TAX. Tax
... how can money (MNY) be collected by the state (STA) to pay for its expenditures? How can the strength of artificial capital (ACP) be controlled? How can Demurrage (DEM) be used to support the state. How can taxation be implemented with Rule of Law (LAW)?
How can the state collect funds to pay for the services it provided to maintain the right to life, liberty, pursuit of happiness, and other services for its citizens?
Methods of collecting taxes have always been controversial, and yet the state needs to collect money to run its services.
Historically, the State has printed the money, leading to inflation, or taxed its citizens and participated as a market participant. The former has had devastating effects. The later has generated more hot air on cable news networks then can be measured.
Our money should make taxation as painless and transparent as possible.
Demurrage is an ideal candidate for simplifying the tax system. If we already have a method of money being taken out of circulation, it should be easy to pull more and have it make a stop in the government coffers to be spent on services. Money in government coffer that is not spent can demurrage to nothing over time. This give the government a way to permanently take money out of circulation.
This Demurrage tax would be a 'flat tax' and would not be progressive. It would hit rich and poor alike.
The taxation of artificial capital is hard. Some artificial instruments do not provide for divisibility. Rule of Law can be used to enforce the divisibility of artificial capital. In this instance, the government can easily tax it by taking a portion each year. This would be a much more progressive tax than a straight demurrage tax.
We can also consider demurraging artificial capital that is divisible and recorded in the public ledger. This would allow for the flat tax of artificial capital. Because artificial capital will be divisible this will overcome the problem where an asset cannot be sold because a market does not exist for it. In this case, a portion of the asset could flow through the system and the receiver could hold it until a market did exist for it.
Most real capital cannot be divided so it cannot be treated in the same way.
Therefore:
Provide for simplified taxation of money and artificial capital.
Taxation can help predistribute economic rents (PRF). Contributions to the state can be tracked in the public ledger (PLG). Taxation can help support government services supporting Human Dignity (DIG).