General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsI've always been interested in the APT tax.
Automated Payment Transaction tax - Wikipedia.webloc
Basically, it's a transaction tax on every transaction, but TINY tax, something like a penny on the $100, because the tax is so broadly spread. It would apply to every transaction, from groceries to medicines to payroll to stock market trades to real estate transactions.
The Repubs like a flat tax because they think they can somehow get around it and yet everyone else has to pay the tax. But this way, they can't.
The Dems would prefer a progressive tax but this is because it's based on transactions and the more people with money spend a lot more than the poor.
if it works for the federal government, then it should work for state governments. Imagine, no more 8% sales tax....instead a 0.01% tax. (Instead of paying $8 on a $100 meal, the tax might be 10cents.)
ret5hd
(20,491 posts)What percent of their income do the 1 percent spend?
dsc
(52,155 posts)ret5hd
(20,491 posts)spend 100 % of their income?
dsc
(52,155 posts)then probably fairly close.
Hortensis
(58,785 posts)TreasonousBastard
(43,049 posts)deposited, bill paid, pension check auti deposited into your account, stock sale...
Every time cash or other stuff is transferred the tax gets paid. Since it's such a tiny amount, lower income people would see a reduction, while the wealthy would see an increase, since they spend so much.
Hortensis
(58,785 posts)the more the tax, the tax scaled to the amount of transaction? Right now we provide needs-based assistance through tax deductions; would people be able to apply for child tax credits/refunds and so on?
TreasonousBastard
(43,049 posts)4% plus local sales taxes of up to 4.8%. And other taxes sometimes are incurred. Instead of over 8% plus other taxes, that tax would be reduced to maybe .5% and other transactions would make up the difference.
Stock trades, cash machines, bill payments, and other transactions that are not now taxed would all be taxed at the lower rate. Any time money moves, it pays a tiny tax. And rich people move a lot more money than poor people.
RicROC
(1,204 posts)For the " 1% who don't spend money" , for them to receive all their $billions, there's a transaction tax on all those $billions in order for them to receive the funds. If they shift the funds from one vehicle to another, it triggers a transaction tax.
It's very difficult to even conceive of a tax spread so broadly that when it affects the average person, they only pay pennies.
No exemptions!
example a) The proponent of this idea has some concrete examples, so I dare not try to explain the idea myself. But the single person who earns $60,000 per year, now pays Federal and state taxes. 30%? $60,000- $18,000= $42,000. Then, they spend and pay an extra 4-8% on purchases. If they only spent $32,000, that's paying an extra $2500 tax. What's left over is $10,000- $2500= $7500 out of the $60,000/
example b) IF however, the $60,000 were subject to a transaction tax of 1% (the APT is calling for 0.03% so at 1% this would be considered a very high tax rate) they would pay $600 total income tax. If they spend the entire $60,000, they pay another $600. So, out of the $60,000 income, minus taxes they have real income of $58,800.
SharonAnn
(13,772 posts)roamer65
(36,745 posts)Same goes for state and local ones.
You should not be taxed for helping to fund the government.
Pobeka
(4,999 posts)Of course it'd never get passed cleanly if it ever came up because congress critters by and large would have to pay more taxes.