Right now, each jurisdiction can charge the royalty of its choice on its resources. This can lead to competition with states trying to undersell one another, with two negative consequences:
1. Worldwide resource depletion and
2. Government revenue shortfalls that must then be compensated for through high taxes.
However, let's suppose that all states agreed to a common high royalty. Since they would all agree to the same royalty, this puts an end to the race to the bottom. It would also push the cost if resources up and so allow governments to eliminate taxes.
One problem I see with this model is that states that have few or no resources would object since their economies would be devastated to the benefit of the resource states.
One solution to that could be to give allcrown resources to an international government that would charge the same high royalty worldwide but redistribute them according to population, though it could withhold payment for any state that violates human rights.
On the one hand, the cost of resources to the end consumer would rise significantly.
On the flip side, due to its revenue generation, it could cover all if governments' essential and emergency services and infrastructure. At most, a government might want to introduce a flat personal tax that would be 100% charity-deductible at a 1:1 ratio to provide education and other less essential services to the community. It might also cut subsidies so you pay full price for your passport for example.
It might also raise fines for various offences too.
Overall though, it would lead to a much more user-pay system than today.
1. Worldwide resource depletion and
2. Government revenue shortfalls that must then be compensated for through high taxes.
However, let's suppose that all states agreed to a common high royalty. Since they would all agree to the same royalty, this puts an end to the race to the bottom. It would also push the cost if resources up and so allow governments to eliminate taxes.
One problem I see with this model is that states that have few or no resources would object since their economies would be devastated to the benefit of the resource states.
One solution to that could be to give allcrown resources to an international government that would charge the same high royalty worldwide but redistribute them according to population, though it could withhold payment for any state that violates human rights.
On the one hand, the cost of resources to the end consumer would rise significantly.
On the flip side, due to its revenue generation, it could cover all if governments' essential and emergency services and infrastructure. At most, a government might want to introduce a flat personal tax that would be 100% charity-deductible at a 1:1 ratio to provide education and other less essential services to the community. It might also cut subsidies so you pay full price for your passport for example.
It might also raise fines for various offences too.
Overall though, it would lead to a much more user-pay system than today.
