Financing Labour in the Public Sector Without Tax Funds

Abstract

The money economy is undoubtedly one of humanity's greatest achievements. The benefits could be even greater if the role of money were better understood as a result of research done on accounting records of wage (salary) receivables. It has been shown that money arises as an accounting record of productive labour. It would then become clear that a schoolteacher's salary determines his/her access to total GDP. No difference exists between the teacher and a manufacturing worker's useful labour in terms of value-added to the economy. A common determinant of both employees' input into the economy is their labour productivity factor. A better understanding of the role of money allows us to accept the idea that labour itself finances access to GDP through intrinsic value to the economy. This idea leads to practical tax reduction solutions because there is no need to collect money in order to pay employees working in public service.

Keywords: public sector, financing labour, taxation

JEL Classification: A10, E40, E62