Finances

Summary

The finances domain of a state assures the continual working payment system, leads the monthly taxation calculations as well as decisions and is headed by the treasurer couple. As the basis for the taxes, it also registers the possessions of natural or juristical persons (cf. domain 2, Persons administration).

State finances and money are, unfortunately, quite misunderstood by lots of people. Which is understandable, because what the state, the community, can and must do is fundamentally different from what a single human being or company does with money. Especially, the community must decide about and have full control over money creation and destruction. If this gets out of hand, and with the current (2021) ways the monetary systems are working it IS out of hand, periodic financial crisis and financial abuse by few are the fatal consequences.

Also be assured that owning gold or whatever 'things without direct use' (foreign currencies, bitcoins, ...) does NOT make a currency any better. It is the state as whole, foremost its people, that creates stability - the stable state, sic.

Essentially, it is important to understand that every democratically state-decided state action is easily financed. It is just to be decided if and how much new money is created or existing money deleted and how much do tax-payers have to contribute. This decision is also democratically made. Important to know is that the stable-state works at a monthly periodic pace which is also true for calculating (summing up) the agreed monthly state expenses and then deriving the required monthly tax sum. The formula state-wide is

T_S = E_S - ΔMV := State-Taxes due for month
E_S := State-expenses due for month - community decided
ΔMV := Delta-moneyvolume, a positive number means new money is 'printed' (actually just virtually created) and a negative number means money is 'deleted' - community decided

If someone is missing the 'State debt' term here, then be assured that it does not really exist. If you think about the term and idea of 'State debts' til the end, you find it is money the state, i.e. the tax-payers or by money printing, sooner or later will redeem anyway. So, there is no point in delaying the decision. The taxation formula for an individual citizen (family-head) for a month is

T_i = T_S * PW_i / Σ_{i in State}PW_i := Taxes due for month for an individual citizen/family head i
PW_i = (pw_i / #hb_i)² * QT_S * #hb_i + pw_i * LT_S + CT_S * #hb_i := the resulting possessions weight per month for an individual citizen/family head i
pw_i := the total of single possessions-weights of all possessions of the individual i (owned as family-head)

hb_i := the number of human beings in a family

QT_S := the quadratic tax coefficient of the state (community decided), it reflects on how severe the richer (more possessions owning) citiziens pay on top compared to the less rich
LT_S := the linear tax coefficient of the state (community decided)
CT_S := the constant tax coefficient of the state (community decided), it reflects what every human being independent of possessions has to pay
Σ_{i in State}PW_i := the sum of all resulting possessions weights of all citizens/family-heads in the state

So, the State-Taxes are simply distributed proportionally onto all citizens that are family-heads according to the resulting-possessions-weight. And the resulting possessions weight is progressively (quadratic) calculated but 'tempered' by the number of human beings a family-head represents (normally his/her spouse and children but also, possibly, not-yet-citizens-permanent-visitors).

For juristical persons (companies), there is also a Product-waste-disposal-upfront-fee charged each month. Note that this is not a tax but a fee to finance the waste disposal (done by domain 4, the police) and be able to promote waste-avoiding products and product packings.

On the opposite side of state money flow, an unconditional monthly per capita income is paid as well as a per day income if working for the state. The state representatives guarantee to offer supporting jobs for every grown-up citizen. Also, the state pays pensions for the retired and disabled. The state also implements a generic assurance mechanism, e.g. if your house is destroyed by fire or natural disaster, then the reconstruction is paid by the community, same for medical treatment, etc.

What the Finance department owns: physical and digital money and payment infrastructure - a backbone for a functional society.

Highlights

One single, non-cheatable tax system of possessions taxation. Non-cheatable means: if a possession is not registered and no taxes paid for, then it is also not protected by the state.
Taxes automatically adapt to the democratically decided state expenses - no 'State debts' are made. If the community decides to 'have the state do something extraordinary', then this has an immediate and non-negotiable effect on the taxes to be paid next month. An 'investment' can be distributed onto its expected lifetime, i.e. onto a series of months in the future.
The state has the money and free payment monopoly - physically and virtually. Each person has its state money account - physically and virtually.
Taxes are simply deducted from the state money account of each individual.
The possessions weights per possession type (room cube meters for living or per industry and per money value of contracts) are community decided.
The products waste disposal fees per unit (industry and product waste type) are community defined.
An unconditional income and conditional income is paid to non-retired citizens (family heads).
Retired and permanently disabled citizens receive the per capita pension.
Accidents rescueing, catastrophies and fire fighting as well as life-saving, accidents-healing medical treatment is fully state-financed to the service provider.
A generic assurance is implemented for all kinds of individual accidents (personal and/or possessions like houses), however, the aggrieved can be retrocessed when behaving against statistically proven recommendations (e.g. smokers pay more on their own if treated against lung cancer, house owners pay more if building in a known flood risk zone, etc.).

Regulations

F.01 Money and payment

F.01.1 Physical money (cash) and payment

The 'old' system of coining coins and printing paper money may remain in place. Those 'things' should be made as unfakable as possible with a good cost/prevented-risk-of-faking ratio. All payments within the confines of the state MUST be allowed to be made in the cash state currency.

Comments: Note that cash has always some disadvantages, also in a stable state: it can be stolen or lost (especially larger sums), it is a bit clumsy to pay exact amounts (pay more then get the diff paid back), it is awkward to count large piles, ...

F.01.2 Digital money and payment

Each natural and juristical person has automatically a money account at the state (at his/her basic community or communities). When money has to be transferred from a (natural or juristic) persons account to another, then both must be identified (using person's administration services) and both must digitally agree on the sum, payment direction and, optionally, a linked contract (e.g. the payment is done to redeem a debt). Each digitial payment is entered into the state's distributed ledger to be used in eventual subsequent litigation cases.

When 2 persons want to do a transaction, but the digital state infrastructure is not available, then both can create the 'same' in document form, sign it both and take each 2 copies home (so a total of 4 content-wise identical documents must be produced). At home and when the infrastructure is up and running again, then each can hand 1 of the copies to the treasurer and there is a process in the infrastructure that can 'back-process' the payment as if done using the working infrastructure. When one sees that all is correct, then the second copy can be thrown away.

Comments: Actually, this is the only possible digital money. For example, if I own a traditional bank account with 1'000 CHF on it, then this is not money, but a 'money-for-money' - contract between me and the bank: "I have paid 1'000 CHF to the bank and now the bank owes me 1'000 CHF - redeemable on my request". Also note that such contracts, like all possessions, are taxable. The same applies to owning bitcoins, Coop-Superpoints, Dollars, Euros, etc. - if you want to be able to claim your ownership of 'something' before court, then you must, beforehand of course - as soon as you own 'something'-- register this as a owned contract and then pay the taxes. Each such owned thing is taxable for at least 1 month and 'rated' with a community-defined weight. And, of course, if you own things not within the StableState, then the StableState is not interested at all in it - it also takes no protection responsibility for things abroad.

It is also rather interesting how a money transfer into a foreign state is made: A person with ID AAA in our state wants to debit his/her money account by amount 999 and credit a person with ID BBB in some state F. Our state then asks state F if BBB exists. If Yes, and F is a stablestate, then it simply asks F to credit BBB's money account by 999; gets the confirmation and it's done. If Yes, but F is not a stablestate, then we also need a 'financial institute' ID III and an account ID CCC. The stable state contacts III and asks the cost to transfer. This cost will be additionally charged to AAA.

And the reverse is simple, we have either our currency arriving or a foreign currency. In the latter case we just open a foreign currency account if it does not yet exist for AAA.

F.01.3 Money tax-exemption

No taxes are paid on owned money nor on paying.

Comments: This is a very important aspect of having an economy and society running smoothly. On the other hand, when I transfer an amount from a bank account to another bank account of somebody else, then this has tax impacts.

F.01.4 Foreign currencies

In order to send/receive money in foreign currencies, each person can also open a foreign currency account for any foreign currency. However, the stable state does not accept 'paper or coin' payments into such an account. Also, the stablestate does not 'convert'. So, each person is self-responsible to pay e.g. CHF and get US$ 'simultaneously' or vice versa.

However, note that foreign currency accounts are taxable with 1 FOREIGN_CURRENCY_WEIGHT democratically defined weight. It is applied to all currencies equally independent of current exchange rates. So holding foreign currency accounts for very low rated currencies, e.g. 1'000 turkish lira equal 1 CHF, then you are likely to hold 1'000'000 of those very easily and ... pay quite a high tax. While holding Euro or US$ is not as bad, almost 1:1.

F.02 Room possessions

F.02.1 Room owning

Any full citizen and legal person can own room with a registered room usage type (room units and room usage types and their weights: cf. domain 1, Constitution). This is randomly checked by the police, i.e. that the room is actually used as registered. This is done with monthly change of ownership only; the month when the change happens is taxed to both holding parties.

F.02.2 Not just 'letter-box' companies

Legal persons (companies, associations, ...) address is either where they own or rent room OR their president's or principal's address.

F.03 Contract possessions

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