A different treasury model funded by a tax. Tax choice or tax sovereignty model

This is another idea, this idea is for the people that believe that collecting taxes must exist but leaving the spending of the money up to the baker:

This is a treasury funded by an inflationary tax, let’s say 1% annual inflationary tax, but, in which majority doesn’t get to decide how to spend that money for the baker, majority only decide how much % to collect from inflation to fund the treasury, it doesn’t get to decide how to spend it on behalf of the baker. How to spend will still be completely up to the baker. This way, a baker can decide to use 50% to fund liquidity baking and 50% tenderbake for example, or 100% tenderbaker and 0% LB. Or there could be two different LB implementations competing to get treasury subsidy, let’s say tzBTC LB and USDTz LB. And bakers decides which to fund or funding 50/50. OR funding 33.33 tzBTC/33.33 USDtz/ and 33.33% to tenderbake.

It is completely up to the baker. It is not fair that a majority decides spending for us too. Majority can decide how much to collect from inflation, but not how it is spent. Basically the baker will vote with the money itself with his spending preferences.

Otherwise, we will always have these fight among us, because of a majority choosing for us how to spend the tax money as well. This community fights could be avoided with such a treasury model.

I also proposed a model of a treasury funded completely by voluntary contribution, but it might be considered a little utopic, but this treasury model, in which the funding is collectively decided but NOT the spending is much more possible to achieve than my previous thread, and it will be much more efficient, than the current model in which the majority decide how much to collect and how it is spent too.

As always, delegators will be able to boycott the baker by stop delegating to him, if the baker have bad spending habits, or they might decide to support him, if the delegator consider the baker spending to be rational.

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Tax choice to the individual taxpayer, to choose how his money is spent. Tax choice, is, MORE FREEDOM. I’m not saying to eliminate the tax, I’m saying just to let the individual taxpayer decide where he wants to spend it! AT LEAST! The individual deciding what to fund or defund is also a kind of vote but that it is done with the money itself! If the majorities want to fund LB with tzBTC, they will fund it! Or if they want to fund LB with USDTz, majorities will decide with their money what to fund but with their individual decisions!

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@tezoswakenbake Can you explain the difference between “Tax choice” and no taxes at all? It seems like Tax choice is an oxymoron. Tax by definition means someone else is making the choice for us.

Tax sovereignty is a more appropriate name.

Yes, tax choice or tax sovereignty means that you, as a baker, you will be able to choose how the money that you are paying of the taxes (your corresponded share of the tax), is going to be spent, so you individually send your share of the tax money to the project YOU Want to fund. There is no majority deciding for you how to spend your share of the tax, you decide, by you literally sending the money to fund the project you want.

It means, that, the majority (the collective) can vote to charge the tax, and the annual % needed to fund the treasury, that is the only thing that the majority vote can do, but, how the money is USED in the treasury, is completely up to the individual and his individual election to fund what he considers best.

Right now, the vote of the majority, get to decide how many taxes are charged annually with the end of collecting, also the majority get to decide how that money is spent.

With tax sovereignty, the majority can only choose through a majority vote how much % of taxes collect annually to fund the treasury, but the majority have no say over how the money is going to be spent in the treasury, that is a task for the individual baker, and his individual decision where to send the money to fund what (with his share of the tax money).

This is as voluntary as we can make it, considering we are working with a tax. So to summarize, collecting the tax is still done through a super majority vote, but spending the money is now the responsibility of the individual and his personal decision.

There is a tax, we are not eliminating the tax here, the tax is collected by the majority through the vote of the majority, it is just the spending that is not done by the majority anymore, is done, by the individual decision, the individual choice of the baker.

Baker will be able to choose, with his share of the tax money, where to send it, he could choose to send 70% to LB and 30% to fund another thing, or 0% to LB and 100% to another thing. Is his choice. He will be able to decide what to fund (and what to defund) with his tax share only.

Thank you for your question and interest in this subject.

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Tezos cannot be Future-proof, without taxpayer sovereignty.

Imagine in 10 years, community will be fighting because the tax is above 3% annually, and we all be fighting each other because we don’t agree in funding LB, and another new 4 things besides LB to fund.

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