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  "body": {
    "comment": "I appreciate this opportunity to consent to the current tax rate of 20%. \n\nMy reasons for opposing lowering tax rate from 20% to 10% are as follows:\n1) Lowering the treasury cut parameter does not decrease transaction fees, rather it simply means more of the transaction fees go to SPOs and their stakers. This is significant for 2 reasons.\n1.1) Lowering the treasury cut increases the ADA in circulation, potentially producing an inflationary effect on ADA, adding to the selling pressure that will arise from the increased outflows from the treasury due to the budget. It may someday be prudent to direct more funds to SPOs/stakers if rewards grow so low that SPOs stop operating, for at the moment I see no evidence that is the case. \n1.2) Secondly, since transactions fees will not be lowered, as some might mistakenly assume, there will be no \"grease the wheel\" effect increasing on-chain activity due to lower fees. \n\n2) It is far more difficult to raise taxes than it is to lower them, and as there has been no prolonged outcry from the community protesting the 20% rate I see no compelling reason to lower it. \n\n3) It remains to be seen how quickly the treasury will be depleted by the yearly budget expenditures, and until we can be confident the long term trajectory of the treasury is healthy, I think it's unwise to cut treasury inflows by 50% at this early stage.\n\n4) Increasing passive staking rewards further disincentivizes community members to put their ADA to work providing liquidity in DEXs and otherwise contributing to Cardano's TVL and liquidity depth. In more traditional financial terms, lowering the treasury cut has a similar effect as raising interest rates at a central bank. It increases risk-free rate of return, and as a consequence makes all other investments less attractive. I believe this runs contrary to Cardano's strategic needs and interests at the moment.\n\nI agree with the premise of this proposal. The community should consent to the tax rate, but I feel lowering the tax rate now would be a mistake."
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