The way the government money system works is actually very simple just like citizens use banks for vehicles (loans) such as mortgages, personal loans, credit cards, margin loans etc. to buy things like housing, cars, jewellery, holidays, shares or options, companies etc. government do the same thing but their bank is the reserve bank and the difference is that you pay for both government and personal loans and government pays for neither but does control how and when their spending happens.
New Zealand Loyal (NZL) is proposing to remove all taxes such as but not limited to GST, Personal income tax, fuel tax, import tax, council rates etc and assume control of the Reserve Bank and is also proposing to introduce a 1% Financial Transaction Tax (FTT), the main goal of this system is to reduce the tax burden on New Zealand Citizens (Kiwi’s) so that they can be free to determine their future, help the country to prosper, reduce waste and reduce payments and control to international entities.
The process for implementing this is to refinance all current loans for government, debt held by international entities with a 5% interest rate attached to the same amount of debt but owed to the people with 0% interest attached, the 1% FTT will then repay the principle.
The FTT will be managed by the regional banks, the reserve bank will monitor them and the NZ government will monitor both entities to ensure compliance.
The difference between the current tax system and the new tax system is that the taxes currently raised only repay the interest which go off-shore to international entities and the new tax system repays the principle, other differences are that the current system allows for large and international companies to find loop holes in the tax system, ask for government assistance, creates inflation and allows barriers to entry which reduces competition (monopoly creation), the new system ensures all entities participating in NZ markets are treated/taxed equally, reduces monopolies through reduction to barriers to entry, keeps money in NZ and enables government to assist all entities, this increases taxation through a bigger market creating more transactions.
FTT’s are currently being used all over the world in many different way such as taxing share market investments in Europe such as Great Britan, France, Spain, etc. https://taxfoundation.org/data/all/eu/financial-transaction-taxes-europe-2021/ other countries are using them in different ways with varying results one example is the United Arab Emirates (UAE) https://en.wikipedia.org/wiki/Taxation_in_the_United_Arab_Emirates which has a flat VAT of 5% and other tax rates, free zones and exemptions for various situations and locations, another example is religion uses 10% as tithing and as we see in the Catholic church they have accumulated massive fortunes starting with tithing and then implementing sound money principles and time.
Taxes have been created in the past to control populations, such examples have been practiced in the continent of Africa and the system has always been the same:
Create the tax system; Create a system of power and control through debt creation
Government over The People
NZL wants to flip this paradigm so the people have the power and control over the government, this is done through resetting the tax system so that government does not have the ability to create problems and waste so they can spend taxes to pretend to fix the problems, this is rampant in local government in NZ at the moment, the way forward for NZ is to remove all taxation and implement the 1% FTT.
Change is always hard especially when the current populace has been trained by governments and banking industries to practice their personal and government finances in a way that feels easy or convenient and benefits the industry not the individual, which on reflection will see they are only ever paying the interest and not the principle which increases the slavery through debt/taxation and reduces quality of life in addition, the size of the loan increases as more debt is taken out to purchase new assets and liabilities never actually reducing the size of the debt only increasing it and therefore extracting more interest out of the individual and countries income.
We need to change from survival to creation, this is the direction NZ must travel, the journey is the destination.