Showing posts with label gross = net. Show all posts
Showing posts with label gross = net. Show all posts

Sunday, August 12, 2012

Advantage 29 – Gross and net income the same

Excerpt from the book »Gradido – Natural Economy of Life«

»A human wants to receive gross and not net love.«
– Friedrich Hebbel
German poet

Gross and net income are the same as there are no taxes and other levies and what we earn belongs to us. In the Natural Economy of Life we are not accountable to anybody, not even the state. We can do accounting for self-monitoring purposes but we are not obliged to do it by the government.

Blue-collar workers and white-collar workers get their wages and salaries paid out in full. The self-employed and entrepreneurs do not have to include any taxes or levies in their price calculations. This makes life noticeably easier, increases incomes and decreases costs at the same time.

Saturday, August 11, 2012

Advantage 30 – Lower wage costs

Excerpt from the book »Gradido – Natural Economy of Life«

»Chinese labour costs would be economic nonsense in Europe. What money is the German employee supposed to consume with? This whole “stinginess is cool” mentality is in fact the real problem.«

– Wendelin Wiedeking
Former Chairman of Porsche AG

At present about half of the labour costs are needed for deductions and only the other half is transferred to the employees. This situation is disguised by the so-called »employer contribution«. Employees only have to pay half of their insurances and social security contributions from their wages and the employers pay the other half. This is of course just eyewash as the employers also have to include the employer contribution in their labour costs.

With the gradido gross and net incomes are the same. The deductions saved are shared between employers and employees with the employees receiving a higher net wage and employers having lower labour costs.


Friday, August 10, 2012

Advantage 31 – No definition for illegal work

Excerpt from the book »Gradido – Natural Economy of Life«

»”Saturdays and Black“ is the most flourishing firm in Germany.«

– Theodor 'Theo' Waigel
former German Minister of Finance

When there are no taxes and levies there is no black work. The gradido not only solves the problem of illegal work but there is no longer even a definition for it.

Black work is a big problem in the old system. The government loses tax revenue that it so badly needs. Service companies are faced with unfair competition because of black work. Many illegal workers are foreigners, which increases the migrant problem.

How liberating it is that there cannot be anything like black work with the gradido. Everybody can enter into economic exchanges with anybody else. Nobody needs to have a work permit or to file a tax return. Companies remain competitive vis-à-vis individuals and vice versa.