so if at present there is no inflation even though money is being created at a rate of 8% per year then if you can print it you get wealth for nothing Japans doing it right now but no one takes any notice and if there is no tax because inflation is near zero isn’t no tax good?

I’m suspecting the TOP party will come out with a universal basic income funded by a capital tax covering land. This will drive the value of houses and land down as this needs to happen but this will leave many people with negative equity and reduce the amount of money being created by banks which flows through the economy. This could lead to a recession but you could counter with a Steve Keen style money handout/debt forgiveness by just printing money which must go towards debt reduction first.

Money is an odd thing as it is all in our heads. There is no universal law about it’s creation or it’s form except it needs to be hard to create or gather at the moment it’s not, that’s why things are going crazy.

Money should be backed by something and in the past this was gold but if you want you could literally back money with people. If you put each person in a country on the block chain and then allow the country to create a crypto currency against the people you could see how a country is performing economically by the ratio of people to money. This is why I thought of no tax if you have crypto it is very hard to tax so why bother. If you remove the tax on income and business and GST then you remove massive amounts of bureaucracy.

But you need a tax on land to stop that being used as a shield against inflation as it is now and a tax on extraction to create a more sustainable economy which would be the export tax. You pay a universal wage which covers education and you pay for health outside that most things could be left to the individual to decide how they want to live their life.

Such a system could result in a very small government.

Just sticking up ideas to talk about

What inflation? It’s currently O.3% – near zero as you say yourself so where’s the tax?

landless millionaires would be taxed as inflation is the tax on their wealth. Of course they may choose to keep their wealth in gold or assets outside NZ but so be it they would still need to buy NZ money at some point to live.

There are three pillars to government spending health, welfare and education outside these you have defense/policing and infrastructure and for tax they tax workers and business.

Remove the tax on the things you need like workers and business’s and they will be more able to afford the things that government at present supplies and if you put in a universal income you have a base that everyone can work from.

If you move to a land tax and export tax (which is effectively a resource tax) you push land value down with housing becoming cheaper and remove incentives for extractive industries. No GST on internal products removes competitive barriers.

As for printing money we are currently expanding money supply at about 8% per year with near zero inflation if housing is not included.

Yes Ross, I am thinking crazy.

So landless millionaires don’t contribute?

pretty stupid I forgot to add the bit about currency. introduce a national crypto currency to lower the cost of doing business