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.
We would have to tax our income at a rate of 35% just to balance today's budget.
÷ $20 trillion
The federal budget and every state and local government budget totals $7 trillion.
If we taxed payments at a rate of 0.2% it would generate $14.5 trillion.
÷ 7,244 trillion
That covers today's budget, plus UBI, free healthcare, and free college, and creates a surplus.
Today, 86% of federal taxes come from our income, as shown in the pie chart.
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.
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.
The sheer volume of payments from trading financial assets eclipses the rest of the economy today.
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.
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 .
WHY IT WORKS
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.
Then Everything Changed
Automation changed everything in the 1970s. Wages have been flat for the last 50 years, while production has continued to increase.
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.
Unbridled growth in the monetary economy has led to an enormous increase in the disparity of wealth in America.
The rapid rise of the monetary economy has also led to the extreme disparity in income in America.
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.
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.
Creating and Deleting Money
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
Versus our income -