How the Money Changes Could Manipulate Entire Economies

Understanding money changes and how money is used to work for the individual is important and something that should not be considered lightly as it is something that can help one to foresee future economic problems and problems that are identified in the economy. Throughout history the power to control money and the power over banks has been fought over and in fact there have been entire wars that have been waged on these principals and beliefs alone. Further the economy is based on the overall ability of the government to be able to use the consumer’s money in order for there to be able to be some type of rate of duplication or overall problem manipulation. Economies of smaller countries could easily be manipulated when the value of a dollar changes. This means that when the government chooses to print new money and put new money into circulation that has not yet been backed in gold then the economies of smaller and less powerful companies are the ones that suffer the most.

These economies rely on the dollar and how that money plays into things and how much that money is worth. So when the money is worth less then their entire economy is worth less and thus it makes their economies less likely to be successful and more likely to crash or have other financial problems. So therefore economies from other parts of the world are falling in part because of the economic issues that have been seen in the United States. So therefore there are many things that should be considered with the overall interest of the economy when new money is being printed or when money is being changed in some way.

These other economies can not handle the things that are occurring with the changes in money as they are not as big or as strong as the American economy. Further the American economy has a big part of the world economy and often when economy issues occur with the American economy then the economies of other countries tend to follow. If stable economies are struggling and having problems then it is no wonder that smaller less sophisticated economies have bigger problems and are unable to handle things as they struggle through them.

Some of the questionable activities that are done by the Federal Reserve Bank are the creation of new money without the gold backing. This is considered questionable as there is nothing to back this new money so although more and new money is being put back into the economy there is still no reason for this and there are those who believe that this is one of the biggest economic mistakes that can be made. Even with other money changes there are several things that could be improved in order to stabilize the economy and what is going on in the economy and although these seem as though they are small changes for the American economy it is no wonder that there are serious problems for those smaller economies that rely on the value of the American dollar.

Your Place in the New US And World Economy

What is next for the economy? The economy defines the boundaries within which all businesses must operate.

Like the lines on the edges of the road, cross at your own risk. All businesses – and therefore all jobs in the private sector – must operate within (“length” and “width”) of these boundaries. Business failures occur when companies fall behind the times and are too far ahead of consumer demand. Likewise, most business sectors have a relatively narrow range of successful operations. It’s hard to survive if you are either the most expensive or cheapest in your market.

The 2010 book from David Wiedemer, PhD, Robert Wiedemer, and Cindy Spitzer entitled “Aftershock” examines the events that created the financial meltdown. In this book and the previous book, “America’s Bubble Economy” the authors make the case that the U.S. economy was an illusion, only the interaction of “bubbles”.

A bubble is created when an asset temporarily booms. The former (pre-2008) U.S. economy was comprised of bubbles in real estate, personal loans, credit card debt, the stock market, and consumer spending. On their own, each bubble can rise independently. But in combination, the bubbles accelerate and reach unnatural levels!

The financial meltdown felt around the world is the consequence of these bubbles popping, or as the authors describe it, a “Bubblequake”. The first stage of the financial meltdown included the fall of the real estate bubble, private debt bubble, stock market bubble, and discretionary spending bubble. On their own, each would have been significant. Combined, these popping bubbles lead to “The Great Recession”.

Amidst the economic turmoil, the U.S. government tried to intervene. Bailouts of automakers and investment banks were designed to compensate for “toxic assets”. Then the government pumped billions into the economy as “stimulus” to try to offset the funds lost to “money heaven” as bubbles popped and wealth simply evaporated.

Looking back, we now know that such efforts were ineffective. The results were a dramatically inflated money supply and a devalued dollar. The aftereffect was that the government soon reached the “National Debt Limit” as a result of spending nearly twice as much as incoming revenue.

The authors label this current stage as the “Aftershock”, defined as the popping of the dollar bubble and the government debt bubble. Their conclusion is that current economic conditions do not simply represent a down market cycle or a typical recession. The difference is the multi-bubble economy, with these inter-linked bubbles ALL on the descent.

The authors also conclude that inflating these bubbles again is simply not possible.

Instead, they predict what is called the “triple double-digit” economy:

Double-digit unemployment
Double-digit inflation
Double-digit interest rates
All in all, these make up some dire predictions. So what does this mean for you? How will you earn an income in the new, post-Aftershock economy.

The “Aftershock” authors predict:

1. Decreased demand for capital goods, including cars, construction equipment, and major industrial equipment. Lower demand means fewer viable firms and fewer available jobs.

2. Decreased levels of discretionary spending. This affects fine dining, entertainment, travel, fashion, jewelry, art and so on. Less total spending means fewer stores and fewer employees.

3. A decline (just not as drastic) in the “necessities” sector including health care, education, food, and government services. Even these areas will face some pressures to downsize because they are highly dependent on tax revenues. A smaller economy simply produces lower tax revenues. Some programs will simply need to shrink, regardless of the level of “necessity”. Many jobs will be retained, however the wage growth and benefits will necessarily be constrained.

Conclusion: as many as 50% of businesses in some sectors may simply disappear. This means that job losses will be staggering after the dollar and government debt bubbles pop, and there will be a mad scramble for those jobs that haven’t been destroyed. For most people it will be increasingly difficult to find a job – any job – regardless of your qualifications and experience. And for those lucky enough to be employed, keeping a job will mean putting up with less desirable working conditions, benefits, hours, and pay. In fact, as competition for jobs greatly increases, most wages will surely fall. After all the bubbles pop, people will accept wage cuts in most jobs for one simple reason: if they don’t, somebody else will.

By necessity, the government will be forced to live within tax revenue limits. The world economy will not allow unlimited printing of “funny money” to allow for unlimited deficit spending. The quantity of currencies injected by numerous countries will have already added to inflation on a global scale. Too many dollars, yen, euros, etc. will be chasing a declining quantity of goods and services.

The OLD economy is gone; the NEW economy is here.

In 2011 the federal government is overspending revenue by 40%. Even a 10% decrease in the size and scope of the federal government would add hundreds of thousands of additional people to the unemployment roles (including government positions and supporting private suppliers and contractors.) This does not consider the same cascading effects facing state and local governments that have never had the ability to simply print money.

So one of the defining characteristics of the post-dollar bubble economy will be a shortage of jobs. Unemployment levels will be much higher, and people will remain unemployed for much longer. At the same time, businesses will be forced to reduce wages and benefits to remain competitive. Millions of Americans will accept cuts in pay.

Especially hard hit will be younger workers and older workers. Prospective employees under 30 will find it hard to compete against older, more experienced and proven workers. Likewise, workers over 50 will also face extremely high unemployment levels.

At the same time, loss of tax revenue will force the government to tax more and tax deeper. Remaining businesses and employees will be taxed harder! Most will rationalize that 50% taxation is better than not working at all!

Different people will look at the same facts and draw different conclusions. So what do you think? Do you believe the bubbles will miraculously re-inflate and good times are on the horizon? Or do you believe (as the authors of “Aftershock” have detailed) that the old bubble economy is gone and a newer, leaner economy is what we can expect?

I concur with the conclusion that we are now experiencing the “aftershock”. I always knew that an economy based on 20% appreciation in housing values, pensions exceeding 100% of wages while working, whole shopping centers selling completely unnecessary novelties and decorations, and unbridled government deficit-spending had to “pop” eventually.

And yet I am also believe 100% in the viability of the free enterprise capitalist model. So I going to make some suggestions:

First, if you are under the age of 30 or over the age of 50 you are in danger of becoming a statistic. You either need to make yourself invaluable to your current employer or prepare yourself for the high possibility of a layoff.

Second, identify some necessary service or product that you can get excited about!

You have arrived at a “fork in the road”. You have two choices, plus a combination. You can take the wide road and do whatever it takes (training, cross-training, adult education, apprenticeships, etc.) to become superbly trained for the job you have or would like to have. Remember, there are going to be too many people seeking each job. You are going to need be impressive in every way and probably over-qualified to get noticed.

The second option (the “road less traveled”) is to design your own occupation. Now this can be a retail, service, or skilled occupation. Each has its attractions to certain people. My personal choice is to provide a product or service on a nationwide (or even global) basis. Again, these offerings should fall in the category of “necessities” rather than novelties. Luxuries offer a much smaller but profitable niche if you can cater to the affluent.

Even in tough times, fortunes can be made by satisfying needs. The time-proven formula for success is to identify a problem and provide a solution. In the post-bubble Aftershock economy, providing alternative income opportunities is one legitimate solution!

Now owning your own business includes the hassles of regulations and structure that you completely avoid if you stay in the employee category. But your own business also provides a degree of freedom not possible as an employee. The single biggest benefit is that you have no cap imposed on your income, especially if you are selling a product or service and not your efforts by the hour. Operating a business also allows you to deduct expenses before taxes. A higher potential income and tax advantages results in a win-win.

And then there is the combination of the two options, and this may be a viable option for the majority of Americans. If you have a steady job there is added security in building a part-time business on the side. You gain income and can offset a portion of your expenses that are now cutting into your after-tax personal income (such as a home office deduction, travel expenses for errands, office supplies, etc.) You also gain the security of a income cushion if your regular job evaporates or you face a cut in wages.

Of course, many small businesses eventually grow into large businesses. You then have the choice of making your part-time business a new full-time profession, hiring some employees to manage the extra work, or selling the business outright at a profit. Again, many advantages and few disadvantages (if designed with some forethought.)

The “road less traveled” provides increased potential rewards for assuming personal responsibility. At the same time, millions of Americans have learned that “job security” is a contradiction. We have entered the new age of job insecurity in an increasingly lean and competitive global economy.

So where do you start? Here are my recommendations for the ideal business:

1. Unlimited income potential. This is only possible if you are selling a product or service. If you are selling your time, you are limited by the number of hours you can work each day, week, and month. When you stop working you stop earning, and this is true even if you can bill your time at $200 per hour. Also, you want to have at least some products or services which generate repeat sales – unless what you are providing is incredibly profitable in the initial sale. Likewise, if your business allows you to leverage the efforts of others to provide additional streams of income, so much the better!

2. Time and location freedom. The ideal business will take advantage of current technologies and allow you to be located anywhere, and sell to anyone. These technologies will also allow your sales to recorded 24 hours per day, 7 days per week. Some products or services may have limitations which restrict the sales area to one location. But many products and services – especially digital products – allow sales to be made on a worldwide basis instantaneously!

3.Small initial investment. While many downsized employees have bought franchises and other fixed location business opportunities, I can not recommend this option. For one, the start-up costs can be very high, literally hundreds of thousands of dollars with no guarantees. Then you are faced with the reality that you have assumed the job of full-time personnel director and you spend all your time either managing employees or hiring their replacements. Instead, I would recommend an opportunity with a low start-up cost. This allows you to begin

part-time. It also means you won’t have to qualify for financing, which may be next to impossible for a new business in the post-bubble economy.

In my opinion, network marketing fulfills all these criteria. There are literally thousands of products and services that are marketing by networking. Combined with the power of the Internet and social media, networking has entered the mainstream and is a viable option for a full-time or part-time business.

Millions of Americans have used network marketing to produce extra income. The company provides all the support functions, from billing and credit card processing to accounting for commissions. Networking includes the creation of a downline that produces additional income. And consumable products provide residual income, often from several generations of customers that you have never even met.

There are no restrictions based on age, experience, location, or net worth to join a networking company. People from all walks of life – including unemployed – have become successful in network marketing. In fact, many thousands of networkers are literally unemployable after experiencing the freedom and income potential of network marketing.

The Blessings of the Black Economy

Some call it the “unofficial” or “informal” economy, others call it the “grey economy” but the old name fits it best: the “black economy”. In the USA “black” means “profitable, healthy” and this is what the black economy is. Macedonia should count its blessings for having had a black economy so strong and thriving to see it through the transition. If Macedonia had to rely only on its official economy it would have gone bankrupt long ago.

The black economy is made up of two constituent activities:

Legal activities that are not reported to the tax authorities and the income from which goes untaxed and unreported. For instance: it is not illegal to clean someone’s house, to feed people or to drive them. It is, however, illegal to hide the income generated by these activities and not to pay tax on it. In most countries of the world, this is a criminal offence, punishable by years in prison.
Illegal activities which, needless to say, are also not reported to the state (and, therefore, not taxed).
These two types of activities together are thought to comprise between 15% (USA, Germany) to 60% (Russia) of the economic activity (as measured by the GDP), depending on the country. It would probably be an underestimate to say that 40% of the GDP in Macedonia is “black”. This equals 1.2 billion USD per annum. The money generated by these activities is largely held in foreign exchange outside the banking system or smuggled abroad (even through the local banking system). Experience in other countries shows that circa 15% of the money “floats” in the recipient country and is used to finance consumption. This should translate to 1 billion free floating dollars in the hands of the 2 million citizens of Macedonia. Billions are transferred to the outside world (mostly to finance additional transactions, some of it to be saved in foreign banks away from the long hand of the state). A trickle of money comes back and is “laundered” through the opening of small legal businesses.

These are excellent news for Macedonia. It means that when the macro-economic, geopolitical and (especially) the micro-economic climates will change – billions of USD will flow back to Macedonia. People will bring their money back to open businesses, to support family members and just to consume it. It all depends on the mood and on the atmosphere and on how much these people feel that they can rely on the political stability and rational management. Such enormous flows of capital happened before: in Argentina after the Generals and their corrupt regime were ousted by civilians, in Israel when the peace process started and in Mexico following the signature of NAFTA, to mention but three cases. These reserves can be lured back and transform the economy.

But the black economy has many more important functions.

The black economy is a cash economy. It is liquid and fast. It increases the velocity of money. It injects much needed foreign exchange to the economy and inadvertently increases the effective money supply and the resulting money aggregates. In this sense, it defies the dictates of “we know better” institutions such as the IMF. It fosters economic activity and employs people. It encourages labour mobility and international trade. Black economy, in short, is very positive. With the exception of illegal activities, it does everything that the official economy does – and, usually, more efficiently.

So, what is morally wrong with the black economy? The answer, in brief: it is exploitative. Other parts of the economy, which are not hidden (though would have liked to be), are penalized for their visibility. They pay taxes. Workers in a factory owned by the state or in the government service cannot avoid paying taxes. The money that the state collects from them is invested, for instance, in infrastructure (roads, phones, electricity) or used to pay for public services (education, defence, policing). The operators of the black economy enjoy these services without paying for them, without bearing the costs and worse: while others bear the costs. These encourages them, in theory to use these resources less efficiently.

And all this might be true in a highly efficient, almost ideal market economy. The emphasis is on the word “market”. Unfortunately, we all live in societies which are regulated by bureaucracies which are controlled (in theory, rarely in practice) by politicians. These elites have a tendency to misuse and to abuse resources and to allocate them in an inefficient manner. Even economic theory admits that any dollar left in the hands of the private sector is much more efficiently used than the same dollar in the hands of the most honest and well meaning and well planning civil servant. Governments all over the world distort economic decisions and misallocate scarce economic resources.

Thus, if the goals are to encourage employment and economic growth – the black economy should be welcomed. This is precisely what it does and, by definition, it does so more efficiently than the government. The less tax dollars a government has – the less damage it does. This is an opinion shares by most economists in the world today. Lower tax rates are an admission of this fact and a legalization of parts of the black economy.

The black economy is especially important in times of economic hardships. Countries in transition are a private case of emerging economies which are a private case of developing countries which used to be called (in less politically correct times) “Third World Countries”. They suffer from all manner of acute economic illnesses. They lost their export markets, they are technologically backward, their unemployment skyrockets, their plant and machinery are dilapidated, their infrastructure decrepit and dysfunctional, they are lethally illiquid, they become immoral societies (obligations not honoured, crime flourishes), their trade deficits and budget deficits balloon and they are conditioned to be dependent on handouts and dictates from various international financial institutions and donor countries.

Read this list again: isn’t the black economy a perfect solution until the dust settles?

It enhances exports (and competitiveness through imports), it encourages technology transfers, it employs people, it invests in legitimate businesses (or is practised by them), it adds to the wealth of the nation (black marketeers are big spenders, good consumers and build real estate), it injects liquidity to an otherwise dehydrated market. Mercifully, the black economy is out of the reach of zealous missionaries such as the IMF. It goes its own way, unnoticed, unreported, unbeknownst, untamed. It doesn’t pay attention to money supply targets (it is much bigger than the official money supply figure), or to macroeconomic stability goals. It plods on: doing business and helping the country to survive the double scourges of transition and Western piousness and patronizing. As long as it is there, Macedonia has a real safety net. The government is advised to turn a blind eye to it for it is a blessing in disguise.

There is one sure medicine: eliminate the population and both unemployment and inflation will be eliminated. Without the black economy, the population of Macedonia would not have survived. This lesson must be remembered as the government prepares to crack down on the only sector of the economy which is still alive and kicking.

Operational Recommendations

The implementation of these recommendations and reforms should be obliged to be GRADUAL. The informal economy is an important pressure valve for the release of social pressures, it ameliorates the social costs inherent to the period of transition and it constitutes an important part of the private sector.

As we said in the body of our report, these are the reasons for the existence of an informal economy and they should be obliged to all be tackled:

High taxation level (in Macedonia, high payroll taxes)
Onerous labour market regulations
Red tape and bureaucracy (which often leads to corruption)
Complexity and unpredictability of the tax system
Reporting Requirements and Transparency

All banks should be obliged to report foreign exchange transactions of more than 10,000 DM (whether in one transaction or cumulatively by the same legal entity). The daily report should be submitted to the Central Bank. In extreme cases, the transactions should be investigated.
All the ZPP account numbers of all the firms in Macedonia should be publicly available through the Internet and in printed form.
Firms should be obliged by law to make a list of all their bank accounts available to the ZPP, to the courts and to plaintiffs in lawsuits.
All citizens should be obliged to file annual, personal tax returns (universal tax returns, like in the USA). This way, discrepancies between personal tax returns and other information can lead to investigations and discoveries of tax evasion and criminal activities.
All citizens should be obliged to file bi-annual declarations of personal wealth and assets (including real estate, vehicles, movables, inventory of business owned or controlled by the individual, financial assets, income from all sources, shares in companies, etc.)
All retail outlets and places of business should be required to install – over a period of 3 years – cash registers with “fiscal brains”. These are cash registers with an embedded chip. The chips are built to save a trail (detailed list) of all the transactions in the place of business. Tax inspectors can pick the chip at random, download its contents to the tax computers and use it to issue tax assessments. The information thus gathered can also be crossed with and compared to information from other sources (see: “Databases and Information Gathering”). This can be done only after the full implementation of the recommendations in the section titled “Databases and Information Gathering”. I do not regard it as an effective measure. While it increases business costs – it is not likely to prevent cash or otherwise unreported transactions.
All taxis should be equipped with taximeters, which include a printer. This should be a licencing condition.
Industrial norms (for instance, the amount of sugar needed to manufacture a weight unit of chocolate, or juice) should be revamped. Norms should NOT be determined according to statements provided by the factory – but by a panel of experts. Each norm should be signed by three people, of which at least one is an expert engineer or another expert in the relevant field. Thought should be dedicated to the possibility of employing independent laboratories to determine norms and supervise them.
Payments in wholesale markets should be done through a ZPP counter or branch in the wholesale market itself. Release of the goods and exiting the physical location of the wholesale market should be allowed only against presentation of a ZPP payment slip.
Reduction of Cash Transactions

Cash transactions are the lifeblood of the informal economy. Their reduction and minimization is absolutely essential in the effort to contain it. One way of doing it is by issuing ZPP payment (debit) cards to businesses, firm and professionals. Use of the payment cards should be mandatory in certain business-to-business transactions.
All exchange offices should be obliged to issue receipt for every cash transaction above 100 DM and to report to the Central Bank all transactions above 1000 DM. Suspicious transactions (for instance, transactions which exceed the financial wherewithal of the client involved) should be duly investigated.
The government can reduce payroll taxes if the salary is not paid in cash (for instance, by a transfer to the bank account of the employee). The difference between payroll taxes collected on cash salaries and lower payroll taxes collected on noncash salaries – should be recovered by imposing a levy on all cash withdrawals from banks. The banks can withhold the tax and transfer it to the state monthly.
Currently, checks issued to account-holders by banks are virtually guaranteed by the issuing banks. This transforms checks into a kind of cash and checks are used as cash in the economy. To prevent this situation, it is recommended that all checks will be payable to the beneficiary only. The account-holder will be obliged to furnish the bank with a monthly list of checks he or she issued and their details (to whom, date, etc.). Checks should be valid for 5 working days only.
An obligation can be imposed to oblige businesses to effect payments only through their accounts (from account to account) or using their debit cards. Cash withdrawals should be subject to a withholding tax deducted by the bank. The same withholding tax should be applied to credits given against cash balances or to savings houses (stedilnicas). Alternatively, stedilnicas should also be obliged to deduct, collect and transfer the cash withdrawal withholding tax.
In the extreme and if all other measures fail after a reasonable period of time, all foreign trade related payments should be conducted through the Central Bank. But this is really a highly irregular, emergency measure, which I do not recommend at this stage.
The interest paid on cash balances and savings accounts in the banks should be increased (starting with bank reserves and deposits in the central bank).
The issuance of checkbook should be made easy and convenient. Every branch should issue checkbooks. All the banks and the post office should respect and accept each other’s checks.
A Real Time Gross Settlement System should be established to minimize float and facilitate interbank transfers.
Government Tenders

Firms competing for government tenders should be obliged to acquire a certificate from the tax authorities that they owe no back-taxes. Otherwise, they should be barred from bidding in government tenders and RFPs (Requests for Proposals).
Databases and Information Gathering

Estimating the informal economy should be a priority objective of the Bureau of Statistics, which should devote considerable resources to this effort. In doing so, the Bureau of Statistics should coordinate closely with a wide variety of relevant ministries and committees that oversee various sectors of the economy.
All registrars should be computerized: land, real estate, motor vehicles, share ownership, companies registration, tax filings, import and export related documentation (customs), VAT, permits and licences, records of flights abroad, ownership of mobile phones and so on. The tax authorities and the Public Revenue Office (PRO) should have unrestricted access to ALL the registers of all the registrars. Thus, they should be able to find tax evasion easily (ask for sources of wealth- how did you build this house and buy a new car if you are earning 500 DM monthly according to your tax return?)
The PRO should have complete access to the computers of the ZPP and to all its computerized and non-computerized records.
The computer system should constantly compare VAT records and records and statements related to other taxes in order to find discrepancies between them.
Gradually, submissions of financial statements, tax returns and wealth declarations should be computerized and done even on a monthly basis (for instance, VAT statements).
A system of informants and informant rewards should be established, including anonymous phone calls. Up to 10% of the intake or seizure value related to the information provided by the informant should go to the informant.
Law Enforcement

Tax inspectors and customs officials should receive police powers and much higher salaries (including a percentage of tax revenues). The salaries of all tax inspectors – regardless of their original place of employment – should be equalized (of course, taking into consideration tenure, education, rank, etc.).
Judges should be trained and educated in matters pertaining to the informal economy. Special courts for taxes, for instance, are a good idea (see recommendation below). Judges have to be trained in tax laws and the state tax authorities should provide BINDING opinions to entrepreneurs, businessmen and investors regarding the tax implications of their decisions and actions.
It is recommended to assign tax inspectors to the public prosecutors’ office to work as teams on complex or big cases.
To establish an independent Financial and Tax Police with representatives from all relevant ministries but under the exclusive jurisdiction of the PRO. The remit of this Police should include all matters financial (including foreign exchange transactions, property and real estate transactions, payroll issues, etc.)
Hiring and firing procedures in all the branches of the tax administration should be simplified. The number of administrative posts should be reduced and the number of tax inspectors and field agents increased.
Tax arrears and especially the interest accruing thereof should be the first priority of the ZPP, before all other payments.
All manufacturers and sellers of food products (including soft drinks, sweetmeats and candy, meat products, snacks) should purchase a licence from the state and be subjected to periodic and rigorous inspections.
All contracts between firms should be registered in the courts and stamped to become valid. Contracts thus evidenced should be accompanied by the registration documents (registrar extract) of the contracting parties. Many “firms” doing business in Macedonia are not even legally registered.
Reforms and Amnesty

A special inter-ministerial committee with MINISTER-MEMBERS and headed by the PM should be established. Its roles: to reduce bureaucracy, to suggest appropriate new legislation and to investigate corruption.
Bureaucracy should be pared down drastically. The more permits, licences, tolls, fees and documents needed – the more corruption. Less power to state officials means less corruption. The One Stop Shop concept should be implemented everywhere.
A general amnesty should be declared. Citizens declaring their illegal wealth should be pardoned BY LAW and either not taxed or taxed at a low rate once and forever on the hitherto undeclared wealth.
The Tax Code

To impose a VAT system. VAT is one the best instruments against the informal economy because it tracks the production process throughout a chain of value added suppliers and manufacturers.
The Tax code needs to be simplified. Emphasis should be placed on VAT, consumption taxes, customs and excise taxes, fees and duties. To restore progressivity, the government should directly compensate the poor for the excess relative burden.
After revising the tax code in a major way, the government should declare a moratorium on any further changes for at least four years.
The self-employed and people whose main employment is directorship in companies should be given the choice between paying a fixed % of the market value of their assets (including financial assets) or income tax.
All property rental contracts should be registered with the courts. Lack of registration in the courts and payment of a stamp tax should render the contract invalid. The courts should be allowed to evidence and stamp a contract only after it carries the stamp of the Public Revenue Office (PRO). The PRO should register the contract and issue an immediate tax assessment. Contracts, which are for less than 75% of the market prices, should be subject to tax assessment at market prices. Market prices should be determined as the moving average of the last 100 rental contracts from the same region registered by the PRO.
Filing of tax returns – including for the self-employed – should be only with the PRO and not with any other body (such as the ZPP).
Legal Issues

The burden of proof in tax court cases should shift from the tax authorities to the person or firm assessed.
Special tax courts should be established within the existing courts. They should be staffed by specifically trained judges. Their decisions should be appealed to the Supreme Court. They should render their decisions within 180 days. All other juridical and appeal instances should be cancelled – except for an appeal instance within the PRO. Thus, the process of tax collection should be greatly simplified. A tax assessment should be issued by the tax authorities, appealed internally (within the PRO), taken to a tax court session (by a plaintiff) and, finally, appealed to the Supreme Court (in very rare cases).
The law should allow for greater fines, prison terms and for the speedier and longer closure of delinquent businesses.
Seizure and sale procedures should be specified in all the tax laws and not merely by way of reference to the Income Tax Law. Enforcement provisions should be incorporated in all the tax laws.
To amend the Law on Tax Administration, the Law on Personal Income Tax and the Law on Profits Tax as per the recommendations of the IRS experts (1997-9).
Customs and Duties

Ideally, the customs service should be put under foreign contract managers. If this is politically too sensitive, the customs personnel should be entitled to receive a percentage of customs and duties revenues, on a departmental incentive basis. In any case, the customs should be subjected to outside inspection by expert inspectors who should be rewarded with a percentage of the corruption and lost revenues that they expose.
In the case of imports or payments abroad, invoices, which include a price of more than 5% above the list price of a product, should be rejected and assessment for the purposes of paying customs duties and other taxes should be issued at the list price.
In the case of exports or payments from abroad, invoices which include a discount of more than 25% on the list price of a product should be rejected and assessment for the purposes of paying customs duties and other taxes should be issued at the list price.
The numbers of tax inspectors should be substantially increased and their pay considerably enhanced. A departmental incentive system should be instituted involving a percentage of the intake (monetary fines levied, goods confiscated, etc.)
The computerized database system (see “Databases and Information Gathering”) should be used to compare imports of raw materials for the purposes of re-export and actual exports (using invoices and customs declarations). Where there are disparities and discrepancies, severe and immediate penal actions should be taken. Anti-dumping levies and measures, fines and criminal charges should be adopted against exporters colluding with importers in hiding imported goods or reducing their value.
Often final products are imported and declared to the customs as raw materials (to minimize customs duties paid). Later these raw materials are either sold outright in the domestic or international markets or bartered for finished products (for example: paints and lacquers against furniture or sugar against chocolate). This should be a major focus of the fight against the informal economy. I follow with an analysis of two products, which are often abused in this manner.
I study two examples (white sugar and cooking oil) though virtually all raw materials and foods are subject to the aforementioned abuse.
White Sugar is often imported as brown sugar. One way to prevent this is to place sugar on the list of LB (import licence required) list, to limit the effective period of each licence issued, to connect each transaction of imported brown sugar to a transaction of export, to apply the world price of sugar to customs duties, to demand payment of customs duties in the first customs terminal, to demand a forwarder’s as well as an importer’s guarantee and to require a certificate of origin. The same goes for Cooking Oil (which – when it is imported packaged – is often declared as some other goods).
All payments to the customs should be made only through the ZPP. Customs and tax inspectors should inspect these receipts periodically.
All goods should be kept in the customs terminal until full payment of the customs duties, as evidenced by a ZPP receipt, is effected.
Public Campaign

The government should embark on a massive Public Relations and Information campaign. The citizens should be made to understand what is a budget, how the taxes are collected, how they are used. They should begin to view tax evaders as criminals. “He who does not pay his taxes – is stealing from you and from your children”, “Why should YOU pay for HIM?” “If we all did not pay taxes- there would be no roads, bridges, schools, or hospitals” (using video to show disappearing roads, bridges, suffering patients and students without classes), “Our country is a partnership – and the tax-evader is stealing from the till (kasa)” and so on.
The phrase “Gray Economy” should be replaced by the more accurate phrases “Black Economy” or “Criminal Economy”.
Sam Vaknin is the author of “Malignant Self Love – Narcissism Revisited” and “After the Rain – How the West Lost the East”. He is a columnist in “Central Europe Review”, United Press International (UPI) and ebookweb.org and the editor of mental health and Central East Europe categories in The Open Directory, Suite101 and searcheurope.com. Until recently, he served as the Economic Advisor to the Government of Macedonia.

An Inside Look at the Importance of a Smile in Sales

If you’re in sales, then you’ve probably heard all sorts of advice, from “don’t oversell” to “focus on solving problems.” However, one of the best pieces of advice that many forget is to smile! After all, your smile is one of the first features people notice about you, and it plays an essential role in the first impression you make. Keep reading to learn all about the importance of a smile in sales (as well as how cosmetic dentistry can help!).

Smile: Your Sale Depends on It!

Knowing your product and knowing your audience are key in sales. However, you don’t get far if your client doesn’t trust you or believe you. That’s why it’s so important to make a good first impression! Here are a few ways a smile can help:

• Smiling is more powerful than you might think – One study found that smiling has the same effect on our brain as $25,000 in cash!

• Smiling communicates your state of mind – Smiling is a non-verbal cue that you are happy to be where you are, that you are confident in your product, and that you are ready and willing to help.

• Smiling creates a ripple effect of positivity – Have you ever seen a friend yawn and done the same? Or seen someone take a sip of water and immediately realized you’re thirsty? Thanks to the mirroring neurons in our brains, we naturally mimic the behavior of those around us.

But What If You Don’t Like Your Smile?

If you don’t like your smile, don’t worry – that’s where cosmetic dentistry comes in. Whether you’re struggling with misaligned, misshapen, cracked, or otherwise imperfect teeth, your smile goals aren’t out of reach. The first step? Scheduling an appointment with a skilled cosmetic dentist. For both my father and myself, providing high-quality, personalized, and judgment-free dentistry is a passion. There’s truly nothing better than seeing someone walk out of our office with a dazzling, confident smile! So, don’t wait to make your dream smile a reality – it could make all of the difference when it comes to your personal and professional life!

Where to buy beautiful rugs, floor mats and more.

Where to buy beautiful rugs, floor mats and more. Including unique t-shirts, dresses, bags and artworks. All in one website with free shipping worldwide!

QueenNoble.com is the exclusive online art gallery and home décor online store where items were designed by artist QueenNoble Dr. Elle Ramirez. You can get all your home decorating needs in one place without worrying the shipping fee. You can collect all her original art pieces and open editions from your comfort zone in just few clicks. All original artworks will be shipped straight from the country of exhibition with free shipping worldwide. Home décor on QueenNoble is not your usual home decoration items. Every items were designed by QueenNoble Dr. Elle Ramirez exclusively made from handmade paintings turned to manipulated photos to make stunning designs for every home décor items such as the rugs, lamps, wall decors and more. Of course the original artworks of QueenNoble are all available to every collectors who collect only original artworks. The prints are premium quality, framed and ready to hang for everyone’s convenience. Rugs, lamps, pillows and others are designed by QueenNoble, and then manufactured by partnered companies in Europe and in The United States.

The artist And Designer QueenNoble

Dr. Elle Ramirez also known as QueenNoble is an American international fine arts artist, designer, sculptor, photographer and an author. Dr. Ramirez creates rare textured and embossed abstract artworks from wall sculptures to embossed paintings. Her career began from year 2006 up to this present day. (See Wikipedia.)

QueenNoble is known for her textured and embossed abstract artworks mimicking planets, natural stones and rocks, abstract engraved portraits, several monochromatic and vivid concepts.

“Live Minimal” is one of QueenNoble’s art books released year 2021. (See Google Scholar Books)

QueenNoble is also an author of several mental health books like “Quarantine: The Challenges During Quarantine and How to Keep Our Sanity”. QueenNoble is also the author of the Novel called, “The Cart Season 1”. (See more on Amazon)

One Of A Kind Products You Can Buy On QueenNoble

One of a kind luxury collectibles with certificate. Unique items designed and curated by QueenNoble Dr. Elle Ramirez are now available on the official website. One collectible is to one collector or owner. Collectibles can be a wallet, bag, a piece of art, a furniture, a dress or a shirt and more. A first come first served basis. Handmade with love and attention. Own something that no one has in the entire world. Only on QueenNoble. What will you get on the top of that? You will receive a certificate of authenticity upon receiving your item. Free shipping worldwide. Free repair and replacement in case of a major manufacture error. Most items are handmade and are genuine leather so slight imperfections are visible which are the signs of most genuine leathers in the market. Varieties of items and vast selections although items are very quick to be sold.

Who does not want a one of a kind item? It is really disliked to run to someone with the same exact dress in an occasion or a business meeting! Now on QueenNoble not only original hand-painted artworks are available now you get to wear an art yourself anywhere and anytime. Display a furniture or a décor and be asked by a friend or a colleague, “Where can I buy one?” and of course the answer is “You can’t buy that in the market.” Because It is only one!

What happens after you buy a one of a kind on QueenNoble? The price increases yearly for 10 years. What an investment for yourself or a luxurious lifetime gift for a special someone!

From the author’s words:

If you are a collector and a shopper, QueenNoble is definitely where to go specially if you are looking for unique designer’s décor such as rugs, comforters, bags, wall art etc. A lot of selections to choose from. The designs are contemporary and modern. In one look you know where the products are from since you can only find them on queennoble.com. The processes are also very convenient and shipping is fast worldwide.

I bought a one of a kind bag. When I received it it came with an envelope consisting the certificate. The leather bag is stunning. Fast shipping and free delivery. They also offer free repair in case there is a manufacturer error for free.

Note also that if you are a merchant you can sign up on their trading program. There is a 15-30% commission. Less work for you all you do is share the url of the product and your designated coupon code which you’ll receive when you sign up and you get paid everytime someone uses your coupon code. Sound interesting right? Copy code, share url and code on your social media and earn as you go.

QueenNoble is also on Saatchiart, Artmajeur, Singulart Galleries. On QueenNoble’s original artworks, all artworks with certificate of authenticity will be shipped straight to the collector from the current exhibited country and also free shipping worldwide.

What are anti-ligature blinds?

Anti-ligature blinds are becoming increasingly popular in a range of different settings. The way these blinds differ from traditional blinds is that they are designed to prevent suicide by hanging.

Initially, uptake for this type of blind was largely restricted to high-risk environments such as psychiatric hospitals and prisons, where suicide is common. In mental health environments and detention centres, suicide via hanging is common and preventative measures must be implemented. A huge range of objects could be used to create a ligature point, meaning anti-ligature systems are highly important.

Over the years, anti-ligature blinds have been supplied to hospitals, schools, student accommodation and even hotels.

How do they work?

There are a range of different systems on the market, but the most reliable could well be the magnetic anti-ligature system. YewdaleKestrel® products utilise load release magnets which separate when a downward force is exerted on the product. This means that the product falls to the ground safely and prevents suicide via hanging.

The magnetic systems used in Yewdale’s products are highly reliable because magnets don’t lose their strength for hundreds of years, guaranteeing a lifetime of lifesaving functionality.

Anti-ligature blinds usually have a magnetic connection point above the blind’s barrel. The blind is easy to reconnect to the magnetic bracket after it has fallen to the floor.

If you are considering an anti-ligature blind, Yewdale is a highly recommended company. Based in the UK, Yewdale produce a wide range of anti-ligature products, commercial blinds, and healthcare products including hospital cubicle tracks and medical curtains.

Yewdale produce other anti-ligature products too including a soft, lightweight en-suite door and other accessories such as soap dispensers, toilet roll holder, shelves and artwork. You can see the full range on the website using the link below.

10 Unsafe Symptoms of Cell Phones Usage on Teens

10 Unsafe Symptoms of Cell Phones Usage on Teens

Over and wrong utilization of PDAs can harm mental as well as actual health. Parents might consider giving their teens cell phones for security motivations. Be that as it may, the conceivable abuse and opposite symptoms of cell phones on young people are not obscure. While it effectively is mindful of your kid’s whereabouts, taking into account its antagonistic consequences for teens is significant. As indicated by a review led by the Seat Exploration Center, around 785 of all youngsters between ages 12 and 17 have cell phones (1). It is a typical sight these days to see a gathering of youngsters standing together yet having no discussion and being engaged with themselves. Teens utilize their cell phones to call their folks and do other great and awful things. Around one of every four teens approach the web, definitely more than grown-ups. Look at the post to know whether cells are great for teenagers, the adverse consequences of PDAs, and tips on the safe use of cell phones.

Impacts Of Cell Phones On Youngsters

There is no question that a cell phone is a convenient device. It facilitates correspondence with partners, companions, and family members. However, every innovation that gives such advantages comes with a bunch of adverse consequences. The effect of cell phones on youth and society is tremendous. This region requires consideration when you are giving your high schooler a phone. This is the way PDAs influence, teens.

Teen tendonitis (TTT)
Abundance generation of messages can prompt High schooler Tendonitis (TTT). It causes torment in the hands, back, and neck because of the unfortunate stance. As per a five-year partner study, extreme phone use is known to bring about outer muscle problems, for example, tendonitis and first carpometacarpal joint pain in the lower arm and thumb.

Stress
Having a mobile phone will entice your high schooler to go the entire day talking or messaging as opposed to doing useful things. Studies have demonstrated that youngsters who invest a lot of their energy in their cells are more inclined to pressure, uneasiness, and melancholy. Research has additionally tracked down that extreme utilization of cell phones might bring about an expanded gamble of emotional well-being issues.

Sleep misfortune
Most teenagers keep their phones close by while resting to answer messages and calls and stay reachable nonstop. This might prompt rest interference and disturbance. Investigations have discovered that young people who use cell phones after the lights out experience expanded sluggishness. Additionally, undergrads who use phones after the beginning of rest are accounted for to be alert an extra 46 minutes out of every week.

Mishaps
Adolescents will quite often go to calls and text while driving, which is demonstrated to be risky. As indicated by the Places for Infectious prevention and Counteraction (CDC), adolescents are bound to be diverted more than drivers of some other age. Thus, utilizing a mobile phone while driving ought to be a severe no.

Uneasiness
Depending on messaging as an essential method of correspondence can increment uneasiness in youngsters. Messaging is right away satisfying, yet it likewise creates tension. The moment answered by a companion can give pleasure and euphoria. However, if there should be an occurrence of deferred reaction or no reaction, this equivalent joy can transform into disillusionment. Likewise, mobile phone habit can transform into a fixation to promptly take a look at messages and answer. It might likewise increment tension by making a deception that they had gotten a message in any event, when there was no message, making them regularly look at their telephones (3).

Hazard of malignant growth
Despite the fact that there’s no obvious proof of the connection between wireless use and disease, there are a few measurably huge relationships in certain individuals. Information gathered from five European nations have shown an expanded gamble of acoustic neuroma in people who utilized a cell for at least ten years.

Despite the fact that there is no unmistakable examination supporting the gamble of malignant growth and cell utilization, it is said to have a wide scope of well-being impacts.

Cyberbullying
As indicated by a review led on 13-18-year-olds by Cox Interchanges, 15% of kids had been cyberbullied on the web, 10% had been cyberbullied by cell, and 5% had cyberbullied someone else through a phone.

As indicated by a review, cyberbullying makes young people miserable and reluctant to go to class. This study has likewise observed that youngsters who are cyberbullied have a higher gamble of psychosomatic issues, for example, incessant migraines, issues nodding off, a higher pace of tension, and depression.

Cyberbullying is considerably more challenging to recognize than actual harassment as it will in general be more imperceptible. Additionally, the culprits can take cover behind the obscurity presented by the web.

Bogus distinction
The most recent advancements in cells have made it simple for youngsters to get any data. The majority of the things projected via online entertainment and the Web may not be exact, yet teens who are innocent (at their age) could view them in a serious way and get impacted. This could lead them to live in a dreamland and foster bogus renown. Some may likewise turn to wrongdoings to satisfy their dreams.

Heftiness
Steady utilization of phones may likewise cause weight in young people. As indicated by a review led by Harvard T.H Chan School of General Wellbeing, youngsters who spend more hours daily on phones are bound to become stout. The concentrate further says that youngsters who spend over five hours daily before screens are 43% bound to get less rest or exercise, bringing about weight

Vision issues
Expanded utilization of mobile phones is said to cause vision issues in young people. According to a review led by 30 clinical understudies, 83% of them were found to have wireless vision conditions. The side effects incorporate pressure, redness, consuming sensation, obscured vision, and dry eyes.

Over-the-top use of mobile phones outperforms their value and makes new issues for young people. While you may not prevent your teen from utilizing a mobile phone, it is feasible to restrict the use by laying out some guidelines.

Prior to giving wireless to your youngster, ensure they know about the focuses underneath.

Tips On Safe Use Of Cells For Youngsters

Cells are staying put, basically not at any point in the near future. Along these lines, you want to show your adolescents about cell phone security and how to dependably utilize it. They additionally need to have concurred limits for cell phone use. Here are far to stay away from the antagonistic impacts of cellphones on youngsters:

Complete weight loss strategy

For those who want to lose weight

Research on the causes of obesity, knowledge about weight loss, and various diets for weight loss are updated every year. However, with the update of knowledge and the release of diet pills one after another, the obesity rate continues to rise every year, and there is no sign of wanting to decline. I used to be very, very fat, and I am also a person who is prone to obesity.

So I understand the voices of fat people, I really want to lose weight, but I tried many ways to lose weight at that time without success.

I have tried the common boiled meals on the market, eating less and moving more, but it was not until I tried other diets that I managed to lose weight. After I lost weight, I began to study the essence and method of losing weight, and wrote him in this weight loss strategy article, hoping to help you.

A few key myths about losing weight

The weight loss myth of eating less and moving more

The phrase “eat less and move more” is actually true, but most people do it wrong. Many people think that they should eat less of everything, so they limit their calories to a very low level, and it feels a bit like eating an ultra-low-calorie fairy meal. Then, for the hyperactive part, the first thing that everyone thinks of is aerobic exercise such as running, cycling, etc., but in fact, this is a very short-term and easy way to regain weight, mainly because eating too little is an easy way to lose weight. The reason for the loss of muscle mass, coupled with the fact that aerobic training is not helpful for muscle mass growth, causes the metabolism to drop too much.

Maybe you can lose 5 kilograms in this way, but if your metabolism declines, you will easily regain the weight. And it’s all the fat that gets back up, not the muscle you lose that makes you look fatter than before. This is what we call the yo-yo effect, lose weight, get fat back, get fatter than before, lose weight, get back on Fat, get fatter than before.

Stop taking diet pills and meal replacements

At this time, you may start to seek other ways, eat weight loss meal replacements, taking diet pills, and so on. But believe me, most diet pills will inevitably hurt the body, especially the gastrointestinal tract. You may actually lose weight in the moment, but when your gastrointestinal tract is damaged, you will be fatter than before.

The key to understanding how to lose weight

You must have thought, why some people will not gain weight no matter what they eat, while some people will gain a kilogram the next day after eating a little bread? What is the cause of obesity? This is not a simple answer that can be solved!

You can see the link to the picture below, mainly talking about the influencing factors of obesity, which are very, very complicated.

Image source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/296290/obesity-map-full-hi-res.pdf

In the middle of this picture is the heat balance

So we can know that calorie balance is very important

But this article doesn’t keep preaching that calorie balance is the key to losing weight like other sites

If you don’t know what calorie balance is, you can probably imagine that our body has calorie consumption (exercise, thermogenesis, basal metabolism), and calorie intake (eating).

When calorie consumption exceeds calorie intake, the weight will drop, so the truth of weight loss is to eat less and move more, very simple. In the short term, it is really possible to simply achieve weight loss by eating less and moving more, but simplicity is not simple, because the operation of the body is very complicated. Many people think that they can control their calorie consumption, that they can achieve a lot of calorie expenditure by running all the time, and that eating fairy meals (low-calorie meals) can reduce calorie intake and then easily lose it.

However, according to research, 90% of people who use calorie control, eat less and move more to lose weight will fail or regain the weight.

Because eating less and moving more for too long, metabolism will easily drop, hormones will easily become imbalanced, and muscle mass will easily be lost. Even if you lose 10 kilograms, you will easily regain weight.

When losing weight, the body is like a factory

For me, the key to long-term weight loss and maintaining good posture is the environment in the body, such as hormones, the level of inflammation in the body, and the gastrointestinal system.

Think of the body as a factory

-Your hormones are the managers and workers of factory operations

-Inflamed condition is how good factory machinery and hardware are

-Calorie intake is wages for factories as well as fuel

If the manager of this factory is an idiot, or if the hardware in your factory is completely rotten, then no matter how it works, it will create a pile of waste. Just as our hormones are already out of balance and the level of inflammation in the body is very high, no matter how much you eat, if you don’t solve the existing problems, it will easily accumulate into fat. It may be easier to understand with a few examples.

Hormones vs Weight Loss

This study looked at the effects of sleep and weight loss

Research source: https://www.ncbi.nlm.nih.gov/pubmed/20921542

Both groups of humans were calorie-restricted, but one group slept 5.5 hours a night and the other 8.5 hours. Both groups lost weight, but the group that slept less lost 55 percent less body fat and 65 percent more muscle mass than the group that slept more. It is equivalent to losing weight, but most of the loss is muscle mass, which reduces metabolism and makes it easy to regain weight later.

There is such a big difference mainly because poor sleep has a negative impact. The imbalance of the secretion of these things will easily increase fat and reduce muscle.

This next study looks at the effect of insulin sensitivity on body composition!

Research source: https://www.ncbi.nlm.nih.gov/pubmed/19471290

Basically, many chronic metabolic diseases, obesity, and poor muscle-building effects are closely related to low insulin sensitivity. Insulin is an anti-catabolic hormone whose main function is to store nutrients in cells. For example, after heavy training, our muscles will be more sensitive to insulin, and the nutrients we eat will be more easily absorbed into the muscles. When insulin sensitivity is low, the nutrients we eat are more likely to be stored as fat rather than absorbed into muscles.

We can simply say that the nutrients in the food eaten by people who are insulin insensitive are more likely to be stored as fat, and the relative fat mass will be much higher than the muscle mass.

To put it simply, the key to losing weight is actually to improve hormones, improve inflammation in the body, and add an appropriate calorie deficit. It is not difficult to achieve a calorie deficit. What is more difficult is how to choose the type of food that suits your body to improve hormones and achieve a long-term good body.

If you only pursue short-term weight loss and rely on a lot of calorie deficits to achieve the effect of weight loss, and then the hormones are still the same after the loss, then I can guarantee that you will gain weight very easily.

With so many ways to eat on the internet, which diet should I try?

When talking about losing weight in Taiwan 30 years ago, everyone would definitely want to use boiled meals

When it came to losing weight five years ago, everyone might think of using a low-sugar diet. When it came to losing weight in the past two or three years, everyone might directly think of the ketogenic diet.

I lost 30kg in 3 months on a low-sugar diet myself for the first time, so I used to believe that a low-sugar diet was the best way to lose weight

But after my long-term understanding of weight loss-related research, genetic cognition, and observation of students, there is no diet that is most suitable for everyone! Although it is said that high-carbohydrate foods will most stimulate insulin secretion, which in turn promotes the storage of nutrients into fat, some people are naturally good at metabolizing carbohydrates, so they can still be healthy and strong after eating high-carbohydrate throughout their lives.

For example, this study compared the responses of people with high and low insulin sensitivity to high- and low-carb diets.

Research source: https://onlinelibrary.wiley.com/doi/full/10.1038/oby.2005.79

The study concluded:

-For people with high insulin sensitivity, eating high-carb and low-fat to lose weight is very helpful

-However, people who are insulin insensitive use a high-carb low-fat diet to lose fat, but the weight loss effect is not so good.

But on the contrary, studies have also shown that people with low insulin sensitivity have a very good weight loss effect on a low-carb high-fat diet, which shows that improving insulin is very important for weight loss, and it also shows that people with insulin insensitivity are more suitable

Lose weight with a high-carb diet.

So if you have been obese for a long time, you know that you eat carbohydrates easily, or you know that you have diabetes in your family and want to lose fat, then I would suggest that you can start by reducing carbohydrates, which is what we call low carb diet!

The Negative Impact of E-Levy on Mobile Banking.

DEFINITION OF TERMS

Mobile Banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet.

Electronic Transaction Levy or “E-Levy” is a tax applied on transactions made on electronic or digital platforms.

ADVANTAGES OF MOBILE BANKING

Mobile banking offers numerous benefits such as ease of transaction, convenience, time-saving, managing your finances, and budgeting. Some advantages of Mobile Banking in remote areas include:

Financial Inclusion — mobile banking offers convenient and easy banking services to people in remote areas. Thus, it allows banking on the go and offers all benefits of a banking system to rural areas without the presence of a financial institution.

Accessing the bank 24/7 — Mobile banking provides ubiquitous banking services without the need to visit the bank to have access to services. This offers time to benefit and ease of transacting at a distance.

Cost-benefit — Mobile banking saves the banks the cost of building physical infrastructures (branches) and maintaining branches and staff. Also, reduced costs on the customer side since the burden of visiting the bank for services is eliminated.

Improving resilience in the face of poverty — Mobile money acts as both a savings vehicle and a means of transferring funds during times of economic or environmental shocks.

Strengthening the formal economy — For many micro, small, and medium enterprises (MSMEs), opening a mobile money account can facilitate access to formal financial services. Mobile money is well placed to address the issue of informality that blights many developing economies and hampers domestic resource mobilization efforts. Mobile Money enables ease of transacting, thus increasing business profits for MSMEs.

Facilitating economic growth — Mobile money has been shown to contribute to economic growth by increasing both productivity and per capita incomes

DISADVANTAGES OF E-LEVY ON MOBILE BANKING

The design of mobile money taxation policy appears to be the antithesis of a well-designed tax system. The disadvantages include:

Inequity — Mobile money taxes as currently structured to create inequity in the tax system. As the tax is mostly borne by the poor and users of the services are subject to additional taxation (unlike bank or cash transactions), the principles of both horizontal and vertical equity in the tax system are contravened.

Uncertainty -. Uncertainty and lack of transparency over taxation systems can have a direct impact on the operations of the tax authority, increasing enforcement costs, as well as discouraging investment.

Inconvenience — The administration of mobile money transaction taxes creates an inconvenience for MMPs who must calculate and collect the tax on the revenue authority’s behalf. There is an additional inconvenience for users of the service for whom remote digital transactions become more expensive or out of reach if they revert back to cash.

Inefficiency — Badly designed mobile money taxes have been shown to have a distortionary impact on demand for mobile money services. This in turn has had negative impacts on overall tax takes, as well as impacting the attainment of national economic and development goals.

EFFECT OF MOBILE BANKING — CASE STUDIES

The decision to impose taxes on mobile bank transactions will trigger so many problems.

Ghana — According to The Fourth Estate Ghana; Although the government projects a 24% decline in transactions when the levy is finally implemented, preliminary findings published by the bank of Ghana indicate the value of mobile money transactions had dropped by 3.2 billion in December 2021, less than 2 months after the proposal to introduce E-levy.

Uganda — An e-levy of 1% introduced in 2018 has led to an overall drop in the person-to-person transaction by more than 50%, and a 24% drop in industry transactions within the same year the tax was introduced according to a report by Global system for mobile communication (GSMA).

Congo — An e-levy of 1% was introduced in 2019. The government had to reverse the tax on cash outs only due to negative results of the levy on Mobile money users such as a decline in mobile money agents (unemployment) and high-value withdrawals by people.

Other countries include Benin (5%) and Cameroun (0.2%). In all these countries, the e-levy has imposed a negative effect on the economy and people. If we want to ensure the financial inclusion of people in rural areas, we need to ensure that we encourage mobile banking by withdrawing the e-levy tax.

Reference:

https://thefourthestategh.com/2022/03/16/e-levy-this-is-what-happened-when-other-african-countries-passed-it/

Purohit, S., & Arora, R. (2021). The benefits and challenges of mobile banking at the Bottom of the pyramid. Journal of Contemporary Issues in Business and Government Vol, 27(1).

Charles G. Kpan, Jr. is an Information Technologist with over 5 years of experience in the provision of Information Technology Services and an emphasis on Web Development and Visual Branding. He’s the managing Director of CYGEC IT SOLUTIONS INC. and holds a bachelor’s Degree in Information Technology from Blue Crest University, Liberia.

4 reasons blinds are better than curtains

Blinds and curtains are the go-to window treatments for providing shade from daylight. But which shading solution is better? This article discusses four reasons why blinds could be the best way to cover a window and prevent light from coming through.

Daylight shading
Blinds have the upper hand in blocking light because they are installed much closer to the windowpane than curtains. Their positioning means that blinds let less light through because the gaps are smaller.

For example, a roller blind can be positioned very close to the glass, ensuring minimal light enters the room. In contrast, most curtains are less effective because they bunch together, creating numerous gaps where light can slip through.

Cassette blinds can be fitted with side channels which hold the fabric in place and ensure that there are no gaps in the system for light to travel through. Coupled with a piece of blackout fabric, you’re guaranteed complete darkness. On the other hand, it’s more challenging to achieve total darkness using curtains because most of them are pleated, which lets small amounts of light through.

The type of window matters
You’d be surprised how many types of windows you’d find if you explored a range of properties. Some buildings have overhead windows or skylights, while others have windows installed on an angled wall. Curtains would not be suitable for these awkwardly placed windows because gravity would pull the material down.

Instead of having a curtain hanging down, blinds can be installed with the side channels we mentioned earlier. The blind side channels ensure that the fabric stays in place and the desired level of shading is achieved.

More ventilation
On a hot day, it’s crucial to get ventilation, particularly in countries such as the UK, where most buildings are not air-conditioned. Consider a teacher in a school who needs to open the windows but also needs to block out the sun’s glare to see the interactive whiteboard.

A blind can be fitted with side channels which ensure that the window can be opened without the wind blowing the blind and creating a distracting noise. This is another example of a unique situation where a curtain would not be appropriate.

Commercial and residential properties
Blinds are installed in commercial settings and residential properties. You wouldn’t think twice if you saw a blind in your friend’s home or your workplace. But you may scratch your head if you walk down the local high street and there is a curtain covering the large windows of your favourite restaurant. Blinds that are fitted in retail settings have a special fabric with an open weave that allows you to see through it. These blinds still provide some shading from daylight without obscuring views.

Blinds can be fitted in offices, retail settings, schools, hotels, leisure centres and just about any other building you can think of. Curtains are an excellent addition to building interiors, but they are mainly limited to homes, hospitals and the hospitality sector.

Summary

Based on these four points, blinds are more versatile than curtains. There is a huge range of blind types and excellent options to control the blind. Electric is a common control choice for luxury properties, but the metal control chain is the standard mechanism selected for blinds. Vertical and Venetian blinds are universally used in homes and commercial settings.