Not-for-profit sector tax concessions
feedback 16 December 2012
by Andrew B Spannenberg
individual submission

Currently: 
A $2 coin passed around a room of ten people; at a tax rate of 10% and no tax free threshold, results in a total income tax of $2 being drawn out of that community (the room).

A local money exists only locally. 
If treated in parallel to national money;
The tax accrued can only be spent in the local area in which it was derived.
$2 never leaves the room. 
The elected representatives of the people would have funds for local public works;
whether in government or not.
Locals can be hired to produce goods or services for supply to other areas.

It is important that public works be carried out by more than just the government. 
Hence my desire to support the NFP sector. 
(Phase 2 of a NFP that I wish to start in 2013, is a Local Currency Circulation Engine, LCCE)

I draw to your attention that some forms of local money can be issued by NGOs;
or, in the case of LETS, not even come into existence until point of trade. 
Active community does not need to wait on the dead hand of government. 

The purpose of money is to pay taxes (according to Professor Bill Mitchell of the Centre for Full Employment and Equity).

I think that taxes for the public good should be supported. 
I advocate a "pollution tax", dealing with more than a "carbon price" but also toxic materials, ozone depletion products, radioactivity, etc. 

A robust way around future GFC events is to diversify the use of local monies.

With respect to "Reasons for limiting tax concessions" first reason,
assuming tax burden is shifted when some tax concessions given, 
because budgeted amount must come from same source (tax payers),
in same scarce measure (national dollars).
It is a zero sum game. So, break the game!

How valuable would it be to have a simple way of making the funding of public works robust?
Could we use local currencies?
Barter, LETS, negative interest money, printed local script, time banking are all examples. 
How simple to treat them as parallel, each with a (income) tax free threshold.  

Or empower taxpayer to choose project to be funded by first $100 of tax; and the rest to general revenue - if tax records are up to date, else all to general revenue. 

NFP NGOs should put forward a list of projects for funding from the initial income tax. Elected representatives can advocate for their preferred projects. 
(Income) tax amounts between $1million and $2million may be matched dollar for dollar to select projects. 
So, incentives can be implemented to keep tax up to date, and pay more. This is "opt in".

Q1:
Environmentally unsustainable practices should be discouraged - apply income tax with no tax free threshold. . 

Q2:
cease - sporting
add: community knowledge holders - internet services by NFP; language preservation; 
add: maintenance of accessible resources - disability toilets cleaning; web accessibility rater; 

34.
An NFP should have as many tax free thresholds as local money systems they wish to participate in.
To do this, they would have to diversify their income stream to those local monies. 

Why work in multiple monies?
Because profit does not have to be in the same currency that was working capital. 
You choose the money of most useful mechanics - e.g. zero cost to purchase of capital with LETS;
to build a product saleable in national dollars. 
An LCCE would help reduce compliance costs, as it accounts in each money.

Q10.
Accepting multiple local monies adds robustness to economy. 
It does not get around the critical challenges - Peak Oil, enhanced Greenhouse effect, Peak phosphate, clean water shortage; 
It should also be noted that not only is the multiplier effect different for local monies, but also
source and speed - negative interest money travels around an economy eight times faster than conventional money; and any NFP could issue it to pay for  a worthwhile project. 

Sorry that I did not get to end of your document - please let me know if you would like elaboration on my ideas / further comment. 

regards,
Andrew B Spannenberg BSc
P.O. Box 294, Jesmond NSW 2299
mobile (no SMS please) 0422 015 430