Superphysics
Chapter 2c

# How Pointtax Works

by Juan
##### November 17, 2019 3 minutes  • 498 words

Pointtax is a taxation system that is based on points which represent barter-credits pegged to the value of grains such as rice.

For example, John, an apple farmer, purchases 1 cake slice from Martha worth \$2. Assuming 1 kilo of rice is \$1, then John owes Martha 2 points.

Assume 1 kilo of apples is \$4 or 4 points, and Martha accepts apples as payment.

• It follows that John can give 500 grams of apples to Martha to clear his debt.

Assume that the sales tax 10%.

• After the first transaction, Martha owes a tax debt to the local government of 0.2 points, which can take the form of 1/10 of the slice of the cake.
• After the first transaction, it is John’s turn to owe a tax debt to the local government of 0.2 points, which can take the form of 100 grams of apples.

## How Will Tax Be Collected?

The tax debt will be claimed by government employees who are interested in the products and services of John and Martha.

For example, a government worker can ask for a slice from Martha when her tax debt reaches 2 points from the current 0.2 points. This will clear her tax debt.

### What If The Buyers Don’t Pay?

Delinquent taxpayers can be prevented from availing of government services until they pay, such as:

• Exiting the country
• Registering vehicles and property
• Voter’s registration. This is the most important feature of the tax system because it is the first step towards a fair, regulated democracy as it will prevent the unproductive and selfish citizens from electing leaders and having a say in the direction of their society.

In David Hume’s proposed political system, the basic productive value of citizens is one of the key requisites:

David-Hume
Let all the freeholders of £20 a year in the county, and all the householders worth £500 in the town parishes meet annually in the parish church, and vote some freeholder of the county to be the county representative.
Idea Of The Perfect Commonwealth

This system solves the following problems:

Problem Solution
Tax evasion, avoidance, and the complicated system of tax filing Tax balance is updated centrally with every transaction
Tax deadlines Taxes are claimable whenever the unit is reached
The need for money to pay taxes Money is not needed
The tax burden being transferred to the buyer instead of to the seller The burden is on the productive sellers