# Establishment of a tax-free state by the first through sixth elements

**URL:** https://governance.worldlibertyfinancial.com/t/establishment-of-a-tax-free-state-by-the-first-through-sixth-elements/54693
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**Created:** [September 22, 2026, 10:25am UTC](https://governance.worldlibertyfinancial.com/t/establishment-of-a-tax-free-state-by-the-first-through-sixth-elements/54693 "2026-09-22T10:25:21Z")
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#### Post date: [September 22, 2026, 10:25am UTC](https://governance.worldlibertyfinancial.com/t/establishment-of-a-tax-free-state-by-the-first-through-sixth-elements/54693/1 "2026-09-22T10:25:21Z")

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Establishing a “tax-free state” Through Six Elements  
— A National Financial System Integrating Government Bonds, Stocks, and Crypto Assets —

Sovereign Stock Concept

Version 1.0

⸻

> **Summary**
>
> A summary
> 
> This paper examines the possibility of redesigning the national financing and monetary system, and ultimately establishing a “tax-free state” that does not require dependence on tax revenue from six financial factors.
> 
> The core of this plan is the Sovereign Stock.
> 
> National stocks are conceived as new national capital securities that do not belong to existing financial products that combine the three elements of government bonds, stocks, and crypto assets.
> 
> In this paper, the national financial system consists of the following six elements.
> 
> Government bank
> 
> Central bank bonds
> 
> Central Bank Bank Ticket
> 
> The funds
> 
> Government coins
> 
> National stock
> 
> By dividing the roles of these six, the country’s “currency”, “credit”, “debt” and “capital” are designed separately.
> 
> The current national finances are mainly supported by tax revenue and government spending by government bonds.
> 
> On the other hand, in this plan, capital raising by national shares is incorporated into national finances, and the state itself forms capital, and the capital and economic value generated from it are used as a financial foundation.
> 
> As a final consequence, we will examine the possibility of establishing a state that does not use tax revenue as the main financial source, that is, a “tax-free state”.
> 
> ⸻
> 
> 1. Redesign the state’s money
> 
> If we simplify the current national finances,
> 
> Tax revenue + government bonds → government expenditure
> 
> It is a structure called.
> 
> Taxes are transferred from citizens and companies to the government.
> 
> Government bonds are a mechanism in which the government spends by borrowing funds.
> 
> In other words, national financing is basically
> 
> Collect or borrow
> 
> It depends on two methods.
> 
> This concept adds a third method to this.
> 
> That is,
> 
> Raise capital
> 
> It is a method.
> 
> That is,
> 
> Tax revenue + government bonds + government stocks
> 
> Build a national finance called.
> 
> ⸻
> 
> 1. The idea of national stocks
> 
> Sovereign Stock is a new capital security issued by the state.
> 
> There are three ideological sources.
> 
> The funds
> 
> From government bonds,
> 
> National credit
> 
> Issued by the state
> 
> Huge amount of fundraising
> 
> Circulation in the financial market
> 
> Incorporate the characteristics of.
> 
> Stock
> 
> From stocks,
> 
> Capitality
> 
> Market price
> 
> Nature as an investment object
> 
> A system that does not presuppose a principal guarantee
> 
> Incorporate.
> 
> Crypto assets
> 
> From crypto assets,
> 
> Digitality
> 
> Marketability
> 
> Small mouth
> 
> New financing market
> 
> Incorporate the characteristics of.
> 
> Therefore, national stocks are
> 
> It is not a government bond, nor a regular stock, nor a cryptocurrency.
> 
> It is a national capital securities that combines the characteristics of the three financial systems.
> 
> ⸻
> 
> 1. The difference between government bonds and government stocks
> 
> Both government bonds and national stocks are government financing methods, but the basic nature is different.
> 
> The important point of national stocks is
> 
> It is not to change the name of government bonds to stocks.
> 
> It is to establish new securities with a different legal and accounting nature from government bonds.
> 
> ⸻
> 
> 1. Six elements
> 
> In this concept, the national financial system is composed of six elements.
> 
> 1 Government bank
> 
> It is an institution responsible for government financial affairs.
> 
> It is assumed that it will be responsible for the management of government funds, the issuance and management of national stocks, and financial transactions with the central bank.
> 
> ⸻
> 
> 2 Central bank bonds
> 
> It is a financial security issued by the central bank.
> 
> Positioned as a means of adjusting the balance sheet of the central bank.
> 
> However, the mere issuance of central bank bonds does not increase the net assets of the entire country.
> 
> ⸻
> 
> 3 Central bank notes
> 
> It is a currency issued by the central bank.
> 
> It functions as a means of payment in the national economy.
> 
> Unlike national stocks, national stocks are not the currency itself.
> 
> ⸻
> 
> 4 Government bonds
> 
> It is a traditional government debt.
> 
> There is no need to abolish it immediately after the introduction of national stocks.
> 
> Government bonds will survive as a means of raising funds that are different from national stocks.
> 
> ⸻
> 
> 5 government coins
> 
> It is a currency issued by the government.
> 
> Central bank notes are divided into issue entities.
> 
> Position it as an element to clarify the role of the government and the central bank.
> 
> ⸻
> 
> 6 national stocks
> 
> It is a capital security issued by the state.
> 
> It will be the center of this concept.
> 
> Through state stocks, the state raises funds from the capital market and uses the capital to form national assets and economic activities.
> 
> ⸻
> 
> 1. The national financial system with six elements
> 
> If you organize the six elements, it will be as follows.
> 
> The important point of this structure is
> 
> Do not treat currency, liabilities, and capital as the same thing
> 
> It is.
> 
> ⸻
> 
> 1. Think of the country as a “company”
> 
> Think about replacing national finances with companies.
> 
> The corporation is
> 
> Borrowed money
> 
> I’m not just running a company.
> 
> Issue shares,
> 
> Capital
> 
> Procure.
> 
> Then, use that capital to conduct a business and form assets and profits.
> 
> The same idea is applied to the country.
> 
> If we simplify the current national finances,
> 
> Tax revenue + Borrowing ↓ Government spending
> 
> It is.
> 
> When national stocks are introduced,
> 
> Tax revenue + Government bonds + National stock ↓ Government spending and national investment ↓ National assets and economic value
> 
> It becomes a structure called.
> 
> In other words,
> 
> Change the state from a “debt-makers” to a “capital-procurer”
> 
> It is an idea.
> 
> ⸻
> 
> 1. National balance sheet
> 
> Consider this idea in the balance sheet (BS).
> 
> The basic accounting relationship is
> 
> Assets = liabilities + net assets
> 
> It is.
> 
> For example, if
> 
> National assets: 500 trillion yen
> 
> Liabilities such as government bonds: 1,500 trillion yen
> 
> If so,
> 
> Net assets = ▲1,000 trillion yen
> 
> It will be.
> 
> Introduce national stocks here.
> 
> However, the important thing is,
> 
> Issuing national shares alone does not automatically increase the net assets of the entire country.
> 
> That is.
> 
> It is necessary to use the funds obtained from the issuance of national shares to form assets and revenue bases that actually have economic value.
> 
> Therefore,
> 
> National stock issuance → Capital procurement → National investment and asset formation → Revenue and economic value
> 
> It is important to create a cycle.
> 
> ⸻
> 
> 1. Central bank bonds and government coins
> 
> In this plan, we will also consider a financial structure that combines central bank bonds and government coins.
> 
> For example, as a thought experiment,
> 
> Central bank bonds: 1,000 trillion yen
> 
> Issue,
> 
> Government coins: 1,000 trillion yen
> 
> Issue.
> 
> However, if the government and the central bank are considered as one public department, debts and debts incurred internally may be offset.
> 
> Therefore,
> 
> If the central bank issues 1,000 trillion yen of corporate bonds, the country’s deficit of 1,000 trillion yen will disappear as it is
> 
> That’s not the case.
> 
> From this point of view,
> 
> Financial adjustment
> 
> A set
> 
> National capital formation
> 
> It is necessary to distinguish.
> 
> And national stocks are responsible for the latter.
> 
> ⸻
> 
> 1. Capital raising by national stocks
> 
> When a joint stock company issues shares,
> 
> Investor → Fund → Company
> 
> The flow is born.
> 
> Similarly, in domestic stocks,
> 
> Investors → Funds → Government
> 
> Raise funds to raise funds.
> 
> The capital raised by the government,
> 
> National investment
> 
> A public service
> 
> Economic foundation
> 
> Productivity improvement
> 
> New business
> 
> Other national investments
> 
> It is used for etc.
> 
> If economic value is formed as a result, national stocks are not just financing,
> 
> Financial markets for the formation of state capital
> 
> It will be.
> 
> ⸻
> 
> 1. There is no need to change existing government bonds into national stocks
> 
> In this plan, there is no need to forcibly convert existing government bonds into national stocks.
> 
> Existing government bonds are managed by the existing system.
> 
> On the other hand, regarding the new demand for funds,
> 
> Procurement by government bonds
> 
> A set
> 
> Procurement by national stocks
> 
> Build a system that allows you to choose.
> 
> As a result, national stocks
> 
> Mechanism for canceling government bonds
> 
> Instead,
> 
> National capital raising methods that are different from government bonds
> 
> It will be established as.
> 
> ⸻
> 
> 1. Marketability of national stocks
> 
> Domestic stocks are not fixed-priced products, but their value fluctuates depending on the market price.
> 
> Investors can acquire national shares and buy and sell them in the market.
> 
> The price is
> 
> National credit
> 
> Economic growth
> 
> Monetary policy
> 
> Financial situation
> 
> Demand for national stocks
> 
> Market liquidity
> 
> Future economic value
> 
> It changes depending on etc.
> 
> Therefore, national stocks are not fixed debts such as government bonds,
> 
> Capital securities in which the market evaluates the future value of the country
> 
> It is designed as.
> 
> ⸻
> 
> 1. National stocks and crypto assets
> 
> The idea of crypto assets is also incorporated into national stocks.
> 
> However,
> 
> National stocks = cryptocurrency
> 
> Not.
> 
> Incorporating from crypto assets is
> 
> Digital publication
> 
> Digital holding
> 
> Market distribution
> 
> Small-set trading
> 
> New fundraising method
> 
> And so on.
> 
> It is not a prerequisite for this concept to set the support of national stocks on national assets such as land, roads, airports, and water supply itself.
> 
> National stocks are,
> 
> New capital securities established by national credit and system
> 
> Design as.
> 
> ⸻
> 
> 1. The road to a tax-free nation
> 
> Here, let’s consider the final theme of this concept, “tax-free state”.
> 
> One of the reasons for the need for taxes is to secure the financial resources for the government to make the necessary spending.
> 
> If the country,
> 
> Revenue
> 
> Not only that,
> 
> Capital raising by national stocks
> 
> And,
> 
> National assets and economic values formed from it
> 
> If government activities can be maintained, the dependence on tax revenue can be reduced.
> 
> In addition, if a system that can obtain sufficient revenue and economic value from national capital is established,
> 
> A system that does not make taxes the main financial source of national finances
> 
> There is a possibility that it can be built.
> 
> This is a tax-free state in this concept.
> 
> ⸻
> 
> 1. " Will a “tax-free state” be established only with national stocks?
> 
> If you issue national shares, you will not automatically become a tax-free country.
> 
> What is needed is,
> 
> National stock ↓ Capital raising ↓ Formation of national assets and economic value ↓ National revenue and fiscal foundation ↓ Reduction in dependence on tax revenue
> 
> It is a cycle.
> 
> Therefore, the conditions for the establishment of a tax-free state are not only national stocks themselves,
> 
> Establishment of the national stock market
> 
> Sufficient investment demand
> 
> Operation of national capital
> 
> Economic growth
> 
> Inflation management
> 
> Financial discipline
> 
> Stability of the financial market
> 
> Proper management of national assets
> 
> It is in the comprehensive system design, including etc.
> 
> ⸻
> 
> 1. Perfection by six elements
> 
> The national financial system that this concept aims for is summarized as follows.
> 
> Government
> 
> ↓ Government bank
> 
> ↓
> 
> ┌────────────────┐ │ Central Bank Bonds │ │ Central Bank Bank │ │ Government bonds │ │ Government coins │ │ National stock │ └────────────────┘
> 
> With these six elements,
> 
> Finance
> 
> Currency
> 
> Debt
> 
> Capital
> 
> Each is designed as a different function.
> 
> At the center of it is the national stock.
> 
> ⸻
> 
> 1. The national image that the national stock aims for
> 
> In the current national finances,
> 
> Collect taxes from the people ↓ The government spends
> 
> The basic structure is.
> 
> In addition, if tax revenue alone is insufficient,
> 
> Issue government bonds ↓ Spend by debt
> 
> The mechanism is used.
> 
> In the national stock concept, a third route is added to this.
> 
> Issue national shares ↓ The state raises capital ↓ Form national assets and economic value ↓ Return the value to national finance
> 
> By establishing this cycle,
> 
> “Keep the nation with taxes”
> 
> From the previous idea that
> 
> “The state itself forms capital and maintains the state through that capital”
> 
> Aiming to change to the idea of.
> 
> ⸻
> 
> 1. Conclusion
> 
> The “Establishment Of A Tax-Free State By 6 Elements” Is Not Just A Proposal For Tax Reform.
> 
> It is a plan to redesign the state’s money itself.
> 
> The center of it is,
> 
> Government bank
> 
> Central bank bonds
> 
> Central Bank Bank Ticket
> 
> The funds
> 
> Government coins
> 
> National stock
> 
> There are six elements of.
> 
> And national stocks are
> 
> Credit of government bonds
> 
> Capitality of stocks
> 
> Marketability and digitality of cryptographic assets
> 
> Combine.
> 
> The ultimate purpose is
> 
> Changing the state from a “system that operates by taxes and debt” to a “system that forms capital and operates by that capital”
> 
> It is.
> 
> Beyond that,
> 
> National finances that do not require tax revenue
> 
> That is,
> 
> Tax-free country
> 
> Envision the form of a new state.
> 
> National stocks are the core financial instrument for forming a national capital market for that purpose.
> 
> Convert government bonds into state capital. Capital to financial resources. Financial resources to the people.
> 
> This is the basic idea of the new national financial system based on six elements.