MUNICIPAL VOUCHERS

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

 

 

WATCH THE VIDEO "WHAT ARE CCF"

 

 

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/