Thursday, April 13, 2017

Tokenizing the tax payments

Use block chain to manage on line access to your taxpayer ID.  Read the article. Looking with sandbox semantics, this company is running a tokenization services for secure elements that want to trade taxes due or paid.  This is for tax preparation?

Any applications needs to be discovered, why reveal your taxpayer ID before taxes are due? 

One thing springs to mind:  Everyone can trade their estimated taxes before they are due, or shift the due date, or insure against sudden tax hikes.  Further investigation required, there is a big pony here somewhere because taxes need smoothing, and government can do that anymore.

Civic, The new company:

Imagine using the Bitcoin blockchain to prove your ID information - the future is nearly here
Civic also mentions that its architecture is constructed on top of the Bitcoin blockchain, which is based on a distributed ledger technology. This means that the company employs real-time, time-stamped verification for its identity product. Civic describes this activity as a firewall between civic and the user’s crunch article provided further information on how the network functions, saying, “This system is made possible through Civic’s Identity Protection Network, which will be a network of businesses who collect users’ personal data, including their SSN. This network could include members like banks, financial services, healthcare organizations or any other company that asks for your SSN. Consumers will be alerted when their SSN is used by a Civic partner.”
How to build a tax service in the dandbox

 The thumb print wants accurate tax accounting, and so instructs the secure element to call the tax ledger service at least every time one grand in total is transacted.  The ledger service can compute your on going tax bill as you tap away.  So what? Well, the secure element and members like it are tax abiding, they maintain accurate taxes due, held  in secret, You are all qualified as legitimate tax payers on all taxable coin.  In the collective, the tax service company can design an S&L that just matches our tax payer honest. We can keep minimal pricing orbits for our tax costs.  This eliminates the Q1 jolts, when everyone, individually, has taxes due but they never had the chance to collective reveal.

The taxpayer tokenization scheme is considered the most secure, and accepted everywhere. The tax service really is the pure cash interface to the smart contracts taxation scheme, almost a must for congestion management.  So, consider the taxing scheme to be a sophisticated, smart contract ledger services, it registers you taxes paid. We can see government legislating payment rules that fit nicely in the mart contract layer, because legislatures see advantages coefficient tax collection.

Member tax payers can pre-qualify according to their red/green setting. This pre-announces a likely schedule of tax payments, by size and frequency.  The pit boss has a semi repeatable trajectory it collectively balances letting everyone keep their payments as close to desire as possible. This is the red/green, enforced. All apps maintain awareness of red/green.

I have a hard time imagining the sandbox without a robust industry layer that just manages the tax flows. In pure cash, all pricing sequences have a tax factor within that causes slight warping of the orbits.  But we live with it, it is pure cash, the oddities already hedged away quickly, like Coase expects.

Never forget the basic rule, however. The pure cash is neutral with respect to tax payers and tax scoflaws. Just like now, tax collection is mostly shoe leather in smart contracts.

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