Elegant and more attractive alternatives
Taxation can be done very simply and without much cost
A quick introduction:
Total of direct and indirect non-productive jobs
Special interests are not criminals
The Banksters that own the Federal Reserve are the main culprits
The U.S. dollar has taken a nose dive. Soaring oil and gas prices are here to stay. Housing foreclosures are at all-time record levels while property taxes are soaring. Inflation is on the rise, experts say only by 2% -- but that excludes energy, insurance, food and gasoline. The inflation you're actually experiencing is over 7.5% and growing. With increased inflation comes the demand for higher taxes from all legislatures and massive revenue deficits at all levels of government.
The very biggest burden on the USA economy is its idiotic incomprehensible 75,000 page Federal IRS Tax Code. It stifles business and creates many roadblocks that make it very unattractive for people to enter into business for themselves. Manufacturing in the USA is made as difficult as it gets by all the taxes and regulations that force all manufacturing out of the Country.
1. THE REAL BURDEN OF USA TAXATION IS NOT THE TAX WE PAY, IT IS THE TOTALLY UNNECESSARY CRUSHING BURDEN OF THE TAX COLLECTION PROCESS AND THE ASSOCIATED ADMINISTRATIVE BURDEN AND THE INVASION OF PRIVACY ASSOCIATED WITH THE IRS TAX CODE AND ITS AUDIT PROCEDURES.
A taxation system should collect revenue at the least cost and inconvenience – not place a tremendous and unnecessary economic burden on the public. Most of all, it should never be used as a manipulative tool for lobbyists to buy favors from politicians so they can satisfy the economic and political objectives of the special interests they represent. But that is just what is happening here in the USA and elsewhere all over the world where bankers hold all the keys to the economy.
2. HOW CAN WE STOP THIS ECONOMIC MELTDOWN IN THE USA?
3. BUT THERE IS A SOLUTION TO OUR WOES AND I’M GOING TO SHARE IT WITH YOU ON THIS WEBSITE. I HAVE NAMED IT AUTOMATIC TAX BECAUSE IT NEEDS NO HUMAN INTERFACE. IT IS TOTALLY AUTOMATIC.
We’ve left the business of taxation to Congress for a long time. They were assisted by tax experts and economic professors. Now take a good hard look at the results -- what a mess!
I am a manufacturer (http://www.fastworkout.com/) so I thought: If I apply the same principles of manufacturing to taxation, I could create a very simple and economical system of taxation. The result was this AutomaticTax.
My Automatic Tax System is a published plan that can be viewed in its entirety on the website of the United States Patent Office. My patent application has been accepted for examination and has been assigned to a patent examiner who is assisted in its examination by "advosers" of the IRS that are voluntary consultants assigned by the IRS to the US Patent Office. Can you believe it? The Fox is inside the henhouse to supervise the granting of patents. So I will never get my patent because it will constantly be blocked by the IRS "advisers" that in turn are working for the bankers that would never allow legislation such as my Automatc Tax because it takes all the corruption possibilities out of taxation. Members of congress would lose the millions they now receive from the lobbyists that work for all the special interests, the most powerful of which are the bankers that are plundering our economy at the expense of all of us.
Why am I trying to patent a tax reform proposal? Certainly not for my own profit. My goal is to generate the media attention a patent like this should receive, once it is issued on my revolutionary new tax proposal… a proposal that restores money, freedom and privacy to any citizen of the United States! I’m also doing this as a public service -- a labor of love and one that I hope will motivate a lot of people in seeking reform in other countries as well.
The patent I’ve applied for is a utility patent. That is a patent which is accepted by the United States Patent Office only on the condition that it is useful (has utility). I did this to show our citizens that my tax reform contrasts with most other tax proposals that have no useful purpose at all (like the Flat Tax or the Fair Tax) because they can’t be implemented without creating an instant economic depression or worse. The devil is in transitioning from our current tax system to a new one without putting the millions of people out of work that currently derive their livelyhood through the unproductive employment related to the current tax systems. My Automatic Tax System proposal is both useful and practical because:
1. It eliminates all federal, state and local taxes by combining them into one single, extremely low excise tax. Best of all, this excise tax still meets the budgetary needs of all jurisdictions at all levels of government -- combined! There are over 30,000 taxing agencies in the United States that will be combined into a single simple tax system.
2. There’s no accounting involved, saving millions of man hours -- not to mention taxpayer dollars -- that could be put to much better use. Still all the jobs that are eliminated by this new tax system are taken into account and are replaced with more productive jobs, boosting the economy.
3. There would no longer be a need for complicated and expensive tax preparation, because no person or business would be accountable to any tax agency. And no one would be subjected to an audit – ever again.
4. Invasion of privacy, another blow to our freedom that is part and parcel of conventional taxation methods, would also become a thing of the past.
5. It is virtually impossible for anyone to cheat on this system.
6. Total time and expense spent collecting taxes, or any other kind of government revenue, for that matter: ZERO cost.
7. 300,000 trees per year would be saved by eliminating the paper needed to print and mail IRS tax forms and the 75,000 page IRS tax code plus all the forms at al the 30,000 lower level taxing agencies.
8. The 5.8 billion hours Americans spend each year doing taxes -- more time than we spend building every car, truck and airplane made in this country, would also be eliminated.
4. DOES THIS SOUND TOO GOOD TO BE TRUE?
My AutomaticTax saves our government $500 billion and the tax payers another $700 billion (2008) dollars that are currently being wasted by the United States on the most idiotic tax system in the world.
Well then… why hasn’t my tax proposal been implemented by our great nation, or at least one of the other 195 countries around the globe? There are four main answers to that question:
1. So called ‘Government Economic Experts’ always oppose anything new because new things are different from their standard beliefs and therefore a threat to their expertise. Simply put: They don’t want to deal with any plan that would put them out of a job.
2. Experts tend to oppose anything that sounds too good to be true. They know both the media and the general public rely upon their opinions, because the very idea of studying our labyrinthine tax codes is too daunting for most of us. After all, even top USA tax accounting and law firms often misunderstand or deliberately misinterpret these laws, resulting in grave penalties for the people and companies who employ them, so what chance does the average Joe have?
3. Tax code laws are manipulated by four powerful special interest groups for their own political and financial advantage (more later on who they are and what they do to protec the status-que and often even try to complicate the tax codes even more). Follow the money! It will lead you to entities that have worked very hard for many years, spending billions in lobbying and contributions to Congressional members who legally helped them create the present idiotic tax system. These special interests are and will keep fighting very hard to keep the status quo at the expense of all of us.
4. Fear: “If I try to take on the IRS, will they come after me?” The answer is: YES! They might come after me for my proposal that would replace the current process of tax collection with a much simpler one that would not have need of the IRS in its current form.
5. WE MUST LOOK TO THE PAST FOR A BETTER FUTURE
"That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed. Whenever any form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute a new Government."
Why don’t these stirring, historic words still hold their meaning today? What happened?
Believe it or not, Federal Income Tax was originally a temporary measure, executed enacted in 1862 to pay for the Civil War. Then it was eliminated in 1872, revived in 1894, declared unconstitutional in 1895 and then disaster struck with the passage of the 16th Amendment that made income tax permanent in 1913.
Then, during World War II, another adjustment was made -- the enactment of withholding. That war may have ended with our victory in 1945 but our war with taxes on earned wages and goods continues to this day while many tax reform proposals and movements have not created any useful ideas while Congress and the IRS together have added about 1000 pages per year to our devastatingly burdensome tax code. Not to speak of the pages of tax code added to separate tax collection schemes of another 30,000 or so local taxing agencies at all lower levels of government jurisdictions (State, County/Parish, Municipal).
I would also like to point out that my tax system is fully authorized by the Constitution, while the legality of our current income tax system is in question. A number of people fight the current income tax but it is an uneven fight with the IRS holding all the cards defending their questionabe system by questionable means. (http://www.givemeliberty.org/features/taxes/litposition.htm).
I should also make clear that my aim here is not to lower taxes. The main objective of AutomaticTax is to eliminate the tremendous administrative burden and cost of compliance on the whole United States and to eliminate the disgusting invasion of privacy our current system has created. The savings in administrative cost is about $9000 per year per family unit in the Unites States. And getting rid of the blatant government privacy intrusion in our daily existence cannot be measured in dollars.
6. AND NOW… THE MOMENT YOU’VE BEEN WAITING FOR… AN EXPLANATION OF THE AUTOMATED TAX SYSTEM AND HOW IT WORKS!
Banks will collect a 5% tax by deducting this amount from all deposits made into bank accounts, and then crediting those accounts with the remaining 95% of the deposit money. The banks will receive more Federal supervision (or even contracted private sector accounting oversight) than they do currently, with a randomly rotating supervisory staff.
The banking system would be well compensated for these collection services with a small percentage under 0.4% of the total tax collected (an immense amount that would constitute a major source of income for banks).
By collecting an Automatic Tax, we would eliminate our complex and unwieldy tax gathering systems at all levels of Government in one fell swoop.
The Automatic Tax System requires no accounting and record keeping by individuals and businesses alike, because it is entirely automatically collected through the banks. All the electronic equipment and most of the software we need to implement it is already in place today at banks, so we could change over to this system at any time with nearly zero expense and little preparation.
The AutomaticTax will replace over 30,000 taxing agencies in the United States, alone, on federal, state, county and municipal levels. Right now, total tax related employment hovers between 12% and 16% of the working population. This includes all the people working for government tax offices plus some of the following:
1. Accounting offices
2. Licensing offices
4. Tax return services including storefront and online programs
5. Tax form printers
6. Paper mills and lumber companies
7. Investment experts that create tax shelters and other ways to keep their clients from paying what they owe
8. Companies that accommodate tax evading offshore corporations (we are currently losing billions of dollars due to laws passed by the current administration favoring their own private companies and those of their cronies).
9. Court related criminal costs to prosecute tax evaders
10. Prison fees for housing tax evaders
11. Auctions and auctioneers needed to sell off seized property by tax authorities.
12. And more! This is just the tip of the iceberg, folks…
7. BY NOW YOU MAY BE THINKING: THIS PLAN IS SO BASIC AND SIMPLE, HOW CAN IT POSSIBLY WORK?
For starters, it does not help that this tax proposal sounds too good to be true, so please try to set aside your skepticism long enough for me to persuade you otherwise by addressing both FAQs that I have been asked by top businessmen, economists, and government officials, along with the reasons most people generally come up with to dismiss the Automatic Tax System:
8. If this tax is as good as it sounds why don’t major economists and other experts support it?
Since I answered this question, earlier, you may want to visit: http://www.guardiansofthestatusquo.com/ for a detailed explanation.
9. How can such an extremely low 5% tax rate generate enough revenue to satisfy the budgetary requirements of all jurisdictions at all levels of governments combined?
Strange as it may seem, under 3.8% excise tax on all deposits will collect more revenue than is collected by all the current 30,000 tax agencies in the USA combined. The extra 1.2% I am proposing will be used to pay down national debt and all bonds at local levels of government because I believe that no jurisdiction at any level of government should ever go into debt that would have to be paid for by future generations. This aspect of AutomaticTax will get the member banks of the Federal Reserve very upset, because they will not be lending money to the government any longer and "We the People" do not have to pay interest on that borrowed money any longer. The government printing bonds and then selling the bonds at a discount to get money into the treasury and later having to buy the bonds back at a higher price is complete nonsense. Printing bonds is more expensive than printing money and far less efficient. So instead of printing bonds to get money into the treasury, we might as well print the money directly. Both the printing of bonds and the printing of money will have the same inflationary effect of lowering the value of the currency. In many instances the printing of money will not lower the value of the currency at all and it will only boost the economy.
10. What if more and more people start using cash to avoid paying the 5% excise tax that the bank will collect?
First you must realize that there is no advantage to the person paying for something with cash unless the recipient offers to share the 5% tax avoidance. It is not likely that 2 people would risk severe penalties and prison time for splitting 5% (the same penalties as under the current tax system). Besides, every cash dollar will reach a bank at some point in time. Cash changes hands fewer than 3 times (average 2.9 times) before it is deposited at a bank. The cash incentive is far greater under the current system because the tax evasion “reward” is not 5% but 25% to as much as 40% under current IRS tax law. Also, penalties for cheating on the new 5% tax will more easily enforced.
11. How will the revenue be distributed fairly to all the lower levels of government and how do we know how much will have to go to all the different government jurisdictions?
Banks will electronically transfer the collected excise tax to a State Revenue Disbursement Office (each State already has a single Revenue Disbursement Office). These offices will distribute the revenue to the different jurisdiction levels within their state on a per capita basis, including the state government. A fixed percentage of the total amount collected will be passed on to the Federal Government.
12. Are there any forms of record keeping that will exercise some control and prevent tax evasion under the new system?
Every deposit transaction is automatically documented by the bank. Cash transactions must be reported within 14 days after the transaction date on a declaration form available at any bank. These declarations must be given to a bank teller and 5% of the reported cash transaction amount will have to be paid at that time. Of course I do not expect that much of this reporting will ever be done.
The government really will not care about the millions of small cash transactions that take place every day – like the kind that slip by under our current system. I have researched a surprising fact that cash only has a lifespan of 2.9 transaction cycles before it is deposited in a bank. Under AutomaticTax, cash starts its lifespan by someone cashing a check at which time the bank requires a 5% tax collection. Cash ends its lifespan when it is deposited, at which time there is also a 5% tax collection. Therefore, government collects for two cycles and only loses tax revenue on the remaining 0.9 cash transaction cycles! Under the current tax laws, the monetary reward for tax evasion is far greater than the 5% and the total tax evasion from unreported cash transactions constitutes a large percentage of the current http://www.thetaxgap.com/. Unreported cash transactions represent a far greater amount of lost tax revenue than the IRS would want to admit and that is why the IRS specifically excludes it from its estimates of the size of the tax gap. In 2001 the IRS created its National Research Program (NRP) to attempt an estimate of the tax gap and specifically excluded “income from the illegal sector of the economy”. http://www.irs.gov/newsroom/article/0,,id=137246,00.html Of course by excluding all illegal cash transactions the NRP does not have to do research on all unreported cash transactions which are of course illegal by reason of being unreported, even the casual cash transactions taking place on a farmers market.
Under AutomaticTax the total volume of cash transactions will drop dramatically because there is far less incentive for people exposing themselves to criminal prosecution and jail sentences for the very small “reward” of splitting 5% between two tax evasion conspirators who will each only benefit 2.5% for evading taxes. It just is not worth it. I would feel confident to predict that cash transactions under AutomaticTax would drop to 10% of their current levels. Most of the current illegal sector of the economy will also deposit its receipts rather than keeping it in cash form in suitcases and under the mattress because it is much easier for that money to be invested now in some form of legal business and become part of the legal sector of the economy. Is it a desirable thing to facilitate illegal drug trade for example? In general it is most likely very desirable to stop prohibition. Prohibition has never worked in the past and does not work in the present and will not work in the future. It only creates unbelievable amounts of crime and no offsetting benefits. There has been no drop in lower numbers of people (and children) falling victim to drug addiction in fact the opposite has happened by creating a "forbidden apple" that because it is forbidden has become more attractive to adolescents. Also the anti drug laws have created a very lucrative business by driving the cost of drugs up so high that there is room for several levels of distribution and marketing channels. At the lowest level of "marketing" illegal drugs are the pushers that will give out free samples like the cigarrette companies do to get people hooked. If there were no drug laws, the price of drugs would drop to where there is very little profit to be made by pushers and pushers will disappear. Also the wholesalers and producers would make a lot less money and would not find a lot of profit in running around with automatic weapons to protect their markets. There would still be childreb falling victim to addiction, but there would be fewer of them because they are no longer subjected to the free samples and marketing tactics of the pushers, because the pushers disappear. There would be far less crime from people that will go anything to get the money to support their expensive addictions. The addictions will be very much cheaper after the anti-drug-laws are scrapped and prohibition is lifted. The total balance off less crime, innocent bystanders killed by warring drug gangs, fewer addicts and lower prion populations will eventually bring enough public pressure to bear on the politicians to stop the prohibition madness.
13. As you said before, there are a lot of people who make their living off the present system. What would happen to them if they lost their jobs?
Accounting, tax collection, auditing, tax preparation, and other related jobs are still professions that provide employment, support families and the economy. We can always create new and meaningful kinds of employment for this workforce such as oversight for government misspending! And if all else fails there are plenty of jobs for filling potholes and painting bridges and parks and landscaping along the highways.
My Automatic Tax System also includes a twenty year transition period that won’t leave anyone in economic straits when these jobs are phased out. The new system could be launched with a 0.1% rate during its first year and then increased by 0.25% each following year. Every level of government will gradually decrease collection by the normal methods. The exact amount of Automatic Taxes needed to replace the other taxes will be calculated after the first year of collection. However, multiplying the amount collected through the first year rate of 0.1% by 50 will reveal whether my personal calculations are correct – and that ultimately, all we need to collect in taxes are 5% to end the national debt and run this country efficiently.
14. Just who are the four main manipulators of the present tax system?
Phony Non Profit Organizations
Large Corporations and Monopolies
International Accounting Houses
15. Will any taxes ever be filed again?
The only taxes that will remain are property, energy, utility and all those taxes that do not require any accounting and forms filed by individuals and companies. Some of these taxes may be used for regulatory reasons such as taxes on tobacco and alcohol, energy uses, transportation, hotel taxes, utility taxes and communication taxes.
16. Are there exemptions and exceptions to Automatic Taxation?
There are specific exceptions to the tax. All transactions between bank accounts owned by the same account holder are exempt. All transactions involving financial instrument trading such as international currency trading, bond trading, stock trading, commodity trading and so forth, are also excluded. All other cases that merit tax exemption, such as charitable, health, environmental and genuine non profit organizations would be submitted in the form of petitions to special, state administered tax refund offices.
17. How does the Automatic Tax System affect free enterprise and competition?
Profit motive and competition dictate that a manufacturer must always use the most economical, least labor intensive methods to produce a service or product. Ultimately, my tax system gives them more capital to work with, so the effect is positive. Government spending – or its notorious misspending -- of taxpayer dollars is another story. Governments rarely face competition, and in the few instances where they do, they play dirty and change the rules in the middle of the game. Governments have never even conceived of, or tried to find, a tax system that will spend a very small rate on a very broad tax base. Much needed oversight of their spending habits will be easier as well.
18. What are the credentials of this author?
I am the manufacturer of a product that sounds too good to be true. And so here I am, proposing a system of taxation that also sounds too good to be true! I produce and sell a machine that will give you a complete workout in only four minutes per day. This machine, the Fast ROM, is not only a reality -- it works! I’ve enjoyed successful sales since 1990. Articles about my amazing device have appeared in Newsweek, Fitness, Forbes and other prestigious magazines. If you’re curious about my machine, you’re welcome to learn more about it at: http://www.fastworkout.com/.
My name is Alf Temme and in my personal life, I am a family man whose favorite hobby is tilting at government windmills. If you have any other questions, or if you’d like to share your opinion about my Automatic Tax System, please feel free to email me at firstname.lastname@example.org
I do not have a degree in economics or any type of credentials in tax related matters. Yet my system has been called the best tax reform ever proposed by “experts” on economics that actually took the time to read it. The biggest problem I’ve faced is to getting people interested in promoting it. People complain about taxation all the time, but as soon as they have a realistic chance to do something about it they have no energy or desire to do anything about it. That this tax reform sounds too good to be true ironically hinders its "marketing." I originally had the same problem with my 4 minute per day FastWorkout machine, until I invested my own money and time turning that into a reality.
I’d like you to ask yourself: How many times has society benefited from ideas and inventions that came out of left field, from people with few impressive credentials? Paul Winchell was a TV actor, but it was he who invented the artificial heart – not a doctor. Gugliemo Marconi invented the wireless radio, which revolutionized telecommunications as we know them today, and he was the unemployed son of an Italian merchant. It’s a good thing Orville and Wilbur Wright, the two brothers who invented the airplane, must’ve taken to heart the advice of some skeptic who told them to “go fly a kite.” In short: True light bulb moments that have re-shaped our world can come from anyone. The Inventor’s Hall of Fame, which you can visit on line, is chock full of these successful dreamers.
19. Will we really be able to revamp the old adage: The only things inevitable in life are death and taxes? Strike taxes, remains “death”.
Spending time reading this website will prove to you that taxes at all levels of government will completely disappear if we band together and press our government to combine them into a single, very simple tax for which no one will ever have to do any accounting, file tax forms or be subject to an audit, ever again.
That leaves death as the final inevitability, and you can do something right now to delay death and help yourself stick around a few years longer while enjoying better health. Please visit: http://www.fastworkout.com/ to find out how.
20. IN CASE YOU STILL WOULD LIKE TO STICK WITH THE IRS, HERE’S WHAT THEY SAY ABOUT THEIR OWN TAX SYSTEM:
The pre-1998 IRS mission statement was admirable:
“The purpose of the IRS is to collect the proper amount of tax revenues at the least cost to the public, and in a manner that warrants the highest degree of public confidence in our integrity, efficiency and fairness."
These were good intentions but the IRS, as we who are old enough to remember, never rose to the standard of its own mission statement. Direct and indirect costs to collect the "proper amount of tax revenues" never were "at the least cost to the public" thanks to such an incomprehensible and abusive tax code that ballooned to 65,000 pages and a cost of $9000 per year for compliance.
Because the people at the IRS have never come close to living up their own pre-1998 mission statement and have failed miserably, they simply redefined the mission statement in 1998. It now reads as a toothless compromise that seeks to:
"Provide America's taxpayers top quality service by helping them to understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all."
They are failing at this new mission statement as well. This "new" mission statement is not much of a statement at all and they cannot even live up to that new low standard! The "top quality service" spoken of here is limited to "helping them to understand and meet their tax responsibilities" -- as determined by the IRS. About the “top quality” try to call the IRS and see how much time you are going to waste on the phone getting no help from total incompetents. And what about "applying the tax law with integrity and fairness to all"? This last part of the mission statement is also impossible because the burden placed "on all" through various taxation schemes and loss of both liberty and privacy has become overwhelming. The burden of compliance is totally idiotic to say the least.
Now, almost one decade into the new millennium, perhaps the IRS should rewrite its mission statement once more and lower the standards of the mission some more to one they can live up to :
"Provide America's taxpayers low quality service with a 65,000 page tax code that is impossible to understand by helping them to understand the inexplicable and confusing them with incompetent advice over phone lines that are woefully under-staffed and by applying the tax law without integrity and unfair to all.".
21. THE TAX TEN COMMANDMENTS
If we are truly going to revolutionize the way taxes are levied, not just in the USA, but in every other country on earth, we must first collectively try to agree that taxation has but one single purpose and nothing else: To collect sufficient revenue for governments to meet the financial needs of their budgets.
Toward that purpose I have created the Tax Ten Commandments. Using these commandments as my guidelines to develop my Automatic Tax System has helped me beyond my greatest expectations. Simple, easy to implement and administer, they are the tax collection system for this new millennium.
22. FINAL THOUGHTS
A grass-roots movement is the key to success. Just like the members of the original Tea Party, we must stage a vocal, highly publicized and attention-getting demonstration to promote the Automatic Tax System.
We must also seriously ask ourselves: Why have we been so unwilling to look out for our own best interests? Do we think that the rich and powerful, coupled with a huge bureaucracy is just too much of a Goliath for any middle class David to tackle? Have we become conditioned to believe that no one single person could possibly create any meaningful change?
History has taught us otherwise. Big, sweeping changes have almost always been started by single individuals. Difficult times have often been the magic ingredient that has made the general public to pay more attention. The time for my Automatic Tax may be ripe for change.
I firmly believe that there is nothing wrong with America that cannot be cured with what is right in America!
Look at the links in the left margin and click on the buttons with subjects of your interest.
Subcommittee on Taxation and IRS oversight and long term growth:
An interesting website on taxes around the globe:
To give me feedback, support the Automatic Tax System, ask questions, or write me about related ideas of your own, contact me at:
Accounts Receivable Tax
Federal Unemployment Tax (FUTA)
Workers Compensation Tax
STILL THINK THIS IS FUNNY?
Why new ideas are quickly dismissed by "experts" and non-experts alike without any logical analytical reasoning. This is why humanity misses out on often fantastic ideas in all fields of knowledge. Also progress in many human endeavors is slower than it could be. Of course, the internet helps a great deal in faster spreading of new ideas, but not with accepting new ideas. The thousands of bloggers that write about everything and nothing are "killing" a lot of very good ideas by jumping too quickly to conclusions. Their objective is also often to find fault with everything they att