The concept is there is a small amount of the income tax a taxpayer pays, the taxpayer chooses what that money gets spent on.
- A certain percentage of a tax payers income is earmarked for this purpose.
- The taxpayer can log in to an IRD provided dashboard - where they are provided a list of projects or charities that they wish their earmarked money to go towards.
- Anyone can create a project or charity to be considered for funding.
- Projects and charities must adhere to certain requirements to be eligible. A good starting point for these requirements would be to look at existing rules around charitable status.
- If people don't vote where their money goes - that earmarked money is distributed proportionally by those who have.
The idea is this is more democratic as it gives people direct control of some amount of their tax money.
It provides a good mechanism for 'nice to have' projects.
Various idea for projects that might be funded though this mechanism:
- Building cycle lanes
- Food in schools
- Community beautification projects
- Building tramping tracks.
- Business innovation projects.
Do you like this suggestion?