Essential services

Star Island's mandate is to create a society which provides for the well-being and growth of the lives of all of its citizens. In that regard, I believe that some services that modern society provides should be considered essential if they are not elsewhere in the world.

1. Access to your money at all times should be an essential service, available 24/7

Bank holidays bother me a lot. Not only do large banks borrow your money in order to lend it out to increase their own profits (and the profits of their rich shareholders); they also charge you service fees seemingly for simply holding your money, and when they do actually give you a bit of money from the investments they have made with YOUR money, it is peanuts – unless you already have a lot of money.

I decided that Star Island would be a place where for-profit banks are not allowed. It would be illegal for them to operate directly in Star Island, although in the interest of promoting business, they may still work with the credit union co-operatives that would serve the same purpose as banks in Star Island.

Anyway...

The point of my preamble there was this: I bank with a major bank, as I am sure most of you do. One thing that I have noticed with operations such as online banking is that transactions do not take place immediately – even in the online world, where you would think such transactions could be done right away; you know, at the speed of light through the internet.

Instead, something simple, like paying off your credit card, takes a day or two, or sometimes three if there is a “bank holiday”. This is stupid. We have the technology to do instant money transfers.

All credit unions/financial institutions in Star Island would have online access to their services around the clock, and all transactions would be processed in a flash, as indicated.

----

2. Transit should be available 24/7

If you are a member of the working class or lower middle class, it is likely a huge financial burden to own a car, truck or van. Sure, you need it to get around where you live – but that's a fundamental design flaw in the way communities are built. Unfortunately, it's beyond most people's control.

That's why I think that public transit also should be an essential service, operating all hours of the day. While a car is convenient because you can pile your family and gear into it and drive off whenever you need to, the fact is that the reason we need cars in the first place is the expansion of suburbia as well as car-related infrastructure, and the never-ending pursuit among city designers to make traffic flow easier – for motorized vehicles only, at the expense of all other forms of transport, including WALKING.

Star Island would be small, and everything would be within walking distance. Other cities around the world, though, need to develop other solutions, as compacting a city which has already expanded is likely too expensive to do in a timely fashion. So public transit needs to become a 24/7 thing, and governments need to enact policies which make public transit more attractive than sitting in gridlock all day.

As an aside...if you need to transport large items, like home appliances or heavy machinery, some vehicles, such as forklifts, should be able to operate to move those things around, both in my imagined country, and in real cities.

Proposed Laws - Republic of Star Island

Here are some specific laws that I would like enacted if the Republic of Star Island were ever to become a sovereign nation:

NEW LAW PROPOSAL:

Definitions of full-time work vs. part-time work.

A full-time worker is an individual who works for a minimum of 32 hours in an 8-day period, or, for those industries that wish to adhere to a 5-day work week with a 2-day weekend, 30 hours in a 5-day work week (6 hour work day).

A part-time worker is an individual who works between 16 and 32 hours in an 8-day period, or between 15-30 hours during 5 days of a 7-day week in which the business does not operate on the weekend. This would entail shifts of 3 to 6 hours in duration.


These 8-day and 7-day period models are designed to function with businesses that wish to operate with 2 or more sets of workers, working in shifts.  The 7-day standard model is likely to still apply to education.

Other models may appear due to different industries having different needs, such as mining or healthcare, which may authorize 12-hour shifts for workers, for 4-to-7 day stints, followed by an equal amount of time off to allow the employee to recuperate and have some measure of work-life balance.

Work-life balance is essential to preventing worker burnout and reducing the need for sick days and replacement workers, all of which cut into a business' profits. It is essential for a business which is motivated by profit to ensure that its workers are not overworked, otherwise the business will fail.

Companies which offer benefits to full-time employees are barred from reducing benefits extended to workers if workers are reassigned to work part-time hours, unless the workers who will be reduced to part-time status are in agreement that benefits should be reduced. Contravention of this law will result in forfeiture of ownership to a third party which will dispense appropriate benefits.

AGE OF MAJORITY

The age of majority (18) would carry with it all the responsibilities that legal adults currently have in other established nations, but would also give citizens who reach it all of the privileges of adulthood. Legal adults are allowed to vote, obtain a marriage license, obtain licenses for/operate motorized vehicles, and purchase controlled substances. This differs from Canada, where you can die for your country, but not buy a drink at age 18. Why?

MARRIAGE LAWS

Legal adults, regardless of the gender identification of both participants, are allowed to be married in civil ceremonies which are recognized and conducted by the government. Married couples are entitled to all benefits and recognition associated with being legally married.

Religious denominations may marry or refuse marriage to couples in accordance with their own beliefs, but may not promote their own beliefs in public space. Citizens may obtain marriage licenses with the consent of a legal guardian if the citizens are at minimum 16 years of age.

PRODUCT-SPECIFIC LAWS

Advertising restrictions will be placed on adult-oriented products. All adult-oriented advertising must comply with necessary content restrictions, or it will be removed and destroyed.

(a) Just as alcohol commercials would not be allowed to show persons consuming the product, neither would cannabis ads be permitted to show users using the product.

(b) Adult service provider commercials would only be allowed to air between 9 pm and 6 am. Networks with target viewing audiences below 18 years of age are prohibited from airing these ads.

(c) Still-image media such as online ads or physical magazine ads (or phone book listings) would not be permitted to display service providers who are not clothed, but may display them in a setting conducive to their business, such as in a bedroom.

(d) Online video media, including ads for these services, would also be restricted to viewers under the age of 18 via advanced biometrics identifying the age of the viewer of the media at the time of viewing.

(e) Dedicated physical magazines of adult content, such as Playboy or Maxim, would only be permitted to be sold in established adult entertainment businesses.

(f) If a citizen is in receipt of social assistance, they are prohibited from spending their social assistance funds on any of the products listed herein. Social assistance funds will be monitored in a separately administered account device to the regular personal finances device that each citizen is entitled to, in order to effectively separate the two sources of income.

*Unemployed citizens will be eligible to receive a monthly "citizens' dividend", which would be funding that they can use on non-essential items. Any additional money that they wish to spend on these services must be earned through employment.*

*Unemployed citizens who become employed can continue to receive social assistance at a reduced rate for up to 12 months from the start of their employment. Once employment is established as being continuous (after 12 months), and the individual will be able to support themselves on that income alone, benefits will then be removed. In the event that employment ends, citizens can immediately resume receiving benefits.*

(g) In instances where a pre-existing addiction has been identified with a citizen, they will be directed to a clinic and addictions counselling centre in order to help them overcome their addiction.

(h) All other drugs, with the exception of cannabis products, that are deemed to be illegal by other nations, are illegal for use in Star Island as well. In the event that a citizen or visitor to Star Island is identified to have an addiction to an illegal substance, however, the government will intervene and direct the individual to a government-monitored treatment centre, and if necessary, a safe injection site, also administered by the government.

(i) Social assistance will not be administered if an individual gains employment which pays sufficiently to provide for their needs, with the earnings cutoff being described in the minimum wage earnings bracket of Star Island's budget spreadsheet.

 

--SECTION 1: CANNABIS/TOBACCO--

Consumption of cannabis, tobacco, and related products would be fully legalized in Star Island, with certain exceptions:

(a) You must be 18 to purchase or use cannabis, tobacco, and related products.

(b) You may not provide cannabis, tobacco, or related products to minors.

(c) Production of cannabis, tobacco, and related products is subject to taxation and regulation, as is any other business. Proper safety protocols must be enacted to ensure that any air, water, or soil pollution created by the plants grown will be properly disposed of. You must obtain a license from the government to sell cannabis and related products,

    i. You may grow cannabis for personal use with a personal permit given from a licensed general practitioner, which can be upgraded to a license to utilize, as long as proper safety precautions are taken in the growing process. Sale of personal use cannabis is strictly prohibited.

(d) There will be restrictions on areas where marijuana and tobacco cigarettes may be used. Users may use them in their own home or designated public spaces with proper ventilation. Homes with minors will be further restricted; cigarettes may only be used in an outdoor area of the home.

(e) A levy of 10% of the purchase price (before sales tax) will be added to all cannabis and tobacco sales to fund addiction treatment and counseling services, and healthcare costs for associated medical conditions.

(f) Any attempts to contravene these laws, including use of an intermediary to assist in law contravention, will be subject to punishment under the laws for unlicensed trafficking of commodities.

--SECTION 2: ALCOHOL--

(a)The legal age for purchase and consumption of alcoholic beverages is 18 years of age.

(b) You must be 18 to purchase or consume alcoholic beverages.

(c) You may not provide alcoholic beverages to minors.

(d) Production of alcohol and related products is subject to taxation and regulation, as is any other business. Proper safety protocols must be enacted to ensure that any air, water, or soil pollution created by the products used will be properly disposed of. You must obtain a license from the government to sell alcohol and related products. You may not produce alcoholic products for personal consumption in your own home.

(e) Per local law, public consumption of alcohol will be restricted to approved community events in designated areas, and at licensed serving establishments.

(f) A levy of 10% of the purchase price (before sales tax) will be added to all alcohol sales to fund alcohol addiction treatment and counseling services, and healthcare costs for associated medical conditions.

--SECTION 3: ADULT SERVICES--

(a) Prostitution and sale/purchase of sexual products/services would be legal for all citizens 18 and older, upon verification of age of majority between all participants.

(b) Prostitutes (hereafter identified as “adult service providers”) must apply for an annual license identifying them as a private contractor, and will be taxed on any resources used in their trade, as is the case with any other business in Star Island.

(c) Sale of sexual services includes

(1) performing sexual acts in exchange for money,

(2) selling of pornographic/erotic media, including media obtained online
(3) selling of physical products for use in sexual acts.

*contraceptive devices may be sold to minors, but all other products as listed above are prohibited.*

(d) Any individual who is found to be coercing other individuals into providing services of this nature will be held criminally responsible. Acts of this nature affect persons physically, mentally, and psychologically, and should only be performed between consenting individuals.

(e) Whether sold for profit or distributed free of charge, any media depicting sexual acts involving individuals who are not at minimum 18 years of age is strictly prohibited.

(f) All adult service providers are required by law to use personal protective equipment to prevent transmission of infectious agents, as well as to provide contraceptive protection between client and service provider. Personal protective devices will be available for purchase to adult service providers through public health clinics, where they may be purchased in bulk at a reduced cost. When purchased by a licensed adult service provider, they will be recognized as essential expenses for purposes of business, and thus not be taxed.

--SECTION 4: GAMING--

Sports betting involving legal currency is legal, provided that the following conditions are upheld:

0. The sports league in question must also consent to the allowing of wagers on their events. This law supersedes all preceding laws on sports betting.

1. A physical or digital record of all bets is made for verification in case of dispute of outcome.
2. All participants are identified on the record of every bet placed.
3. All participants are above the age of 18.
4. All participating athletes, coaches, trainers, referees, volunteers, medical professionals, lawyers, owners, or sponsors affiliated with athletes or sports teams are prohibited from placing bets on sports events in which their presence could in any way affect the outcome of the event.
5. Attempts to subvert in-place rules restrictions are prohibited, i.e. “I'll bet on your team to win against that other team if you'll bet on my team to win against this other team.”

Lottery rules:

1. All lottery programs must be registered with the government in order to be taxed, as with any other business.
2. Any person working in a given lottery program may not participate in the games provided by such lottery until a period of 4 weeks after ending their employment at said program.
3. Informal lotteries, such as fund-raising 50/50 draws for personal causes, must also obtain temporary licenses for the duration of the lottery campaign.
4. All participants in lottery games, with the exception of informal lotteries, must be over 18 years of age.
5. State-sanctioned lotteries (ones specifically run by the government) will donate 100% of earnings after staff wages and expenses to charity and medical causes, including a treatment center for gambling addiction.

Casino games:

1. As with sports betting, all participants in casino table games must be at minimum 18 years of age, and provide valid identification to be recorded on a physical or digital record of the game being played.
2. Wagers must be made only with legal currency or betting chips provided by casinos. Any other form of payment (i.e. Jewelry) is prohibited.
3. Casino game handlers must be aware of the physical and mental condition of all participants in their games, and take appropriate action if they suspect that a potential participant is attempting to earn money through play in order to provide for the basic necessities of life.
4. Any participant caught cheating will be banned from the casino for life on first offence. Legal appeals may be filed if evidence of wrongful accusation is proven.

Private, in-home gaming involving the exchange of currency is permitted among consenting adults, provided that all participants document their consent on the date of the gaming, and providing that the environment in which the gaming is taking place is not also in violation of any other laws.

--SECTION 5: FIREARMS/WEAPONS--

Legal adults in Star Island may purchase firearms and other devices classed as weapons after obtaining a firearms license from the government, and after undergoing stringent psychological testing, as well as an assessment of their home to determine if it has the proper storage facilities to keep firearms from the hands of anyone to whom the firearm does not belong.
Hunting licenses can be issued by the government to adults, and minors who are under the supervision of a legal adult.

With regard to security, border guards and police would be armed with less-lethal armaments, designed to incapacitate, but not kill, any potentially threatening persons attempting to enter or exit the island. These armaments would include:
Targeted sonic rifles – intended to incapacitate an assailant by targeting a channel of sound to their eardrums, sufficient to cause pain, but not irreparable damage.
Net-dispensing rifles – would project Kevlar nets to surround and capture people, in order to make it easier to arrest people who would attempt to resist.

Pepper spray and equivalents

Electric stun batons – (tasers that look like long staffs, attached to a battery pack on the officer)
These batons would also be detachable, and could be used as staffs to block attacks from close-range weapons, such as knives.
As a last resort, law enforcement officials would carry standard firearms, to be used in situations where if the threatening person or persons are not killed, other people may be harmed or killed.
All weapons issued to law enforcement would need an RFID key (encoded with biometrics) to operate, so that an assailant could not use these weapons against law enforcement.

NEW LAW PROPOSAL:
Potentially harmful emissions from factories are illegal. Any industry that would normally require emissions from their facilities to be released into the environment via pipes or chimneys must instead send gaseous, liquid or solid waste to a facility where the waste can be processed into a useful substance.

Vehicles which release emissions must also have a compression and storage tank attached to their tailpipe to prevent emissions from entering the atmosphere. Vehicles which are not local to Star Island would be allowed to enter, but would be required to rent or buy and use a storage tank while driving on the island, and within a 20 kilometer radius of it.

Non-compliance from factories will result in mandatory shutdown of the factory to allow for installation of emissions/waste capturing infrastructure, the cost of which will be paid by the company in non-compliance. Repeat offenders will be barred from conducting business on or with Star Island.

Non-compliance from uncapped vehicles will result in seizure of the offending vehicle. Users wishing to re-obtain their seized vehicle must comply with the requirement for an exhaust collection device in order for the vehicle to be returned. Repeat offenders will be barred from entering Star Island. Repeat offenders who are barred but still attempt to enter Star Island will be jailed and/or forcibly removed.

**Addendum – Livestock, animal and human emissions**
Livestock, other animals, and humans are unreasonable targets to attempt to constrain their emissions in the same way as a motorized vehicle. This approach is impractical for reasons of decency and animal cruelty. In an attempt to reduce emissions that may be released from livestock, dietary supplements designed to reduce their methane emissions will be added to the feed of any animals that would potentially contribute a large amount of harmful emissions to the environment.

NEW LAW PROPOSAL: Pay gap ratio cap.

The ratio of the CEO of a business's salary to the entry level worker shall not exceed 25:1. If an entry level worker makes 26k per year, no CEO is permitted to earn more than 650 k in base salary. In the case of share dividends, all companies that allow shareholders must extend the right to own shares to all employees.

A CEO in this scenario may take home 1 M (520k salary and 480k dividends) IF the entry level position's take-home earnings (salary and dividends) add up to 40 k. An entry level worker's salary must also be a living wage, especially if dividends are only given out quarterly or annually. An annual salary, for example, of 5,200, with promised dividends of 34,800, will not allow an entry-level worker to pay for their daily needs during the course of the year. Contracts for employment must be structured to allow for a salary that at bare minimum reflects a proper standard of living.

Any attempts to hide or disguise salary or dividend earnings are prohibited by law, and persons found to be breaching these laws will be sentenced to a period of time in prison consistent with the amount of time their law-breaking has been occurring. Any earnings found to be in excess of the ratio will be forfeited and given to the employees of the company. As well, while in prison, the CEO is prohibited from earning any money from their holdings or regular salary.

EXTENSION TO MULTINATIONAL OPERATIONS

If a CEO owns branches of a company in multiple countries, their earnings from countries other than that of their primary residence must respect the tax laws of the other countries before being subject to taxation in the person's home country.

Ex. If CEO earns 1 M in their home country, and 1 M in country B, but country B's tax laws specify that 10% of all earnings must be taxed, CEO's take from country B becomes 900k before it gets into CEO's pocket. From there, applicable taxes in country A on all earnings apply.

Further, if CEO decides to transfer all their earnings and salary from the country of their primary residence to a foreign jurisdiction to avoid being doubly taxed, they must also move to that country as their primary residence, or face tax evasion charges.

OFFSHORING - As well, all countries in which the CEO owns parts of a business with employees must be paying fair living wages. Any factories found to be not in compliance will result in forfeiture of earnings to the workers in the countries that are not paying their employees a living wage. This should act as a deterrent to CEOs who want to offshore jobs in the name of cheap labour.

NEW LAW PROPOSAL:

A few thousand HNWIs (high net worth individuals) may contribute the funds necessary for the construction of Star Island's total infrastructure. If these HNWIs also have ownership of businesses that allow them to earn vast amounts of wealth, how can we ensure that the wealth generated (at least from Star Island businesses) is more evenly spread out to the entire populace?

Proposal A. Mandatory investments
As a condition of operating a business in Star Island, a HNWI must channel no less than 50% of their take-home profits back into the local economy, whether through grants or other donations. Income tax deductions will not apply in Star Island, as no income tax is applied in Star Island to any citizen, however, these donations will not count toward the HNWI's total recorded income for the year.

Proposal B. Controlling share legislation: No individual, regardless of their economic status, is permitted to singularly own a controlling share (50%+1) of a business in Star Island that employs 2 or more people.

(Sole proprietorships are an obvious exception, as only one person, the owner, is employed. 2-person partnerships are also exempt, as the ownership percentage should be easily negotiable between 2 individuals).

This legislation is intended to prevent a HNWI from making unilateral decisions about subjects such as relocation of a business, staffing levels, or the amount of money than anyone working for the company can make. As well, no board of directors is permitted to own a controlling share of a business, for the same purpose. Entry level employees must be able to have some negotiation power when issues such as production, benefits, wages, materials costs, etc., are up for discussion.

Scenario: HNWI Henry Wei has a personal fortune from his diversified portfolio of *I* 2 billion (Actually $CDN 2 billion, converted into Star Island Credits.(*I*) )

Wei decides that he wants to continue operating his textile production business in Star Island when he moves there. He puts forth his own money (*I* 50 M), and shortly thereafter, the textile factory is ready to begin production. The textile factory in Star Island produces and sells *I* 5 M in shirts and pants in its first year. Wei has complied with Star Island's policy for fair sharing of profits with his employees, ensuring that he takes from the profits no more than 25x the entry level wage in the company. He takes from the 5 M a share of *I* 600k, being 24x entry level salaries of *I* 25 k.
Total expenses from the first year of production are *I* 1 m. After all 100 employees are paid, and Wei has taken his pay, that leaves the company with *I* 900 k in positive cashflow.

Pleased with the production of this venture, but realizing that his own fortunes are taking a hit, Wei decides to open a second factory, for another *I* 50 M. From a starting point of *I* 2 B, Wei now has *I* 1.9 B, plus the earnings from his textile factory's first year of business.

After 5 years, factory workers begin to complain that their wages are stagnating as the cost of living is rising. They blame Wei for hoarding his vast fortune, and demand that the government take action.

Star Island's government has no authority over the wealth that Wei has acquired prior to becoming a resident of Star Island, which in this case is his original *I* 2 B. However, the mandatory profit investment clause is enforced on all profits Wei earns in Star Island.

Wei is now mandated to invest or donate 50% of his take-home earnings in causes that will not provide him with any compensation. In its first year of enactment, this contributes *I* 1.2 million to causes such as food banks and government social assistance grants in succeeding years.

In the tenth year of operation, Henry Wei dies. His will states that all of his assets are to be donated in equal proportion to his five children and his widow. Wei's personal assets of *I* 2 billion are now subject to an inheritance tax, as they were not place in any tax-shielding trust or account. The inheritance tax level is set at 1% for wealth of under *I* 100,000, with gradations of 1% increase for wealth up to *I* 1 M, at which the inheritance tax maxes out at 10%.

As a result, 10% of Wei's assets are given to the state upon his death – a total of *I* 200 M, which is put into the Republic's contingency fund while council confers with the public on the most appropriate use of the funds. The decision by council on where to allocate the funds is then subject to approval by the general public in a quarterly referendum. If approved by both council and the general public, this proposal becomes enacted, and the funds are distributed into the budget the following year.

NEW LAW PROPOSAL: 

Election restrictions

No individual is permitted to financially contribute more than *I* 1,000.00 to a political campaign, and no donations may be made by a business on behalf of an individual or group of individuals. All political donations must be made by living persons, and certifiably traceable to them. The *I* 1,000.00 limit will extend to all contributions in the form of campaign media, whether radio, television, internet posting, or physical campaign sign, purchased media for data collection and other office equipment, etc., with the sole exception of office space.

With this limit, it is unlikely that the campaign budget for any one candidate in an election should exceed *I* 40 million. (Total campaign spending will, in fact, likely be far below this figure, as it assumes every living person in a council area (group of 40,000 voters) contributes the maximum donation.) A minimum of 2 candidates are needed for an election to occur; if a sole candidate stands for election to a council seat, they will be acclaimed to the council position.

One item which contributors will be allowed to contribute above the limit is in donated food to the volunteers who work in the campaign office. Donations must be marked “anonymous donor” if the donor does not in fact volunteer in the campaign office, but merely makes a donation. Conflicts of interest will be closely guarded against in all political campaigns.

NEW LAW PROPOSAL:
Inhumane cost reduction strategies

If a business or other entity needs to reduce costs, it must carefully examine all avenues. Proposed layoffs of workers should be considered a last resort, once compensation for non-worker owners has been reduced dramatically, and external costs have also been reduced.

Example: Company A consists of one CEO and 9 other board members, as well as 10,000 additional employees. Company A has a 1st-quarter profit (after paying its employees an agreed-upon wage) of $10 million, which it distributes equally to its board members and CEO.

In the 2^nd quarter of the year, Company A's profit is $9 million. In an effort to reduce costs and thus increase the profit payable to board members, the board proposes that the company lay off 1,000 of their workers in order to reduce overhead, while mandating that the remaining workforce take on the hours vacated by the laid off workers, without any increase in their own wages. This proposal is agreed upon by all board members, and then layoffs are announced.

Released workers, under the law against inhumane cost reduction strategy, have the right to contact the government in order to demand that the board of governors reverse the layoffs, and re-evaluate their cost-reduction strategy. In this case, where the primary purpose of layoffs is determined to be “so that board members can continue to maintain earnings consistent with last quarter, regardless of reduced revenues”, all laid-off employees will then re-enter the company and receive the earnings that would have been given to the board members. All board members who voted in agreement to the inhumane legislation would be mandated to receive an immediate 90% pay reduction via an “unfair labor practices tax” in future quarters. This punishment would apply for the next 12 months following its application.

(i.e. As a result, all board members complicit in passing the inhumane cost reduction strategy would, instead of receiving $1 million in quarterly profits, receive $100,000 in quarterly profits each, for the next 4 quarters. $900,000 of the earnings, or $9 million total, would be redistributed 50% to the company's workers, and 50% to social supports funding.)

For a workforce of 10,000 employees, this would result in an average annual compensation payment of $3,600.00, in addition to their fully restored regular wages.

If board members are found guilty of a second violation of inhumane cost reduction laws, all board members are required by law to resign, or face forced removal and imprisonment. New board members may then be elected from the workforce of the company.

Acceptable (humane) cost reduction strategies

If a business is facing decreasing profits, and having trouble paying both its workers and its owners at the rate they are accustomed to, the owners must reduce their own earnings significantly before appealing to the workers to do the same.

Ex. If profits drop by $1 million, and the owner's salary is $1 million, while 50 workers' salaries are $40,000 each (in compliance with the previous law, restricting the CEO-to-worker wage ratio to no more than 25:1), a proposed annual salary reduction of $2,000 (5%) per year for workers would be acceptable IF and only IF the owner's salary were also reduced by an amount sufficient to reduce the loss in profits to 0.

The owner's previous salary of $1 m would need to be reduced to $100k in order to make up $900k of the $1 M loss, while the workers would, combined, give up $100k of their salaries.

Since this represents a 90% reduction in owner salary vs. A 10% reduction in worker salary, the percentages lost by each party are open to fair negotiation in order to achieve cost reduction goals. Percentages may, for example be 75/25, instead, meaning the owner loses $750k and earns $250k, while employees lose $250k per year, taking home $35k each.

Basic minimum income

The basic minimum income is an idea long waited for. Manitoba ran a test program called Mincome from 1974-1979 in Dauphin, Manitoba, to see the effects of a basic minimum income on overall levels of work, and the impact on society.

Directly from the recent Huffpo article on it:
"For five years, poverty was completely eliminated.

The project’s original intent was to evaluate if giving cheques to the working poor, enough to top-up their incomes to a living wage, would kill people’s motivation to work. It didn’t. But the Conservative government that took power provincially in 1977 – and federally in 1979 – had no interest in implementing the project more widely. Researchers were told to pack up the project’s records into 1,800 boxes and place them in storage. A final report was never released."

So there you go. Conservative economics and principles once again prevented a progressive solution to poverty from being presented. I am reintroducing the basic minimum income in my fictional Republic of Star Island. It would allow unemployed people to be able to afford the following:

-a place to live, shared with another ($300 a month for rent, with two people sharing a $600/month unit)
-$400 per month to cover food costs (purchases of alcohol, tobacco and other "entertainment" restricted)
-a monthly public transit pass (listed at $40 in my model, but adjustable)
-a land phone line or cell phone line ($40 per month for a basic plan)

This totals $780 a month, or $9,360.00 per year.

There are 1,325,000 unemployed Canadians who are members of the labour pool, according to Statistics Canada. If we use my numbers for a Canadian Basic Income, that would mean that the cost of the program for just one year would be $12.4 billion.

Canada's national budget is regularly in the neighbourhood of $300 billion, so an additional $12 billion could be accomplished by simply raising the corporate, after-expenses tax rate (the tax on profits) by a couple of percentage points.

The resulting reductions in necessary healthcare spending, for one, would be of tremendous benefit to any future budgets, as the number of people using emergency shelters in cold weather would immediately drop almost to zero.

Having money to buy nutritious food will also help people maintain their health while employed, resulting in a net benefit to society. More business will be done, and more products will be sold, making the bosses happy as well.

We need a basic minimum income in Canada. Check out this spreadsheet to see how Canada could implement it.

Reasons that I made this project

I designed this project for several important reasons.

The modern world is vastly different to the world that existed before humanity emerged from Africa to colonize the globe. Throughout human history, we have fragmented into many different societies and cultures, whether because of a lack of resources, a lack of being willing or able to share resources, or humankind's general sense of curiousity.

Curiousity is a good trait, but I feel like human greed and personal motivations have been in control of the development of human society for far too long. We are out of touch with the needs of our fellow human beings, and we are out of touch with the impact that developed industrial societies have on the natural world.

I believe that we, as a species, owe it to the planet we live on to make sure that every member of our species has a chance to live a full and worthwhile life. We also need to do a much better job of making sure that our impact on the biosphere as a whole is not something negative, that cannot be repaired by natural processes. I would rather see humanity live on for a thousand generations, and then slip quietly into the evolutionary night, than see us all wiped out in some calamity of our own making. This is why I created this project. It probably isn't perfect. It probably isn't ideal to everyone. Some parts may not even be possible at all, but we must start somewhere. The things that human society is doing now simply are not sustainable in the long term.


The motto of my blog has been, from day one, "Harmony and humility". We should strive to be humble in our view of ourselves, and work toward a harmonious existence.

Tax questions

It is rare that I agree with the right wing Fraser Institute. However, I do believe that a simplified tax code would be better for the average citizen. In Star Island, my fictional country, each citizen who earns money via a job, or who receives social assistance benefits, would get a simple questionnaire to fill out at the end of the year with regard to their income.

The questions would be as follows.

1. How many people are in your household?

2. Are any people in your household, other than yourself, supported financially by you? If so, please indicate the number of dependents.

3. Please indicate whether you or any of your dependents receive social assistance, and indicate which assistance packages they receive.

3a. If you are a new resident to Star Island, and would like information about social supports, please indicate which social supports you are interested in receiving. All programs for support are listed on the attached pages.

4. Did you receive any income (liquid cash) from inheritance in the last twelve months? If so, please indicate the amount. Inheritance tax is calculated at a graduated rate of 1% per $100,000.00, up to a maximum 10% level at the $1 million level.

5. Did you receive any income from stocks, bonds, dividends, or other corporate sources in the past 12 months? Please indicate all amounts and sources.

6. Are you a small business owner/part owner? A 10% tax on profits applies to all business owners who net $20,000.00 or more. Please indicate all income earned from any businesses in which you are an owner, in whole or in part, and the income received from the ownership in the past 12 months.

7. Did you receive any income from other sources in the past 12 months? (Sale of real estate or other property).

8. How much income did you receive from paid work in the past 12 months? Please indicate all sources.

9. Please list any other sources of income not mentioned.

Thank you for filling out your income questionnaire. It will be processed electronically and verified by Star Island's staff for accuracy.

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Some people might be concerned that the implementation of resource taxes instead of a graduated income tax might lead to a tremendous benefit for the wealthy, and punishment for everyone else. This is why I believe that the switch to resource taxes is not punitive:

In charging for what resources we use, a family of five, living on *I*20,000 per year might end up spending *I*2,400 per year on resource taxes. However, the percent of that income is not necessarily punishingly large.

If, for example, one minimum wage earner receives *I*14,400.00 annually from a regular income, as well as receiving *I*4,492.00 from income supports, that family would have a total of *I*18,892.00 in total income for the year; however, they would only be taxed on the *I*14,400.00 earned through the regular income. Social assistance funds would not be taxed at all – that defeats their entire purpose.
*I* 2,400 per year in taxes on *I*14,400 makes it the equivalent of a 16% income tax rate; however, if compared to the *I* 18,892.00 that the family receives in total (including income supports), that would be the equivalent of about 12.7% in income taxes. The more of a family's total income that is received in social assistance benefits, the less it will be effectively taxed. Many social assistance benefits would be available to low-income individuals in order to raise their standard of living in Star Island to a level expected of a developed country.

This may lead some detractors of the system to question “What incentive do people have to work at all if they can simply live on social assistance? This is going to turn into a nation of welfare queens!” It is an oft-used talking point among fear-mongering fiscal conservatives. 

Here is my response.

If you are a person who is satisfied with what you get from the basic income supports, perhaps you will not seek work. However, the basic income supports actually do only cover the most basic essentials needed to sustain life: Food, water, shelter, transit, and basic phone service. This would allow someone to live, but there wouldn't be much in their home to enable them to enjoy leisure time - of which an unemployed person will have a considerable amount. People will not want to sit around their house all day doing nothing. That would lead to boredom, which may lead to other negative consequences. People will naturally seek out other activities to fill their leisure time. Leisure activities, more than likely, will end up costing money, unless they are paid for by a charitable or government organization. In order to access some of these activities, people will need spending money. People will be motivated to work, because a life of sitting around a home, eating and sleeping, is not fulfilling in the slightest. Doing something with your life will give people a sense of purpose.

“But, welfare queens! Women will just get pregnant over and over and claim more and more baby bonuses, and wring the system dry of MY tax dollars!”

No, they won't. This is a futile argument, considering that all entrants to Star Island will first be screened to ensure that their initial entrance to Star Island as a citizen will not unfairly drain the economy of resources. Single parent families with multiple dependents may be let in, but records of all dependents will also be taken, and the parent(s) will be consulted about the size of their families, including all their medical necessities and requirements. They will also be provided with free (tax-funded) birth control options in order to prevent further unexpected children from increasing this parent's amount of dependents.

As well, social assistance funds will be administered in a separate payment account to any funds that an individual earns from employment. All currency in Star Island will be digital, so all transactions will be traceable to their source. This means that the theoretical “welfare queen” of conservative myth will not be able to spend assistance funds meant for food or shelter on frivolous luxuries. The system simply won't allow for those transactions to take place. Sure, someone could attempt to barter for a tattoo with baby food, but I highly doubt that any self-respecting adult would even attempt something that desperate. If they do, social services will be called in.

Star Island is a project that is intended to look after the well-being of all of its citizens. Taxes are low to attract business people, but social programs are in place to allow all people to not be left behind. This is something that people who are afraid of taxes often forget. We live in a community. The word community, as frightening as it may be to think about, is similar to communism, is it not?

Don't be scared of the words communism or socialism. Both of these elements have been a part of society for a long time.

Resource taxes (instead of a carbon tax)

To me, allowing our industries and technology to continue to release potentially harmful emissions into the environment, even with a carbon tax as a deterrent, doesn't seem like a deterrent at all. It almost seems like a government would be saying "Go ahead, continue to pollute. We'll just tax you for doing so." It seems like hush money to the government to keep quiet about things. We need to take a more punitive approach to emissions, and not just let industries and ourselves keep producing waste, especially when that waste can actually be turned into something useful. Think of it like this: Before you got a compost bin, you likely just threw away food scraps into the trash. Now you recycle the food scraps. Why can't we do the same thing with petroleum emissions and other societal "wastes"?

The natural world doesn't throw away anything, never to be used again. We should not do that, either.

Resource taxes: My alternative to income tax

Everyone hates tax. The rich hate tax because it "takes away my hard earned money".

The working poor hate tax because it hurts their ability to buy everyday essentials. Those in between these two extremes hate tax for any number of reasons, from the fact that it cuts into their ability to achieve the North American dream, to the complex tax code that goes along with it. But we all have to pay tax.

This is my plan to tackle the concerns of every socioeconomic group.

Income taxes and consumption taxes are often called regressive when they appear to more severely impact lower-income earners. This is a common criticism of the flat tax. I do agree with it on a basic level. If a person earns $10,000 in one year, and is required to pay 10% of that earned income to the government, it will have a much more significant impact on that person than the person who earns $20, $50, or $100 thousand.

Ontario, and by extension Canada, have a basic personal exemption level of income which is allowed to be earned without having income tax applied to it. I would like to model my community of Star Island's income tax model on that, but only if it proves to be the most favoured solution of the populace. I do believe that there are other ways that a society can tax its workforce which will not seem so punitive to those who would suffer most.

Consumption-based taxes would tax us on the money we spend, as opposed to the total money we earn. This might sound like it benefits those with higher incomes.

However, I believe that the worries of a lower-income person can be minimized if the resource tax approach was handled properly, by channelling those taxes into programs that lower-income individuals would use. This is the kind of policy that a social democracy espouses, and it is one that I happen to agree with. In addition, supplemental income grants could be provided to low-income families. I detail this in my spreadsheets, under four sections:


1. Program development
These are employment supplements for low-income families. In the event that company X does not provide a family with a sufficient amount of income, programs would be in place to provide supplemental income to these families, in order to meet a sufficient standard of living.

2. Education grants would be provided for post-secondary education to students wishing to study both in Star Island and abroad.

3. Small business grants will enable entrepreneurs to realize their dreams, just as I did with my own small business, which has operated since 2005.

4. Disability accommodation grants

On the other end of the scale, if a high-income earner uses up a lot of resources due to an extravagant lifestyle, they will be taxed accordingly, with that money going to the public good. It is a principle that I believe people on either end of the political spectrum can agree with: Use more resources, and you pay more for that use.

As far as tax evasion is concerned, it would be a non-issue in Star Island. All records of earnings would be filed electronically, with the appropriate levels of tax levied immediately – ensuring that nobody would be able to illegally dodge taxes they owe to the government.

Here are the resource taxes that Star Island would impose on its citizens and corporations:

Resource tax #1: Water

I believe that water is a fundamental human right, and should not be considered a commodity in its own right. Local water treatment and distribution networks should be able to provide at least 99% of a citizen's water supplies, with for-profit water companies making up any difference. With that in mind, in Star Island, control over water would belong to the government at large, which is in turn controlled by its citizens. The rate you pay for tap water would be in line with municipal water prices in Canada.

(About $3-4 per 1000 L). Effectively, this would be a monthly utility bill, rather than a tax. By making this utility government-owned, it benefits the entire community, rather than simply the shareholders of a water provider.

Resource tax #2: Power

An industrialized society demands access to reliable, renewable, and environmentally friendly electric power, in sufficient and consistent supply to meet the demands of its population. Star Island would generate 99%+ of its electric power via renewable energy resources, in order to maintain a consistent and affordable rate for residents and businesses.

Water and power bills would be built into the cost of rent/mortgage payments on Star Island. 

Resource tax #3: Fossil fuels

This tax is perhaps the most punitive; however, I feel that making it the most punitive is the correct thing to do, as fossil fuel consumption is one of the greatest drivers of human pollution to the natural environment. Star Islanders would be encouraged to severely limit their consumption of fossil fuels and derived products from petroleum, in lieu of more environmentally friendly alternatives – most of which would be produced locally, therefore also providing employment opportunities.

The tax would initially be $10/kg of mass for the fossil fuels. To put this in perspective, for 1 L of unleaded gasoline, which on average has a mass of .51 kg, the tax would be $5.10 per litre. This is magnitudes higher than the price most people pay at the pump in North America, and for good reason. It will discourage us from continuing to rely on a continuously dwindling resource, which also rapidly degrades our ecosystem through its use.

Star Island will be a compact community. Most citizens will have no need to use a car to go about their daily business, as work, school and home will all be within walking distance. Even when you need a way to transport large amounts of goods from one place to another, electric vehicles of appropriate size, including personal shopping carts, will be preferred over gas-using cars.

Resource tax #4: Algae fuels

Algae fuels are my preferred solution for the machinery which still requires a liquid-fuel based source of energy to run them. Algae-fuel is carbon-neutral; Burning it may release carbon into the atmosphere, but it is this same carbon which the algae need to grow again. To further reduce the amount of emissions that may be released into the atmosphere, I would recommend that a device be attached to the tailpipes of any vehicles which use liquid fuels. This device would capture the emissions, and allow them to be converted back into a useful product, such as algae feed.

Algae fuels would be taxed at $1/kg at the outset.

Resource tax #5: Metals

We extract countless different types of metals and other minerals from the ground beneath us. Instead of this being one specific rate, there would likely be many specific rates, depending on the rarity of the material, its inherent toxicity or danger to the environment, and/or its demand. For the purpose of simplicity in my spreadsheets, I have set an average tax rate on metals at $1/kg for individuals (who are unlikely to be using large amounts of precious metals), and $10/kg for businesses and industries.

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Hopefully, these taxes will serve as effective replacements for the spate of taxes currently in place.