Practical Benefits of Central Electronic Bank
Is Anybody Listening?
There are safe ways to move things in computer systems. Blockchain is a no middleman system, but it turns out to be too expensive. It uses too much energy. It is the way to substitute for the middleman. Banks used to be too expensive. What about society? Can Society not be the guardian of the one and only Universal Central Bank? If algorithms built into the system are approved by democratically achieved laws, what could the problem be?
Any human individual’s account will be in this system. Nobody will need to use a different system to do exchanges with anybody in the world. Every single entity, natural or legal person will have an account. Any transfer of funds between accounts will be sanctioned by the system and small percentages of all transactions will be deducted for global social needs. This will cover the tax issue with a 100% automatic system. No more audits will ever be needed. No more IRS going after you or your company.
We have a problem today with the proportional taxing system. This system requires you to declare beyond your income. Income Tax should be that: tax on your income. Period. When the system interferes with expenses and costs then we are all in trouble. Some of it is deductible but some of it is not. If anybody makes a mistake, then the IRS enters the scene and life becomes a mess. We know that death and taxes are things nobody will ever be free of. Let us build the tax system within our daily life and get it away from our consciousness. With the Digital Universal Bank this freedom of the tax system is possible.
Any productive operation requires persons to be hired to do different jobs. When the company transfers payroll money to any hired person, this transaction implies several things:
- The company is paying a salary for a job to be done
- The person receiving the salary will be debited with some of it for Income Tax
- The company will be credited with any amount paid as salary
To be credited means that the system will recognize that company as a job creator. The company recovers what they pay when they sell what they produce. An invoice made for 1000 money units means that the company is recovering some of the resources invested in producing the good. No company issues an invoice for an amount of money lower than what is being sold cost. The tax is then fairly deducted automatically from the payment of the invoice by the buyer.
Money is going to the central Social Account every time a payment is made to buy supplies for production or salaries for employees or expenses in general. The entities that supply resources to companies are producing them with profit. That is why they all pay something to the Social Account. The employees cause transfer of money to the Social Account when they receive payments. When individual buy certain type of products, they pay value added tax and those that produced those goods also pay some of the income as Income Tax.
When corporations distribute profits to the stockholders, an important percentage of such payments goes to the Social Account. This is the highest taxed transfer. It is high because funds that could be used for growth and solidification of the productive unit will now go to individual accounts as an “award” for having had the vision of investing in successful operations.
Sometimes all those transfers or tax income for the Social Account are not enough when something special is needed that requires full cooperation of all the members of society. Then the AI robot built into the system will proportionately debit all individual accounts so that the Special Social Account gets funded to the necessary levels. Catastrophes and huge infrastructure works will require this type of cooperation. Special investments in health investigation and education infrastructure would require such proportional participations, just in case the Regular Social Account could not cover it all.
It is important to notice that such proportional debits would not need to be all at once, but progressively, as the works require de funds.