If Our Nation Was Run Correctly, We Wouldn't Pay Taxes, We'd Earn Dividends
Taxing income is the way we collect revenue today to pay for government spending. Under our current system we are unable to balance our budget, falling short by 1/2 trillion dollars each year. The shortfall is borrowed, adding to our skyrocketing national debt.
We tax the $16 trillion in income we earn, the small blue sphere in the diagram. We don't tax the whopping $5,000 trillion in payments that occur each year, the large green sphere. Our government's budget is $4 trillion, the tiny red sphere.
If we were to implement the below programs when taxing income, someone earning $100,000 would have to pay over $76,000 in taxes.
There's been a lot of talk about providing everyone with a Basic Income, but as long as we tax income it's an impossibility. With a Payments Tax a Basic Income of $24,000 per year for every adult citizen, regardless of financial status, could be a reality.
Today's student loan program is leaving millions of students with crippling debt. The easy credit of student loans has made the price of college skyrocket. The Challenge Program is the best way to bring the cost of college under control. A Payment Tax could provide free tuition for every college student.
A Payments Tax would permit everyone in the U.S. to receive basic healthcare for free. Under the AMA program, you control your own destiny, not an insurance company or the government. You use your benefit to pay for the healthcare you want.
Social Security is sliding into bankruptcy. If we stay with the current system, we'll either have to cuts benefits or increase FICA taxes soon. A Payments Tax could fund higher benefits than the current Social Security system does, and at a lower cost to you than our current FICA tax system.
Today an unemployed couple receives benefits from Welfare. Depending on the state they live in, they may receive around $10,000 in annual benefits, plus Medicaid.
Under the proposed solutions, the same couple would receive $48,000 annually in Basic Income, plus Free Healthcare. We'd no longer need welfare.
Today a couple earning $30,000 per year nets about $25,000 after paying $1,000 in taxes and $4,000 in healthcare costs.
The same couple would receive $84,000 under the proposed system, which would be comprised of $30,000 from their salaries, $6,000 in Earned Income Credits, and $48,000 in Basic Income.
Today a family earning $250,000 with a $500,000 mortgage pays about $58,000 in income and payroll taxes, $32,000 in mortgage payments, and $14,000 in healthcare costs, leaving them with net disposable income of about $145,000.
The same family would net $280,000 (after paying for housing) under the proposed system, which would be comprised of $250,000 from their salaries, paying only $17,000 in mortgage payments, having no healthcare costs, and earning $48,000 in Basic Income.
Click the button below for a summary of what our new budget would be with the above programs. We could not afford these programs today when taxing income. They are only possible with a Payments Tax.
Copyright 2017 Scott Smith