A economics professor from the University of Wisconsin, has created a transactional based tax system, that would tax the average family making $60,000 a year about $300 dollars. Percentage wise that is .6% or point six percent on every transaction in the economy no exceptions. This would also abolish all other forms of taxes, including the need for the IRS and audits on the middle class small business, which are up 862 percent this year as the IRS has decided to collect taxes from the section of the economy that creates the most jobs.
This would get rid of income and corporate taxes, which will bring many companies back to the US to do business, therefore creating more jobs than our economy can handle. Currently we tax incomes personal and corporate. and goods in our economy, which puts most of the burden on consumers. With the new transactional based system we will tax incomes, goods, services, and all transactions in our economy. For example if a real estate investor sells a piece of property and make a $100,000 gain on the sale then in this transaction the seller would be assessed a tax on the transaction for $600, wow a little different than the capital gains tax we are currently assessed which would be $15,000 on the same transaction. The only problem is the tax payer has two ways they can go to avoid the tax, they can 1031 exchange the property deferring the tax indefinitely, and potentially keeping the IRS from ever collecting tax on that transaction. Or the person can use that capital in a business and potentially write off the entire amount for business expenses, again never allowing the IRS to collect any tax on the gain of the transaction.
I believe it is the responsibility of each an every American to debate this system, the details of the tax system can be found at http://www.APTTax.com I also personally challenge John McCain, and Barack O'Bama to address this system in their campaigns.
