Saturday, April 7, 2018

I would If I could 7: Tax to project

Advantages:
  1. No leakage of tax payers money
  2. least possible opportunities for corruption
  3. exponential growth and implementation of development projects
Process:
Many companies, organizations pay tax to the government and then government allocates that to different development projects but most of the money either gets leaked, wasted due to inefficiency and corruption. Now companies get to choose to pay 50% of their tax in the form of social involvement. Let us say they pay 10,000 a year as tax to government. Under this process they choose to contribute 50% of that tax directly towards any government projects or their own project. Some of the examples of these projects are :-

  • Build roads
  • Build sanitation for schools
  • Offer electricity
  • Offer products such as computers to government schools

Upon approval they can go ahead with the project, complete the project. In a traditional process 
  1. tax goes to government. 
  2. Government decides a project. 
  3. Announces the projects. 
  4. Selects a contractor.
  5. Contractor does the project.
  6. money goes to the project.
This has been very inefficient due to corruption and multiple points of failure. It is a proven fact that private organizations are better at delivering something than government sectors. They have been efficient.
Entire Series: