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Monday, November 12, 2007

reservation in private sector

...disc: all are my opinion...

Do we need reservation in private sector?

Yes...and, absolute Yes.

How to do it?

Rather taking the path of a forced "affirmative action" like in education, govt should consider the unique advantage to free-market and achieve as "affirmative reaction" in the private employment. What I mean is, government create a frame-work and recommended practices for the reservation that ensures "equality" and "equal sharing". Then, provide perks to the private companies practice and follow those reservation codes. Perks in the form of some kind of "Tax Shelter", "Benefits", etc. Like...

- Tax Credits.
- Deferred Taxes.
- Goodwills.
- Tax Rebates
- Tax Shelter.
- Discounts in infrastructure establishment, leasing, etc.

For example, government can create corporate benefit levels, like Reservation Gold, Silver, Bronx. And based on corporate's practice of these reservation codes, government can reduce tax for those companies like Gold( 10% tax reduction), Silver ( 7% tax reduction), Bronx( 4% tax reduction).

Above is just a quick thought from me...the benefit list can go to bigger extend like - low cost land leasing, low water tax, low property tax, etc for the corporates.

By giving out benefits like these, government can attract the corporate to get the job done(reservation). But what will assure the corporate will go for it...there goes the theory of "invisible-hand" in free market.

Think about it, two companies do same business and same revenue. Company-A achieves the government's Reservation-Silver standard, thus saves 7% of tax for their share holders and Company-B does not. As a shareholder, who do you prefer, company-A giving 7% more after-tax returns or the company under performs A?. Though I'm not a expert in economics, taxing and sociology, definitely experts in those three department and government can make it happen - reservation in private sector.

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