Continuing with our revised proposal, then:
3. A one year moratorium on taxation of any kind. The government(s) will retain a sizable portion of the monetary wealth of the nation: in the US, 10% of the available gold would remain with the federal government under what I have proposed, and another 10% would be distributed pro-rata to the state governments. Thus, between them, the governments will start out with 20% of the dollars in existence. They know how many “dollars” they have, in other words, and they can easily determine from there what they will need to make it through a year of operations assuming no new revenue from taxation.
This, then, is what the governments must do. The private economy will have endured such an incredible shock from the jubilee event that it will need time to recalibrate, free from the concern that it must fund the government as well through the payment of taxes.
Also, there is an important corollary effect of the government’s determinations regarding how it will fund itself for a one year period out of a finite pool of money with no new revenue coming in: the dollar numbers the government comes up with will suggest – not dictate, obviously, but suggest – beginning wage and price levels in the wider economy.
So in that sense, this is another important public service the government can perform in monetary matters, to ease uncertainty and facilitate trade and commerce generally.
And continuing on to the last two steps: