Public Money, Private Money, Work Income, Registrarial Income.

Avoiding the Trap of Unlimited Income Concentration.

Daily the news alert us about costs of malpractice involving public money (money here also meaning wealth and value). A simple reflection leads us to see that so much public money as  private money originates or is generated by the summation of all work realized to produce it, so before it is public or private money we call it “original” money. Some of this money becomes public through taxes and other mechanisms. The rest becomes of private nature; it can be by overtly illegal or by legal means (not necessarily fair). Legal money becomes private property by two ways: 1)As a direct compensation for work done, a more or less reasonable relation with work complexity, duration, risks, etc. is perhaps often present. 2) Through mechanisms that we call registrarial (in the sense of registered in conformity with the universe of the current legal rules referring to notarial registry, vested rights, documents), which indicate the share to be allocated to each one, from the “original” money/wealth. These legal rules or laws are often the outcome of power relations also strongly rooted in the past and not based on logic and merit. So it seems fair to say that there is  at least a moral malpractice  involving  lots of private money since very high values  are appropriated by relatively  few people, often without counterpart of any work  at all; or the work or activity which is said to correspond to such huge incomes seems largely under what could reasonable be expected. Dramatic magnification of these shocking distortions of income by the financial system occur, since having huge amounts of capital available to invest, this small fraction of the population expands greatly the concentration of income by mechanisms where money generates money and discard meritocracy. A healthy way to correct this situation appears to be highly progressive income taxes, but without inhibiting entrepreneurship.  A taxation following sigmoid curves or similar to the letter “S” something right tilted, has been proposed. By the way, these are the kind of curves found in our blood’s oxygen binding by hemoglobin graphs, in his function to deliver the vital oxygen to organs and tissues according to their actual needs, related to the work performed to serve the healthy functioning of our body. Money circulating adequately could bring health to humankind’s social body?  These "sigmoid" or “centripetal“taxes would be very low for modest incomes and approaching 100% for the upper portions of extremely high incomes (here necessarily all kinds of income  should be considered, both wages, wage supplements, commissions, dividends,profits, rents, inheritances, donations and financial income of any kind, no exceptions). One should note that even someone with a very high income, will have low and moderate taxation on the lower ranges of income, which will allow net incomes still highly different. This taxation will free us from the trap of unlimited and unjust income concentration, and thereby restoring a comprehensive meritocracy. To ensure the continuity of strong entrepreneurship access to abundant and cheap capital is necessary. Hence total tax exemption would apply for all the values compulsorily scheduled for productive investments of all kinds, including research and education. If not immediately used for productive investments, taxable funds are immediately transferred to  “Economic and Social Development Banks” with yields less than the inflation rate or possibly even negative interest rates, but available to the entitled, for their productive investments. Alternatively, if the available values are for final integration to the private property by the entitled, the payment of the “sigmoid” income tax will take place. Such a mechanism seems also very appropriate for taxation of private inheritances as well as those involving inheritances of companies of all kinds.