Tax Reform
Would you prefer to see increased taxes on international trade, stock transactions and energy consumption in return for the elimination of the individual income tax?
We advocate a complete overhaul of the manner in which the federal government collects taxes in order to fund its operations. We recommend ELIMINATING income tax for individuals and entrepreneurs (sole proprietor businesses), while keeping corporate income taxes. We recommend replacing individual income taxes with taxes on international trade, stock transactions and energy consumption.
This does NOT have any impact on Social Security, Medicare, Medicaid, Defense or any other Federal government program. This simply eliminates income taxes and replaces them with taxes on international trade, stock transactions and energy consumption.
This does NOT advocate any additional government spending, nor does it implement any new government programs.
This will put 1.68 TRILLION DOLLARS back into the hands of working people. It will motivate them to work more and eliminate the ridiculous IRS code for individuals and entrepreneurs (sole proprietors).
We advocate a complete overhaul of the manner in which the federal government collects taxes in order to fund its operations. We recommend ELIMINATING income tax for individuals and entrepreneurs (sole proprietor businesses), while keeping corporate income taxes. We recommend replacing individual income taxes with taxes on international trade, stock transactions and energy consumption.
This does NOT have any impact on Social Security, Medicare, Medicaid, Defense or any other Federal government program. This simply eliminates income taxes and replaces them with taxes on international trade, stock transactions and energy consumption.
This does NOT advocate any additional government spending, nor does it implement any new government programs.
This will put 1.68 TRILLION DOLLARS back into the hands of working people. It will motivate them to work more and eliminate the ridiculous IRS code for individuals and entrepreneurs (sole proprietors).
Estimated Revenue From Individual Income Tax (2019):
The U.S. government's total revenue is estimated to be $3.422 trillion for Fiscal Year 2019. That's the most recent forecast from the Office of Management and Budget for October 1, 2018, through September 30, 2019.
The U.S. government's total revenue is estimated to be $3.422 trillion for Fiscal Year 2019. That's the most recent forecast from the Office of Management and Budget for October 1, 2018, through September 30, 2019.
The government estimates that in fiscal year 2019 approximately 49% of the $3,422 TRILLION DOLLARS in government revenue will be raised by taxes levied on individual incomes. We recommend REPLACING that $1.68 TRILLION DOLLARS in income taxes with the following taxes:
Estimated REPLACEMENT Revenue:
Tariffs on ALL imports and exports ($800 billion)
Stock Transactions Tax ($750 billion)
Energy Consumption Tax on gasoline, diesel/distillate, natural gas and electricity. ($150 billion)
TOTAL TAXES: $1.7 trillion dollars to replace the $1.68 trillion dollar individual income tax, which would be eliminated.
Tariffs on ALL imports and exports ($800 billion)
Stock Transactions Tax ($750 billion)
Energy Consumption Tax on gasoline, diesel/distillate, natural gas and electricity. ($150 billion)
TOTAL TAXES: $1.7 trillion dollars to replace the $1.68 trillion dollar individual income tax, which would be eliminated.
TARIFFS ($800 billion)
We recommend imposing a 20% tariff on ALL international commerce (20% on imports and exports alike). Total trade (imports and exports) is over $4 trillion/year (details below). A 20% tariff on all trade would generate approximately $800 billion in tax revenue. We recognize that such a tariff may reduce trade. The estimate used has already taken into account a 20% reduction in overall trade.
We recommend imposing a 20% tariff on ALL international commerce (20% on imports and exports alike). Total trade (imports and exports) is over $4 trillion/year (details below). A 20% tariff on all trade would generate approximately $800 billion in tax revenue. We recognize that such a tariff may reduce trade. The estimate used has already taken into account a 20% reduction in overall trade.
STOCK TRANSACTIONS TAX ($750 billion)
We recommend a 2.5% sales tax on the trading of all stocks.
We recommend a 2.5% sales tax on the trading of all stocks.
In 2017, the total value of stocks traded in the United States was $39.785 TRILLION dollars. The lowest amount traded in the recent past was $30 trillion dollars.
https://tradingeconomics.com/united-states/stocks-traded-total-value-us-dollar-wb-data.html
$30 trillion x 2.5% = $750 billion
https://tradingeconomics.com/united-states/stocks-traded-total-value-us-dollar-wb-data.html
$30 trillion x 2.5% = $750 billion
ENERGY CONSUMPTION TAX ($153.25 billion)
We recommend imposing a tax on the use of energy
We recommend imposing a tax on the use of energy
- $0.25 per gallon of gasoline/ethanol ($35.8 billion)
- $0.25 per gallon of diesel/distillate fuel oil ($15.2 billion)
- $0.25 Mcf of natural gas ($6.75 billion)
- $0.025 per kWh of electricity ($95.5 billion)
GASOLINE:
In 2017, about 142.98 billion gallons of finished motor gasoline were consumed in the United States.
https://www.eia.gov/tools/faqs/faq.php?id=23&t=10
142.98 billion gallons x $0.25/gallon = $35.8 billion
In 2017, about 142.98 billion gallons of finished motor gasoline were consumed in the United States.
https://www.eia.gov/tools/faqs/faq.php?id=23&t=10
142.98 billion gallons x $0.25/gallon = $35.8 billion
DIESEL/DISTILLATE FUEL OIL:
In 2016, approximately 60.76 billion gallons of diesel/distillate fuel oil were used in the United States.
https://www.eia.gov/dnav/pet/pet_cons_821dst_dcu_nus_a.htm
60.76 billion gallons x $0.25/gallon = $15.2 billion
In 2016, approximately 60.76 billion gallons of diesel/distillate fuel oil were used in the United States.
https://www.eia.gov/dnav/pet/pet_cons_821dst_dcu_nus_a.htm
60.76 billion gallons x $0.25/gallon = $15.2 billion
NATURAL GAS:
On January 10, 2019 the average industrial price for natural gas was $6.23/Mcf (thousand cubic feet). The average price for residential natural gas was $10/Mcf.
http://www.ppinys.org/reports/jtf2004/naturalgas.htm
In 2017, the United States consumed approximately 27 billion Mcf of natural gas.
https://www.eia.gov/dnav/ng/ng_cons_sum_dcu_nus_a.htm
27 billion Mcf x $0.25/Mcf = $6.75 billion
On January 10, 2019 the average industrial price for natural gas was $6.23/Mcf (thousand cubic feet). The average price for residential natural gas was $10/Mcf.
http://www.ppinys.org/reports/jtf2004/naturalgas.htm
In 2017, the United States consumed approximately 27 billion Mcf of natural gas.
https://www.eia.gov/dnav/ng/ng_cons_sum_dcu_nus_a.htm
27 billion Mcf x $0.25/Mcf = $6.75 billion
ELECTRICITY:
In 2016, residential, commercial and industrial use of electricity was 3.82 trillion Kwh.
https://www.statista.com/statistics/201794/us-electricity-consumption-since-1975/
3.82 trillion Kwh x $0.025/Kwh = $95.5 billion
Personal use of electricity that is generated on-site (residential or commercial) would NOT be taxed.
In 2016, residential, commercial and industrial use of electricity was 3.82 trillion Kwh.
https://www.statista.com/statistics/201794/us-electricity-consumption-since-1975/
3.82 trillion Kwh x $0.025/Kwh = $95.5 billion
Personal use of electricity that is generated on-site (residential or commercial) would NOT be taxed.
