Fiscal localism

[4] Taxation in these communities is emphasized at the local level and low importance is put on national taxes.

These communities want to separate themselves from the larger national economy so they must rely on revenue generated from local taxation.

Lorenzo Fioramonti, director of the Centre for the Study of Governance Innovation at the University of Pretoria in South Africa, believes that the European Union would be more stable if it used multiple local currencies combined with a "digital euro".

A report from The TaxPayers' Alliance states that a decentralized form of taxation leads to a more efficient public sector.

[6] This report references a German econometric study which found that "government efficiency increase with the degree of fiscal decentralization".

The study found that "reducing the share of central government in total tax revenue by one percentage point boosts long-run GDP growth by about 0.06 per cent per annum".

Toby Blume argues for a shift in the banking system in his essay "Changing the Debate: The Ideas Redefining Britain.

"[7] Blume writes, "A more localised banking system - which is more common in other countries but we don't have in the UK - provides a way to connect surplus capital with productive purpose (for the mutual benefit of savers/investors and borrowers).

This allows the bank to know its customers on a personal level in order to determine the risk of giving a loan out to someone who lives in the community.

It also allows the bank to use its excess capital to invest in services and businesses that are located in these towns, which in turn spurs the local economy at a consistent growth rate.

A recent, and perhaps the most widely known, push for fiscal localism occurred when the United Kingdom voted to leave the European Union in 2016.

This historic decision of the United Kingdom is an example of a community choosing to reject the increasing globalization of economic institutions and policies.

These opponents of Brexit preferred to remain in an organization that encouraged wealth and services to move freely among countries within the union.