freediver wrote on Jul 10
th, 2022 at 8:32pm:
Linus wrote on Jul 10
th, 2022 at 7:31pm:
freediver wrote on Jul 10
th, 2022 at 6:25pm:
Linus wrote on Jul 10
th, 2022 at 4:39pm:
freediver wrote on Jul 10
th, 2022 at 3:42pm:
Quote:This can be as low as a fraction of cent per dollar on each transaction.
How much revenue would that raise, compared to current taxes?
From what I've read on it, it could easily be revenue neutral.
Did you think about what you read?
Currently, you get paid. Depending on what you earn, you might pay 30% tax. Plus 10% into super. Plus medicare levy. When you spend the money, you pay about 10% GST. Plus other taxes and levies, depending on what you buy.
If all of this gets replaced by a tax of a 'fraction of' 1%, where is the rest going to come from?
Currently, the government collects 29% of GDP as tax.
You're possibly missing that the same 29% would be collected over a trillion or more transactions. Every TRANSACTION of every person would be contributing every time their accounts are debited or credited. It will be maximally broad-based. Everyone who spends and receives a dollar will pay.
As the old Chinese proverb goes, many hands make like work.
Again, the benefits of an automatically collected single tax rate on every transaction in the economy is a hell of a lot better in my view than the eclectic, politicised, resource sucking system we have now.
Just look at the taxes you mentioned. Look at the wasted time and effort involved in administration and compliance activites-public and private, which could be spent productively elsewhere. Look at the ever growing encyclopedic tax laws and regulations with virtually every kind of tax . Veritable minefields-CGT, FBT, GST, Payroll tax, Land tax etc, etc- not to mention the unnecessary intrusion into everyone's personal lives by big brother. All that could be dispensed with.
If this tax came in, the first thing I would do is get the bank to combine all my accounts into one. Home loan, credit card, online transactions, ATM withdrawals etc. No more shifting large amounts of money between different accounts. So, where are all the extra transactions? I would get paid the same amount - tax down from over 30% to a fraction of 1%. I would buy the same things - tax down from over 10% to a fraction of 1%.
You are the only one saying it could be revenue neutral at that rate. And all you have said is that you "read it somewhere". Yet you have latched onto it like a religion. You are full of crap. No wonder John has taken an instant liking to you.
Quote:Every TRANSACTION of every person would be contributing every time
It already is, when they get paid, and when they buy anything.
The rate was given by way of making the concept concrete. I did say that it would have to be determined by government. The rate could go up or down depending on circumstances.
The main point is that what will be taxed is the total value of the transactions base in the economy, which is several times that of the current tax threshold determined base. That's why a minuscule amount can be collected on every dollar.
Even with actions like yours, the transactions base would be so large that only minor tweaks to the rate would probably be needed. You'd probably find, eventually, that trying to live an ascetic style to beat such a small amount on your dollar would not be worthwhile.
The economist who developed this alternative tax proposal for the US, calculated that even if the amount in the transaction base halved, the government could just double 0.3% to 0.6% i.e from 3/10 of a cent in every dollar to 6/10 of cent in every dollar (on each side of the transaction). I very much doubt actions like yours would cause the total value of transactions to fall by as much as 50%-even if they did, the rate would be adjusted.
I would restate the benefits of the automated transaction payments tax:
- one tax to cover all taxes from all tiers of government.
- no transaction escapes tax.
- a minuscule amount of tax is paid on each dollar.
- no red tape for tax collection, no tax returns required.
- a freeing up of human endevour from taxation.
- skewed to the rich as they embrace a disproportionate amount of total transactions in the economy
- it is collected automatically in real-time. People don't have to worry about it and everyone knows that every dollar is being taxed.
The economist who came up with it is Dr Edgar L. Feige.
If you want to see his proposal, look here:https://www.slideshare.net/kadiam/the-automated-payment-transaction-tax
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