googled820eff5cc42b044.html
 

LOWER TAXES 

Your Taxes Would Be Much Lower if We Taxed Payments Instead of Income

Collectively, we earn $20 trillion per year.
There are $7,244 trillion in payments each year.

Taxing Income

We would have to tax our income at a rate of 35% just to balance today's budget.
$7 trillion
÷ $20 trillion
 35%
The federal budget and every state and local government budget totals $7 trillion.

Taxing Payments

If we taxed payments at a rate of 0.2% it would generate $14.5 trillion.
 $14.5 trillion
÷ 7,244 trillion
0.2%
That covers today's budget, plus UBI, free healthcare, and free college, and creates a surplus.
Tax Pie Chart.png

Today, 86% of federal taxes come from our income, as shown in the pie chart. 

Peterson Foundation.png

We're Simply Taxing the Wrong Thing!

The rising tide of payments in the monetary economy exceeds both the GDP and our collective income by 350-times.

Blue Sphere.png
We are taxing the red sphere when we should be taxing the blue sphere!
The blue sphere represents the total volume of payments in the economy, as detailed in the table below.
The red sphere represents our collective income.
Blue Payments Table.png
Wall Street Manager.png

The sheer volume of payments from trading financial assets eclipses the rest of the economy today.

Red Sphere.png
BIS Button.png

There Are Over $7 Quadrillion in Payments Made Each Year.

Our Income Represents Just 0.3% of the Payments!

This tax table shows how low your taxes would be if we taxed payments instead of income.

Blue Tax Table.png

As astonishing as it seems, these low taxes represent your fair share of the revenue necessary to balance the budget and fund the benefits on this site, if every payment was taxed at 0.2%. 

What Taxing Payments Would Mean to You

If you're single and earning $30k, your taxes would drop from $6k to just $60 .
Blond in Red Shirt Happy.jpg

WHY IT WORKS

In 1913

When income taxes were first imposed, income was the right thing to tax. 

Henry Ford shocked the world when he paid his employees five dollars per day.

We entered an era in which the middle class grew and the gap between the rich and poor narrowed.

Model T Car copy.jpg

Then Everything Changed

Automation changed everything in the 1970s. Wages have been flat for the last 50 years, while production has continued to increase.
car factory with robots.jpg

Automation caused a shift in jobs to the financial sector, which gave rise to unprecedented growth in the monetary economy.

The Impact of Our Burgeoning Monetary Economy. 

Big house, little house.png

Unbridled growth in the monetary economy has led to an enormous increase in the disparity of wealth in America.

Share in Aggregate Wealth

Distribution of Wealth - Color.png

Trillions

Fed Governors.png

The rapid rise of the monetary economy has also led to the extreme disparity in income in America.

Mean Income.png

Income for the top 1% was not included because it did not fit on the chart.

TPC.png

The disparity in income has led to a greater disparity in the ownership of equities in America. 

Just 20% of Americans control 87% of the equity market in the nation.

Wilmington Trust.png
corporate-equities-pie.png

A payments tax is the single most effective tool for mitigating these growing problems. 

HOW IT WORKS

How a Payments Tax Would be Implemented

A payments tax would entail debiting a very small amount of each and every payment anyone receives. 

Payments.jpeg

Creating and Deleting Money

Deleting Money.jpeg

The money debited from a payment would not be credited to any account at all.

This would delete the debited money from the money supply.

The Fed would create the money the government spends, which would replace the deleted money and balance the money supply.

INCOME VS PAYMENTS

A Bar Chart Comparing Our Income to the Total Payments in the Economy

Today we tax our income, which is only 0.3% of the economy. That's why taxes are so high!

The volume of payments in our economy - $7,244
Trillion

Versus our income -
$20 Trillion

$20

Trillion

$4,500 Trillion

$3,500 Trillion

$3,000 Trillion

$2,500 Trillion

$2,000 Trillion

$1,500 Trillion

$1,000 Trillion

$500 Trillion

$5,000 Trillion

$6,000 Trillion

$6,500 Trillion

$7,000 Trillion

$7,244

Trillion

$4,000 Trillion

$5,500 Trillion

If we were to tax payments instead of income, we could reduce the tax rate to 0.2%.

Edgar Feige.jpg
Tribute to Dr. Feige
The work of Dr. Edgar Feige, Professor Emeritus at the University of Wisconsin, who first proposed the automated payments tax, is a major inspiration behind the solutions on this site.