Complementary currency (CCF) for the Public Administration
The Relaunch Decree, in Articles 121 and 122, introduced the principle of "Transformation of tax deductions at a discount on the amount due and in transferable tax credit". The transferability of the security effectively equates it to a real fiscal currency complementary to the Euro. This concept certainly did not need to be sanctioned by a Law Decree to confirm its legality, being among other things already foreseen by the European treaties and by Eurostat, but the fact that it is now written in black and white on a State Law can no longer give rise to doubts on the legal validity and effectiveness of the Circulating Tax Credits.
Municipalities can issue
COMMUNAL CURRENCY (CCF)
without resorting to State funding and without increasing the debt in Euro
The CCF Municipal Vouchers are contemplated and compliant with European treaties and national laws. They can be adopted by resolution of the City Council as an expansive financing tool for the local economy through rapid implementation cycle actions
The CCFs are a Complementary Currency guaranteed by the Public Administration, a concrete and expansive tool to face the heavy crisis in progress and restart the local economy with direct injection of liquidity to Families and Companies . The CCF Municipal Bonds are introduced into the economic circuit with public investments for the integration of citizens' income and loans that reduce the tax wedge of companies.
In accordance with the national and European regulatory framework, the State, the Regions and the Municipalities can finance their citizens using the CCF instrument, non-convertible Tax Credit Certificates for which the Public Administration does not undertake the conversion into Euro. ( for this they do not increase the public debt in Euro ), but merely accept them as a reduction of the amounts due to the Public Administration itself for the settlement of future taxes and fees .
It is a tax credit equal to the value of the amount indicated on the certificate, which allows the bearer to obtain a discount on the taxes he will have to pay. However, the tax discount is not immediate but can be used after at least two years have elapsed from the date of issue of the Credit Certificate.
Being ultimately guaranteed by the Public Administration, the CCF will circulate in these two years, i citizens will be able to pay in CCF in any activity of the territory in payment of goods and services as a real Complementary Currency.
Putting liquidity into the pockets of citizens favors an immediate increase in demand with a consequent increase in GDP and the creation of new stable jobs!
By way of example, the Municipality that issues the CCFs can use them for:
-Financing social policies, with direct income support for citizens who will receive a monthly credit in the CCF, teaching and research activities, landscape protection and the relaunch and creation of new "Green" tourism activities in the territories.
- Financing the companies in the municipal area and those that will set up their production plants there, by means of non-repayable liquidity injections to reduce the tax wedge and make companies competitive, with the consequent growth of the local economy and the growth of revenues tax.
-Financing public investments aimed at actions with a rapid implementation cycle: for example real estate renovations, energy redevelopments, land reorganization. With the effect of increasing liquidity and domestic demand
Furthermore, through agreements with banks, it will be possible to convert the CCF into Euro by means of a CCF “discount” directly in the bank. In practice, the holder by presenting CCF in the bank for a nominal value of € 1000 can be immediately recognized € 900. On the other hand, the Bank will be able to find a current account holder who will be able to buy the same CCFs at an appropriate price so as to make an "investment" in view of the tax payments that it will have to make in the years to come. The same thing can be done directly between peer to peer users, the user can sell a quantity of CCFs by establishing the price, on the other hand another user can confirm the order and purchase them.
The introduction of an annual stock of CCF into the economic system will have the effect of stimulating the economy, increasing employment and demand with the consequent gradual growth of tax revenues. As a result of the income multiplier, the decline in public revenues linked to the deferred tax rebate of the CCFs will be more than offset by the increase in tax revenues produced by the strong GDP recovery.
The higher tax revenues will compensate for the decreases due to the discount of the CCFs circulating at their maturity.
What matters is the net effect given by the expected use (tax discount) of the instrument by the holders, net of higher tax revenues.
To keep the relationship between the tax discount and higher tax revenues in balance, avoiding any risk of budget deficit, the annual issue must be prudently kept within pre-established parameters, approximately 12% of the annual tax revenues of the Entity. By way of example, a municipality with tax revenues of 100 million euros per year will be able to add up to 12 million euros per year to the local economy.
Watch the video, what are CCFs?
Extract from the "Conference of 2 December 2019" The CCF have arrived in Parliament ". Http://bottegapartigiana.org/
The management of the Municipal CCF
The cCCF (crypto Tax Credit Certificates) are issued in the form of Token Blockchain, transactions take place between users (peer to peer) who have a simple and intuitive smartphone APP available to receive and spend the Municipal CCFs. The user has the complete management of his funds which can be used to pay at the cashier of any business with the smartphone. Thanks to Blockchain technology, the management of all accounting processes are simple transparent economic with the highest security standards available today.
Complete Municipal Coupons Management System in compliance with the law, with all the functions for a simple and safe administrative management. The CCF Municipal Coupons can be disbursed by Municipalities as a monthly supplement to household income, with non-repayable loans to businesses, or for other investment items that the Municipality will decide to adopt. Municipal Vouchers can be received and spent simply by means of an APP on your smartphone. Transactions are traceable and protected by the highest security standards.
Our service allows the Municipality to directly assign the CCF Municipal Vouchers to a personal account that can be easily managed by everyone with a smartphone. The Municipal Administration credits directly in the Portfolios of Citizens and Companies, the amount of CCF that it will have established following the approved expansion plan. The operator has an interface available 24 hours a day with which to monitor all movements and check the flow of municipal vouchers and carry out any verification and control operation.
Our service includes:
- Outline of the Resolution for the adoption of Municipal Tax Credit Certificates with regulatory and economic references
- Provision of Municipal Currency (CCF)
- Operator / s training to use the Management Software interface
- Assistance in activating up to 100% of service operations
- Consultancy at your office
- 24/7 online assistance
Contact us for any further information , we are available to Public Administrations who want to consider adopting this tool.
For a complete view of the project and regulatory references, we invite you to download the files: Fiscal Money Project and Digital Infrastructure for the CCFs of the Fiscal Money Group, Biagio Bossone, Marco Cattaneo, Massimo Costa, Stefano Sylos Labini; and the Bill by Hon. Cabras and Trano.
The cCCF are inspired by the principles set out in the project:
BIAGIO BOSSONE - DIRECTOR, BRASS ON FINANCE, LTD
MARCO CATTANEO - PRESIDENT, CPI PRIVATE EQUITY