01.- Salaries and Taxes

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The Insula Social Enterprises or Insula Associated external enterprises (operating in the Fractional Reserve Banking [FRB] world) will use several Community Currencies, CC, with different rates. For the purposes of the simulation we use only one.

The Insula Government operates with TXS for collection of taxes and for the payment of the different components of the Citizens Salary.

The exchange rate of the Insula Tax currency (TXS) to the other Community Currencies (CC) is to be fixed at the Insula exchange market. For the simulation we use a 1 TXS = 1 CC relation, just to indicate the legal issuer.

The exchange rate of the Insula with the FRB World € is calculated as follows:
 
Ideally, Citizens would work 25 hours a week, 100 hours a month, earning an equivalent of 100 TXS, the Insula Tax currency, a month, that is 100 CC. With 100 CC, Citizens should be able to earn goods equivalent to the goods you are able to buy now with an average European salary, say 2.500 €. This would mean an exchange rate of 1 CC = 25 €.

However, during the crisis, it’s difficult to think that Desperado jobs will be paid above 800 € a month. Equally, Desperado jobs will be at least 36 hours a week, 144 hours a month, or over. This means that the exchange rate of the CC is depreciated in the FRB world to 1 CC = 6 €.

For Desperado jobs, forced to work 144 hours a month, salaries in the island could be established as 144 CC.

The volunteering and family average working hours statistics have taken as basis the statistics published by the European Foundation for the Improvement of Living and Working Conditions - Second European Quality of Life Survey – Participation in volunteering and unpaid job – 2011 (http://www.eurofound.europa.eu/pubdocs/2011/02/en/1/EF1102EN.pdf).

Citizens Salary components cannot be paid in full until the goods in the Insula increase. The "salary level" indicates the percentage of the total devoted hours paid.

Jobs:

 Desperado jobs
Services provided by Insula Citizens to Associated external enterprises [FRB] in exchange of any Community Currency (CC) committing goods produced by the legal CC issuer representing the enterprise in the currency contract.
 Volunteering Services provided by Insula Citizens to Insula Social enterprises in exchange of any Community Currency (CC) committing services or goods produced by the legal CC issuer representing the enterprise in the currency contract.
 Cooperative insula jobs
Labour of Insula Citizens at Insula for Profit enterprises in exchange of any Community Currency (CC) committing services or goods produced by the legal CC issuer representing the enterprise in the currency contract. In the simulation, not differenciated from volunteering.

Citizens salary componets:

Basic salary paid to every Insula Citizen, child, adult or elderly, working or unemployed.
  Family works works done at home or in the context of the family. Paid according the number of hours devoted to it. Statistics have been taken from the study of the EFILWC above. Different statistics for Adult and Elderly, Man and Woman.
Children and Education  
Housework cooking, cleaning, repair.
Caring of elderly assistance to elderly in the family.
Unemployment payment to adults with no job in FRB enterprises or Desperado jobs.

In the spreadsheet select Salaries and Taxes sheet.

Desperado Island economy






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