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 Instead of overpaying for these out of date systems, we could simply tax 2 cents on $10 of every transaction, and create a universal basic income with retirement benefits for every citizen.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
China is drafting a new patent law that raises the penalty cost of violating patent laws. The goal of the law is to encourage innovation. This article raises the important question of how strong patent laws should be to encourage innovation while still allowing enough...read more
The smallest Indian state has proposed a UBI for its more than 600,000 citizens. While UBI studies in developing countries vary substantially from those in developed countries, they can be helpful in showing what the impacts of such a policy are. Sikkim, situated in...read more
Over the past two years, the President has doubled U.S. tariffs. Not surprisingly, trade partners have volleyed back with tariffs of their own, putting a damper on growth by nearly 2 percentage points in the third quarter, a rollback of potential growth that could...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.