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The five math steps to the Financial Freedom Act
THE MATH
1 - We're Using the Wrong Tax Base Today
We should tax the entire economy, not our income.
Today we tax income, even though the income we collectively earn, $22 trillion, is only a tiny fraction of the total flow of money in our economy. We should stop taxing income and tax the flow of money instead.
Our economy is comprised of over $9,184 trillion in the flow of money as shown in this table.
By tapping such a huge flow, the taxes you pay could be slashed by 100-fold and yet we could generate more revenue than we do today.
The Fed publishes this information in the BIS Red Book. Click United States in the link below, and look for Tables CTA1 and CTA2.
2 - The Power of a Flow Tax
If we taxed flow of money at 0.25%, we could eliminate every single tax we pay today, and yet generate four times the revenue.
3 - The Cost of New Benefits
Here's the cost of funding $24,000/yr in basic income, earned income credits, child care, free healthcare, and free college.
4 - We'd Have a Balanced Budget
The benefits above would cost $12 trillion, but they'd replace $3.3 trillion in spending. The new budget for the federal and all state and local governments would thus total $17 trillion.
A 0.25% flow tax would generate $23 trillion, so we'd have a $5.8 trillion surplus, as shown in the table.
5 - You Would Have Much Lower Taxes
Here's how low your taxes would be with a flow tax.
You'd no longer have to pay any federal, state, or local income taxes, Social Security taxes, capital gains taxes, sales taxes, or property taxes. And yet you'd receive basic income, free healthcare, and free college.
The math works. This can be done. To learn why this is possible, visit our page on taxation.
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