State Revenue and Expenditure::


Formulation of Taxation
-----------------------
The state cannot enact taxes except as enumerated in this
document.

The tax levied on a particular act or transaction must not vary within
the nation.

An extraction tax is levied on all physical raw materials - ores and
other minerals, fuels and timber, atmospheric extracts (raw gases such
as nitrogen, oxygen, argon, and helium), aquatic extracts (salt, fish,
seaweed), livestock and agricultural products, water, etc - each taxed
according to mass, at different thresholds (below which no taxation
is levied) and rates according to environmental impact of the product
and the process of extraction.  The disposal of waste products -
the return of any resource, processed or not, to the environment - is
taxed according to environmental impact.  Where it is not feasible to
account for consumption of a resource, the consuming agent (e.g.,
livestock) is taxed upon transfer of ownership of the agent.

Yet-untaxed goods leaving the country are taxed at the same rate as
though they were extracted and sold domestically.  Taxation on
imported goods is described below in
.

The rate of taxation for a given product relative to those for other
products can be formulated only on the basis of environmental impact.

The production and disposal, of agricultural goods within a household,
including the combustion of timber, wherein no transfer of ownership
occurs, are exempt from taxation.

A given item or quantity of goods cannot be taxed more than once for
extraction, and if disposed, not more than once for disposal. this
represents a taxation cycle, and re-extraction is taxed at the usual
rate.

For each product or activity or portion thereof which has a localized
environmental impact, the state must specify in a detailed bulletin
the additional tax charge levied on a responsible party that fails to
satisfactorily reverse the impact, and must specify precise time
periods over which the cleanup must be performed, and precise criteria
for determining exactly of what a satisfactory cleanup consists.  A
responsible party that completes the cleanup is exempt from the
additional tax.

The only type of environmental impact which does not lend itself to
the above, by dint of non-localizeability, is pollution of the
atmosphere.  Primary among atmospheric polluters is the combustion of
fuels.

When the environmental impact of a product or activity can be
delineated into localizeable and non-localizeable components, the
processes of cleanup for the localizeable portion must be treated as
described above - particularly, a tax exemption for satisfactory
cleanup performance must be provided, in an amount proportional to
that portion of the environmental impact which is localizeable and has
been cleaned up.

Through advance agreement, a responsible party can arrange to assume
only a portion of the processes of cleanup, and receive a proportional
and agreed-to reduction in cleanup tax.

Additional cleanup tax money received as specified above must be
maintained in an account separate from all other state money, and must
be spent exclusively on cleanup activities.

Royalties paid for intellectual property protected by law are taxed at
a strictly uniform rate of up to 20%, as set by law.

For the purposes of this section, trademarks are not intellectual
property, and revenue from sales of products marketed under a
protected trademark, but not otherwise protected by
, are not candidates
for taxation.

In a given year, total resource tax revenue must equal total
intellectual property tax revenue within one percentage point, except
that if the maximum legal total resource tax revenue is less than half
the maximum legal total tax revenue, the total IP tax revenue can
exceed the total resource tax revenue provided the actual total
resource tax revenue is equal to the maximum legal total resource tax
revenue.

Any intellectual property protected by law, must be licensable and
available as an individual item in isolation.  The entire license fee
charged for this item is taxable.  If legally protected IP items are
incorporated into a larger item, then the taxable portion of the
larger item is the total of the license fees for the collection of
legally protected IP items incorporated.

Tax is paid to the state of the nation where the sale takes place.

Extraction tax cannot exceed 50% of the wholesale fair market value of
the item being taxed.

The sum total of general tax revenue (which excludes cleanup tax
money) can never exceed ten percent of the product of an average wage
and the total domestic human population.

State agencies must pay taxes on the same schedule as do private
individuals and incorporated entities.  To be general, there are no
tax exemptions other than those enumerated in this section.

On Subsidies, Aid, and International Tariffs
---------------------------------------------
A subsidy is a grant by a particular unit of state, to a private
person or incorporated entity to assist or affect private enterprise,
aside from duly awarded contracts.

Foreign aid is any grant by the state to any foreign state or private
concern, aside from duly awarded contracts.

Except where the immediate military dictates of physical national
defense require it, the state cannot offer domestic subsidies or
foreign aid in cash or kind.

The state must enact tariffs on goods entering or leaving the nation
on three bases: 1) to precisely compensate for any discrepencies
between the exporting nation's taxation level and the domestic level,
2) in direct and balanced response to tariffs or other market barriers
erected by another nation, and 3) to fully compensate for wage
differentials between foreign and domestic laborers in equal roles.
Tariffs are to be paid by the importing party.  The state cannot enact
tariffs on goods entering or leaving the nation on bases other than
the above-mentioned and those specified in .
Proceeds from the above-detailed responsive and compensatory tariffs
are to be precisely offset by reductions in general taxation.

Routing of Monies within the State
----------------------------------
All money paid into the state enters a single general fund from which
all internal funds are drawn, except for direct payment and special
taxation for services rendered and provided as enumerated in this
document (which are handled internally by the agency enlisted), and
payments which serve to reduce general taxation (as detailed in this
document) which enter a separate general refund account.  Agencies of
the state must pay fair market value for products and services when
dealing with each other.

Contract Award Procedure
------------------------
A description of all contractor searches must be accessible to the
public for at least two weeks prior to the last day proposals are
accepted, except in cases of time-critical emergencies.  In cases
where a full description would compromise national defense, a full
description can be withheld until a requester has been
background-checked and has signed an agreement to maintain
confidentiality.  In the case that supply of a full description is
delayed, requests must be accepted for at least two weeks following
the initial announcement, and proposals must be accepted for at least
two weeks following the last delivery of a full description.

The state must award contracts on the following bases: price, quality,
stability of support, and environmental impact.  Price includes
initial research and development costs, unit fabrication costs, and
cost of repair.  Quality includes ease of use, versatility, technical
performance under normal and exceptional operating conditions,
durability, lifetime, MTBF/MTTR, ease of repair, regularity of
behavior, and adherence to contract specifications.  Stability of
support is the expectation that the organization fulfilling the
initial contract will persist long enough to provide technical support
and repair/replacements for the specified lifetime of the device, and
the degree to which proper continued operation of the device is
independent of this persistence and performance on the part of the
contractor.  The minimization of environmental impact must be used to
discriminate between proposals of otherwise similar merit.  Formulaic,
or otherwise more detailed, evaluative procedures for comparison of
competing proposals, can be specified by law in concordance with the
above.

Any device critical to national defense must be delivered with
complete technical plans sufficient to replicate the device
independently if necessary, including full source code for any
software if applicable.  If the contractor so requests or at the
state's behest, these plans must be kept confidential.

No state contract can be awarded to a contractor for at least one year
following substantial non-performance, performance at a substantially
inflated cost, or substantially delayed performance, on a prior or
continuing contract.  However, inadequate performance resulting from
circumstances beyond the contractor's control, e.g. natural disasters,
unforeseeable shortages and/or price increases in raw materials, or
legislation affecting the terms of the contract, wages, taxes, etc.,
can not lead to such a penalty.

No law can forbid or require the hiring of labor forces organized for
negotiation leverage (unionized) for fulfillment of state contracts,
or treat the union status of labor as a factor in the relative
evaluation of competing proposals.

The state cannot purchase products from individuals or incorporated
entities who have refused to sell to a private individual a product
they have sold to a state, and on the same price schedule as that
offered to that state, provided law does not preclude such purchase.
the price schedule for any product offered for sale to the state must
specify a single unit purchase price no greater than twice the
per-unit price for the greatest quantity scheduled, or for the
greatest quantity sold to the state, whichever price is lower.  Such
purchase is contrary to law if the product contains classified
technology or information and the state has not provided a waiver or
license for the purchase.  In the case that private purchase of a
product is precluded only by classification restrictions, a version of
the product with classified technology and information replaced by
non-classified technology and information, which provides maximum
possible functional and operational equivalence to the original
product, must be offered for sale to private individuals on a price
schedule equal to or lower than that of the original product.  For
example, if a product contains a classified encryption module, the
version purchasable by private individuals must contain an
unclassified encryption module providing similar resistance to
known-ciphertext compromise of a key or plaintext, known-plaintext
compromise of a key, and forging of a data signature, by an attacker
with intimate knowledge of the algorithms implemented by the
encryption module.

General Ledger Certification
----------------------------
The state must provide and promptly publish a cryptographic receipt
for all monies and goods it receives.  Where individual privacy is at
issue, the published receipt reveals only the reason for transfer.

A state agency must demand a cryptographic receipt specifying full
recipient name and general purpose for transfer of money or goods
before transfer to another state agency or non-state entity can be
completed. The state is required to promptly publish these receipts.