Under a normal discussion between a liberal minded person and conservative one who are arguing about taxes and the economy there is an underlying divide that is rarely discussed, Who’s money are we talking about. It’s a Chicken and egg fight. Is it the governments Money and they just allow you have some(This is the perspective of government spenders to grow the economy) or is it your money that you traded labor for and it represents your productivity( this is the view of conservatives)
7-7-7-6 (AKA Tax The Pain Plan) It’s a Deposit Tax. Pure Deposit tax. No other taxes, no sales tax, no income tax. You only pay taxes on what you deposit. (Ok for some stinking reason you are now scared man do they have you trained to avoid math) The current system TAKES your money up to 30% BEFORE you deposit and business’s get belted for almost 70% through a series of Layered or Shadow Taxes as I like to call them. Most people have direct deposit and you pay your taxes before its put in the bank. So get a grasp on the reality here in That shifting where taxes are collected has a benefit that is overlooked. That benefit is called “turn on the dollar” A turn on a dollar is the number of times money is spent within an economy before its removed. Taxes are a removal of money from an economy. To be fair Government spending is an insertion of money into an economy, but this is the Chicken and egg fight that gets Americans confused.
For example purposes we are going to use a round number like $100 so that individuals understand how it effects them. If you currently have deposited $100 per month to your account. You pay Fica, Medicare and Social Security tax on that money via your employer. A shift in the tax burden would first require that the money paid by employer be shifted to the employee. So your Deposit would go from $100 to $139. You would pay the 7% deposit tax on the $139 you earn and not the $100 you had left. This is a 30% increase to your income roughly (That’s why they hide it with shadow taxes via your employer you had no clue how much money they take just because YOU have a job) Federal government gets $9.73 in taxes paid by the bank based on your deposit.
Now that seems simple enough for your average every day tax payer to understand that they now have 30% more money. As far as the tax system is concerned the rest of my system has to do with Business and Trade. So don’t let anyone tell you this plan costs you more money cause just like Cain’s which has a 27% boost via business reducing cost this plan has a 30% GAIN directly to your checking account. The fact that we lower costs to business’s just like Cain’s means that we will see the price reduction as well. On with the rest of the plan and WHY.
The Second 7% is actually a Float number imposed by the State it may be lower or higher depending on your state’s philosophy. Replacing State sales with a Transfer Tax, because MONEY LEAVING YOUR STATE IS PAINFUL we are taxing the pain not the gain. Money deposited to the local bank, credit union helps Local people. Money Made by Walmart, Home Depot Chain restaurants, Hotel Chains takes money that was spent Locally and Transfers that wealth away from the community. The immediate and natural tendency of people will be to AVOID even the 7% and they will use Cash. This is a Good thing. This puts strength in local markets through rapid TURN OF THE DOLLAR. Every time they spend while avoiding the deposit to do so they strengthen your local economy by 7% with every Turn of that same dollar that remains in Cash Form. Now the reality is you walk into my store and I got to buy product from another state and when I pay that company they will have that 7% cost built into their product BUT it beats 50% burden built into the product. Remember that most people and companies will only SEE the single layer. It’s when they try to REMOVE money from where it was created that it becomes burdened with heavier taxes.
The Third 7% is Transfer from the country. When you move money to an overseas headquarters you get hit with all 3 7% Federal 7% state and 7% international 21% in total for you taking your profits and playing somewhere else on the planet, if you reinvest in America you get more less pain and America gets more gain.
Now the 6% remember this is a 7-7-7-6 plan. It’s the 6% that addresses trade. When you take money from OUTSIDE the country and deposit it to a NON interest bearing account for the purpose of purchase of goods or service our government will match your deposit 6%. So China buys Iron ore from the US its wants 1 billion dollars’ worth of ore it gets 1.06 billion or (60 million dollars EXTRA) ore. In order for a profit to be seen from depositing money it MUST BE SPENT. The first turn of money being spent from one of these Money Match accounts is a 7% gain to the government at a cost of only 6% outlay. This is a First turn gain for the federal government of 1% with many more turns to come as the company pays employee’s buys equipment etc etc. No money was borrowed to achieve this gain. Democrats love government stimulus. That’s what this is and it allows us to address each company on its merits of how it deals with the United States. Some countries may not receive as high as 6%. And many will argue for subsiding above the 7% but this is where we MUST SAY NO. The match accounts must stay 1% below the tax rate or the US will see a downward slide on trade.
Couple this with the massive oil and gas findings that we have in the United States we have a potential to be an OIL EXPORT nation not just energy independent. This type of tax system would make our productivity the most attractive in the world.