Lots to respond to and lots I don’t understand in the current system. Are PtP, PtD, etc. already existing taxes/charges in the system? How many total exist and how are they charged/calculated?
A difference of opinion I’d like to address is how adding a 1% charge on every transaction in here compares to the fiat system. It was said above that no one with large transactions or banana transactions would pay 1% and so would go elsewhere. The banking system regularly charges from 2.5% to 4+% per transaction for most accepted methods of payment today and people pay that. It goes directly to the banks (or their financial transaction brothers). However, indirectly, they have many rules, regulations, restrictions and other middlemen in the way that the total effective societal charge is more than 20%. In some entire supply chains, it can top 60%.
This doesn’t even consider that problem of rent-seeking migration where the more wealth you have, the more you transition to becoming evil.
What does counter rent-seeking is when people have spare disposable income. Anything after survival, or maintaining one’s social status, is available for them to wield social, market and political power. If they are always day-to-day, they never get to choose their own destiny (their preferred products, their social circles, their political direction). If they have even a tiny bit extra, they get to spend it on those things and society benefits by becoming more what the people want instead of what the elites want. This is how society has migrated to becoming top-down - by stealing discretionary income. This may sound off-topic but this process begins by hidden transaction fees sent upward, then price inflation (upward) then wage deflation (upward) then we add in all the rent seeking and compounding effects of financial games. In short, every evil in the system flow up the chain even though the majority are seen as systemic costs of society.
In this system, those direct costs of 2-4% per transaction get reduced to 1% but they flow downward. All of it, 100%, goes to every member (automatically with no overhead), but this increases the discretionary income of all those people by x nominal dollars. That is likely not going to change the discretionary income for the majority (maybe .01% to .00001% ?) but it will change it for the poorest (5% to 50%). This raising of the floor, effectively moves power from the top to the bottom in proportion to its membership. And by giving them power, it is giving them a voice in their society. In the beginning, this mostly translates to just a decrease in apathy but that’s a start. If it reached the point where the poorest 10% of people could eliminate poverty based mortality, that would be great. But as one person gains the ability to feed himself or get medical care, another person higher up gains the ability to buy something he wants, not just what he can afford. Someone else can buy a durable product to replace a rent. Someone else, a political contribution… or maybe even run for office or lobby?
So, the proposal reverses the flow of power unlike nothing in society today.
It was also stated that large purchases would not be done here because they wouldn’t want to pay 1% when they could pay less in another system (alt or fiat?). That’s the wrong line of thinking. Virtually all transactions (excluding free cryptos) charge something so that’s merely a difference in where the line is drawn. The other way of thinking is not how large the transaction is but how frequent. Most of the entire economy has only two transactions per dollar. First, they earn it, then they spend it. The people who are rent based or financial game based don’t operate this way. They have 5, 10 or 100’s of transactions PER DOLLAR. Those transactions will never be done under this system because they would get taxed/charged 1% each time, quickly totaling more than their profit percentage. What this results in is that productive transactions migrate to this system for less charges and rent-seeking/un-productive transactions are left to operate in the failing fiat system.
Overall net effect… individuals, self and local businesses, straight/direct lending, the crowd-funding economy and many other socially enlightened groups migrate toward this system and leave the fiat system to crash under its deflating growth. Isn’t that what everyone here pursues?