Are there any tax implications to alternative currencies? Scenario: Our investment arm lends a startup $1 million. As a condition of the investment the startup agrees to accept equal dollars for services or products. How is profit determined for tax purposes? And, how is the investment structured to allow for a buyout? It would be interesting to discuss how this kind of deal could be structured. Further, it would be really interesting to organize a group of =$ companies that could theoretically support one individual almost entirely by =$'s.

This to me seems like a future, but not distant future, next step in the evolution of the program. Identify an individual in the community. Define that individual's daily needs. Identify existing members able to meet those needs. Figure out a way to fill in the gaps. That would be a powerful way to bring others on board!

Also, I'm curious about the current resources allocated to our alternative currency. This could be a culture altering program, but does it have the necessary resources to reach its potential?

Last comment (I think). It strikes me that in order to make the test scenario work, the individual would need access to a currency exchange to pay for some needs that we just can't meet. But, beyond that, if we could take your idea from an earlier post of working with the city, then we could solve the potential problem of transportation if the city accepted =$'s for tokens and passes.

I've been following the recent articles and their respective comments about how Equal Dollars and other alternative/companion currency systems can offer bold and viable solutions during our present economic crisis. Finally my 2 cents…
Adahow, its nice to see that you are engaged in the possibilities of Equal Dollars. As I’ve followed you comments, I smile a bit to myself because my thinking is confirmed by some of your thoughts and/or questions. You propose an interesting possible next step in the process. Please join us at our =$s committee meetings. I agree that building the system from the perspective of creating =$s opportunities that meet the basic need of the individual is the way move forward. As a result, we or at least I have a new way of describing the system. Equal Dollars Community Currency System alleviates the need to solely rely on scarce US dollars as a means to obtain basic goods and services to live. Equal Dollars is a non-interest bearing currency; it does not create wealth but is rather designed to stimulate the exchange of goods and services within the community. When I first joined the community first as a member, then as program director, I asked myself, “What are the common denominator goods and services for individuals and businesses?” I came up with many of the same categories you did in your 12/15/08 article, “Alternative Forms of Currency”—food, prescriptions, clothing, day care for children, transportation, etc. And for businesses, the common denominators were office supplies and transportation/gas.

Where are we now? Our focus during the last six months or so has been primarily within the RHD community—getting RHD employees to establish new or reactivate their =$s accounts. This has been a more of a challenge than I originally anticipated (Even with being able to use up to 5=$ per prescription at SQA Pharmacy.) But even still, we are experiencing some small victories. We are trading from 700 – 1,500=$s per month. This means that each of our 140 or so members are saving $5 - $10/month US dollars by using 5 – 10 =$s per month. Theoretically each member has saved $15 - $30 since September. In these tough economic times, $30 US saved is significant. That’s my water bill for a month.

Where are we going? During these tough economic times I think we all agree that the possibilities for Equal Dollars are endless. Getting the City of Philadelphia to become a partner in the system would give the system instant value in the business community. With Metro are Philadelphia unemployment rate at 5.7% as reported by Bureau of Labor Statistics 12/3/2008 report, I also think =$s offers a unique for individuals to earn and/or get access to the currency by providing community service.

Let's say that a person is living by =$s 100% of the time. How would/could this be reported on a 1099, for instance?