Twinning "Tax Credit" Benefits with "Usury-Free" Currency

(Any officially registered political party is welcome to implement any one or all of these creative tax credit, fund-raising concepts. This proposal was submitted to The Libertarian Party of Canada in October 2002. It had been submitted to the Marijuana Party of Canada in December 2000 but they were not motivated to action!)

This is an explanation of how any officially registered political party can maximize its fund-raising capability by (1) issuing receipts for "tax credits" to donors and (2) implementing a "usury-free" currency to maximize the benefits of the tax credit, fund raising mechanism provided by the Election Act.

The information contained herein was initially designed in 1993 by John C. Turmel, the leader of the Abolitionist Party of Canada which was granted official registered status by fielding 80 candidates in the 1993 federal eclectic. The Abolitionist Party of Canada was de-registered in 1997 when it failed to field the minimum 50 candidates required to maintain official registered party status.

On November 27, 2000, eleven political parties were granted official registered status because they fielded the required minimum of 50 candidates. This means that each of these political parties has the authority to issue official tax credit receipts for donations received.

John C. Turmel presented this information to Marc-Boris St. Maurice, the leader of the Marijuana Party of Canada on Friday, December 15, 2000 at a meeting in Ottawa, Ontario. Marc-Boris understood the brilliance of the plan to twin "tax credits" with "usury-free" currency and but he did not authorize the launch of a pilot project with a local Marijuana Party riding association in the Ottawa area.

Hopefully, the Libertarian Party of Canada will create a working model within the infrastructure of a local riding association of The Libertarian party of Canada. This will then become the model from which other local riding associations can copy.

(With two months left to solicit donations for the 2002 tax year ending on December 31, 2002 supporters of the "Untax/detax/Refusetax/Anti-tax" Movement are encouraged to contact The Cyberclass Network to find out which political parties are ready and willing to help participants maximize their tax credit benefit for 2002. Early in 2003, other fringe political parties are expected to adopt similar tax credit, fund raising mechanisms to maximize the tax credit benefits and introduce "usury-free" currency to all fellow-Canadians who contribute to the participating political parties.)

Though this explanation refers specifically to the Libertarian Party of Canada, any registered political party is welcome to adopt this proposal. Readers who are supporters of other political parties are invited to substitute the name of their preferred political party to enable them to visualize fully the unique and universal benefits of this tax credit, fund raising mechanism.

Here are the tax credit rules as listed by Elections Canada. This is how The Libertarian Party of Canada (Ottawa-Vanier Riding -where I currently reside) is proposing to distribute any contributions collected - though the Leader has not yet authorized this ratio of distribution.

Historically, the Federal Government of Canada, through the Elections Act has subsidized political parties by granting tax credits to contributors, redeemable when their annual income taxes are filed. The rules have changed slightly over the years. Currently, the maximum tax credit of $500 is granted with a contribution of $1075 in cash, goods and/or services or a combination thereof.

When someone donates $1075 cash to an officially registered political party, s/he qualifies for a $500 tax credit - redeemable in cash when one's annual income taxes is filed. When a business person wants to donate products and/or services such as a print job, a banquet or a computer from their store, the Elections Act stipulates that a cheque swap be transacted through the respective political party's bank account.

For example, the printer donates a cheque in the amount of $1075 to the Liberal Party of Canada (I am certain that such a transaction has occurred - once or twice) which in turn writes a cheque to the printer for $1075 to pay for the printing job. This is how the Elections Act requires the contribution to be recorded.

Mainstream political parties could also attract contributions of 100 pizzas, 200 movie tickets, 300 film developments, 400 buckets of golf balls at a local driving range - all sorts of things - BUT until now they have not done this. Why? Simply because there has been no suitable way of distributing these potentially contributed goods and/or services to the members of their respective political party or to other worthy recipients with whom they may be supporting in their respective local communities.

Instead, mainstream political parties have focused mostly on raising usury-bearing federal cash rather than focusing on acquiring goods and/or services. Until now there has not been an efficient way to spread around any goods and/or services that any mainstream political party might acquire.

Enter the LETS (Local Employment Trading System) software - optimal, usury-free, banking software - which is being used by local communities all around the globe. An Ottawa, local riding association of The Libertarian Party of Canada will lead the way in establishing a usury-free currency system patterned after the Ottawa LETsystem that will permit participants to exchange any contributions of goods and/or services that are otherwise hard to distribute. In fact, the members of the Ottawa LETS will be invited to accept the "usury-free" currency of The Libertarian Party of Canada at par with their ecodollars and thereby expand their local database.

Here's how the "usury-free" currency will work. The Libertarian Party of Canada will pay their members for work which they perform with a "usury-free" currency - let's call it "liberty hours" - where one hour of basic labour is valued at $13.00 (Canadian Funds). Depending on your education, talents, skills etc. the free market will determine the hourly rate of your service. For example, if you are a plumber and the going rate for a plumber in the federal cash market is $50.00 per hour, then you would round off the amount and request 4 'liberty hours' for your one hour of work on the pipes. This is because 4 x $13.00 = $52.00.

Any new member of The Libertarian Party of Canada can open a LETS account from the local riding office with a balance of zero "liberty hours." Members are permitted to request a 20 (maximum limit) of "liberty hours". Their LETS account simply records a -20 "liberty hours" and the respective new member is issued 20 "liberty hours" in paper notes for trading with businesses and/or individuals who are listed on the database of the local riding office of the Libertarian Party of Canada.

The Libertarian Party of Canada (or any officially registered political party) has the ability to twin "usury-free" currency with "tax credits" for optimal, mutual benefits for all participants. The easiest way for any business to account for merchandise (goods and/or services) which can be donated to a political party is for the political party to request "gift certificates" instead of the actual merchandise. - (though it may be very profitable for the participating political parties to consider setting up a central merchandising location)

Let's assume an entertainment complex owner wants to donate $1075 worth of seats for movies. S/he donates a cheque to The Libertarian Party's local riding association to qualify for her/his $500 tax credit. The Libertarian Party pays a cheque to the business owner for $1075 and requests "gift certificates" worth $1075 in movie seats. That particular entertainment complex is added to the Libertarian Party's local LETS Directory. Those Libertarian Party members who want to attend a movie at that entertainment complex will request to pay their admission (all or in part) with their "liberty hours." When the complex owner has accepted $1075 in "liberty hours" or a combination of cash and "liberty hours" the transaction is completed. If the complex owner accepts "liberty hours" for 100% of any purchase s/he may be absorbing an initial cost of $575 BUT with the continuing stream of new business (without paid advertising) s/he will quickly move to a profit position.

If a restaurant owner wants to offer the Libertarian Party of Canada $1075 worth of pizzas, s/he writes a cheque or $1075 for a receipt valued at $500 as a tax credit. The Libertarian Party's local riding association writes a cheque for $1075 and swaps it for "gift certificates" valued at $1075. The restaurant is listed in the Libertarian Party's local LETS Directory so that members can have the option of spending their "liberty hours" until the $1075 has been accepted so that the restaurant owner can redeem his gift certificate.

Of course, once the pizza owner realizes he can use some of the "liberty hours" s/he has accepted to go to the local entertainment complex and the movie complex owner realizes that s/he can use some "liberty hours" to buy food, they'll both be able to accept more "liberty hours" than the $1075 they originally needed to redeem their respective gift certificates.

All members of the new local Libertarian Party LETS will experience first-hand the many wonderful benefits of participating in a local community where exchanges are made with a "usury-free" currency. Participants will realize that they need to carry less federal "usury-bearing" cash in their wallets. In fact, many may decide to earn some "usury" with their extra cash by putting it in bank accounts which will earn them "usury" to help in the mission to spread the "truth" about our orthodox money system.

Cutting Losses With Volume:

Let's assume that a shoe store owner cannot afford to sell the local riding association for the Libertarian Party of Canada $1075 worth of shoes and boots if it is really going to cost him $575. Consider a strategy whereby the Libertarian Party can purchase $2000 worth of footwear for $1500 cash which is 25% less than the retail price or similar to a discount of 25%. The shoe store owner can list his/her products in the local LETS Directory at 50% "liberty hours" and 50% cash. With this strategy, the members receive the $2000 values in footwear, while paying only 50% cash and the government grants the shoe owner the 25% tax credit while s/he must absorb a regular discount valued at 25%.

Let's examine a gas station operator that resists offering the Libertarian Party members $1075 worth of gasoline for the $500 tax credit with accompanying, guaranteed sales. If s/he accepts 20% "liberty hours" and 80% cash, members will receive $5000 worth of gasoline and while paying $4000  80% in cash. The government grants the $500 tax credit which is worth 10% of the transaction and the gas station operator must absorb a 10% discount valued at $500. If that's still too much of a discount, s/he could offer the gasoline at 90% cash and 10% "liberty hours." Libertarian Party members could negotiate $10,000 in gasoline, pay 90% in cash while the government pays 5% in tax credits and the gas station operator absorbs a discount of 5%. By the time the members have cashed in the $1000 gift certificate issued by the Libertarian Party, s/he has generated a total sales volume of $10,000 and her/his only discount has been about 5% or $575.

Simply by negotiating the rate that any business accepts the "liberty hours", the discount can be varied and spread over larger volumes of sales. The Libertarian Party will always negotiate with a gas station owner to get the free $1075 in gasoline product every year. The pizza owner and the entertainment complex owner will have another reason to keep accepting usury-free, "liberty hours."

Long Term Contracts:

Political Party contributions can be negotiated for long-term contracts. A member of the former Abolitionist Party of Canada negotiated a brand new computer (worth $1625) for the Party office in 1993 and the owner of the computer store accepted payment of $2000 in tax credits over four years. Understand that the legal limit of interest (which ought to be correctly called "usury") is 60% on contracts in Canada.

1) At the end of the first year, the $1625 owed became $2600 due to 60% interest. The store wrote a $1150 ( in 1993 a donation of $1150 earned a tax credit of $500) contribution for the $500 tax  credit and the Abolitionist Party wrote an $1150 cheque as a payment on the computer reducing the amount owing to $1450.
2) At the end of the second year, the $1450 owed became $2320 and after the $1150 check swap, the remainder owing was $1170.
3) At the end of the third year, the $1170 owed became $1870 and after a check swap of $1150, the amount owing was $720. 
4) At the end of the fourth year, the $720 owed became $1150 and after a check swap of $1150, the amount owing was zero.
    
The party received a computer with a retail value of $1625 and the company got four $500 tax credits. With two owners, we could have gotten a $3250 computer! Or a car. Or office equipment, even rent.

And even longer contracts will be possible once any officially registered political party has established 50 riding associations to ensure the required 50 candidates at the next federal election.

In 1993, and Abolitionist Party members who brought in contributions got 20% credited to their accounts. One active Abolitionist member, Robert White brought in $36,000 in contributions in one month. The party already had a computer so Robert White used his 20% commission in "abolitionistdollars" dollars to buy it. Any party member who negotiates a collateral deal should be the first able to then buy that product from the party with the "usury-free" currency they earn.

So s/he might only be earning "liberty hours" dollars but getting paid a computer or two a month isn't all that bad. You could see your local movie theatre and make  "liberty hours" useful to you in your local neighbourhoods.

In summary, that's what any officially registered political party can do with their tax credit contributions if they initiate a LETS
"usury-free" currency. Such contributions of all kinds of products and/or services just can not be spread out among 100,000 Liberals without one.

And finally, what do Liberty Party members have to do to make use of their party LETS and government tax credits. In a nutshell, get the contribution cheques into a party bank account before New Year. Tax time is in early 2002 and to qualify for the $500 tax credit payday early next year, they have to get their contributions in by the end of this year! Party members have only two weeks to really build their banks of gift certificates paid for with government tax credits. The larger the party Directory grows, the more reasons everyone has to keep using our party currency and keep contributing.

All businesses in a use-it-or-lose-it situation will love the chance to sell a $1000 Gift Certificate for a $500 tax credit paid in
the next few months. Any kind of rentals, entertainment, etc. are great candidates because it's "take $500 for $1000 in seats or get nothing out of the empty seats."

What does a Libertarian Party member (or a member of any other officially registered political party) have to do to take advantage of tax credits:

1) Form a Region or Riding Association with a President, Vice-President, Secretary and Treasurer.
2) Register with and get a letter of authorization from the party Financial Agent.
3) Open a bank account in the Region or Riding Association name.
4) Get as many gift certificates for cheque swaps as you can in the next two months. Contributors are always most interested at the end of a year when the tax credit is only a few months away. It's a much harder sell after New Year when the tax credit is more than a year away.
    
And of course, having funds in the account to allow them to deposit our party check before we deposit theirs is a great advantage. Their cheque going in to cover the party cheque going out is still doable but it's 10 times harder to sell than if you have the funds to initiate the swap.

NECESSARY PAPERWORK: 
  
How quickly can all this be organized? The moment a local Ottawa Libertarian Party Association is formed, the first thing that needs to be done is to get some gift certificates from printers so that money can be generated to be used a cash payments for this necessary paperwork.

- Membership forms.
- Membership cards.
- Preliminary tax credits.
- Official tax credits.
- Riding Association Forms.
- Region Association Forms
- Gift certificates.
- Party currency.
- Store % Decals.

     It sounds like a lot but other than the "usury-free" currency, most forms can be available online and done with home printers. Gift certificate Directories should be online. It's just a necessary structure for a party. Even riding currency could be printed. It doesn't have to be fancy if everyone's doing too well to need to try to rip it off. 

We hope to invite all Libertarian Party (and other officially registered political party) members and supporters in the Ottawa region to several meetings in the weeks ahead to explain how they can work for their preferred political party and be rewarded with party currency that can buy them not only goods and services but computers and automobiles.

Robert White is a grandfather with much experience and he could be prevailed upon to show others how he optimized donations with the Abolitionist Party of Canada in 1993.
    
A videotape of a scheduled presentation will be made so that anyone who doesn't catch this process from reading can learn from video viewing. Any small group can start their own Region or Riding Association and LETS tax credit system to pay people who volunteer for a participating political party. To really make any political party grow among the unemployed and poor, let them pay their party membership with their first "usury-free" dollars and put them to work.

Please pass this draft on to Libertarian Party contacts (and others) and if anyone's interested in learning how to maximize this "tax credit" tool which has been created by the big five political parties for their benefit. Readers are likewise invited to tune in to www.cyberclass.net or send a message to subscribe to thecyberclassnetwork-subscribe@yahoogroups.com for details of upcoming meetings. More creative ideas will be spawned as more people learn about the twinning of "tax credits" and "usury-free" currency.
    
Hopefully, the Libertarian Party (and other participating political parties) will continue the 20% commission on contributions. Solicit a donation from your local pizza parlor and the bill for your next 20 pizzas is covered!

One last great example.

A restauranteur to threw a banquet for 20 Abolitionist Party members in 1993 with a total bill of $1150. Then restauranter donated a cheque of $1150 to the Abolitionist Party of Canada and the Abolitionist Party paid the restauranter a cheque for
$1150. He got the $500 tax credit for feeding 20 people, we got a banquet.
    
Get out there and throw yourselves some parties for your workers. It doesn't have to be all hair-cuts and shoes.

LETS Cancel Debt Growth First! Then work on debt.
John C. "The Banking Systems Engineer" Turmel
http://www.cyberclass.net/turmel
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