This book proposes a one-cent fee
on all electronic financial transfers using ACH and point-of-sale purchases to
replace 1040 income taxes.
EXCERPT: 1040 Taxes Could Be
Replaced by One-Cent Fees
As
stated earlier, it is very difficult to let go of the archaic notions of
withholding, itemization, deductions, and Schedule A’s. The refund event is
unbelievable. I am amazed American taxpayers are so happy to get a two or
three-hundred-dollar refund—when thousands and thousands of dollars have been
withheld from their paychecks for the entire year! Possibly some of you are
convinced there is a moral obligation to pay taxes. In my opinion, morality or
immorality has nothing to do with funding the government. My concern in this book
is only how relatively painless mathematical efficiency can be applied to fund
the Treasury. This proposal is about dollars and cents—especially the cents.
And common sense!
Well-meaning
folks have said my plan is unrealistic or unfair. As I will point out
continually, fairness has nothing to do with this plan. I would challenge any
of you to explain how the current system, the current Code, is fair—or
consistent—or accurate—or simple. By the way, politics has nothing to do with
this new proposal.
My
new system for funding the US Treasury, The Transaction Fee Protocol (known
hereafter as TFP) is based on mathematics, is not political, will generate
sufficient funds, and is simple to articulate and conceptualize. Fully
“automatic,” the TFP will work because the software architecture already exists
to support its implementation. Fantasy football, cash registers, ATM’s,
Amazon—all function daily using 21st century tracking technology.
This
plan is not related to any state income tax, sales tax, property tax, Social
Security tax, Medicare tax, or corporate income taxes—although the TFP will
collect monies from corporations as well. (However, simple adjustments to TFP
fees could also be used to potentially fund national health care, higher
education, and Social Security. More on other possibilities later.)
This
proposal moves forward from a very simple observation—1040 culture exists
because the United States government taxes personal income to raise trillions
of dollars to fund the federal treasury. The amount will undoubtedly increase
in the future—but so will American commerce and the GDP. I have nothing against
the IRS or the giant cottage industry populated by tax interpreting and
preparing professionals. Unfortunately for tax preparers, many of their accounting
services will no longer be needed within the TFP universe. This new plan will
provide a valuable place for the IRS. (It will become the “New IRS,” or “NIRS,”
under the TFP system—a purpose-focused agency explained below.) But the
essential focus of this book will be how we can raise 3.5 or 5.0 or 6 trillion
dollars efficiently and accurately while eliminating the unwieldy and often
suspect 1040 tax return process. I am not concerned with the future careers of
tax preparation professionals.
A trillion is 1 followed by 12 zeros—1,000,000,000,000. This is, of course,
a very large number. The TFP plan, basically, is to “automatically” assess a
one-cent fee (.01 dollar) on all trackable transactions in the US (or those
related international transactions using American financial institutions). To
raise 4 trillion dollars assessing one-cent per transaction, 100 X
4,000,000,000,000 transactions will need to occur per annum. Is it possible? I
believe so, and you will too.
I
came upon this “idea” while examining electricity consumption by American
homes.
According
to the US Energy Information administration, the total sales of electricity to
all sectors of consumers (residential, commercial, transportation, and
industrial) was 3,758,992,000,000 kWh’s in 2015. Think of this—a
one-dollar surcharge (or fee or tax) on each of the kWh’s would have paid the
1040 tax bill for the entire country! Of course, no individual wants to pay
such a fee. But what if fees were spread out into the network of electronic
commerce?
What
about a simple one-cent fee/charge on every financial transaction taking place
within a calendar year? Billions and billions of transactions take place daily
in the USA. I predict sufficient annual transactions occur in five major areas
of the American economy to successfully replace the need for personal income
taxes in the US (using the one-cent per transaction rate). These five sectors
include Financial Services, Equity Markets, Energy, Retail Sales, and
Transportation.
Examples
and statistics from each are described below. I will not provide exhaustive
lists of transactions. The New IRS will be charged with finding, monitoring,
and validating appropriate transactions—and setting up the processes for
channeling TFP monies into the federal treasury.
But
the proposal provides stunning documented figures, which clearly support the
veracity and simplicity of this plan. As a side note, I might mention it is
quite difficult to find simple count numbers describing transactions involving
some aspects of our economy. Growth and economic numbers are typically reported
as per cent changes or dollar amounts—not in customer counts or retail sales
transactions. However, I will supply sufficient information to clearly
articulate the evidence supporting these ideas—and whet the reader’s appetite
for absolute reform of the current federal personal income tax process.
Author
Bio
Jeffrey
Ross, who resides in Arizona, is a writer, rock musician, and former full-time
community college teacher. He has had four "Views" pieces published
on InsidehigherEd.com, has authored and co-authored several national and
international op-ed articles on community college identity, purpose, and
culture, and has recently published numerous parody poems and articles on the Cronk
News higher education satire website. Ross co-authored the comic and
critically acclaimed campus novel College Leadership Crisis: The Philip
Dolly Affair (Rogue Phoenix Press, 2011). He also authored the romance
parody Love in the RV Park: A Romance for
Men (Rogue Phoenix Press, 2013), a nonfiction life history Silent Sonora
(Rogue Phoenix Press 2015), and the mature romance The Auroran: Cold Front Redemption (Rogue Phoenix Press 2016).
KEYWORDS
IRS, income taxes, tax reform, tax preparation, 1040 forms, flat tax,
VAT tax
SOCIAL LIINKS
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TAGLINE
Silent Sonora is a life history
centered in depression era Scottsdale, Arizona. A tent-dwelling family's
struggles, aspirations, tragedies, and triumphs--are revealed.
BLURB
Silent Sonora details the life of a heroic young girl,
Lillian Carroll, whose family resides in two tents during the 1920’s and
1930’s. Set in depression-era Scottsdale Arizona, the book reveals Lillian’s
daily life experiences, the family’s struggles, and her quest for a better life
through education. Lillian tells readers directly about tent life, the local
“emerging” Arizona communities, and the ongoing hardships she and her family
confront. Both of Lillian’s parents are
deaf—her father works in the local agricultural industry, while her
strong-willed mother endeavors to make the best home she can for her
children. Lillian admits that “life was
tough,” but assures us she and her family had good times, too. Ultimately,
Lillian’s desire for a better education helps her situation—her love of family
and strong faith give her the support she needs to finally gain independence.
REVIEW: Silent Sonora
Silent Sonora by
Jeffrey Ross
4 Stars
Review by C. L. Kraemer
Mr. Ross has honored the
narrator of these recollections from the Depression by leaving the text just as
it was presented to him. I felt as if I were sitting with an aunt who answered
my questions without hesitation and didn’t sugar coat any aspect of those
times.
This was a fascinating read
and should be required of all history students. Real life memories give a
better perspective of the situation than novels, however brilliant.
Bravo, Mr. Ross.
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