TCS phase 2 is a consumer tax system in which tax rates are based exclusively on the carbon footprint of every single ingredients and components of consumer goods
The main proposal of TCS phase 2 is to use government digital currencies and registers to apply a custom VAT per ingredient or component of a product based on their carbon footprint, in order to increase the price of products that are harmful to the environment and therefore make them less attractive. TCS ambition is to replace the VAT we know today by a transparent and ecological system to improve our consumption model and to foster the use of governmental digital currencies and ledgers.
In TCS phase 2, the information on carbon footprint used in TCS phase 1 is used to determine a tax rate per ingredient or component of a product. These tax rates are then added up to calculate the product consumer tax rate, as shown in the graph below:
Ingredient lists and associated TCS have to be registered on a public permissioned blockchain managed by a public administration before a product is launched. The public administration then grants (or not) access to the market and matches each ingredient with a tax rate calculated according to the four criteria. Revenue allocative keys are determined through a process involving producer, PSP, POS and administration.
- Tailor-made and ecological: tax is calculated per product according to its ingredients, which creates an incentive for consumers to purchase and manufacturers to produce environment friendly products
- Systematic and large-scale: TCS replaces VAT and therefore applies to any consumer good
- Transparent: everyone can consult the TCS blockchain and see TCS amounts generated by point of sale without knowing who end consumers are
- Instantaneous: amounts spent by consumers are instantaneously transferred to the relevant stakeholders by the distributor payment service provider, including the consumption tax, which makes accounting and payment deadlines useless.
- TCS is based on a public permissioned blockchain as well as a masternode structure managed by a public administration
- The technology behind TCS payments is called IDCS (instantaneous digital converting and settlement) and is under development
- TCS and its sub tokens are stable governmental digital currencies managed by the public administration and pegged 1:1 to the national currency
- The formula on which TCS is based is not disclosed here and is based on scientific environmental data related to each ingredient and component.
TCS is based on government digital currencies and ledgers. All currencies used in TCS are pegged to the national currency to provide the necessary stability to the system. Discover the underlying technologies of TCS by clicking on the links below:
TCS phase 2 introduces the ecological basic income
RTP is an ecological basic income in the form of a stable governmental digital currency made to “give citizens the right to pollute” up to a certain extent.
- RTP is also a stable government digital currency pegged to the national currency
- RTP is issued once a month and distributed to citizens at an amount per person decided by the public administration, for example 10 RTP/month/citizen
- RTPs intended for children under the age of ten are sent to their parents or legal guardians
- RTPs can only be converted to 1:1 into TCS or Ignite or 0.9:1 into the national currency
- Citizens can redeem any amount of RTP tokens at fiscal authorities at 1:0.9 rate against national currency
- Visitors to a country will be able to apply for RTP on request during their stay in that country depending on the duration of their visa.
- RTPs are managed on a public permissioned governmental blockchain under the PoS (proof of stake) consensus algorithm
- One transaction block is created per second by one of the network participants
- An RTP is automatically rewarded by the system to the creator of each block, who is chosen randomly among RTP holders according to their weight in the system.
- The digital euro as well as the legal possibility for States to create digital currencies and blockchains
- The implementation of IDCS technology
- The modification of the VAT calculation principles to make it transparent and ecological.