Budget and taxes

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Our current tax system is unfair, inefficient, and so complex that it is opaque to virtually every taxpayer. The United Amendment establishes a single, simple, low tax rate without exemptions or deductions -- none. Every dollar a person receives is taxed at a very low rate; so low that most people don't believe it when they hear it. The rate is just 1/2 percent!
 
Our current tax system is unfair, inefficient, and so complex that it is opaque to virtually every taxpayer. The United Amendment establishes a single, simple, low tax rate without exemptions or deductions -- none. Every dollar a person receives is taxed at a very low rate; so low that most people don't believe it when they hear it. The rate is just 1/2 percent!
  
How can we fund the entire government on just 1/2 percent? It turns out that if every single tax loophole is closed -- all of them -- a rate of under one percent brings as much revenue as the Treasury receives today. There are about
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How can we fund the entire government on just 1/2 percent? It turns out that if every single tax loophole is closed -- all of them -- a rate of under one percent brings in as much revenue as the Treasury receives today. In the United States, there is about $1,100 tillion per year in transactions (give or take, it depends on how much of the settlement volume overlaps between the various payment/clearing systems). At 1/2 percent, that's $5.5 tillion, more than double what the Treasury currently receives in revenue each year. Some of those transactions are short term, such as stock day-trading and flash-trading. Those types of transactions would likely no longer occur with a .5% tax. (In fact, many would argue that doing away with such trading will be benificial since it will encourage long-term investing -- those short-term trades are considered parasitic by most investors.) Other short-term transactions involve short-term loans made between banks to comply with reserve requirements. Those would likely decrease under the new tax system also. However, because the rate is so low, many transactions that do not occur today because of high tax rates would become viable.
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Also, with a very low rate, compliance in paying the tax will be much higher. Very few people will make efforts to try to avoid the tax or to cheat. Using cash transactions to cheat the tax would not be practical except for small transactions because for medium-sized transactions, the cost of counting and handling cash is larger than .5% and very large transactions are more detectable.
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The system is much more efficient, transparent and fair:
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* Everyone pays the same rate
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* Almost everyone will pay '''less''' tax
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* No more keeping track of receipts
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* No more indecipherable forms to fill out
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* No more intrusive and abusive IRS
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* Provides certainty in tax policy for businesses
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* Easy to understand for everyone
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If you are paying more than 1/2 percent today in taxes, you will want to see this tax implemented.
  
  
 
===Transactions in the U.S.===
 
===Transactions in the U.S.===
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Here is a table of transactions in the U.S.
  
 
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Revision as of 13:45, 13 January 2014

Our current tax system is unfair, inefficient, and so complex that it is opaque to virtually every taxpayer. The United Amendment establishes a single, simple, low tax rate without exemptions or deductions -- none. Every dollar a person receives is taxed at a very low rate; so low that most people don't believe it when they hear it. The rate is just 1/2 percent!

How can we fund the entire government on just 1/2 percent? It turns out that if every single tax loophole is closed -- all of them -- a rate of under one percent brings in as much revenue as the Treasury receives today. In the United States, there is about $1,100 tillion per year in transactions (give or take, it depends on how much of the settlement volume overlaps between the various payment/clearing systems). At 1/2 percent, that's $5.5 tillion, more than double what the Treasury currently receives in revenue each year. Some of those transactions are short term, such as stock day-trading and flash-trading. Those types of transactions would likely no longer occur with a .5% tax. (In fact, many would argue that doing away with such trading will be benificial since it will encourage long-term investing -- those short-term trades are considered parasitic by most investors.) Other short-term transactions involve short-term loans made between banks to comply with reserve requirements. Those would likely decrease under the new tax system also. However, because the rate is so low, many transactions that do not occur today because of high tax rates would become viable.

Also, with a very low rate, compliance in paying the tax will be much higher. Very few people will make efforts to try to avoid the tax or to cheat. Using cash transactions to cheat the tax would not be practical except for small transactions because for medium-sized transactions, the cost of counting and handling cash is larger than .5% and very large transactions are more detectable.

The system is much more efficient, transparent and fair:

  • Everyone pays the same rate
  • Almost everyone will pay less tax
  • No more keeping track of receipts
  • No more indecipherable forms to fill out
  • No more intrusive and abusive IRS
  • Provides certainty in tax policy for businesses
  • Easy to understand for everyone

If you are paying more than 1/2 percent today in taxes, you will want to see this tax implemented.


Transactions in the U.S.

Here is a table of transactions in the U.S.

Using payment systems
(USD billions, total for the year)
  2007 2008 2009 2010 2011
Transactions per type of payment instrument(1)          
Credit transfers 19,808.9 21,169.6 21,169.6 23,065.4 25,033.2
paper-based nap nap nap nap nap
non-paper-based (ACH)(2) 19,808.9 21,169.6 21,169.6 23,065.4 25,033.2
Direct debits (ACH)(3) 14,440.0 14,768.7 14,641.3 15,336.4 16,034.1
Card payments(4) 3,287.8 3,490.6 3,385.9 3,695.8 4,097.1
payments by cards with a debit function(5) 1,182.9 1,342.2 1,447.3 1,648.8 1,846.8
payments by cards with a delayed debit function nav nav nav nav nav
payments by cards with a credit function(6) 2,104.9 2,148.5 1,938.6 2,047.0 2,250.3
of which: payments by retailer cards with a credit function 194.8 206.1 177.2 174.9 200.0
E-money payment transactions(7) nav nav nav nav nav
by cards with an e-money function          
through other e-money storages          
Cheques(8) 37,438.0 34,272.0 31,599.4 28,955.4 26,469.1
Other payment instruments          
Memo          
ATM transactions nav nav nav nav nav
of which: ATM cash withdrawals(9) nav nav 646.7 nav nav
  98,266.1 98,567.2 96,175.4 97,989.1 100,964.0
1 Includes payments by banks for their own account. 2 Includes an estimate of the value of on-us payments. A study conducted by the Federal Reserve estimated that the value of on-us ACH credit payments was USD 1,385 billion in 2003, USD 2,543 billion in 2006 and USD 4,231 billion in 2009. Other figures are derived from these estimates. 3 Includes an estimate of the value of on-us payments. A study conducted by the Federal Reserve estimated that the value of on-us ACH debit payments was USD 2,027 billion in 2003, USD 2,046 billion in 2006 and USD 2,990 in 2009. Other figures are derived from these estimates. 4 Payments made in the United States using cards issued inside and outside the United States. 5 Excludes cash back. Studies conducted by the Federal Reserve estimated that the value of debit card payments was USD 600 billion in 2003, USD 1,000 billion in 2006 and USD 1,400 billion in 2009. The figures in the table differ from the Federal Reserve estimates, but are provided to allow a consistent time series. 6 Excludes cash advances. Total of Visa, MasterCard, Discover, American Express, Diners Club and retailer cards. Studies conducted by the Federal Reserve estimated that the value of credit card payments was USD 1,700 billion in 2003, USD 2,100 billion in 2006 and USD 1,900 billion in 2009. The figures in the table differ from the Federal Reserve estimates, but are provided to allow a consistent time series. 7 E-money products have not been widely adopted in the United States. In this reporting period, e-money transaction terminals, volume and value are negligible relative to other card instruments. 8 Annualised value of paid cheques including commercial cheques, US Treasury cheques and postal money orders. Studies conducted by the Federal Reserve estimated the value of paid cheques in 1995, 2000, 2003, 2006 and 2009. Other figures are derived from those estimates. 9 A study conducted by the Federal Reserve estimated the value of on-us ATM withdrawals, meaning they involved only one depository institution, amounted to approximately 62%, 65% and 68% of the value of ATM cash withdrawals in 2003, 2006 and 2009, respectively. Sources: Federal Reserve; The Nilson Report (HSN Consultants Inc, Oxnard, CA); NACHA.
Payments processed by selected interbank funds transfer systems: value of transactions
(USD billions, total for the year)
  2007 2008 2009 2010 2011
Large-value payment systems(1)
CHIPS(2) 485,624.1 508,758.7 364,355.1 365,096.3 403,349.0
Fedwire(3) 670,665.6 754,974.6 631,127.1 608,325.9 663,837.6
           
Cheque clearings(4)          
           
Private clearing houses and direct exchanges(5) 10,741.1 7,431.7 6,548.1 7,106.2 6,425.0
Federal Reserve 15,129.9 15,558.4 14,094.3 11,381.9 10,163.8
           
Automated clearing houses (ACH)          
           
Private(6) 13,753.9 13,541.3 13,197.1 14,051.6 15,664.5
Debit transfers 5,363.9 5,078.9 4,696.9 4,895.6 5,328.6
Credit transfers 8,390.1 8,462.4 8,500.2 9,156.0 10,335.9
           
Federal Reserve(7) 15,064.5 16,424.4 16,432.8 17,688.8 18,242.7
Debit transfers 6,686.6 7,125.4 7,277.7 7,632.1 7,769.6
Credit transfers 8,377.9 9,298.9 9,155.1 10,056.7 10,473.1
           
Memo          
On-us cheques(4) 11,567.1 11,281.9 10,957.0 10,467.3 9,880.3
On-us ACH(6), 8 5,430.5 5,972.6 6,180.9 6,661.5 7,160.1
Debit transfers 2,389.5 2,564.4 2,666.6 2,808.7 2,936.0
Credit transfers 3,041.0 3,408.3 3,514.3 3,852.8 4,224.2
1 Number of originations. 2 CHIPS, the Clearing House Interbank Payments System, is owned by The Clearing House. 3 Fedwire is operated by the Federal Reserve. 4 Studies conducted by the Federal Reserve estimated the value of cheques paid in 2000, 2003, 2006 and 2009. The value of on-us cheques for those years was also estimated. Total paid cheques = Federal Reserve + private clearing houses and direct exchanges + on-us. Figures for other years are derived from those estimates. 5 Calculated as total cheque value less value of Federal Reserve cheque clearing and value of on-us cheques. 6 Value originated using private ACH operators. Includes transfers sent by private ACH to the Federal Reserve for transmission to the receiving depository institution. In 2007 through 2011, these transfers amounted to USD 3,278.6, 3,327.5, 3,354.3, 3,751.8 and 4,200.1 billion. 7 Value originated on FedACH. Includes transfers sent by the Federal Reserve to private ACH for transmission to the receiving depository institution. In 2007 through 2011, these transfers amounted to USD 1,785.0, 2,151.9, 2,179.5, 2,430.3 and 3,205.1 billion. 8 A study conducted by the Federal Reserve estimated that the value of on-us ACH payments (processed by only one depository institution) was USD 3,413 billion in 2003, USD 4,632 billion in 2006 and USD 7,222 billion in 2009. Figures for other years are derived from those estimates. Sources: Clearing House Interbank Payments System; Federal Reserve; NACHA.
Value of executed trades
(USD billions, total for the year)
  2007 2008 2009 2010 2011
New York Stock Exchange(1)          
Total value of executed securities trades 29,908.970 28,080.290 17,562.460 17,852.940 18,094.660
debt securities(2) 0.090 nav nav nav nav
short-term paper nav nav nav nav nav
bonds nav nav nav nav nav
equity 29,908.880 28,080.290 17,562.460 17,852.940 18,094.660
other nav nav nav nav nav
           
Total value of executed derivatives trades nav nav nav nav nav
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Nasdaq          
Total value of executed securities trades(3) 15,318.565 15,245.343 10,730.220 13,098.885 14,300.464
debt securities nap nap nap nap nap
short-term paper          
bonds          
equity nav nav nav nav nav
other nav nav nav nav nav
           
Total value of executed derivatives trades nav nav nav nav nav
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
American Stock Exchange(1)          
Total value of executed securities trades nav nav nav nav nav
debt securities          
short-term paper          
bonds          
equity          
other          
           
Total value of executed derivatives trades nav nav nav nav nav
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
1 In October 2008, NYSE Euronext acquired the American Stock Exchange. Since that time, figures for American Stock Exchange (NYSE AMEX) equity trades are included with other NYSE figures. 2 Par (face) value of bonds traded. 3 Values for previous years reflect revisions reported by the Nasdaq Stock Market, Inc. Sources: NYSE Euronext; The Nasdaq Stock Market, Inc.
Value of contracts and transactions cleared
(USD billions, total for the year)
           
  2007 2008 2009 2010 2011
National Securities Clearing Corporation(1, 2)          
Total value of contracts and transactions cleared 283,200 315,100 209,690 217,450 220,790
           
Value of securities transactions cleared nav nav nav nav nav
debt securities          
short-term paper          
bonds          
equity          
other          
           
Value of exchange-traded derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of OTC derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of repurchase transactions cleared          
debt securities          
short-term paper          
bonds          
equity          
other          
           
Fixed Income Clearing Corporation(1)          
Total value of contracts and transactions cleared 1,101,000 1,125,800 999,900 1,205,900 1,126,998
           
Value of securities transactions cleared          
debt securities          
short-term paper          
bonds          
equity          
other          
           
Value of exchange-traded derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of OTC derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of repurchase transactions cleared          
debt securities          
short-term paper          
bonds          
equity          
other          
           
a) Government Securities Division(3)          
Total value of contracts and transactions cleared 1,006,100 1,014,500 905,100 1,101,700 1,126,900
           
Value of securities transactions cleared          
debt securities          
short-term paper          
bonds          
equity          
other          
           
Value of exchange-traded derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of OTC derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of repurchase transactions cleared          
debt securities          
short-term paper          
bonds          
equity          
other          
           
b) Mortgage-Backed Securities Division          
Total value of contracts and transactions cleared 94,900 111,300 94,800 104,200 97,700
           
Value of securities transactions cleared          
debt securities          
short-term paper          
bonds          
equity          
other          
           
Value of exchange-traded derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of OTC derivatives contracts cleared          
financial futures          
financial options          
other financial derivatives          
commodity futures          
commodity options          
other commodity derivatives          
           
Value of repurchase transactions cleared          
debt securities          
short-term paper          
bonds          
equity          
other          
1 Subsidiary of DTCC. 2 Includes equities, corporate and municipal debt, American Depository Receipts, exchange-traded funds, unit investment trusts, mutual funds, insurance products and other securities. 3 Includes Treasury bills, bonds, notes, zero coupon securities, government agency securities and inflation-indexed securities. Source: Depository Trust & Clearing Corporation.
Value of delivery instructions processed by CSD's
(USD billions, total for the year)
           
  2007 2008 2009 2010 2011
Depository Trust Company          
Total value of delivery instructions 210,000 182,000 122,000 117,500 124,700
DVP          
debt securities          
short-term paper          
bonds          
equity          
other          
free of payment          
debt securities          
short-term paper          
bonds          
equity          
other          
           
Federal Reserve1          
Total value of delivery instructions 435,578 419,347 295,742 320,124 291,824
DVP          
debt securities          
short-term paper          
bonds          
equity          
other          
free of payment          
debt securities          
short-term paper          
bonds          
equity          
other          
1 US Treasury and agency securities transfers processed through the Federal Reserve’s Fedwire Securities Service. Data exclude reversals (ie securities sent in error and returned to sender). Sources: Depository Trust & Clearing Corporation; Federal Reserve.
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