Do you believe the USA needs a fair tax system?
The current tax code is detestible.
Herman Cain recently introduced the 999 plan.
Other politicians have introduced many plans previously.
We have gotten nothing from the self-serving politicians.
Do you believe we need a solid citizen centered plan?
A plan has been formulated called the TRUE TAX that will produce a citizen centered plan.
Ten Reasons the True Tax is Superior to Any Tax System - Including the Fair Tax
1. Simple Plan where everyone plays by same rules which ends Class Warfare and broadens the tax base.
2. A 1% Transaction Tax that generates more than $10 Trillion in revenue.
3. Eliminates the National Debt in less than five years.
4. Downsizes Gov't - savings used to wipe out the Debt and other vital priorities.
5. Refunds Social Security and other vital Trust Funds.
6. Lowers Tax rates for Individuals and Businesses by establishing a standard rate for all.
7. Creates Jobs by promoting Competition which generates more transactions (revenue).
8. Rebates 20% of Revenue to provide $10K per adult that creates demand in the economy.
9. Abolishes the current Income Tax system with seamless transitition to the True Tax Model.
10. It is a 21st Century Constitutional Tax Plan envisioned by Alexander Hamilton.I found the site you copied this from. I find it odd that they don't give any details of this plan and just say how wonderful it is. Reminds me of those ads that say you can eliminate your electric bill with this one device.
I assume that part of the plan is a flat tax, where everyone pays the same percentage regardless of income. The wealthy love this because their tax rate goes down yet again, and the tax rate of the poor goes up. The problem with this historically has been that the working poor, who often qualify for the Earned Income Tax Credit, can't afford to no longer get the EITC and suddenly start paying a substantial portion of their income. Let's say they make $20k a year. Depending on how many dependents they have, they will probably pay very little, if any, income tax (they still pay sales tax, FICA, etc.). If Herman Cain's 999 plan went into effect, they'd suddenly have to start paying $1800 a year. Their income went from $20k to $18,200. Try living on that.
In contrast, someone making $100k a year would pay $9k, leaving them $91k a year. Not bad (unless you live in LA!). You could live on that quite well in most of the US.maybe instead of complaining, you should start planning.
the 1% tax will tax all monetary transactions.
those who earn less than poverty level will receive a tax exemption like the non-profits receive to allow them to spend up to poverty level prior to paying the 1%.
If you do not like the rules - then change them.
that is what we will be doing over the next year so we can get a modification to simplify the tax code and make it fair for all.Well OK, now that you actually given some details, but I don't think it's complaining to expect some actual details about a totally new tax plan, rather than taking your claims at face value.
question - do you believe the US needs a fair tax system?
answer - yes
question - should it be a simple system that applies to everyone?
answer - yes
question - how do you make it fair to everyone?
answer - charge a single 1% True Tax against all commercial transactions.
question - how do you know this will provide enough revenue.
answer - the estimated gross commercial transactions is $1 quadrillion or 1,000 - trillion dollars.
question - does this impact the cost of living
answer - yes, however with the elimination of payroll tax for the family this is easily offset
question - where will all the revenue come from?
answer - from all those current folks and corporations that are not paying taxes.
question - will there be other inflation from the increased prices of imported foreign goods.
answer - yes, this is the revenue that will offset the unemployment due to the US corporations moving their jobs offshore.
question - will this tax provide support for all citizens?
answer - yes, due to the charges against all commercial transactions, we will collect enough to provide for the families that really need help.
$10 trillion in revenue? Our GDP is only $15 Trillion, and the total income of people in the US is only $13 trillion. You're going to have to tax everybody at an effective rate of between 50-65%, including corporations. Sorry, that is not a good idea.
That would cost $2.5 trillion. That's more than we got from all our taxes last year.the 10 trillion is estimated based on the number of times that money changes hands during normal business.
a purchase of clothing for example actually transfers funds approximately 7 times.
when you tax every transaction, the revenue will grow exponentially.
instead of complaining, we plan to take action.
if you wish to contribute, please continue to follow us on TEA party site.It doesn't matter. If you tax money every time it changes hands, you are increasing the tax burden.
Effectively, you have to increase taxes by over 300% to get $10 trillion in revenue.
Think about it... right now, we get about 2.3 trillion in tax revenue. That's about $10,000 in taxes per adult.
To get 10 trillion, you would have to tax each adult about $40,000. You can't multiply tax revenues by 4 times without raising taxes.yes, but you are speaking of taxes that are on the net value based on the corrupt tax code.
I am speaking of the gross transfer.
today, the government gets nothing for many billions and even trillions that are transacted by big business and the wealthy. if the tax code were changed to charge 1% on each monetary transfer, then the revenue will grow exponentially because there will be no fradu waste and abuse of the system. in fact, the simple system would eliminate the need to have any IRS agents so we could put them all on the border to provide better homeland security.No, $15 trillion is the total worth of all goods and services generated in the US. You have to look at net value, taxing gross value is beyond ridiculous, and shows that you don't understand economics, taxes, or business. Taxing gross transactions means you are not only taxing profits, but also taxing losses. Many corporations operate on very slim margins, 1-2%.
Let's say you have a business. You buy fabric, and sell clothes. Every year, you buy $40 million worth of fabric, and sell $45 million worth of clothes. A 1% profit margin would put you at $450,000 in profit. Under a logical tax system, you would take taxes out of the profits of the company.
Your system would tax ALL of the company's profit, let alone the increased cost of buying the fabric for taxing that transaction.
You can't just take $10 trillion out of the economy without increasing taxes and costs... there is no logical way to act like taking more taxes is really a tax cut.
Howdy Taburkett. Nice to see you again. Happy 3-week anniversary on Hubpages.
I have several concerns about your tax plan. Can you explain…
Who formulated this plan?
You made 10 claims and did not explain how even one is accomplished. As already noted, there are no available details on how the plan works.
Why not share some details, Taburkett. Jaxson has already pointed out how improbable this tax scheme sounds already. How are you and the Tea Party planing to implement this idea? Where is the necessary congressional support?
The source web site, revealing nothing but a POB box in Texas, is selling a book, collecting donations, and has not seen a lot activity since June 2011.
Truetax.ning.com appears to be the parent web site designed in 2011 to appear like it belongs to the Tea Party. It displays 50 emblems representing state chapters. Ohio has 2 members, all the rest have one member, and they were all created on July 15, 2011.
The Event Log has no entries past, present, of future.
There are about a dozen Sept. 2012 blog entries and they are all spam.
There are several “Most Popular” blog post all by “TrueTax” and all dated the week of Aug 10, 2011.
Finally, I would be interested in knowing why you refer to yourself as “we” when you said “that is what we will be doing over the next year so we can get a modification to simplify the tax code and make it fair for all.”
Thank you, Taburkett. I am looking forward to examining your proposals.
The TRUE TAX was formulated by several state members of the TEA party and is authored by the TEA party as a simple solution to the debt crisis and lack of budget for the nation.
It is a simple plan where every commercial transaction would be charged a 1% tax on the gross amount of the transaction.
for financed transactions like the purchase of a house, car, or other financed items, the 1% would be applicable to each commercial transaction.
for example, a person purchasing a car for 20,000 making a down payment of 2,000 would pay 2,020 and the finance company would pay 18,000 and 1,800 for their transaction. for each monthly payment of $350 the person purchasing the car would pay $3.50 in True Tax for a totoal of $353.50.
The finance company using the money to defray expenses does not currently pay any tax on that funding. However, under the True Tax, all payments for commercial transactions would require the 1% tax. So, for every electric bill, phone bill, media commercial payment, etc. the lending instittution would pay the 1% tax.
This would work the same for a mortgage.
While most people do not believe this would work, they often find themselves at a point of misunderstanding about the requirement to place the 1% tax on all transactions even those of corporations and business that currently does not pay taxes.
The estimated revenue from such activity is approximately $12 trillion per year.
This is not the only positive action though, because by using this formula, the revenue is actually collected at the time of the commercial transaction so the treasury accounts do not wait 90 days for their funds.
Many middle class people do not recognize their savings, because they believe they will still be paying income taxes.
However, this view is not correct.
For example, if a person or family making $150,000 lives and purchases only in cash, the largest annual tax burden would be $1,500 whereas under the current tax code it is approximately $11,000 after standard deductions.
also, under the True Tax, there would be no annual forms for the individual or family to fill out.
The True tax does still contain a 10% tax on US corporations and a 20% tax on foreign corporations to pay for the auditors that will evaluate and followup on corporate affairs.
We feel that this new generation of tax will be more than adequate to pay off the current national debt in 5 years.
Also, this True Tax would not be applicable to fund transfers such as a parent giving a child $150,000 to purchase a house. The 1% would only be charged against the transaction to purchase the house.
In the current tax system, if a child is given $150,000 they must include the amount over $11,000 as income for the year.
The commitee that worked this True Tax ratio has been working the tax area for years and have great experience with the convoluted tax code we currently work.
The way we intend to introduce this is under Article V of the Constitution through the states as a call to Convention for proposing Amendments to the Constitution through ratifification by the Legislatures of three fourths of the States. We will then call for a Convening of Congress (House and Senate) to finalize the actual wording.
This action by the Patriots of the nation will again set forth the Citizens rights to manage and control the government and not vice versa.
The country has floundered under the current political system and now requires the people to stand firm and fix the real problems.
Anything less will just lead to further chaos and destruction of our republic.
This country has the best government money can buy. Literally!
can you explain how you would accomplish that and still provide for the security of the nation?
I believe an adequate solution to that problem is laid out in the US constitution. Voluntary well-armed militias are far superior to national militaries since they are focussed on the protection of families as opposed to expanding an empire to all reaches of the globe. With the constant threat of withdrawal of funds, which tax funded organisations cannot have, it is in the militia's interest to provide strong security for the area they work in.
Vastly cheaper, more effective, and most importantly it is the most ethical solution.I agree that local well-armed militias do control the immediate area where they live, work, and play. This is very good for curtailing local enemies of the community. However, the local militias do not control nuclear devices.
This is our largest threat and is external, not local so we still would need a national defense to counter these threats. Additionally, our national security requires support for international intelligence gathering because we permit free travel to occur. This is where our enemies then infiltrate the local communities that are not trained to deal with such activity. The local militias would then require a greater degree of training that would then add costs to the original cheaper costs to employ them. They are a vital connection to the national intelligence that is required to actually curtail any activity from those travelers who wish to do us harm.
Regardless of how well the local militias may act, they are still but a small geographic area and not the entire nation. Nor do they protect our citizens who travel the globe seeking customers for our goods and services. Prior to WWII we were pretty much a nation of local security. Things were just as bad then as they are now economically. And we soon found out that we needed a strong national defense in order to keep our enemies at bay.
We must remember that ethics are very good when all of society plays by them - but I am sure you would agree that Iran, Syria, Egypt, Iraq, Afghanistan, Libya, Lebanon, Angola, Venezuela, Cuba, and others do not play well under our ethic principles. If we were to expect our local militia to curtail such activity, they would be spread too thin which would actually limit their ability to protect the local community. Therefore, we have the national defense, the guard and reserve, and our local law authorities as well.
Many people wish to eliminate the tax system and pay nothing because they have been told that the wealthy do not pay their fair share. However, when one logically looks at the current tax revenue collected, we find that the wealthy pay more than 80% of the costs for all taxes that support our security and economic structure. Without this 80%, we would be living in a country like Greece.
The problem is not with the wealthy, but with the politicians who continue to support a voluminous tax code that presents more chaos than it does a solution. Simplicity is what is required. Equality of tax is what is required. Under the True Tax that we are trying to propose, everyone would pay 1% on every commercial transaction regardless of wealth status. For someone that makes $1 million, that tax would be $10 thousand. People will say that this is not enough because it is much smaller than they pay now, however, a person earning $50 thousand would only pay $500 and not the $7,500 they pay under the current system. Additionally, there are many millions currently that pay nothing. Under the True Tax all these millions will begin paying $10 thousand. This is where the greater revenue is generated, not from the families as has been stated by those who want to keep the current chaos rolling.
Additionally, the True Tax is only one part of our agenda. We also want to identify a budget model for the revenue where 30% of the True Tax would stay local to support the community where it was collected. Today, the amount of tax collected in a community versus the amount that is returned to it is controlled by the lobbyists in Washington. So, the area requiring tax, such as schools, local law enforcement, infrastructure, hospitals, must employ lobbyists to entertain the Washington politicians to ensure they do get some of their money returned. This has become burdensome and must be eliminated. This will allow us to actually support the local communities where innovation and advancement actually occur.
Under this capitalist economy, good ethical people will seek these communities rather than hide out in chaos. Under this positive support theory, the ethics will return to the USA where we can collectively support advancement of those who have been stifled by a slavery welfare state. While some people will disagree with the slavery welfare statements, logically they must agree that without a requirement for the welfare slaves, the government would not need the chaotic burden of stealing money from a positive production community to give it to a non-production community. So, we believe that by getting back to the real roots of America, we can assist all ethical, honest, and patriotic citizens through our True Tax.
This tax plan seems doable, to me.
I think everyone should pay the same tax rate. If businesses were paying less in taxes, there would be incentive to pay those workers making 20k/year more. If businesses are taxed less, perhaps minimum wage will go up. I would rather see money from businesses going back to the people, not to the government.
In response to Twosheds, I lived off of 18k for the first couple years of my adult life. The living means between 20k and 18k really isn't much different. Perhaps more fresh meat each week, but it doesn't really amount to much.you are correct.
in fact, if the tax system charged everyone the same, then all off-shore transfers would pay the same tax.
also, all foreign activity would pay the same tax.
today, many activities do not pay tax because they float their activities through the tax code as cost-of-doing-business
with a standard transfer tax, everyone would pay when the funds were transferred.
we also believe that no inheritance tax should ever be charged since the estate would have already paid tax on all previous transfers.
under our prescribed code, the inflated government evaluation for property would be eliminated because the inherited property would have only the already taxed value.
all of our tax model promotes more advancement for the individual through accumulation of assets without double taxation to the individual.
our model also promotes a flat cost additive that would be placed on all competing goods from foreign manufacturing equal to the differnece in cost of labor for the product.
for example - a toy locomotive produced in the USA costs $12 to manufacture. $8 of that cost is labor.
the same toy manufactured in China costs $5 to manufacture. $1 of that cost is labor.
a $7 tax would be applied to the product manufactured in China to offset the labor lost in the USA.Whoever came up with this idea is either certifiable, or knows absolutely nothing about economics.
Forgetting for a second the fact that adding that kind of tax on imports would trigger the largest round of retaliatory tariffs since Smoot–Hawley, and ignoring the absolute devastation it would cause to US exports; prices on goods in the US would skyrocket.maybe, but you can't eat oil or iron.............
we are not certifiable but highly certified financial experts........
you must get out of the government mothballs and into the real economics of society to enjoy the simplicity of the proposal.
our proposal will also spur new and expanded production in the USA now that competition is fair and balanced.Your previous answers have answered my question; you're just trying to sell a book. Nothing proposed in your "plan" will do anything but make a bad situation even worse.
You, and the so-called "experts" who have authored this plan have no idea about "the real economics of society" (or economics in general), and this looks more like a freshman humanities project, rather than a viable tax alternative.you obviously wish to keep sending our money overseas to our enemies.
otherwise, you would recognize that the True Tax is one that provides an avenue to support internal economic growth rather than external debt interest paid to our enemies.
they can't eat oil, plastic, or steel
we don't need their products if we establish a solid internal economic model.
your concern is obviously your loss of the ability to hedge external tax avoidance.
our concern is providing an America where everyone will be properly supported by our national heritage, not some global monster that keeps our natino broke.you must be thinking of what you would do if this were your situation.
I have not tried to sell you a book and I certainly do not believe that the book will be required to place an amendment into the Constitution requiring the establishment of a Citizens Tax system rather than a corrupt politicians tax system that keeps us broke.
as part of our quest, we will also include a separate balanced budget amendment from the taxpayer that coincides with this to identify how the citizens of this nation want the govenrment to run.
people may disbelieve and some may try to hinder due to their socialist beliefs. however, we will not stop working this matter util we have majority that will get this done.
for this I am sure because if we were to stop, the nation will be destroyed soon thereafter by the corrupt enemies that are using our politicians as puppets.
First, you are going to increase the prices of almost all goods in America. Think skyrocketing inflation.
Second, if you increase the tax burden of a company, what do you think is going to happen? They will increase the price of their goods/services. All taxes are paid by the consumer, because all taxes are already priced into final prices.
Third, you still haven't explained how you are going to suck $10 trillion out of the economy, which is 4 times more than the government takes out now, without that being a bad thing. In fact, you act like it would be a tax decrease. How can you decrease taxes by taking more?The True Tax is a burden shift from the individual to all commercial transactions.
I will include the answer previously given above.
The TRUE TAX was formulated by several state members of the TEA party and is authored by the TEA party as a simple solution to the debt crisis and lack of budget for the nation.
It is a simple plan where every commercial transaction would be charged a 1% tax on the gross amount of the transaction.
for financed transactions like the purchase of a house, car, or other financed items, the 1% would be applicable to each commercial transaction.
for example, a person purchasing a car for 20,000 making a down payment of 2,000 would pay 2,020 and the finance company would pay 18,000 and 1,800 for their transaction. for each monthly payment of $350 the person purchasing the car would pay $3.50 in True Tax for a totoal of $353.50.
The finance company using the money to defray expenses does not currently pay any tax on that funding. However, under the True Tax, all payments for commercial transactions would require the 1% tax. So, for every electric bill, phone bill, media commercial payment, etc. the lending instittution would pay the 1% tax.
This would work the same for a mortgage.
While most people do not believe this would work, they often find themselves at a point of misunderstanding about the requirement to place the 1% tax on all transactions even those of corporations and business that currently does not pay taxes.
The estimated revenue from such activity is approximately $12 trillion per year.
This is not the only positive action though, because by using this formula, the revenue is actually collected at the time of the commercial transaction so the treasury accounts do not wait 90 days for their funds.
Many middle class people do not recognize their savings, because they believe they will still be paying income taxes.
However, this view is not correct.
For example, if a person or family making $150,000 lives and purchases only in cash, the largest annual tax burden would be $1,500 whereas under the current tax code it is approximately $11,000 after standard deductions.
also, under the True Tax, there would be no annual forms for the individual or family to fill out.
The True tax does still contain a 10% tax on US corporations and a 20% tax on foreign corporations to pay for the auditors that will evaluate and followup on corporate affairs.
We feel that this new generation of tax will be more than adequate to pay off the current national debt in 5 years.
Also, this True Tax would not be applicable to fund transfers such as a parent giving a child $150,000 to purchase a house. The 1% would only be charged against the transaction to purchase the house.
In the current tax system, if a child is given $150,000 they must include the amount over $11,000 as income for the year.
The commitee that worked this True Tax ratio has been working the tax area for years and have great experience with the convoluted tax code we currently work.
The way we intend to introduce this is under Article V of the Constitution through the states as a call to Convention for proposing Amendments to the Constitution through ratifification by the Legislatures of three fourths of the States. We will then call for a Convening of Congress (House and Senate) to finalize the actual wording.
This action by the Patriots of the nation will again set forth the Citizens rights to manage and control the government and not vice versa.
The country has floundered under the current political system and now requires the people to stand firm and fix the real problems.
Anything less will just lead to further chaos and destruction of our republic.What do you think happens when you increase the costs a business has to pay?
The cost of the product/service increases. Businesses price in all costs, including tax. If you take an extra $10 trillion out of businesses, somebody has to pay for that, and it would be the consumers. Only, we can't afford that.there are 2 ways to defeat inflation - employ a larger workforce to produce more at a cheaper price or use foreign child labor.
the larger workforce at a cheaper price support America, while the foreign child labor does not.
the average middle class individual will be pocketing approximately $7,500 more each year under the True Tax method.
with this additional spending capability the actual cash flow will increase and due to higher demand, more people will be working in America.
through this growth in labor force, there will be fewer people receiving handout from the government, thus we win in two directions - more people paying the True Tax and less people needing money from the government.
In the long run, the True Tax will support a 100% labor workforce and provide for those who cannot work as well without bankrupting the nation.
you may wonder how this would be - it is quite logical when thinking about the foreign governments who will be paying into the True Tax for purchases of our goods. Today they pay nothing - under True Tax, they will pay 1%.
because the True Tax is a simple method, it is sometimes difficult for tax lawyers and tax accountants to understand it because they are looking for the loopholes - since there are none, they remained confused.
additionally, we spend approximately $2.7 trillion dollars on imports that reduces the cashflow internally to the nation because this money is now outside the economic boundaries of the USA.
since the dollar traverses a path of 5 commercial transactions this would equate to a loss of revenue because the funds remain in other countries for their cashflow.
because the USA has only $2.2 trillion of exports, an imbalance of trade equal to approximately $650 billion per year is produced, the USA also loses revenue due to less influx of foreign sales capital.
by placing a 1% True Tax on all the gross amounts of these transactions, the USA would produce revenue of approximately $49 billion that is not collected under the code today.
recoupment of the cashflow is the essence of the True Tax plan where everyone regardless of stature pays the 1%.
- JaxsonRaineposted 12 years ago
0Why won't you answer?
Where is that $12 trillion per year coming from? Somebody has to pay that money.
$12 trillion is the total amount of all income of all Americans in a year... so who do you think is going to pay that bill?every commercial transaction.
see answer above.
the estimated gross commercial transaction value is $1 quadrillion (or 1,000 - trillion dollars)
this comes from the cash flow model that estimates the transfer of cash within the USA for a year.You're not understanding...
When you tax money, that comes out of the system. It comes out of personal or corporate accounts.
Where are you expecting the $10 trillion to come from? People and corporations don't have that kind of money just lying around.this is how cashflow works -
when you purchase a cup of coffee you pay for service and the contents.
under the True Tax you will pay 1% of the gross cost.
the vendor will pay no True Tax for the service cost as this is labor not a commercial transaction.
for the contents, I will presume that the cost of a cup of coffee is $.25
so the vendor would pay the True Tax of $.0025
today, the vendor pays nothing.
this True Tax will inflate slightly but should not be significant when considering that the taxpayer will not be paying PAYROLL TAXES.
there are trilliions of dollars spent outside the confines of the USA where no tax is paid because all of these are considered expenses.
under the True Tax, a 1% tax will be placed on these.
foreign companies also pay less tax currently and so reap trillions from the US consumer without paying taxes on that income.
therefore, the funding for the $10 trillion will not come from the middle class but the companies that have been ripping us off for years.
it is obvious that economics is too frustrating for some as the simplicity of the operation overwhelms most because it does not burden the middle class only the current tax dodgers.
as another example, lets say a corportation wants to fight their tax bill in the future. All commercial transactions are taxed, so the payment to the lawyers will include a 1% tax fee for all associated costs such as court filing fees, transportation expense, labels, water, etc.
your insight is really based on wondering who loses - right?
well, the losers are the international banks and governments that are currently hiding and stealing money from the US taxpayers under the current corrupt code.So at some point, that mythical cup of coffee (where do you live that you pay 25 cents by the way) .... would increase in price to pay for the "true tax". Therefore if you really believe that the "business" and not the consumer is paying this "true tax" you're even more delusional than Herman Cain who in effect stated that someone making $200,000 a year and paying 9% tax would pay $18,000 and someone who earns $16,640 (minimum wage of $7.50 an hour) a year would pay $1497.60. Now this might make sense except who do you know in any corner of the US that can rent (or own) a home, pay for insurance, buy food and otherwise care for their families on that pittance?
you obviously do not live in a logical world.
the individual will pay no income tax - so this is where the money for the True Tax will come from for the individual.
However, many foreign and national corporations pay not tax on the majority of their money. but they do pay lawyers and tax accountants to figure out all the loopholes that will allow them to not pay tax.
they also steal proprietary and intelectual property and pay many other lawyers and investigators to prove that they have the right to use our technology to sell us goods and services from foreign sources.
all of this will stop under the True Tax because these companies will have no loopholes to use and so now will pay an equal tax.
this is what is fair - so in some cases, yes, the price of goods will rise, because we are supporting our American family - but that is a good thing because we will still have an American family to support.
if we continue to ride this wave of foreign child labor and cheap foreign incarcerated labor, a few Americans will continue to excel while the rest of us will perish. this will lead to the destruction of America and so it really would not matter what tax was paid then.
It does make sense to logically support a tax pattern that will support America and not the foreign interests or American corporations that find loopholes to not pay taxes.
Besides, the True Tax will mean that Buffett will pay the same percentage as his secretary. And, everyone knows that this is a good thing - right?under the True Tax,
a person earning $200,000 will pay $2,000 in Tax
the company employing the person earning $200,000 will pay $2,000 in tax
a person earning $16,640 will pay $166.40
the company employing the person earning $16,640 will pay $166.40 in tax
the people who lose under the True Tax system are the foreign governments and the US lawyers and tax accountants.
the people who win under the True Tax are the middle class.
and - logically speaking, when we determine the level of income that identifies poverty level, the True Tax will have enough funds to support those below that level by refunding to them an equivalent amount of funds to place them above poverty level.
this may not provide a 55 inch digital box for everyone, but if they manage wisely, they will be able to get a better education that will allow them to rise above poverty in the USA.
- JaxsonRaineposted 12 years ago0
Ok taburkett... I really would suggest you think your plan through a little bit better. There is no way to magically pull an extra $10 trillion out of our economic system.
Have fun with it though, lol.there is no magic in the cashflow values applicable to the domesitc or imported products.
however, the cashflow does represent a value based on all commercial transactions, not simply the end product of net income.
Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period.
So, GDP for the USA does not include the GDP of foreign goods produced outside the USA.
Additionally, GDP includes many commercial transactions that would be taxed several times through the True Tax model.
as an example, the tires on an automobile would result in several 1% taxes levied at various levels of the commercial activity. first would be the purchase of the raw materials, next would be the purchase of the tires by the vendor or middleman, then there would be the puchase by the auto manufacturer, and ultimately there would be the tax to the car purchaser. In each instance there would be a little more tax collected under the True Tax that is not collected today. Overall, the tax collected through True Tax is estimated to be less than 5%.
inflation estimated due to the leveling of foreign made goods is expected to be 47% of current imported good retail price based on current labor valuations. However, due to the nature of child labor in many foreign countries, this could rise based on the inhumane ventures of the vultures.
we will continue becuse we do need a citizen based tax plan not a political corrupt one.
by the way, one of the committe members just reminded me that part of these taxes under the True Tax will come from elimination of some of the large payoffs by lobbyists in the nations capital when the corporations must relinquish money for the True Tax because they will no longer be able to buy congress and a tax code they want that benifits only themselves..this is the cash flow information
http://www.bis.org/publ/cpss99.htm
click on Full Copy
click on USA
find table 21
you need to study the table 21 under USA closely because this is where the $10 trillion is generated.
these numbers include all commercial transactions processed for the USA.
Table 21
Value of contracts and transactions cleared
(USD billions, total for the year)
National Securities Clearing Corporation1, 2
Total value of contracts and transactions cleared 217,450 billion
Fixed Income Clearing Corporation1
Total value of contracts and transactions cleared 1,205,900 billion
a) Government Securities Division3
Total value of contracts and transactions cleared 1,101,700 billion
b) Mortgage-Backed Securities Division
Total value of contracts and transactions cleared 104,200 billion
1 Subsidiary of DTCC.
2 Includes equities, corporate and municipal debt, American Depository Receipts, exchange-traded funds, unit investment trusts, mutual funds, insurance products and other securities. 3 Includes Treasury bills, bonds, notes, zero coupon securities, government agency securities and inflation-indexed securities.
Source: Depository Trust & Clearing Corporation
based on these numbers, the True Tax would generate $12 trillion
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