We will also have a GST as a constant revenue stream to support and maintain infrastructure on the Island. The GST will be applied to all goods and services produced and consumed on the Island, it will be a flat tax of 15%, this will cover all taxes on goods and services there will be no other charges (stamp duty, etc.).
Hemp is our most lucrative product it has many uses, able to produce highly demanded goods, attracting large revenue streams. The most profitable use of hemp is to produce oil. It is one of the most demanded commodities in the world. The rest of the world still largely depends on oil to power its automobiles and power stations, so demand is expected to remain high for future. Our society being a green & efficient one our need for oil is minimal so most oil produce can be exported for profit.
A capitalist society is one that allows market forces (supply/demand) to determine the price of goods and services. This will be beneficial to the Island due to the good and services we have chosen to produce, of which are in high demand, therefore commanding higher prices. The essence of capitalism is to maximize revenue through increases in efficiency. This is a value we wish to instil across the Island to have a productive and innovative economy.
A progressive tax system is one where the portion of tax paid of income increases, in short the more one earns the more tax paid. Our reasoning for this is to ensure a large amount of income tax is generated from those that are the most successful. There will be some tax exceptions for certain industries. The aim is to encourage productivity and entrepreneurship.
There will be some tax exceptions for certain industries such as farming as a majority of their produce will be used for local consumption, a small levy will be imposed on excess supply exported. Wealthier and more successful individuals and business will be expected to pay a larger amount of their income in tax (a maximum of 45%) to support the growth and development of settlements on the Island.
The Island will be based upon a services economy. Services are profitable and generally have higher returns than manufacturing and primary produce. It also has the benefit of establishing a highly educated population. One option is to establish an internationally recognised schooling system, particularly universities to attract a high level of international students who inject large amounts of revenue into the economy. We need to have a system of universities renowned for cutting edge…
The benefit of tourism is that it requires very little start up and maintenance funds to enable us to generate a range of revenue streams. From the adventure seeking options in the mountains, to the beaches and resorts along the costs, and our bustling shopping options of our main cities, or just a scenic location with warm tropical weather. There is something for everyone.
In addition to the main sources identified above there are some smaller options available to compliment alongside our larger ideas. We plan to receive a portion of public transport fares as we plan to make public transport a major feature of settlement, in time this will help pay off the initial outlay. The commercial transportation of goods between settlements will incur a small fee for passing through the central settlement.
Exporting of excess fresh produce. The society aims to produce the required amount of fresh produce to sustain itself, be self-sufficient as much as possible. If there is excess produce we can choose to export it internationally. To add value to attain slightly higher prices we can push for organic produce, to differentiate our products form others. However, this is not a large revenue stream and unlikely to produce high revenue due to produces nature to being an inferior good.