A New Tax System That Will Replace All Other Tax Systems!

The Inevitable Tax Solution...

"NOW-TAX" – SALES AND TRANSACTION TAX SYSTEM (NSTT)

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 the first and only National Sales & Transaction Tax system; a new, modern, efficient, simple, tax system that guarantees all segments of our economy will be able to compete evenly in the pursuit of the American Dream. It is so simple the whole tax amendment fits on one page. (See proposed legislation)

 

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

 

All economists agree... The best tax system spreads the cost of our federal budget (infrastructure, government expenses, and benefits) over the largest common denominator (all sales and transactions of all segments of the economy) 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.

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To put it simply, you get to keep 100% of your paycheck!

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It is undeniable and impossible for the current income tax system to collect enough taxes to keep up 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 while benefiting the economy.

Every economist will agree that a sales and transaction tax (STT) system, a fee-based, pay-as-you-go system, is the only tax system able to collect enough taxes to fairly balance the budget and pay down the debt.

 

NOW-TAX is:

1. The sole and only tax collection system for "All Segments of the Economy" (ASOE); no other taxes.

2. The lowest tax/fee rate possible.

3. The easiest tax to administer and collect, with the least number of rules, laws, and regulations. A fee-based, pay-as-you-go tax system.

4. 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 never singles out any one segment of the economy.

5. A tax that creates maximum cash flow for the economy.

6. A tax that will collect enough funds to maintain a balanced budget.

7. A tax that eliminates the underground economy.

8. A tax that will start to pay down our national debt.

9. A tax that will unleash the wealth of the United States to be the most competitive economy in the world.

 

 

 

 

 

 

 

 

 

 

How NOW-TAX works...

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1.  Sole and only tax collection system for "All Segments of the Economy" (ASOE) – no other taxes

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“Everything should be made as simple as possible...” Einstein

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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

• Estate Tax

• Capital Gains Tax

• Excise Taxes:

  • Federal

  • State

  • County

  • City

• Highway Tolls

• Proposed Gun Tax

• Proposed Carbon Tax

• Proposed Wealth Tax

• Proposed National Property Tax and more...

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Why are taxes so complicated? Why are there so many tax systems?

And the obvious question is; is it possible to have just one simple tax system?

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The answer is yes!

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A simple, logical solution: take all the tax collection systems and combine them into just NOW-TAX. Brilliant! Until now that has never been done or even thought about!

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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.

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Proof that a sales tax works: states that have switched to consumer sales taxes vs. income taxes are booming and citizens are flocking to them. State sales tax rates are usually under 10% and many 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% in state taxes alone… Then add federal taxes! That could be up to 20, 30, or 40% of your wealth – or more.

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However, the national consumer sales tax sounds like a good idea so far, right? What if the nation adopted 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 and put the brakes on our economy. Plus, again, citizens are paying practically all the taxes. The consumer sales tax concept needs to be reworked, but how?

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Some proposed national consumer tax systems limit sales/consumer taxes to just those working citizens above the poverty line. That means an estimated 120 million citizens pay for all 270 million citizens’ and all businesses’ taxes. This is the ultimate welfare and corporate tax welfare system!

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A national consumer sales tax added to state taxes could be 30-45% to be paid by consumers'/citizens’ income. That just will not work.

 

 

So what’s the missing element?

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A bigger common denominator!

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Think of the economy as an infrastructure “superhighway toll road.” Every time a citizen,

non-citizen, business, organization, or enterprise uses the superhighway of the economy, they pay 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.

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"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).

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The NOW-TAX national sales and transaction tax (NSTT) system combines all tax systems into one – no other taxes!

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Food for thought... In our current system, top-earners pay 80-90% of the income taxes; top-earning citizens (like landlords – the top-earning citizens of the United 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 a nominal 8-10% of the federal tax bill.

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2.  The lowest tax rate possible

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All economists agree that a thriving free enterprise/capitalist society should have the lowest 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. The only way to tax ASOE is by taxing all sales and transactions at the lowest possible rate.

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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.  For example, Wall Street averages $460 billion in trade transactions each day! Another wow – and with no federal taxes associated with these sales of stocks and securities!

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Tax Foundation reported: In 2018, approximately $90 trillion in stocks and $216 trillion in bonds were traded on U.S. exchanges, according to the Securities Industry and Financial Markets Association (SIFMA).[6]The size of the derivatives market is harder to determine. The Tax Policy Center (TPC) estimated that $1.1 quadrillion of derivatives (in notional value) was traded in 2015.[7] The size of the tax base for derivatives is much smaller when market value is instead considered. Using either measure, the total base of an FTT far exceeds U.S. gross domestic product (GDP).

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With this massive tax base, the FTT would be a substantial revenue source despite a low tax rate. For example, an FTT of 1.0 percent on all securities would raise $7.77 Trillion in revenue over the 10-year budget window, according to the Joint Committee on Taxation (JCT) and the Congressional Budget Office (CBO).

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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 1-3% for all sales and transactions.

Then, if you add another 1-3% to the NSTT, you could start to pay down our national debt.

 

The more sales and transactions, the lower the rate of the NSTT.

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Food for thought... A benefit of NOW-TAX is it tracks the TEST daily. The TEST is the truest/most accurate economic indicator that automatically and daily tracks all economic activities by SIC Code.

 

3.  The easiest tax to administer and collect, with the fewest rules, laws, and regulations (A fee-based, pay-as-you-go tax system)

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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!”

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Can it be that simple? Yes, and automatic!

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Upon all sales and transactions by ASOE, the provider/reseller will add the low NSTT rate to the sale or transaction.

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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 NSTT to the Federal Reserve. It is automatic.

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The NSTT has four basic rules or regulations:

1. ASOE shall have a checking account

2. ASOE must make all income/sales deposits into the bank using a SIC Code

3. The federal government shall have a budget cap of $5 trillion or TBD

4. The NSTT rate will never go over 5-10% or TBD

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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

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It is the responsibility of every individual and every business to pay taxes/fee 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.

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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 or tax pyramiding.” If you consider the average of all the taxes together the rate could be up to 60% of some taxpayer's income.

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Let's try to explain the compounding effect; there are 6 steps in the product production chain: raw materials, manufacturing, wholesale, distributors, retailers, and consumers. If you apply the 3% NSTT to each step the total tax impact is 5.44% tax-on-tax/pyramided/compounded rate. The average rate today in Federal taxes is 15-20% depending on the year.

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The "big tax myth" is that taxes get passed on to the consumer or increase the price of goods. Any first-year economics student knows only three things that affect the price of goods, supply, demand, and competition. Expenses are always adjusted to produce goods to face the competition. Maybe in an unfair monopoly a business can pass the tax expenses on, but even then if the price is too high customers are not buying.

 

Additionally, even if there is an out-of-control tax pyramid scheme, there is a built-in safeguard. The government will only be allowed to collect just enough taxes to pay the budget/expenses. 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. Forcing the Feds to live within their budget.

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Additionally, the offset savings of a streamlined NSTT system will more than compensate for any negative effect of tax pyramiding (an estimated $500 billion in annual administrative savings over our current systems).

 

5. A tax that is “good for the country” and benefits our economy with maximum cash flow and no negative effect

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The NSTT system’s low tax rate will benefit, stabilize, and secure the welfare of all 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 stimulate foreign investment in the U.S. economy.

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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.

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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 in U.S. businesses.

• Foreign businesses will invest and/or open in the U.S.

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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, increasing the 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!

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7. A tax that will start to pay down our national debt

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How will we ever pay down the national debt?

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Under the current tax systems, never!

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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 our currency to go down, causing inflation and economic destabilization.

The only solution is the NOW-TAX NSTT system to start paying down the national debt.

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8. A tax that will unleash the wealth of the United States to be the most competitive economy in the world

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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 tax responsibilities to ASOE is like adding $3.5 trillion in cash flow to the growth of our economy in the first year.

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NOW-TAX will initiate a pro-business, pro-growth economy for all citizens to prosper. ASOE will thrive with increased wealth and millions of new jobs will be created. The United States will be the most attractive economy in the world for foreign investments. New investments in factories and technology will boom.

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The success of our citizens, our economy, and our nation will rely on citizens demanding elected representatives that will unleash the wealth of America with NOW-TAX.

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Putting off our responsibility will only delay the unavoidable: more debt that will 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, the United States needs a non-partisan, 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

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The transition will be quick and easy, as the collection infrastructure is already in place – the banking system.

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1. Notify all banks of collecting NSTT rate of all sales and transactions deposits

2. Forward the collections to the U.S. Treasury

3. Calculate the tax collections to ascertain the total of taxes collected

4. Adjust the tax rate up or down to the percentage of sales and transaction taxes collected to start phasing out all other tax systems

 

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 trillion federal 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 5-10% or TBD) and eliminate all other federal taxes.

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Go to the proposed draft Bill "Click this link" 

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