The liberals system (from Left to Right) : How to make a consensus program ?

This article is totally (and not partially) subjective. But in my subjectivity, I will try to be as realist as possible...

1) To make a consensus, let's define what kind of liberals exists first
- Left Liberals as me : those who consider important to ensure equal opportunity at birth to achieve studies, to ensure right to live (food) and circulate locally with an universal allowance enough to allow it, and to ensure regulation if (and only if) it makes taxed people wealthier than poorer with this investment (example : contraception, free nursery system, cheap energy price...).
- Center Liberals (as Liberal party in the Philippines) : those who consider the same but don't accept the universal allowance because they consider hobos as responsible of their situations. They also considers that investment must to be limited to some sectors like energy to prevent private monopoly.
- Right Liberals : those who consider that administration must to not make intervention in economy, only if necessary (ex : energy). They also consider useless to make a social policy unless the person is not responsible of its situation (ex: disable). Their only social intervention is for these people and eventually a social limited scholarship. On the other side, they accept the free school and the Equal opportunity to study as principle.
- Extreme right Liberals : those who are the same than Right liberals but consider useless and unfair the Equal Opportunity (of studies) principle.

2) To make a consensus, Let's define in each system what politic is the most efficient
All liberals, from left to right have the same philosophy about laws... Then, we exclude this because there is already a natural consensus about it. Differences are economic or social. Then I will try to define the most efficient politic in each systems, taking as example in each sector the best country.

By expenses (base OEDC as % of GDP) :

- Health : 2.9% >> There is consensus on the philosophy (as explained before). And the most efficient government is Macao with this amount. Their system is globally based on private health system and private insurrances. The main problem in the Philippines is the lack of economic freedom. It makes less competitors for medical insurrances. And this lack of competition makes the prices bigger. The second problem is not a consensus, but social system is not enough to allow everyone to have health insurrance (in my own opinion of left-liberal). In 2010, Health expenses in the Philippines are 0.44% of GDP. This too little amount reveals the lack of infrastructures and the too big cost of health here.

- Culture : 0.1% >> This expense makes consensus also in the liberal world because we consider this kind of expenses unnecessary. Personnaly, I would put this little amount only as subvention to language schools (english, tagalog, cebuano, etc) in the country and in pinoy embassies. The country with this little amount is Japan. It is impossible today to know the amount in the philippines because Administration includes culture into the education budget. But we guess easily that this budget is closed to this proportion. Simply, the country should less finance festivals and other obscure financing, and focus on the language incitation.

- Environment : 0% >> As before, there is a consensus. Liberals are naturally against politic intervention when it's not justified. Here, making incitement by taxes to not create pollution is enough to reduce pollution (depending if incentive taxes are enough big or not). So why we would spend money of citizen in this ?
The country who doesn't spend for this is USA. The amount spent in the Philippines about it is negligible to be quote, but it's already too much.

- Security (police, justice, etc) : 1.4% >> Safety is the first freedom. OEDC is the only one institution who can evaluate the safety in each member and compare it. There is a country who shine in its safety : Japan. Then, Japan spend this amount. On the other hand, in 2010, the Philippines spent 1.1%. It is obviously not enough to fight all the crime in the country. Sometimes, Justice takes 15 years to judge someone who is in prison. It's a scandal !

- Defense (from terrorism, from war) : 1.1% >> In the same principles, a minimum amount must to be invested in the defense. The threat of NPA or Abu Sayaf is hanging over us... The only way to beat them is to maintain a good budget, and to make the country wealth. Why 1.1% ? Because that is the most little amount spent by one of the superpowers. This superpower is Germany, and they don't have war or terrorism problem. Then, I just considered that under is not enough, but more is useless (I told you this article is subjective). The amount spent by the Philippines in 2010 is only 0.86% of the GDP. In those conditions, don't be surprized if you still hear about NPA or Abu Sayyaf...


- Public services, Administration management : 4.5% >> Another easy consensus is the Administration management. Liberals considers that taxpayer money must to be wisely spent. The rich country with a working administration who spend the least in its administration is United Kingdom. Then, as for the defense, I consider that spending less is not enough, but spending more is useless.
The amount spent by the Philippines in 2010 to make a working Administration is only 1.25%. In those conditions, don't be surprized if Administration is never available, very slow, and not friendly.


- Collective developments (roads and infrastructures) : 0.5% >> Here is more problematic. In the OEDC accounts, this sector include real estate. But there is no consensus possible in real estate for some reasons. Including real estate, the most efficient country is Germany with 0.7%.  Then, separating real estate from the rest of infrastructures, we can estimate that Germany spend 0.5% of their GDP in their infrastructures (almost the best of the world for this little amount). On the other hand, real estate investments are almost away in the Philippines. 
In 2010, the total investment in this category in the Philippines is about 1.49% of the GDP. If the intention is good, it's a bit too ambitious because this big amount can be economized by less taxes for companies (for example).


- Education : Only extreme-right liberals are against the concept of free education. In this case, no one consensus can be made in education. 
The best free education system is from Finland : I invite you to analyse their data in the OEDC, World Bank and IMF websites to compare it. Finland spend 6% of their GDP to provide this system.
In same time, we can evaluate that to leave the wantonness in the Finland system, the necessary amount to spend as incitations would be around only 3.8% of the GDP.
About Philippines, the truth is that in 2010, the government invest only 2.76% of their GDP into education... It is more than in the budget of Arroyo, but no comment......


- Social : As explained in my other articles and before, no one liberal can agree another in this topic.
To make an universal allowance, with an additionnal help for people who study, a left liberal would need around 23.5% of the GDP.
To just make the help for studying people, a center liberal would need around 12% of the GDP.
To make helps only for people who didn't make a choice to be in a bad situation, the right liberals would need only 0.5% of the GDP.
In this instance, all depend of the intentions of the person... Personnally I am in the first category for the reasons explained before.


- Other economic affairs : No consensus possible also, as already explained.
With the philosophy explained before, a left liberal would spend around 3% of the GDP for these reasons. While the right side of the liberals would spend only 1% maximum. Center liberals are between that... So you can count 2% of the GDP, depending of the project. 




Consensus by public revenues (by kind of taxes) :
In economics, depending your analysis, economists can determinate which kind of taxes are good or not for the economy. If you count well what we said before, we can determinate with 0.4% of safety excedent that :
- left liberal administration need a budget as big as 43.4% of the GDP for their project
- center liberal administration need a budget as big as 30.9% of the GDP for their project
- right liberal administration need a budget as big as 18.4% of the GDP for their project
- extreme right liberal administration need a budget as big as 16.2% of the GDP for their project 


Here is the order of taxes. First is the one who have the least negative impact on economy, last is the worst.
1- VAT : recognized as the best tax by economists. In this instance, liberals of all kind can focus first on this tax. Some countries have a maximum VAT of 25%. I think it can be pushed till 26% (but 0% VAT for food, real estate, transport, education, health and energy)... This would give around 14.8% of GDP in the budget.
In 2010, the VAT revenues of Philippines is only about 2.65% of GDP... No coment.
2- Tax on financial transactions : this tax doesn't make consensus but is an incitation to not make speculation. It worked well in Australia who didn't suffer of the crisis. I just propose to copy Australia about it. This tax gives them 1.4% of GDP as revenue.
In 2010, this tax doesn't exist in the Philippines... No coment.


Here, extreme right liberals don't need any other taxes for their program.


3- Immovable property : this tax makes consensus also into economists to less impact economy. Extreme right don't need other taxes, but right, center and left do. A realist project would be to copy the Irish system, with a rate two times bigger. This tax would give 1.3% of GDP to right/center/left liberals.
In 2010, the revenue of this tax in the Philippines is only about 0.55% of GDP.... No coment.
4- Social cotisations on salaries : This is the next in the ranking... But at this moment, this is the end of the fiscal consensus.
- Right liberals just need 0.9% of GDP for their budget... So 3% of salaries need to be taxed for them.
- Center liberals need 13.4% of GDP for their budget... So 45% of salaries need to be taxed for them.
- Left liberals need more than that, so they can not base all on that. In my mind they would tax 35% of salaries and have 10.4% of GDP for their budget, and make another additionnal tax with that.
In 2010, this tax doesn't exist in the Philippines... No coment.


Here, right and center liberals don't need any other taxes for their program.


5- Income taxes on individuals : With already 35% of salaries taxed before, this tax can not excess. We can only put it into its acceptable maximum. In this instance, a 25% Income tax on everybody (associated with the social system, this is not problematic) is to provide (it would make a fiscal pressure on wage of 60% and 25% on capital). This would make around 9% of GDP in the budget.
6- Income taxes on business : To reach their budget, left liberals still need 6.4% of GDP. A rate of 25.8% should be enough to make this revenue.


In 2010, impossible to know the revenue separately of these taxes in the Philippines. Only both of them together is available, but it's only about 5.73% of the GDP.


Here, left liberals don't need other taxes also... But for information...


7- Excise and miscellaneous taxes : Because they destroy the natural competition in the market, they are the worst taxes. Especially import/export taxes. Of course, no one tax like this is needed by liberals.
In 2010, the Philippines government tax 4.81% of their GDP in this kind of taxes. This is a scandal.


If you did read me till here, you understood my meaning. And I can just thank you for your curiosity !


To sum up, the perfect politic liberal consensus would be in revenues to tax financial transactions and to make a VAT of 26% (with 0% rate for food etc).
About expenses : defense, security, administration, infrastructures, health, culture and environment systems can make consensus also.