Collectively, we earn $20 trillion per year.
There are $7,244 trillion in payments each year.
Look How Low Taxes Would Go if We Taxed Payments Instead of Income
Taxing Income
The budgets of the federal, state, and local governments total $7 trillion.
$7 trillion
÷ $20 trillion
35%
Taxing income requires a tax rate of 35% to balance the budget.
Taxing Payments
UBI, free healthcare, free college and a $2.6 trillion surplus would total $14.5 trillion.
$14.5 trillion
÷ 7,244 trillion
0.2%
By taxing payments we could reduce the tax rate to 0.2% and enjoy more benefits.
We're Taxing the Wrong Thing Today!
The material economy is the flow of goods and services. The monetary economy is the trading of financial assets, which is 350-times the size of the material economy.
The large blue sphere represents the total payments in the monetary economy.
We are taxing the red sphere when we should be taxing the blue sphere!
The tiny red sphere represents the total payments in the material economy.
The Cost of Additional Benefits
The table below shows what it would cost to provide basic income, free healthcare, and free college.
What the New Budget Would Look Like
With a Payments Tax of 0.2% we'd reduce our taxes and yet be able to pay for basic income, free healthcare and free college while having a $2.6 trillion surplus!
