12 Feb 2012

Great minds think alike! The TRAN$ACTION TAX website


I'm no longer the only person on the planet who is pushing for scrapping all taxes and replacing the whole lot with a single flat-rate transaction tax! I've just discovered a US-based site called "TRAN$ACTION TAX". It's very nicely done - and very convincing. Just look at these demonstrations.

Brilliant! And so true. 

And they were using a pretty conservative estimate based on only $500 trillion a year (half of the $1000 trillion that they use as their baseline). That seems pretty low to me, given that the BIS numbers for 2010 showed that transactions in the US were virtually $3000 trillion. Never mind. The principle is right.

Their numbers are based on the idea that there would be a 0.35% tax on both the sender and the receiver, meaning that the total tax would be 0.7%.

They also point out the stupidity of the 80 year old tax code in the US. They say that what was originally "400 pages has ballooned to over 71,650 pges of amendments and loopholes that were added over decades by politicians and special interest lobbyists. The result is a system that is unfair to most of us, and a giant waste of resources for all of us".

I know plenty of Americans who are forced to employ an accountant just to do their tax returns because of the complexity of the system. Obviously those accountants will be out of a job if the tax system is scrapped. Frankly, I don't think that we should really care. I'm sure they will find something more useful to do.

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