Monday, 22 September 2014

Death and taxes

If you want to keep me out of poverty, please send a penny or two.  I am one of those pov-liners who can't afford to drive a car and for who a cup of coffee or a glass of beer is out of the question.

Everyone has to die sometime.  We get old and forget to breathe and so it goes.
We all work and we all pay taxes.  And what a scam that is.  Taxes for the people began as a way for paying for wars.  The industrialists couldn’t rely on governments to keep the wars going and to keep the dollars rolling in because the governments were going broke, so they convinced governments to get more dollars off the people by bringing in taxes.
And so it continues. Not much in the way of wars, so long as Putin learns to pull his small man syndrome in.  And we still pay taxes.  The latest story in Australia is that the government is broke and needs more money.
Time for the ideas man to think and stink.
I have a suggestion for you about tax reform that is very different to the way we do things at the moment.  My idea would stop any illegal drug trade, stop any black market tradies and tobacco, stop any tax rorts, tax schemes and tax scams.
To do this we need to drop the idea of tax in all its current forms, income tax, company tax, payroll tax, car registration, excise duties and GST.  These will be replaced by a simple bank movements tax.  Any deposit, withdrawal transfer or loan in the banking system will attract a small taxation of about 1.5% maybe 2% of the value of each transaction.  This will cover any tax we currently have and stop any need for tax deductions.
It will also need a change to a cashless society but with everyone having a piece of plastic for their banking there is no real problem in this except the touchy feely want to have money in the wallet.  All traders will have to have a mobile eftpos machine to conduct transactions.  All sales all services and all fees will be recorded electronically.
I mentioned it stopping the drug trade, it will in so much as there will be no more cash and any drug baron would need their approved eftpos machine and anything done on that eftpos machine will be traceable.  This will make any convictions for drug buying and selling so simple to trace that the trade in illegal drugs will stop just about over night.
I know there are a lot of people who oppose this sort of dramatic change but it will mean that wage earners will have all of their wages to spend, prices on just about everything will drop because there will be no GST or petrol or sales taxes.  Wage earners will be able to do overtime for businesses and not be penalised for making money for themselves and their bosses.  The potential for an increse in retail sales is enormous and with the average home no longer hit with stamp duty it would benefit your industry dramatically, it would also get rid of negative gearing and because the whole system, will rely on tracing the movement of money no one can complain.
The rate I mention is based on a study done in the 80′s when Paul Keating was treasurer, I believe the figure guestimated to replace all taxes was about 1.25%, maybe 2% with GST.
An added benefit of this scheme would be the taxing of Apple on products they sell. The scam of getting Apple Ireland to buy products from Apple China and then on sell them to Apple some other country would mean that Apple pays the tax on product it buys and brings into the country and then on the products as they are sold in this country and then on the cash as it is moved off shore to where ever they keep their billions.  Sounds extraordinary but it will be a fair tax compared to their tax dodging schemes that are in place at the moment.
How would the tax be distributed to the states and federal government? Just an idea, not sure if it will work, but it will get people thinking.  whatever taxes are earnt in the states are kept in the states.  Taxes earnt from international movements of money will go to the federal government.  If there are any Treasury officials reading this I would appreciate input on at least this part of the scheme.
Harvard School of Economics is recommending the ideas of dropping cash and a few billionaires have told me this idea is the best way of making the rich pay taxes. They spend more than anyone else because they have more to spend. The billionaires unfortunately want to remain anonymous.

BBC world service have run a few stories on cash and how successful cashless has become in Kenya, the Nordic countries,Belgium .  One radio story from them

1 comment:

  1. I understand what you are saying about the taxes. Certainly, having just one simple form of taxation would probably help to cut down on the amount of bureaucratic red tape that people face when claiming their returns. I think that there are many new systems of taxation that would probably be effective. They would provide money for fixing roads, etc.

    Shelby Heffner @ Cash Manager Limited