Two Real World Examples of Voluntary Taxation
The Philippines is one of the countries that is perceived as a developing or third world country. In many cases it is understandable why people are of this opinion but ask anyone in a Philippine province and they’ll gladly confirm this for you any time: There’s more to life than money, and that will come from folks who relative to Westerners live in extreme poverty.
Having said that, when it comes to taxation of businesses there’s a fair policy in the Philippines that in practice allows and proves voluntary taxation.
Most businesses in the country are small local stores and all of them are required to pay a local fee in order to legally operate their businesses. This fee is payed only to the smallest administrative division or on the smallest level there is, i.e. to the barrio or the barangay. This is smaller than a municipality.
This fee includes a police clearance, a business permit and a health center approval, roughly for the low price of 150 pesos (about 3 US dollars) per year (varies from region to region), low also from the locals their point of view. Obviously, bigger and more popular businesses are requested (not forced – nothing imposed) to contribute more to help pay for the daily and annual expenses that the barangay council (the smallest governance council) is faced with.
So far the respective city of which a barangay or barrio is part of does not receive any taxation income, only the barangay council does.
However, when a business owner is of the opinion (not the government) that his or her business is financially strong enough to contribute also on the city level (to pay taxes into the city treasury) then this person can (and will in most cases) do so entirely voluntarily. This is a fact and can easily be confirmed. It’s a system that provably works and, thus, perfectly documents how voluntary taxation is possible.
The above example concerns the small local businesses only, of which there are the most in the Philippines and which represent average households.
The second example is a very tricky one in that indeed a specific voluntary taxation model exists in Belgium but only counts for a certain group of citizens, i.e. citizens who live or reside in Brussels and this concerning the Flemish Care Fund (Vlaamse Zorgkas).
First of all, it has to be clearly stated that the financial and legal constructions that have been implemented and are being utilized for this fund, by the Flemish government, have been proven to be fraudulent and illegal. Yet, are still in place and only a limited number of citizens are aware of these institutionalized crimes, of which this author is one – who by the way exposed the case in 2012 and beyond. Also the establishment press helps to make sure that the illegal system stays operational, also this has been proven and, thus, is a fact.
Every person, starting at the age of 25, who lives in Flanders is forced by the Flemish government to pay “a membership fee” to the Flemish Care Fund, which is a non-profit organization by the way and not a government agency of any kind, hence the alleged “membership fee“.
However, the annual “membership fee” of, currently, 50 euro (before 25 euro) is claimed by and payed to the Flemish Tax Bureau (FACT!), so in reality is a tax and certainly not a membership contribution.
Do visualize, here, the institutional arrogance displayed by the Flemish government but also by the Belgian federal government for letting this being imposed unpunished! Indeed a proven conspiracy.
As mentioned earlier, the citizens living in Brussels can choose to voluntarily pay this TAX to the Flemish Tax Bureau (allegedly to the Flemish Care Fund). They never have to and when they don’t pay they are perfectly left alone, peacefully. No extra charges, no penalties, no bailiffs. No hustling.
If a Flemish resident, of 25 or older, doesn’t pay this tax he or she will be charged penalties and this of up to 250 euro, to be payed to the Flemish Tax Bureau. An additional fee of up to 750 euro (bailiff) accompanies this semi-legalized extortion.
However, those 750 euros by themselves are of course also illegal and pure extortion since the bailiff is acting entirely outside of the national law, which currently is still superior to the Flemish decrees, in Belgium. A fact that also has been proven and exposed since 2012.
Voluntary taxation is, thus, perfectly possible, it already exists but clearly needs to be functioning in a neo-sovereign society.