WLFI-Based Tax-Free
Summary
Introduction
This white paper proposes a new fiscal framework in which the existing WLFI is maintained while issuing a new token distributed fairly to every citizen. Under this system, the government’s tax system is completely abolished, and WLFI issues stablecoins to pay the government.
1. Background
The traditional tax system imposes a direct economic burden on citizens, causing social inequality and economic inefficiencies. Furthermore, government fiscal deficits and the sustainability of public finances remain ongoing concerns.
2. System Overview
2.1 WLFI Continuity and New Token Issuance
・WLFI continues to function as the existing credit creation institution without change.
・A new token is issued and directly distributed to each citizen.
2.2 Distribution Ratio of the New Token
Recipient Percentage Description
All citizens (1 unit per person) 70% Fair distribution to all citizens
National, local governments, and administrative agencies 10% Public operational funds
Public infrastructure fund 10% Maintenance and expansion of social infrastructure
Reserve for future distribution 10% For newborns and naturalized citizens
2.3 Complete Abolition of the Tax System
・All tax systems, including income tax, corporate tax, and consumption tax, are prohibited for citizens.
・No direct or indirect taxation is imposed on citizens.
2.4 WLFI’s Stablecoin Issuance and Supply to the Government
・WLFI issues stablecoins and distributes them to the government based on decisions made by the government’s budget committee.
・The government uses these stablecoins as expenditure funds.
3. Government Fiscal Management Rules
・The government strictly maintains the primary balance (PB).
・Deficits and surpluses are always adjusted to zero.
・Deficits are covered by stablecoins issued by WLFI.
・Surpluses are returned and pooled by the government to WLFI.
4. Significance of the System
・Reduces citizens’ tax burdens, stabilizing livelihoods.
・Ensures transparency and sustainability of public finances.
・Establishes a new fiscal foundation based on credit creation utilizing WLFI.
5. Future Prospects
・Formulation of detailed system designs and implementation plans.
・Development of related legislation.
・Promotion of public awareness and understanding.