With money printers in full swing, many are wondering why do they have to pay taxes at all.
The given reason is usually that taxes pay for the roads and much else, but now that the government can fund itself by just printing money, we live in an era of double taxation.
The base and unavoidable tax, the creation of new unit of accounts that takes value from all regardless of wealth, treats bread and petroleum the same, with both Jeff Bezos, currently the world’s richest man, and the poorest family in America, paying the same rate of taxation through the increase of monetary supply.
Then there’s the overt taxation, the money visibly taken from your paycheck. The theory goes that the government floods the market with new money, building roads and the like, and keeps inflation in check by taking out money from the market through overt taxation, license fees, and fines.
To escape inflation you have bitcoin. To escape overt taxation and fully legally, there’s the 183 rule.
Six Months of Freedom
Pavel Durov, who we recently pointed out as a potential candidate for being Satoshi Nakamoto, calls himself a global normad.
With a group of coders, they go country to country, without a permanent residence.
They are part of a movement of sorts that calls itself global citizens. A growing movement, especially now that for a lot of professions all you need to perform your functions is a laptop.
Coders in particular can do their job from anywhere, but also traders, investment managers, anyone operating a digital business, and anyone who spends all day in an office looking at a computer screen.
That’s a very significant portion of economically productive individuals who need not be bound to any country, and thus need not be bound to its taxation.
“The 183-day rule is used by most countries to determine if someone should be considered a resident for tax purposes,” says Investopedia.
If you reside in one country for the majority of the year, that being six months and one day, then you have to pay taxes in that country.
If however you change country every six months, then you have to pay taxes in no country.
To become a global citizen, you first have to break up with your home country to prove beyond reasonable doubt you have severed all economic and social ties with it.
To do that you have to spend a year in a bridge country “and obtain a tax certificate or another piece of convincing proof that’ll help you severe your ties with your home country,” says a bitcoiner who has been to 100 countries.
Dream Life and No Taxes?
Traveling the world is of course not a life for everyone. At some point most people will want to settle, have a family, educate their children, and perhaps even participate in civil society so that the country, its politics, and its governance, improves rather than it being left to the money printers.
Yet for millennials, those in their 20s and 30s, an effective way of participating in such civil society may well be to give a clear message to those governing that it takes two to dance when it comes to taxation, money printing and much else.
For this generation in addition the world is very global. It used to be you hang out with your neighborhood friends, restricted in choices by physical proximity, with that still of course being the case for most.
Yet now and arguably for the first time, this generation also has digital friends. People from all over the world, whose job or interest is mainly of a digital nature, hang around as friends, sharing their food and ambitions, their views and sometime the rows and arguments.
There used to be pen friends, but that’s not quite instant communication. The novelty of the internet, moreover, used to make people guarded online, thinking nicknames as something not very real on the screen.
Yet now most see the internet as just another medium of communication, and therefore as real people at the other end, giving rise to something very new as now you can strike friendships with people across the globe.
And you can take those friendships with you wherever you go. Making it six months in one country, but a continuation in friendships and profession.
A New Class: The Digerati
In the middle ages there were knights, priests and lords, then everyone else. In our time it is a lot more complex, but one needs only look at the top companies to see who is beginning to have more and more say on much of everything.
We call them the digerati, the techies, a group or class of mainly ordinary people with generally above average intelligence which has been afforded the opportunity to compete and participate based on merit, instead of within guild like structures.
By just running their CPUs or GPUs or even their university computers, they got their bitcoin or dogecoin or eth.
By just entering some words on a terminal, they can build a whole new world and sometime other people may well like what they’ve built.
Hence you get some kid from usually a middle class family or above suddenly finding himself, or a lot more rarely herself, with a millions or even billions dollars worth company.
Free from the aristocratic stick of Eton or other gatekeeping schools, these new rich men can more holistically think of both problems and solutions.
In the process they will design the world more suited to their needs and to this century, forcing a more responsive bureaucracy and a more responsive governance as what was previously limited to the very rich is now starting to become available also to at least some of the middle class.
The traveling, the choice of jurisdiction, the freedom to work for oneself, and the ability to create something from mere ideas and thoughts through just some lines of code.