1–10 of 32 posts
My CBDC has two features; 1) an automatic economic-defuckifier, and 2) a stable money supply.
Let's talk about private currencies, central banks, and how I landed on this.
As you might reason, a Central Bank becomes necessary to account for the identities of those receiving the UBI. No eyeball scanning, just old-fashioned verification, like opening a bank account.
There's a neat equilibrium here. UBI is put in, but slowly being taxed away while it sits. If your account is zero, you're not paying any tax, and the account grows quicker. The more your account grows, the slower your account grows, and your account growth keeps slowing until it stops at equilibrium. The amount of UBI being put in matches the amount of tax being pulled out. It's an advantage to use the money rather than save it, because you're being taxed on less money.
Private currencies have all the problems of national currencies, and none of the tools to try to unfuckify them when the business cycle ends. So, a private currency needs a mechanism that replaces what the Fed and congress do in a crash, which in the simplest terms, is to get money back out to people to spend.
Comment order is still preserved here: https://news.ycombinator.com/threads?id=nealbozeman
A tax is needed to raise the money for the UBI, and to keep the value and money supply stable. Income tax is unnecessary if you say money that's sitting doing nothing will be taxed out of the system (basically a waste tax). The whole system is being taxed away at 1% per month to pay for the UBI. If you spend, lend, or invest your money as soon as you get it, you never pay taxes. There's a neat equilibrium here. UBI i…
If you have a lot of property, it costs you more to pay the tax on it than it would cost if the ownership of those properties was split between many smaller owners.
Obviously property owned by you includes properties owned by your subsiduaries so you can't fake-split ownership.
This tax apart from financing UBI will encourage small real estate ownership and will curb the effect where UBI is sucked away by landlords just raising the rent.
Calculation could be fairly easy. To get progressive tax you just take currently tax paid by you and your subsidiaries on the property you own, raise it to some power, like 1.2 (should be fine-tuned), and deduct progressive tax that your subsidiaries pay on that property. I think that should work. Maybe there are better methods?
You could gradually raise the factor over months and years so that large property owners have time to unload and you can control drop in real estate prices due to that.
Posting this as a comment thread is a suboptimal format. I suggest reposting it as a single post or q link to a blog. Or at the very least put numbers to indicate intended ordering of your comments, as voting will change their ordering for readers. Comment order is still preserved here: https://news.ycombinator.com/threads?id=nealbozeman
A tax is needed to raise the money for the UBI, and to keep the value and money supply stable. Income tax is unnecessary if you say money that's sitting doing nothing will be taxed out of the system (basically a waste tax). The whole system is being taxed away at 1% per month to pay for the UBI. If you spend, lend, or invest your money as soon as you get it, you never pay taxes. There's a neat equilibrium here. UBI i…
I propose progressive real estate tax to finance UBI. If you have a lot of property, it costs you more to pay the tax on it than it would cost if the ownership of those properties was split between many smaller owners. Obviously property owned by you includes properties owned by your subsiduaries so you can't fake-split ownership. This tax apart from financing UBI will encourage small real estate ownership and will c…