Its complex. I see various possible solutions:
For mutual credit and self issued credit, if the denomination is a national currency, such as with
the WIR and CHF or the new TEM (in grecce) and the EUR, then tax owed on the trades is easy
to calculate. Collection is another matter: but mutual credit and self issued credit systems can be
completely transparent with full transaction records. The WIR system participants pay tax OK, in
CHF equivalent. That probably puts a downwards pressure on the volume of trades in WIR.
Ideally, national/state/municipal govns should charge tax in the exchange unit that the transactions
are taking place, as this then provides a backing (i.e. the unit can be spent for taxes).
Economist and former central banker Bernard Lietaer has proposed a "boon" well local
governments would issue their own fiat currency, which could then be used to pay taxes.
Different countries have different laws. For instance, in France, if your local non money-
denominated income is for a trade thats not your main profession, then they do not need to be
declared.
In Belgium, a professional services exchange systems between social entrepreneurs was dropped
after a year, as their accountants said it needed to be declared, and the participants felt this was
commodifying and bringing into the formal economy the favours that were being done for
professional friends. If the government would have accepted the alternative unit as tax payment,
then that would have helped. But we arc a long way from that level of understanding and support
from governments.
Its a complex area, which needs exploring as part of the development of strategies for scaling
alternative exchange systems.
Is this the kind ofexploration you would like to support/host/participate in?
On 15 September 2012 15:54, Jeffrey Epstein <jecvacat ion7it umai [Amin> wrote:
i do not see how taxes are paid , in any of these systems so far. , in most of these structures ,
exchanges take place, and no one gets dollars or govt acccptnacc scripts to pay the govt ( fed
local state) tax . solution?
On Fri, Sep 14, 2012 at 8:28 PM, Jem Bendel! wrote:
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