The Inevitable Tax Solution
ONE TAX FOR ALL – SALES AND TRANSACTION TAX SYSTEM
To be clear no one will dispute the need to pay taxes to fund the states’
and the nation’s infrastructure and essential services.
“One Tax For All” is the future tax system that will ensure a pro-growth economy for all citizens to obtain more wealth and prosperity.
“One Tax For All” is a modern, efficient, simple, national sales and transaction tax system that guarantees all segments of our economy will be able to compete evenly in the pursuit of the American Dream.
250 years ago, Ben Franklin said, “There is nothing certain but death and taxes.”
It is certain we need taxes, but we need just “One Tax For All” to unleash the wealth of the Nation.
It is undeniable and impossible for the tax systems we use today to collect enough taxes to keep up with the needs of our nation. Ever-larger demands for infrastructure and government services will require a tax system that will collect enough taxes to balance the budget, pay down the debt, and benefit the economy.
Every economist will agree, it is inevitable that the Sales and Transaction Tax system (STT) is the only tax system able to collect enough taxes fairly to balance the budget and pay down the debt. “One Tax for All” is:
The sole and only tax collection system for All Segments of the Economy (ASOE); no other taxes.
The lowest tax rate possible.
The easiest tax to administer and collect, with the least number of rules, laws, and regulations.
A tax system that spreads the tax burden evenly and fairly across all citizens, non-citizens, businesses, enterprises, and organizations; All Segments of the Economy.
A tax that creates maximum cash flow for the economy.
A tax that will collect enough funds to maintain a balanced budget.
A tax that will start to pay down our national debt.
A tax that will unleash the wealth of the United States to be the most competitive economy in the world.
1. Sole and only tax collection system for All Segments of the Economy (ASOE) – no other taxes
“Everything should be made as simple as possible, but not simpler.” Einstein
Today federal and state governments use a variety of taxes to try to keep up with the growing demands of the nation’s infrastructure and government services. Look at the current and proposed list of taxes:
• Federal Income Tax
• State Income Tax
• State Consumer Sales Tax
• Estate Tax
• Capital Gains Tax
• Excise Taxes:
• Highway Tolls
• Proposed Gun Tax
• Proposed Carbon Tax and more...
Why are taxes so complicated? Why are there so many tax systems?
So, the obvious question is, is it possible to have just one simple tax system?
The answer is yes!
A simple, logical solution; take all the tax collection systems and combine them into just “One Tax For All”. Brilliant!
Tried and true, there are nine states that have no income tax, however, they still have property taxes. In these states, most taxes are collected from a simple consumer sales tax. Proof that a sales tax works, the states that have switched to a consumer sales tax vs. income taxes are booming and citizens are flocking to them. State sales tax rates are usually under 10%. Each day states such as West Virginia and others are considering a sales tax vs. an income tax.
The problem with a consumer sales tax system is citizens are paying almost all of the state taxes, while other segments of the state's economy are using a large part of the infrastructure and services but pay relatively no taxes.
Citizens after paying state sales tax, state property taxes, and excise taxes will pay 12-15% in state taxes alone… Then add Federal taxes!
Sounds like a good idea so far, right? What if the nation adopted a national consumer sales tax system? What would be the rate?
The national sales tax rate alone would have to be 20-24% of consumer purchases-Wow! This will never work and would slow down consumer sales and again, citizens are paying practically all the taxes.
A national consumer sales tax added to state taxes could be 30-45% to be paid by citizens. That will just not work.
So what is the missing element?
All Citizens And All Segments Of The Economy Have To Have A Little Skin In The Game!
The missing element: A bigger common denominator -
All Sales and Transactions!
Think of the economy as a “superhighway toll road.” Every time a citizen, non-citizen, business, organization, or enterprise uses the superhighway of the economy, they pay a small toll (tax). This “Pay-As-You-Go” system would create the lowest tax possible. Every citizen, business, organization, and enterprise will have a little skin in the game.
"Just think, the next time you buy a Coke and candy bar, get a haircut or perm, buy ink cartridges and paper, you're paying your taxes! Just Pay-As-You-Go!" (Our original quote from 2013).
The “One Tax for All” National Sale and Transaction Tax (NSTT) system combines all tax systems into one - No other taxes!
Food for thought... The citizens being like landlords (owners of the United States) are paying most of the rent for tenants - businesses, organizations, enterprises, and government. Businesses, organizations, enterprises, and governments use a large portion of the infrastructure and services, but only pay 8-10% of the tax bill.
2. The lowest tax rate possible
All economists agree a thriving free-enterprise/capitalist society should have the lowest tax rate possible that will have the least impact on its economy.
The only way to get the lowest rate is by spreading the “One Tax for All” NSTT across all segments of our economy.
How many dollars in sales and transactions are in the United States each year?
What is the Total Economy of Sales and Transactions (TEST) of our nation?
No one really knows. There are wide-ranging estimates of all our annual TEST. It could be as high as $1,200 trillion ($1.2 Quadrillion), and as low as $500 trillion. For example, Wall Street averages $5 trillion of trades and transactions each day! Another WOW, and with no taxes associated with this enterprise!
If you use the TEST (the denominator) to divide into the federal budget it is feasible to reach a nominal federal tax rate as low as 1% for all sales and transactions.
Then if you add another 1% to the NSTT could start to pay down our national debt.
The power of multiples is the secret to NSTT; the more sales and transactions, the lower the rate of the NSTT.
Food for thought... Total Economy of Sales and Transaction is the most accurate and actual measurement of the economy. TEST is a true economic indicator that tracks daily all economic activity of the states and the nation by SIC Code.
3. The easiest tax to administer and collect, with the least number of rules, laws, and regulations
Let’s repeat a quote from the previous segment, “Just think, the next time you buy a Coke and candy bar, get a haircut or perm, buy ink cartridges and paper, you’re paying your taxes! Just pay as you go!”
Can it be that simple? Yes.
Upon all sales and transactions by ASOE the provider/reseller will add the low NSTT rate to the sale or transaction.
Then the provider/reseller makes their deposits to the bank; the bank then automatically deducts the low NSTT rate. At the end of every business day, the bank sends the collected taxes to the Federal Reserve. It is automatic.
The NSTT has four basic rules or regulations:
1. All Segments of the Economy shall have a checking account
2. ASOE must make all income deposits into the bank using SIC Code
3. Federal government shall have a budget cap of $5 trillion
4. The NSTT rate will never go over 5%
4. A tax system that spreads the tax burden evenly and fairly across all citizens, non-citizens, businesses, enterprises, and organizations - All Segments Of the Economy (ASOE)
Sharing the tax burden across ASOE is the fairest system of all. “One Tax For All” draws a distinct correlation of how taxes could be generally allocated. It is everyone’s responsibility to create an economic environment that gives everyone an equal opportunity to be successful. Ultimately, all citizens will benefit.
The stronger the economy and more growth in GDP and TEST, the lower the rate will be.
Some experts will argue that NSTT will create tax pyramiding - “A Tax-on-a-Tax”. What’s wrong with that? It should be looked at as compounding, getting “more bang for your buck”. Besides with all the tax systems we use now there has always been “Taxes on top of Taxes”.
Remember, NSTT limits pyramiding or compounding as the law will include a fixed government budget. The government will only be allowed to collect just enough taxes to pay the budget. If a tax surplus is created, then the rate will be adjusted lower. If not enough taxes are collected, governments will be limited by the law of the rate to never go above 5% NSTT rate.
5. A tax that is “good for the country” and benefits our economy with the maximum cash flow with no negative effect
The NSTT system will benefit and secure the welfare of citizens:
• The NSTT system will allow for more investment
• The NSTT system will fund government services that benefit citizens
• The NSTT system is a cash system with no more delinquent taxes
• The NSTT system will create the maximum cash flow for ASOE
The NSTT in the first year of use would create more cash flow for the citizens and have the effect of the GDP to increase 10-15%. Spreading the tax burden over ASOE would be like citizens getting a raise. The structure of NSTT is different from an income tax as you only pay taxes when you make a purchase or receive a service. The current income tax system slows the cash flow of our economy as it takes the taxes off the top.
The NSTT will create a hyper-competitive U.S. economy. Businesses will benefit: There will be no corporate Income Tax.
• No more withholding and complex tax filings; estimated savings of
$500 billion a year in administrative costs
• The additional cash flow will create increased consumer spending
• The NSTT will stimulate more investment into U.S. businesses
• Foreign businesses will invest and/or open in the U.S.
6. A tax that will collect enough funds to maintain a balanced budget
“One Tax For All” cash system will increase tax collection without crippling our economy.
Currently, our income tax system, estate tax system, capital gains tax system, and federal excise taxes fall short of paying our annual federal budget.
The United States falls short by $500 billion to $1 trillion in tax collection each year increasing the national debt. Plus, with COVID 19 and natural disasters, we have accumulated $4-$5 trillion in additional debt in 2020. In 2021 already we have an estimated $10-12 trillion in proposed spending!
7. A tax that will start to pay down our national debt
How will we ever pay down the national debt?
Under the current tax systems, never!
Now, with the unforeseen expenses caused by COVID-19 and natural disasters, the United States has an estimated additional $4 trillion or more in new debt in 2020. 2021 is adding even more to our national debt.
This is an economic crisis; this extreme debt is guaranteed to cause the value of our currency to go down causing inflation and economic destabilization.
The only solution is the “One Tax for All” National Sales and Transaction Tax System to start the pay down of the national debt.
8. A tax that will unleash the wealth of the United States to be the most competitive economy in the world
By lowering tax rates to the lowest rate possible all segments of the economy (ASOE) can focus on their core business with no government intrusion caused by taxes. Shifting the tax responsibilities to ASOE is like adding $3.5 trillion in cash flow to the growth of our economy in the first year.
One Tax For All – NSTT will initiate a pro-business, pro-growth economy for all citizens to prosper. ASOE will thrive and millions of new jobs will be created. The United States will be the most attractive economy in the world for foreign investments. New investments in factories and technology will boom.
The success of our citizens, our economy, and our Nation will rely on citizens demanding elected representatives to unleash the wealth of America with “One Tax For All”.
By putting off our responsibility it will only delay the unavoidable; more debt that will jeopardize our Nation’s future. The need to collect more taxes is undeniable! It is everyone’s responsibility to pay for the infrastructure, government services, and national debt.
The United States to stay competitive and keep growing the greatest economy in the world needs a modern, efficient, simple tax system that benefits all citizens and all segments of our economy.
The current tax collection systems are like “an old suit of clothes we have finally grown out of, it’s time to get dressed for success!”
If Ben Franklin were alive today he would say,
“It is certain we need just One Tax For All”.