Democrats, Republicans, Independents, Libertarians, and even IRS agents will agree with the...
The Inevitable Tax Solution
"NOW-TAX" – SALES AND TRANSACTION TAX SYSTEM
To be clear no one will dispute the need to pay taxes to fund the states’
and the nation’s infrastructure and essential services.
NOW-TAX is the future tax system that will ensure a pro-growth economy, so all citizens may obtain more wealth and prosperity.
NOW-TAX is a modern, efﬁcient, simple, national sales and transaction tax system that guaranteesall segments of our economy will be able to compete evenly in the pursuit of the American Dream.
NOW-TAX is like having "No Tax at all!"
• NO FORMS
• NO DEADLINES
• NO PENALTIES
• NO WORRIES
• NO HASSLES
• NO FILINGS
• NO WITHHOLDINGS
• NO OTHER TAXES
The best tax system spreads the cost of our federal budget (infrastructure, government expenses, and beneﬁts) over all segments of the economy (the largest common denominator) to create the lowest possible tax. The largest common denominator means all sales and all transactions(excluding internal transfer transactions) of all citizens, consumers, organizations, enterprises, and businesses.
To put it simply, you get to keep up to 99% of your income!
It is undeniable and impossible for the current income tax system to collect enough taxes to keepup with the needs of our nation. Ever-larger demands for infrastructure and government services will require a tax system that collects enough taxes to balance the budget, pay down the debt, and beneﬁt the economy.
Every economist will agree that a sales and transaction tax (STT) system is the only tax system able to collect enough taxes to fairly balance the budget and pay down the debt.
The sole and only tax collection system for all segments of the economy (ASOE); no other taxes.
The lowest tax rate possible.
The easiest tax to administer and collect, with the least number of rules, laws, and regulations.
A tax system that spreads the tax burden evenly and fairly across all citizens, non-citizens, businesses, enterprises, and organizations – ASOE. A tax system that neversingles out any one segment of the economy.
A tax that creates maximum cash ﬂow for the economy.
A tax that will collect enough funds to maintain a balanced budget.
A tax that will start to pay down our national debt.
A tax that will unleash the wealth of the United States to be the most competitive economy in the world.
How NOW-TAX works...
1. Sole and only tax collection system for all segments of the economy (ASOE) – no other taxes
“Everything should be made as simple as possible...” Einstein
Today, federal and state governments use a variety of taxes to try to keep up with the growing demands of the nation’s infrastructure and government services. Look at the current and proposed list of taxes:
Federal Income Tax
State Income Tax
State Consumer Sales Tax
Capital Gains Tax
Proposed Gun Tax
Proposed Carbon Tax
Proposed Wealth Tax
Proposed National Property Tax and more...
Why are taxes so complicated? Why are there so many tax systems?
And the obvious question: Is it possible to have just one simple tax system?
The answer is yes!
A simple, logical solution: take all the tax collection systems and combine them into just NOW-TAX. Brilliant!
Tried and true, there are nine states that have no income tax (however, they still have property taxes). In these states, most taxes are collected from a simple consumer sales tax.
Proof that a sales tax works: states that have switched to consumer sales taxes vs. income taxesare booming and citizens are ﬂocking to them. State sales tax rates are usually under 10% andmany states are considering a sales tax vs. an income tax.
The problem with a consumer sales tax system is citizens/consumers are paying almost all of the state taxes, while other segments of the state’s economy are using a large part of the infrastructure and services while paying relatively no taxes.
After paying state sales tax, state property taxes, and excise taxes, citizens will pay 12-15% instate taxes alone… Then add federal taxes! That could be up to 20, 30, or 40% of your wealth – or more.
However, the national consumer sales tax sounds like a good idea so far, right? What if the nationadopted a national consumer sales tax system? What would the rate have to be to even come close to paying our federal budget?
Hold on, the national sales tax rate alone would have to be 20-24% of consumer purchases – wow! This will never work and would slow down consumer sales. Plus, again, citizens are payingpractically all the taxes. The consumer sales tax concept needs to be reworked, but how?
Some proposed national consumer tax systems limit sales/consumer taxes to just thoseworking citizens above the poverty line. That means an estimated 120 million citizens pay for all270 million citizens’ and all businesses’ taxes. This is the ultimate welfare and corporate tax welfare system!
A national consumer sales tax added to state taxes could be 30-45% to be paid by citizens’ income. That just will not work.
So what’s the missing element?
A bigger common denominator!
Think of the economy as a “superhighway toll road.” Every time a citizen,
non-citizen, business, organization, or enterprise uses the superhighway of the economy, theypay a small toll (tax). This pay-as-you-go system would create the lowest tax possible. Every U.S. citizen, business, organization, and enterprise will have a little skin in the game.
"Just think, the next time you buy a Coke and candy bar, get a haircut or perm, buy ink cartridges and paper, lumber and concrete, you're paying your taxes! Just pay-as-you-go!" (Our original quote from 2013).
The NOW-TAX national sales and transaction tax (NSTT) system combines all tax systems into one – no other taxes!
Food for thought... In our current system, by paying income tax, earning citizens (like landlords – the owners of theUnited States) are paying most of the rent for the tenants (non-tax paying people, businesses, organizations, enterprises, and government). These groups use a large portion of the infrastructure and services but only pay anominal 8-10% of the federal tax bill.
2. The lowest tax rate possible
All economists agree that a thriving free enterprise/capitalist society should have thelowest tax rate possible – one that will have the least impact on its economy or any single segment of the economy (for example, consumers and citizens).
The only way to get the lowest rate is by spreading the NOW-TAX NSTT across all segments of our economy.
How many dollars are exchanged in sales and transactions in the United States each year? What is the total economy of sales and transactions (TEST) of our nation?
No one really knows. There are wide-ranging estimates of our annual TEST. It could be as high as $1,200 trillion ($1.2 quadrillion) or as low as $100 trillion. For example, Wall Streetaverages $5 trillion of trade transactions each day! Another wow – and with no federal taxes associated with these sales of stocks and securities!
If you use the TEST (the largest denominator) to divide the federal budget, it is feasible to reach a nominal federal tax rate as low as 1% for all sales and transactions.
Then, if you add another 1% to the NSTT, you could start to pay down our national debt.
The more sales and transactions, the lower the rate of the NSTT.
Food for thought... A beneﬁt of NOW-TAX is it tracks the TEST daily. The TEST is the most true/accurate economic indicator that automatically and daily tracks all economic activity by SIC Code.
3. The easiest tax to administer and collect, with the fewest rules, laws, and regulations
Let’s repeat a quote from the previous segment, “Just think, the next time you buy a Coke and candy bar, get a haircut or perm, buy ink cartridges and paper, lumber and concrete, you’re paying your taxes! Just pay-as-you-go!”
Can it be that simple? Yes, and automatic!
Upon all sales and transactions by ASOE, the provider/reseller will add the low NSTT rate to the sale or transaction.
The provider/reseller then makes their deposits to the bank; the bank automatically deducts the low NSTT rate. At the end of every business day, the bank sends the collected NST taxes to the Federal Reserve. It is automatic.
The NSTT has four basic rules or regulations:
ASOE shall have a checking account
ASOE must make all income/sales deposits into the bank using a SIC Code
The federal government shall have a budget cap of $5 trillion or TBD
The NSTT rate will never go over 5%
4. A tax system that spreads the tax burden evenly and fairly across all citizens, non-citizens, businesses, enterprises, and organizations – ASOE – and never singles out any one segment of our economy
It is the responsibility of every individual and every business to pay taxes to create an economic environment for everyone to have equal opportunity for success.
The stronger the economy and the greater the growth in GDP and TEST, the lower the rate will be.
Some experts will argue that NSTT will create tax pyramiding – a “tax-on-a-tax.” NOW-TAX should be looked at as compounding, getting “more bang for your buck.” To be fair, with all the tax systems we use now, there has always been “taxes on top of taxes.”
To protect us from an out-of-control tax pyramid scheme, there is a built-in safeguard in the form of a ﬁxed federal budget. The government will only be allowed to collect just enoughtaxes to pay the budget. If a tax surplus is created, the rate will be lowered. If not enough taxes are collected, governments will be limited by the law of the rate to never go above the 5% NSTT rate.
Additionally, the offset savings of a streamlined NSTT system will more than compensate anynegative effect of tax pyramiding (an estimated $500 billion in annual savings over our current system).
5. A tax that is “good for the country” and beneﬁts our economy with maximum cash ﬂow and no negative effect
The NSTT system’s low tax rate will beneﬁt, stabilize, and secure the welfare of citizens, eliminating the need for additional taxes and tax systems. The NSTT system:
will allow for more investment;
will better fund government beneﬁts;
is a cash system with no more delinquent taxes;
will create the maximum cash ﬂow for ASOE;
will simulate foreign investment in the U.S. economy.
In the ﬁrst year, NOW-TAX would create a greater cash ﬂow for citizens and increase the GDP by 5% or more. It would be like giving citizens a raise. The structure of NSTT is different from an income tax,as you only pay taxes when you make a purchase or receive a service. The current income tax system slows the cash ﬂow of our economy as it takes the taxes off the top.
The NSTT will create a hyper-competitive U.S. economy. Businesses will beneﬁt as there will be no corporate income tax.
No more withholding and complex tax ﬁlings; estimated savings of
$500 billion a year in administrative costs.
The additional cash ﬂow will create increased consumer spending and/or savings.
The NSTT will stimulate more investment into U.S. businesses.
Foreign businesses will invest and/or open in the U.S.
6. A tax that will collect enough funds to maintain a balanced budget
The NOW-TAX cash system will increase tax collection without crippling our economy.
Currently, our income tax system, estate tax system, capital gains tax system, and federal excise taxes fall short of paying our annual federal budget.
The United States falls short by $500 billion to $1 trillion in tax collection each year, increasingthe national debt. Furthermore, with COVID-19 and natural disasters, we have accumulated trillions in additional debt in 2020. 2022 has already seen even more proposed spending in the trillions!
7. A tax that will start to pay down our national debt
How will we ever pay down the national debt?
Under the current tax systems, never!
Now, with the unforeseen expenses caused by COVID-19 and natural disasters, the United States has trillions more in new debt. 2022 is adding even more to our national debt.
We have a looming economic crisis. This extreme debt is guaranteed to cause the value of ourcurrency to go down, causing inﬂation and economic destabilization.
The only solution is the NOW-TAX NSTT system to start paying down the national debt.
8. A tax that will unleash the wealth of the United States to be the most competitive economy in the world
By lowering tax rates to the lowest rate possible, all segments of the economy can focus on their core business with no government intrusion caused by taxes. Shifting the taxresponsibilities to ASOE is like adding $3.5 trillion in cash ﬂow to the growth of our economy in the ﬁrst year.
NOW-TAX will initiate a pro-business, pro-growth economy for all citizens to prosper. ASOE will thrive and millions of new jobs will be created. The United States will be the most attractiveeconomy in the world for foreign investments. New investments in factories and technology will boom.
The success of our citizens, our economy, and our nation will rely on citizens demandingelected representatives that will unleash the wealth of America with NOW-TAX.
Putting off our responsibility will only delay the unavoidable: more debt that will jeopardizeour nation’s future. The need to collect more taxes is undeniable! It is everyone’s responsibility to pay for infrastructure, government services, and national debt.
In order to stay competitive and keep growing as the greatest economy in the world, theUnited States needs a modern, efﬁcient, simple, and automatic tax system that beneﬁts all citizens and all segments of our economy.
The current tax collection systems are like an old suit we’ve ﬁnally grown out of – it’s time to get dressed for success!
The "transition" from income tax to NOW-TAX
The transition will be quick and easy, as the collection infrastructure is already in place – the banking system.
Notify all banks of collecting 1% of all income and sales deposits
Forward the collections the U.S. Treasury
Calculate the tax collections to ascertain the total of taxes collected
Adjust the income tax rate down to the percentage of sales and transaction taxes collected to start phasing out the income tax system
Example: For every 1 billion dollars collected from NOW-TAX, the income tax rate is lowered by 0.01% point. If we collect $1 trillion in NOW-TAX - approximately 25% of the $4 trillionfederal budget – then the income tax rates would be lowered by 10% across the board. This is just an example; the income tax rate percentage will have to be calculated for exact enumeration.
The goal is to determine the ﬁnal rate for NOW-TAX (not to exceed 5%) and eliminate all other federal taxes.
Go to the proposed draft Bill "Click this link"