Theoretical base of the proposed accounting ability

Three discoveries confirm the ability to deduct, from taxable income, costs of living in harmony with Nature as an efficient and sound practise which gives sense to the development of the economy.

1. The goal of development is determined every day, everywhere by the purchases of consumers. The goal consumers pursue is the goal of the development of the economy!

This discovery brought forward the question of what is the goal with which consumers spend their income today. Consume more, is the only answer we could find to this question. This goal seems to be confirmed by the macro-economic policy of maintaining growth in development.

When costs of living can be deducted from taxable income, the goal of development will be to pursue its own progress within the respect of Nature and thus with optimum efficiency in utilising its resources.

2. With the proposed accounting ability, the consumer will spontaneously assume his function in the economy, which is that of maintaining a way of living which ensures a lasting progress of production.

3. The natural resources will then be shared more equitably due to the application of the principle of efficiency of the economy. Optimum efficiency in the utilisation of resources is achieved when costs are managed at the source of the revenues they sustain. Unlike revenues, costs can be controlled. This principle of efficiency anticipates that the individuals who earn the revenues manage the costs. These people are indeed at the source of the revenues, generated by the costs they manage. Producers have already proven the effectiveness of this principle. Consumers earn the incomes that cover the costs of living. If they manage these costs, they will use natural resources efficiently. At an optimum efficiency of utilising the natural resources in mankind’s ways of living, enough goods and services can be provided so that everyone will be able to enjoy compatible levels of well being. People who share satisfaction, live in peace. 

For more information, see "Some potential consequences of continuing to consume more" under theoretical support. 

Brussels, 30 May 2008                   Willem Adrianus de Bruijn