By: Desperado THEORY

Desperado THEORY — Tue, 20 Nov 2012 13:16:05 +0000

In my view, the P2P taxing approach is linked to the P2P money creation approach. Citizens would create money individually as a loan to the community, if applicable, the State. But it could be also to a local NGO or a time bank. They would use the same process as the banks use to create money out of nothing when they give a loan. They would loan the community the amount of taxes they are supposed to pay next year. CITIZENS ACCOUNT ASSETS The community owes me 1.000 € in services LIABILITIES If the community asks for it, I will pay 1.000 € cash COMMUNITY ACCOUNT ASSETS I can ask Citizen X 1.000 € cash anytime The community would then use this bank money to pay for the public services. All subcontractors can now go to the citizen to ask for a total of 1.000 € cash. Alternatively, he or she may cancel the debt by paying the tax and annotating: CITIZENS ACCOUNT ASSETS I have paid the community 1.000 € cash in taxes Alternatively I have volunteered for the community worth 1.000 € as a tax (i.e.timebank) LIABILITIES I recognise that I got services worth 1.000 € A net balance would be calculated each year of the difference between the anticipated tax (the loan) and the final due tax. The beauty is that citizens could be given some freedom by the elected government of allocating their loans to the state, choosing how much they put on education, healthcare, infrastructure, police, army, public housing, etc, giving them much more power to control the real expenditure than voting a vague electoral program. The same works much better if instead on bank accounts, it is done by creating money as P2P crypto-currencies. In this case, instead of If the community asks for it, I will pay 1.000 € cash Every citizen would actually send 1.000 € digital coins, created by him or herself.

Comments on: Thomas Olsen on the New Taxation Paradigm

By: Desperado THEORY