The Automated Payment Transaction Tax / Eliminate the IRS

http://www.apttax.com/index.htm ^ | Edgar L. Feige

[Licensed-To-Carry]

Comments and thoughts appreciated.

[newgeezer]

I loathe hidden taxes even more than I loathe withholding. And my loathing for withholding is very great.

[kingattax]

the government should tax stupidity.........watch the national debt disappear

[sharktrager]

I am opposed to any tax that is virtually invisible to the American public, because it makes the voter complacent and unaware of exactly how much of their money is going to the government. As an example, the sales tax where I grew up was roughly 4%. It is now over 6%. Given that sales tax income grows roughly with at the rate of inflation, I find it absurd that, in less than 30 years, the government now needs 50% more inflation adjusted dollars.

I want a tax where every American has to actually write a check for their share. No withholding. Then people will start to realize how much they are wasting annually.

[FairOpinion]

PING

[GoforBroke]

I heard this the other day on Glenn Beck and it sounds like it deserves discussion. I see the website has the link to the interview.

[knarf]

I'm confued ... two of you have said you were opposed to hidden taxes but, if I understand the plan correctly, a tax would still show up on any sales receipt ... it would just be lower.

Am I missing something?

[knarf]

er ... confued = confused.

[Licensed-To-Carry]

I agree, so I thought what better place for discussion than Free Republic. At least it will get seen.

[TopQuark]

This idea is erroneous to the point of absurd.

Firstly, it is not true that the number of transactions increases with wealth.

Secondly, the main STRENGTH of markets is liquidity. The main opposition to government intervention is that it impedes that liquidity. When capital and labor cannot move freely, they get stuck in unproductive (inefficient) places, and the economy stagnates. It is the main focus of economists and policy makers how to REMOVE impediments to transactions.

Thirdly, the model assumes that everything will remain as it is now. It will not. Individuals and businesses will respond by moving to activities that reduce transaction costs.

Fourthly and finally, there is a particular danger when one takes into account dynamics. A system that does is not allowed to adjust to a new equilibrium is like a taught spring. When it becomes to strained, it breaks or adjusts towards a new equilibrium violently rather than gradually. The same will happen with the economy whose movement towards equilibrium is constrained.

In sum, the proposal is contrary to the very basics of economics.

[codyjacksmom]

Ping...

[Licensed-To-Carry]

Are you an economist or is this just your opinion? How do you reduce the value of a transaction, it is what it is. You buy stock for a price, you sell stock for a price, you can't reduce the dollar amount.

[watchin]

Sounds like I'm exempt if I use old-fashioned cash ... or will that be outlawed?

[dawn53]

I heard it on Beck's show too. Didn't really investigate it yet. It sounded too good to be true, LOL!

[Licensed-To-Carry]

I think there was something about when cash is deposited into or withdrawn from any financial institution you would pay the .006% tax. But I guess as long as you use cash between two people there is no tax, at least no way to collect it.

[Murtyo]

this tax would reduce the volume of trasactions

[sharktrager]

It is like sales tax. People tend to ignore it, and minimize it's impact.

Especially when it's "just .6%".

The idea is very simple. get people to pay much smaller amounts, much more often. Eventually, you are able to get even more from the people than you were getting from them before.

When the American people actually have to pay their tax in a lump sum, people will suddenly realize just how much the government takes from them.

[chaosagent]

PING

[watchin]

Firstly, it is not true that the number of transactions increases with wealth.

If the tax is based on a percentage of the transaction amount, then the number of transactions is irrelevant.

The average size of transactions increases with wealth. It's the difference between the cost of the Chevy and the cost of the Rolls.

[knarf]

"this tax would reduce the volume of trasactions"

Why?
Because nobody would want to pay a tax?

I'm mot a trader, but don't you pay a fee as it is?

Is it a flat rate or per centage rated?