The Reform Coalition embraces the Automated Payment Transaction (APT) Tax as a substantive improvement over the existing tax system. Over time as it is phased in it allows the ELIMINATION of personal and corporate income taxes, state income taxes, capital gains taxes, fuel, gift, estate, excise, and sales taxes.
A family that previously paid between $5,000 and $15,000 in taxes ends up paying less than $1,000 a year in fees BECAUSE instead of taxing income we tax all financial transactions, and instead of taxing only income we tax ALL transactions that now escape taxation, particularly financial transactions including stock purchases and currency trades.
It is one very low universal tax rate, automatically and immediately collected. It ELIMINATES tax returns, lobbyists, and special deductions.
It ELIMINATES the huge cost to taxpayers of paying taxes, the cost of the government in collecting taxes, and the cost of taxes that should have been collected but were avoided by cheaters. These are big numbers.
ENDS personal income tax. ENDS corporate income tax. ENDS state income tax.
ENDS fuel, alcohol, and cigarette taxes. ENDS sales, estate, and excise taxes.
ELIMINATES the deficit and RECAPITALIZES infrastructure and job-intensive industry.
Since the volume of all transactions is estimated to be 100 times larger than the current tax base, the flat tax rate needed to raise the same amount of revenues is just a hundredth of the current average tax rate of roughly 30%. So if transactions stayed at their current level, the APT tax rate would be three tenths of one percent (0.3%) on each transaction. Even if total transactions fell by 50%, the revenue neutral APT tax rate would only be six tenths of one percent (0.6%) split equally between the buyer and seller in each transaction so each would pay 0.3%.
When combined with a Balanced Budget, True-Cost Economics, and a Coalition Cabinet that imposes discipline and intelligence-based decision-making, this tiny tax in lieu of ALL other taxes changes the economy, the government, and society for the better.
NOTE: The Tobin tax, a tax on currency transactions, has support among economists, but does not go far enough. The constant stock trading and speculation, the currency and rare minerals speculations, the transfer of funds among multinational corporate bank accounts to avoid taxation–these are all essential parts of the pie as illustrated above. We respect the Tobin tax, it is integrated into the larger concept of an APT Tax.