monetary system, inflation effectively works as a hidden tax.Under a demurrage monetary system, currency would have demurrage fees instead of inflation, which would be a more explicit and easier to measure tax on money.In Gesell's proposed system, the individual owners of Freigeld would pay the demurrage fee for the stamps to the government, thus reducing the amount of other taxes that a government would have to collect.

If individuals do not want to pay the demurrage fees, they could deposit their money into a bank.The bank would become