S M’s most recent letter to the editor is a very fascinating read and gave me a good thought exercise as to how to write a rebuttal to it as any good editor would do when they see the need to write one here it is.
The writer makes several errors in his logic about how taxation funding is to be generated for Liberland based on my understanding of how the monetary, budgetary and merit system works I will attempt my best to correct these flaws. If any person that is more informed than me like someone in the Cabinet or Congress can provide better clarification please submit a correction in your own name here is submit it to me for release here.
The voluntary tax system is setup the way it is because libertarians believe that taxation is theft and that any forced taxation is also coercion with that foundation in mind in Liberland the government is to play an extremely limited role with almost everything to be conducted by private business. I have discussed at length what private business is capable of doing in many articles before but will give a few examples again since S M is American I will give him American examples Liberland Environmental Organization replaces the EPA the Liberland Amateur Radio Association replaces the FCC in part, another group could replace the other parts, and Liberland Aid Foundation would replace a plethora of US welfare programs and other groups I have stated in my “don’t repeat history” series can replace almost everything especially with the establishment of DAO’s. So the government won’t have many expenses since their role is extremely limited to a few roles like administering criminal courts, international relations, keeping the peace, issuing passports, and being a registrar of public records. A few others may also be done too but not many because of the limited number of duties the amount of revenue coming in is also limited if the government wants to undertake a large project it must do fundraising efforts as the government of Liberland currently does, no government money printer for them!
The way Liberland generates revenue is from the purchase of the Liberland Merit and Liberland Dollar for both of these the Liberland government only gets revenue from newly issued tokens for both, so for example a person purchases their 5,000 merits to become a citizen they are paying their “citizenship tax” to Liberland. If someone buys newly issued Liberland Dollars they are buying them from Liberland. Now remember both of these tokens are limited in quantity so when they run out Liberland will no longer have this option to bring revenue in. You also have to consider application and annual fees to register and keep a business running in Liberland. I think if a business is already established elsewhere there should be a sliding fee scale based on global revenue for both the initial application and for annual registration renewal.
Investments, Liberland invests a small portion of its revenue into bitcoin, I am not sure about any other cryptocurrency or other investments but it does also go into my article about having a sovereign wealth fund for Liberland. Some people may argue about Liberland picking winners and losers but I would limit business investments in particular to those that are registered in Liberland AND have a physical presence in Liberland, Serbia or Croatia. This would not limit investments in crypto or any other investments like commodities or ETF’s. I envision Liberland to have a fund like what Wyoming has, their fund is what enables them to have no income tax and a very small sales and property tax base. The tax that I am aware of that is higher is their mineral/oil tax which is the tax that funds their sovereign wealth trust fund. The dividends from the trust fund that Liberland creates along with the other investments should be the primary source of revenue. If people or businesses want to give money to Liberland they can do so, but they are not required to.
Let me use the Cayman Islands as an example. Many businesses from around the world “offshore” to the Cayman Islands why? No corporate income tax, YET the primary source of revenue for the Cayman Islands are the “fees” they imposed on businesses wanting to register and conduct business there EVEN if they don’t have a physical presence they still have to pay hefty fees to be registered there.yes they did sign the OECD agreement BUT they have not implemented such legislation yet. This is the problem with signing such agreements, they are only worth the paper they are printed on IF the country that signed is NOT principled they will disregard such agreements as soon as the ink dries. Liberland is more principled than that in my opinion they would rather not sign and be seen as a rouge state than to sign the agreement and then turn around and walk away from it. Thats what makes one a libertarian, being principled in the face of big government (think of Dr. Ron Paul).
I hope this answers your letter to me S M and that we continue to have spirited discussions like this!