Money and Fiscal Policy

A Currency Without a Central Bank: the national currency, designated Shai (from the Hebrew ש"י, an acronym for Shekel Yehodaya that also means 'gift'), will be a cryptocurrency. No central bank will be established, and the money supply will be governed by an automatic and transparent mechanism, using factors such as population growth.

Prohibition of Debt: The Constitution will prohibit government borrowing and require a balanced budget based on revenue actually collected.

Taxation: The income-tax rate will be capped at 22 percent for both individuals and companies. It will be uniform across the entire population, with no tax brackets - a flat tax. The tax will apply to all income, whether from labor, capital, or another source. Capital gains will be taxed only on the real, inflation-adjusted gain and only when the income is actually realized.

In addition, a land tax will be levied in accordance with the principles of Henry George, at a rate of up to 0.5 percent for residential property, with a potentially different rate for businesses. Land-tax rates will be revised only once every 49 years to prevent unnecessary increases in taxation.

No value-added tax or customs duties will be imposed.

Preventing Tax Avoidance: If a company avoids paying tax, its earnings before interest, taxes, depreciation, and amortization - EBITDA - will be attributed to its shareholders, who will be personally liable for the corresponding tax.

Municipalities and Local Authorities: These will be funded through land taxes and a municipal flat tax capped at 9 percent of every resident’s income. The tax will be collected by the national income-tax authority to avoid maintaining duplicate tax administrations. Transfers from the central government to municipalities or local authorities will be prohibited.