WE ALL HAVE A VESTED INTEREST IN THE ONE TAX INITIATIVE, PLEASE HELP US OUT!

Transcription

1 WE ALL HAVE A VESTED INTEREST IN THE ONE TAX INITIATIVE, PLEASE HELP US OUT!

2 More from Shirley Peterson Our current tax law discourages savings. Individuals are taxed on their earnings and they are taxed again on income from savings. Corporate profits are taxed twice: once at the corporate level and again at the shareholder level. Capital gains, including gain from inflation, is taxed and the tax law still favors the debt over equity. The tax system thus bears some responsibility for the current low rate of savings in the United States. We need to design a tax system that will at a minimum not discourage savings I want to emphasize that I do not favor adding on new taxes. Rather, I urge total revision of the current system. In my view, the desirable characteristics are as follows: The tax should be simple It should be easily understood and administrable It should be fair It should minimize opportunities for tax avoidance It should not discourage savings It should be neutral with respect to the economic allocation of resources It should enhance the country s competitive position in a global economy From Curtis Holmes, President, Tax Payers Association Under the current unfair taxing system, you own absolutely nothing! You cannot even call your body your own! Even worse, not everyone pays their fair share. Who pays and how they pay is simply at the discretion of the powers that be. Our proposal is a COMMERCE TAX. How much? One penny on the dollar or 1% per purchase that everyone pays. There will be no exemptions, no exclusions, no exceptions, no loopholes. HOW IT WORKS Every time a purchase is made in Ohio (or any state that adopts the plan) one percent of each dollar of the purchase is the tax. That s it!!! No more property taxes, no more impact fees, no more special assessments, no more excise taxes, tangible taxes, no more sales taxes, no more probate taxes, or hidden taxes either. The Commerce Tax will generate all the money state and local government need while increasing money in our own pockets substantially, thereby giving us more purchasing power which in turn means need for goods and services which creates more jobs. WHERE THIS TAX PLAN BEGAN 1 You will give a tribute, or I will thunder against your city and destroy it. Aristophanes concerning Athenian tributes (taxes). In the 6 th Century B.C., the Persians under Cyrus, ruled the entire civilized world, including Egypt. The Greeks mainland was the only area not subject to Persian taxes. Around 490 B.C. the Persian King Darius sent envoy s to the Greek city-states demanding that they submit to Persian tribute. The city-sates were all independent and ripe for takeover by the powerful Persians, who could see no reason why Greek riches should be flowing to Darius along with everyone else s. Two leading Greek cities, Athens and Sparta, formed a defensive league with other smaller city-states. This new league assessed taxes from its members in order to form a common army with a central command, (kinda sounds like NATO). With this united front the Greeks did indeed defeat the Persians at the Battle of Marathon. The importance of this battle is second to none, despite the fact public schools do not teach it. Because the Greeks prevailed against the Persians, Greek culture took control of civilization and has played a dominant role ever since. To this day, we copy Greece s architecture, art, produce her plays, study Greek philosophy, admire its science (by the way, the Greeks knew the world was round 18 centuries before Columbus did and even calculated the earth s size, within a few hundred miles, way back when. They also knew that the sun was the center of our solar system.) We also revere her love of liberty and democracy. The Greeks applied their intellect to politics and economics. They invented democracy and established a highly developed system of capitalism. OUR political and economic system is modeled after the ancient Greeks. In ancient times (what s really changed?), except for the Greeks, all civilizations was achieved by despotic governments. It can be argued that the Greek s greatest talent may have been their ability to be build civilized society without the loss of liberty. Greek democracy and liberty developed out of some bad experiences (doesn t this sound familiar?). Immediately before the rise of the ancient Greek democracy, tyrants and Draconians ruled Greece. The Greeks taught the world about the evils of TOO MUCH POLITICAL POWER, but we have not learned this lesson very well. Draconians and tyrants still plague civilization and lurk in hallways of all governments, waiting for a chance to rule (hmmmm). The tyrant exercises government power oppressively. Whenever excessive power is bestowed on a government agency or official, tyranny will follow!!!! The arsenal of power given to our modern revenue bureaus makes them seedbeds for tyrants. Toda, we often attach brutal penalties to enforce regulatory matters outside the realm of the true crime. The ancient Greeks fathered the study of history. Why? They thought history was one of man s most important tools for survival. There were lessons to learn from history, which repeats itself because man behaves in a predictable pattern under similar circumstances. Greek historians compared Oriental (Persian) despotism with Greek democracy. Why were the Greeks a free people while the Persians lived under despotic rule? The Greeks concluded that private property was a factor. The Athenian people respected property because they respected liberty. The Greeks further perceived that tyranny was the product of the tax system. If liberty was to be preserved, the tax system of the tyrants must be avoided.

3 The tax system is the barometer of the liberty in any society. To the Greeks, the badge of liberty was indirect taxation. The individual is not taxed directly. What was taxed is COMMERCIAL ACTIVITIES, such as a sale, imports or the use of a public facility (roads, bridges, sea lanes, etc.). And I thought Alexander Hamilton engineered the Commerce Tax. Money played a key role in making Athens the commercial capital of the world. The drachma was the most respected currency in the world. Its silver content was pure. The Greeks guarded its value and purity like the Swiss guarded their Franc or America attempts to guard the dollar. In short, good laws protecting property, sound money, safe sea-lanes, and low taxes were the foundations of Greek prosperity and liberty and No, Ronald Reagan was not there! I am now, more than ever, sure the Commerce Tax will restore our Constitutional Republic. If you took the time and Google history and read the history books, you will discover that our current tax system is the tax system of the tyrants. It punishes the productive, it seizes your property, it stifles individual initiative, and worse yet, it rewards the unproductive ever heard of welfare or entitlements? How about the write-off for the bad decision? What reward do you receive for making a good business decision? Your taxes go up please see the Capital Gains Rules! In depth explanations are available, it is just mind-boggling on paper! Where do we go from here? Well the problem has been properly identified the solution is at hand, the JUST ONE TAX initiative. Turns out that this proposal is the system of the ancient Greeks, AND IT WORKED QUITE WELL!!!! Perhaps we should change the name the actual inventor of the plan was called (not making this up either) Aristides The Just. We shall call it JUST ONE TAX. WILL IT WORK? You betcha! Here is How! Will a maximum tax of 1% (on all commerce) support all the tax entities in all states? ABSOLUTELY! Let s review a few of the facts. What is the REAL economic muscle of the United States? The following charts are form the US Government and in some cases they have changed the access and layout of the information for release to the public. I wonder why? Honestly, in trying to explain the way money is collected, spent or misspent is difficult to say the least and since our inception of looking and discussing the Commerce Tax, data has been suppressed. The fact is it works and is logical in all the movements of monies and collections. Bankable monies the United States is measured by M1, M2, M3 (there is an M0). M1 is cash, traveler s checks and demand deposits. A demand deposit is a checkbook or debit card. Also M1,M2, and M3 are ONLY accounts at banks. Not counted are credit unions, accounts with stock brokerage firms or any federal accounts (interesting!).

4 Back to the question, what is commerce? Exchange of goods or services for money or in kind, usually on a scale large enough to require transportation from place to place or across city, state, or national boundaries. Non commerce is the likes of cashing a check, transferring money from checking to saving, or vice versa, transferring monies from interesting bearing account to a non-interesting bearing account these are called laterals. A lateral is NOT commerce. Laterals make up about 39% of all activity. For too long, government and business have operated in an atmosphere of confrontation rather than cooperation. The COMMERCE TAX initiative will change this the better business does, the jobs are created. This is a true long term economic revival.

5 WHAT THE COMMERCE TAX IS NOT It is NOT THE Stealth tax or- the value Added tax (VAT). Here is how a 10% VAT would work, and do not forget, ALL OTHER TAXES ARE STILL IN PLACE. THE VAT IS JUST ADDED ON TOP! 1. Raw material. Shoe leather is produced and sold to a manufacturer. Price $20.00 VAT $ 2.00 Total $22.00 Supplier collects $2.00 VAT from the manufacturer and sends to the IRS. 2. Manufacturer. Manufacturer produces a pair of shoes from the leather and sells them to a wholesaler. Price $4.00 VAT $ 4.00 Total $44.00 Mfr. Collects $4.00 from wholesaler, subtracts $2.00 credit for the already tax he has paid, remits $2.00 to IRS. 3. Wholesaler sells the shoes to a retailer. Price $70.00 VAT $ 7.00 Total $77.00 Wholesaler collects $7.00 from retailer, subtracts $4.00 credit for the already tax he has paid, remits $ Retailer. Retailer sells shoes to customer. Price $ VAT $ Total $ Retailer collects $10.00 VAT, from the customer, subtracts the $7.00 credit for the tax he paid, remits $3.00 Ultimately what does the government collect? At the end, using only a 10% VAT, the government has collected $10.00 in ADDITIONAL taxes sales tax can and is added on top where applicable. The Spanish Empire had a tax called alcabala. This tax was so hated that Queen Isabella actually requested, in her will, that the tax be abolished. The tax was one of the principle undoing s of the Spanish Empire. And what do we call alcabala today? The Value Added TAX! Not only that, the paperwork required to administer the VAT, will and is a nightmare worldwide. Without doubt, the best way to fund a government is through the COMMERCE TAX!!!! Worldwide VAT Example: Belgium 21% VAT - United Kingdom 20% VAT - Australia 10% VAT - Denmark 25% VAT FULL CONSULTANCY TEAM AVAILABLE FOR MORE INFORMATION ON THE WEB JUSTONETAX@KEYTALK.US or call +1 (614)

6 COMPARE FOR YOURSELF The Convoluted Federal, State & Local tax versus the Commerce Tax Let us eliminate the current taxing systems and replace them with a Commerce Tax TAX FILING: Cost Complexity Hours to comply Penalties EFFECT ON SAVINGS FAIRNESS GOV T INTRUSION HISTORY HOW VISIBLE PRODUCTIVITY U.S. COMPETITIVENESS EFFECT ON SPECIAL INTERESTS WORK AND INCOME THE ECONOMY FEDERAL INCOME TAX ALONE To fund the IRS: $14 billion/year IRS Code pages 12,000+ IRS Regulation pages 200,000+ Court Ruling pages Millions and millions of hours/year Severe and arbitrary Penalizes savings Hurts honest people, and is controlled by special interest groups Massive files, dossiers, etc. Progressive Income Tax 4 th plank of the Communist Manifesto Hidden, complex, incomprehensible Decreases Severely inhibits economic prosperity Can avoid paying their fair share of the taxes Penalizes both; the more you work, the higher the tax you pay Hurts exports, decreases savings and investment, decreases productivity, increases prices, and hurts wages COMMERCE TAX NO IRS Simple Simple Simple None for individuals None for individuals Rewards savings YOU have control. This is strictly a voluntary tax NONE no direct tie to individuals 46 states use a form of consumption tax currently Visible, simple, understandable Increases Enhances economic well-being Makes the playing field level Rewards work you get to keep the fruit of your labor Stimulates the economy in every way THIS DOES NOT INCLUDE THE TAX PAYER SAVINGS IN ADMINISTRATIVE COSTS THE COMMERCE TAX PLAN PRODUCES. THE IRS WOULD HAVE ONLY 50 CLIENTS! THE COMMERCE TAX PLAN REMOVES ALL SEPARATE TAXING DISTRICTS THERE ARE APPROXIMATELY 100,000 DIFFERENT TAXING DISTRICTS THE COMMERCE TAX REPLACES ALL OF THESE KINGDOM S AND MAKES IT FAIR FOR EVERYONE!

7 Alexander Hamilton could not have said or written it better! (Full Federalist Paper XII) The ability of a country to pay taxes must always be proportioned in a great degree to the quantity of money in circulation and the celerity with which it circulates. Commerce contributing to both these objects, must of necessity render the payment of taxes easier and facilitate the requisite supplies the treasury. Alexander Hamilton Federalist Papers XII FULL CONSULTANCY TEAM AVAILABLE FOR MORE INFORMATION ON THE WEB JUSTONETAX@KEYTALK.US or call +1 (614) COPYRIGHT