Welcome to the Fincanial Standards for the fictional nation of Kaldus. This site will go into every detail regarding money in the nation. This might seem like a straightforward process, but there will be a number of significant changes that one would find in the nation. First, there is no physical cash. This will mean that everyone will be required to have a bank account. With that said, there is only 1 bank that provides accounts, that will be the Kaldan National Bank. Other banks will exists, but they would be limited to providing loans and credit cards, and not offer a bank account. This is because everyone needs a bank account if they wish to do business in Kaldus. With that said, there needs to be a bank that will take everyone, even people with low income, or poor credit scores.

Next will be GBI (Guaranteed Basic Income). This will be a source of income for every citizen no matter how much money they earn. GBI is provided to everyone from those permanently disabled, and not able to work to someone making $1,000,000 per year. If the person is a Kaldan citizen, they will receive some money from the government to help with their expenses. There will be no restrictions on this money, and the citizen can do with it as he sees fit. Now some people will say this would encourage people to not work. And in reality, if done correctly, it will not. A Kaldan citizen will only receive around 85% of poverty for their income. No one wakes up in the morning happy that they live below the poverty line. With that said, those that can work will likely work. Also, someone may not go for a higher education as they need to work to support themselves. Having a GBI will allow them to have a chance to pursue education, and work fewer hours to make things work. And for those without the ability to work will be able to live with some dignity as they try to make ends meet. And for those where GBI is their only income, they will be able to receive other services to make life a little easier. Assistance benefits is based on income, and not assets. No one should be punished because they know how to live within their means.

As for income, the national government will use a unique sales tax system. Essentials are not taxed. Non-essentials are taxed at 25%, and luxury items are 50%. Since poor people spend most of their money on essentials, they are not likely to be affected by sales tax unless they buy outside of the essentials. The government will rate every item, and decide how to charge sales tax for that item. In example, a smartphone that does not meet the NSC standards might get charged at 25% whereas a smartphone meeting NSC standards will not be taxed at all.

Speaking of work, there will be a minimum wage. This will be a multi-step formula, but one worth doing. Minimum wage is how much a person will earn if they work 160 hours per month, and they make 150% of poverty. Let’s assume that $1,300 is poverty. 150% of poverty will then be $1,950. One will divide that by 160 for a total of $12.19 per hour for minimum wage. Keep in mind that this will add to the person’s GBI which they will receive whether or not they are working. This amount pushes them over benefits that are available to low income households (assuming it is just a household of 1). The government should not have to subsidized an employer by allowing them to pay a lower rate. So if someone is earning minimum wage, and just one person – they will not qualify for programs such as housing assistance, or food assistance. Other social welfare programs such as healthcare is guaranteed to every citizen just like GBI. That would be for another website though.