As it is, a loan is still an agreement between an economic player and a financial institution. Without them, the state receives no legitimate direct financial resources.
In the PID (Produit à Intérêts Décomposés ) financial model, the state becomes a conventional beneficiary to credit transactions. Very much in the State’s favor, it’s an “effortless” process yet at the same time generates very substantial financial resources at a national level.
"Effortless" because this levy does not occur on borrowed capital, which in this case would undermine the borrowing power of the contractor affecting the competitiveness and performance of the loan, and would equate to a tax requiring a political explanation.
This direct collection is performed only on the interests of capital invested and with a non-proportional ratio because it’s infinitesimally small.
While the State collects a quantitatively small share, it remains automatically linked to the duration of the loan, collected annually at the end of the first year.
This contribution, named TXRD – the Revitalization and Development Tax – in the French version of the PID software, is allocated to the State, which will use it to benefit the country’s economic and social development.
This is the "philosophy" of the PID financial model; expressing a deeper, more socially responsible application.
At a national level, there is not just one active loan per year, but thousands, or in all likelihood millions made by individuals (consumer loans, car loans, mortgages) and businesses (investment, research, development, real estate), as well as those made by local and regional authorities.
With the PID (Produit à Intérêts Décomposés) financial model, for each of these loans, the State would receive a small amount in proportional terms, but with reasonable certainty for the duration of the loan, enabling it to moderately forecast "cash funds. “
The State may with certainty commit all or part of these sums toward the country’s debt reduction.
Without creating additional or auxiliary taxes, and involving no cost of collecting, the “effortless” PID (Produit à Intérêts Décomposés) is the only financial model available for which the State can tighten its fiscal reins and take control of its budget.
This newfound financial autonomy reflects a strategic social policy for the pragmatic, who see that the global financial model of today is broken and have the resourcefulness to move forward.