Who Would Lose?

Who wins and who loses with a payments tax? Based on discussions with managers of financial assets, most are very supportive of a payments tax, as they, too, will ultimately be better off under the Financial Freedom Act than they are under the current system. In other words, just as the poor, the middle class and the moderately wealthy will do better, as shown in the slides on the home page, the ultra-wealthy will also do better. The reason is quite simple: the value of financial assets is indexed to the real wealth in the world, so if the material economy is supercharged, then the monetary economy will be worth even more. The gain in the value of financial assets will be greater than the cost of a payments tax to the owners of those assets.


Certainly, there will be some people who will be against the Financial Freedom Act simply because it represents a change from the status quo, but there will also be those whose livelihoods are affected. The tax preparation industry would lose most of its business, and the IRS is likely to shrink, as it would not take as many people to monitor compliance of a payments tax as it takes to enforce income taxes. Likewise, those earning their income off of tax shelters will have to find other work.