A better economy means using a better system. With more than $13 trillion moving electronically every day through our economy, the U.S. government could apply a small tax on each transaction to create a Universal Basic Income for citizens, pay off the national debt, and put an end to our current income tax.
The problem with the current U.S. tax system is that it primarily taxes one source: income. The income of everyone in America represents only a third of 1 percent of all payments in the economy. Corporate payments are even less.
Social Safety Net
Creating a social safety net is about rewriting our broken welfare and social security systems. Instead of overpaying for these out of date systems, we could simply tax 2 cents on $10 of every transaction, and create a universal basic income with retirement benefits for every citizen.
Healthcare in the U.S. averages about $10,000 per person, which is three times more than what other developed nations pay. Under a new financial operating system, the federal government would deposit a monthly cash benefit in a medical savings account for individuals who would choose to spend it on insurance or directly to less costly provider groups.
By adding a small tax on the flow of money- at two-tenths of one percent (0.2%), our country would generate enough revenue to let students attend college for free within limits, paying up to $10,000 per year to cover college tuition. By incentivising students to select efficiently priced institutions, there is less student debt, and college costs decrease for everyone.
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Voices In Our Economy
With the U.S. Senate in Republican control and the House under Democratic leadership, experts are saying that a divided U.S. Congress may have a moderating effect on the economy, ensuring that politicians hew to a middle ground in adopting policy changes. Reforms are...read more
In a Nov. 11 column in the New York Times, law professor Tim Wu examines the connection between economies dominated by monopolies and cartels and the rise of fascism. As a historical example, Mr. Wu, who specializes in anti-trust law, looks at pre-World War II Germany...read more
The financial transaction tax may well be the wall flower of taxes, with so much promise in the area of tax reform yet ignored or passed over for decades by many policymakers, business leaders and economists. But all that may be about to change, as an FTT increasingly...read more
What We Do
Our mission is to guide solutions for the modern economy. The foundation seeks to educate, inform and engage Americans about the economy and alternatives to the income tax. The foundation promotes citizen forums, policy initiatives and national conversations on the economy to educate people about the need to modernize our taxation system.
How We Do ItWe give people the information they need about financial challenges and the economy to make effective choices and informed decisions. Through the Econ News Wire, national forums with expert panelists and books and articles, the foundation seeks to guide people to a better understanding of the economy. Specific topics of interest include taxation, banking reform, universal basic income, free college and free basic health care.
What a Payments Tax Would Do For You
Here’s a plan that supports consumers, American workers, senior citizens and the poor. Both Republicans and Democrats finally have a plan that works for all people.
Use our Calculator Wizard tool to see how your budget would be impacted under the plan.