State Makes Promises to Its Subjects

• Issues tokens of promises to citizenry

  • In exchange for goods and services which state needs to pursue the public purpose

• State then imposes tax on citizenry

  • ... payable in the tokens the state just issued

  • State can do this because it is sovereign

• What's the promise?

  • I, the state, promise to accept these tokens from you, the citizens, in fulfillment of your tax obligations

  • Tokens of promises are "tax vouchers"