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Participation
Treaty and registration
Participation treaty for the public debt elimination and public currency system
A participation treaty needs to be put in force.
One participation treaty of the country is valid for all governments of the country.
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Interest-free financing of governments
Government financing during the changeover period
The governments receive monthly pro rata an issue gain of the public inflation currency (initially begged to the CHF).
Financial independence of regional and local governments (municipalities)
The tax adjustments, issue gain and others provide a self-financing of regions and municipalities therefore the country government is not needed anymore to forward tax revenues to regional or local governments (municipalities).
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Adjustments at the taxation system of the country
To avoid tax competition tax adjustments shall to be implemented at the private financial system (debt money system).
Banks and other institutions providing current accounts need to adjust their software for this automatic taxation.
Replacement of the current outdated VAT system
It causes a lot of tax-collection costs and accounting costs which can be avoided completely by an automatic system.
Advantages of the new system:
• Bookkeeping for tax reasons is not required anymore.
• Double pricing and calculation is not needed anymore.
• No VAT evasion and avoidance anymore;
4% to 10% Income Tax at account credits (automatic)
This tax is automatically charged at credits to current accounts, 10% at public debt, otherwise 8% or 4%.
1% to 10% Sales surplus contribution (just for business accounts) (automatic)
Monthly, of the sales surplus = sum of account credits less sum of account debits, percentage according needs;
The contributions are automatically forwarded to the regional social account.
Dedicated for medical and social expenses: Medical system, education system, pension system and other social benefits;
0.1% Financial transaction tax (automatic)
Automatically charged at credits of interbank and intrabank money transfers and investment trading.
1% Debt contribution (automatic on demand)
Whenever needed for acccount balances over 100,000.
For the reduction of debt and emergency funding (public budgets, bank deposit protection at a bankruptcy, disaster relief);
1% to 10% Value added exit tax (automatic)
Applicable at bank transfers to business in other states:
For example: 1% to neighbouring and related states (same nation, language, currency), 4% same continent, 10% other continent;
The tax revenues are proposed for a continuous repayment of the converted goverment bonds.
The tax revenue office needs to forward at least 10% to maximum 90% to the debt service account as long as there is an open public debt.
Advantages:
• No tax avoidance and evasion anymore by moving funds offshore.
• Foreign products become more expensive, this helps the domestic market.
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Law adjustments at the country for the debt control and prevention
Budgets, debt elimination
Balanced budgets are required by the governments at the private currency system, interest-demanding state bonds must not be issued anymore.
Bank loans to governments, governmental organizations and companies owned by the government shall be prohibited.
Subsidies
The country government (State, Nation) shall not pay subsidies.
Responsible for subsidies shall be the regional and local governments only.
Subsidies must not be paid to for-profit companies.
Pension system
There shall be just one public pension institution at the country (Region, state).
Pensions shall be paid monthly only, not 14 times yearly, that the turnaround-system can work properly: Incomes will be paid out again during a month (Especially important at high inflation).
The pension institution must not spend more then the income from pension contributions (No subsidies from the government anymore), so the maximum pension has to be leveled according the available funds.
Pension liabilities exceeding the maximum pension level can be paid in the public inflation currency up to the double of the minimum net wage for full time work (no luxury pensions anymore).
Pension liabilities can be outsourced to the public financial system. Pension liabilities to persons in foreign countries shall be outsourced.
The government shall not pay pensions to civil servants, such pensions shall be outsourced to the pension institution. Pension contributions for civil servants shall be paid.
Pensioners who would benefit more at the public financial system can change there. The pension institution can also outsource pension liabilities there.
Central bank of the country
The central bank has to convert all public debt to interest-free public debt, in can convert state bond holdings to interest-free debt.
The central bank must not pay interest for deposits (bank reserve) or debt of private banks (negative interest).
Foreign currency transfers shall just be processed if there are foreign currency reserves or if there are interest-free liabilities possible, interest-demanding foreign currency debt is not permitted.
The central bank shall not be permitted to buy shares, bonds or other financing products of companies or financial institutions just as an investment.
Private banks
Financial separation of payment institutions (current accounts) and banks. The amounts of current accounts have to be kept as bank reserve at the central bank.
At bankruptcy: Subsidies or other bank rescue financing of the government shall not happen.
The bank has to be taken over by an other bank or by the central bank of the country for dissolution (Transfer of all deposits and debt contracts).
Private banks must not buy company shares or bonds on debt. They must not own real estate except for their own office use.
Private banks must not invest in foreign financial products or in foreign countries.
Companies
• A company has to be owned by its stuff and former stuff.
Investors can provide capital via zero bonds, no interest-demanding bonds anymore.
• New limited company type: Team company (no capital requirement, online registration)
Instead of capital shares one share per worked hour (not transferable);
• Business should only be done through business accounts. Cash amounts received can be deposited there.
• Profit share (20%, half-yearly in June and December) and turnover surplus shares (10%, monthly) for employees (bonus) and former employees (pension), proportionate to the total hours worked;
• Companies with bank debt shall not be permitted to pay dividends or profit shares.
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