altogether.
NB: To maximize its Tax burden the Systemic Foundation will not require any change in the existing National Laws and current National Taxation practices.
- The Swiss Systemic Foundation is funded by International Financial Institutions from the International Financial Markets.
- The Swiss Systemic Foundation opens a representative Liaison Office in the Country in the form of a Local Corporation which is wholly owned by the Swiss Systemic Foundation.
- The Swiss Systemic Foundation acquires Goods and Sevices in the International Markets at International Market Prices.
- The Swiss Systemic Foundation transfers the Goods and Services to the wholly owned Corporate Liaison Office which pays the Custom Taxes when applicable.
- The Local wholly owned Corporate Liaison Office sells the Goods and Services to an independent Local Corporation (not owned by the Swiss Systemic Foundation) at the International Market Price ~ minus a phased-in Subsidy of up to 60 percent.
- The independent Local Corporation will pay the VAT Tax at the International Market Price level.
- Upon resale of the Goods and Services the independent Local Corporation will earn 30 % of the 60 % subsidy (calculated at the International Market Price) and must re-invest 15% of the 30% in its own activities within the next 30 days.
- Once the independent Local Corporation has invested the 15% another 30% is then earned and payable (by the wholly owned Local Corporate Liaison Office) which must be invested by the independent Local Corporation within 90 days.
This process is feasible because the wholly owned Local Corporate Liaison Office has Privity of Contract with the independent Local Corporation, the negotiations are at arms length, and the Tax is paid at the highest amount level.
- To avoid “dumping” the independent Local Corporation is not allowed to sell at less than the purchase price.
- The VAT Tax is passed through at the high International Price Level.
- The independent Local Corporation profits will increase because of the subsidies provided to it, for which the independent Local Corporation will pay a higher level of Taxes commensurate with its higher net valuation.
- The 45% of the independent Local Corporation’s re-investments will create new Jobs with more income tax receipts generated downstream.
- Enforcement and Policing is performed through the Compliance Data analysis requirement which is integrated in all activities of the Swiss Systemic Foundation and are described elsewhere.
For more information please contact Global Project Engineering.
Global Project Engineering
1 Carrefour de Rive
1207 Geneva – Switzerland
Tel : + 41 22 735 7900