Any idea that promises changes for the better will challenge the "Status-Quo" and it will also be in conflict with Special Interests that benefit from keeping everything the same.
Support from Special Interests
The AutomaticTAX proposal depends on the support of the Special Interests for success. Rather than having to fight their powerful opposition this AutomaticTAX wants to identify all the problems that would be created by adoption of Automatic Tax as the new taxation system. It is important to identify these problems and incorporate compensation for Special Interests that would otherwise oppose the transition from the wasteful 17,000 page tax code that costs the economy $900 billion dollars per year to a slick tax system that would propel the economy to new great heights.
The two main problems
If AutomatixTAX would be implemented without caution, it would immediately negatively affect all the non-profit organizations (churches, charities, etc.) and it would create massive unemployment and a severe economic depression. If no compensating measures are incorporated in the transition from our current 17,000 page 9 million word insane income tax system to the excellent AutomaticTAX there will be dire economic consequences. Other smaller problems will be identified and compensated for in the AutomaticTAX transition proposal.
A tax system, like AutomaticTAX, that promises $900 billion a year in savings of costs for tax collection, tax compliance, enforcement, tax preparation, tax accounting and more, will surprisingly also create $900 billion in lost wages to people who were employed doing all that wasteful work. That would then immediately create a large amount of unemployment and it would also create an immediate economic depression. That is something to think about whenever some clever politicians propose to "economize" on this-that-and-the-other. You must be wondering why I would want to even mention this great economic problem when I want to promote the adoption of the AutomaticTAX that would create all these problems. The reason for which I am mentioning these problems is because I have provided for measures that more than compensate for these problems and even will boost the economy to greater levels of prosperity.
A list of some of the affected jobs
Following is a short list of people and businesses that would be adversely affected by AutomaticTax when replacing the several taxes at Federal, State, Count and Local levels of Government:
1. There are hundreds of thousands, maybe millions of people employed in jobs that were created because of the tax systems in existence today. The more complicated a tax system is, the more jobs it will create. Some types of jobs created because of the tax systems in existence today are accountants, tax lawyers, taxing agency employees, tax shelter specialists, tax avoidance and tax evasion specialists, offshore tax heaven employees, tax preparers, etc.
2. Companies that are also affected are involved in printing all the tax forms, supply all the office supplies for all the tax related office workers. Tax preparation companies and their stockholders. Offshore real estate developers in foreign tax heaven countries where people establish official residency for tax avoidance.
3. Whole industries that have gained favorable tax status will lose that favorable status. All non-profit organizations are affected because AutomaticTax is not a tax based on profits. Churches and charitable organizations with millions of supporters are affected by losing their favorable tax status.
Several different ways of dealing with these problems
Compensating the majority of the affected people over a very long transition period is a possibility that may buy their support. Compensating them with a lumpsum payments may be better for quickly switching over to the new AutomaticTax and creating more productive jobs for all the unproductive people that were employed in these unproductve tax related jobs that were eliminated.