With all the current talk of taxing robots who replace workers and the ongoing increases of national deficit spending in the Trillions every 12 months…there MUST be a restart on approaches to taxation. If not, the weight of global social needs will break the back of the modern economic systems in a short time.
The underlying pressures that are driving governments to enforce each other’s tax laws internationally while at the same time using taxation as a competitive advantage in attracting global investment are very confusing to understand.
The strangest country to understand is the USA where taxes are increasingly high, yet the constitution does not allow the government to force taxes without the consent of the people. The “representatives” in government are supposed to reflect the will of the people, yet, the people re-elect every 2-4 years the same representatives who leverage from the pockets of the electorate to pay for their failing initiatives while filling their pockets with donations from the military industrial complex for backing up their wishes.
It has been our contention for a long time that the only way to fix a rotten, corrupt tax code is to rebuild from the ground up. INCOME TAXES are the worst form of taxation and have only existed in the USA since 2013. Withholding tax was initiated in 1943 to help offset the costs of world war. Since that time, productivity has been the source of tax revenues, replacing previous wealth, import and transaction taxes that provided for our government before the days of Big Government social welfare.
We also must state for clarification that we are not proposing or accepting transaction tax in ADDITION to current income taxes. It must be in place of income tax for the change to positively impact the financial freedom and prosperity of “the people”.
We could go many layers down in this discussion, but let’s stay on the general rationale for changing from income taxes to transaction taxes:
- Transaction taxes derive benefits from those who have and spend money, not on those who are producing it.
- Transaction taxes on a national basis at between 1-2% could replace income derived from 25-50% taxes overall on incomes. This would leave a lot more money for average consumers in the marketplace, increase personal savings, and lessen pressures on the government to provide welfare or cause these increases of inflation.
- Transaction tax is the fairest of all because it taxes spenders, not savers. The poor to the rich all pay the same percentage based on how much they spend, not how much they earn. When this is applied to buying houses, businesses, buildings, crops, food, entertainment, transportation…everything…it raises so much money without hurting anybody who is working hard and saving for the future. The banks could easily collect these taxes with little or no documentation requirements or costs. We could even tax the FED for every dollar they loan to the government so that our government stays real on what transactions and currency really are.
- This tax program would quickly reverse and pay off the national debt
- This tax program would provide more investment for jobs and the real economy, taking pressure off of welfare and other public assistance programs
- Just changing to this tax structure would cause a huge resurgence in the national economy that high tax countries can never compete with…and other countries would be forced to compete with such a tax system. This would provide more freedom of international investing and take the pressure off governments seeking to tax their citizens on global income just so they can survive within their terrible systems and imbalanced budgets.
Basically, the current tax systems are built on the most destructive theory possible that has been the historic preference of tyrannical rulers. They tax production and control markets via tariffs so as to control their income as a government regardless of how their economy is functioning. This is socialist to the core and has never worked long term anywhere at any time in the world. It is not working now no matter what they tell you about current market values.