Everyone pays the same, that is what a fixed tax amount is, imagine what effect that would have on you, knowing in advance how much you have to pay in tax regardless of you're wealth. Lets imagine for a minute what a fixed tax rate would look like, suppose you're a king and you don't want to spend too much on tax collection, but you need to fund your army and a small police force, what do you do. Is having to calculate every individuals tax amount wise, think of the man hours spent doing that. So what is the solution? The solution is charging each citizen a fix amount each month to fund you're army and police force.
| Population | Tax amount | Total revenue |
|---|---|---|
| 500,000 | 55 $ / month | 27,500,000 $ |
| 500,000 | 660 $/ year | 330,000,000 $ |
US
| Population | Tax amount | Total revenue |
|---|---|---|
| 310,000,000 | 160 $ / month | 49,600,000,000 $ |
| 310,000,000 | 1920$/ year | 595,200,000,000 $ |
House of 5 would pay 9600$ / year
US GOV
| Population | Tax amount |
|---|---|
| FBI BUDGET | $9,502,400,000.000 |
| DEFENSE BUDGET | $585,000,000,000.00 |
| TOTAL | $594,502,400,000.000 |
Of course the US (overkill ) doesn't have to pay that much on defense so the tax amount could be much less.
I don't like the idea, because it would trap the very poor into poverty, but I love the fact that you formatted the tables with markdown!
I'm sure there would be charities that would help the poor, and the tax would reduce immigration.
How does this justify the gov looking at every financial transaction? The taxes are not about revenue.
I don't understand? The government just sees if everyone living has paid.
I'm upvoting @dantheman because he is touching on federal overreach...
And what do you do to the person who doesn't pay? Any legal action against them will cost more than $2000 per year per person who doesn't pay and thus be unprofitable. Jail time would also be a net loss on society.
$2000 per year is the interest income earned on $50,000 at 4% APR. If every individual paid just $25,000 per child born then by the time they are 18 the 25,000 would turn into 50,000 on the government's balance sheet. If you cannot pay then the government will lend you the $25,000 at 5% APR.
Require a total-life-time taxes paid of $50,000 and then constitutionally restrict the government to living off of the interest on its investments. Under such a system the government's stockpile of assets will grow as people die (and stop consuming) and new people are born (and add fresh capital).
The government currently owns over 120 trillion dollars in assets. If all they did was sell those assets and then lend the money received they could generate enough in interest income to eliminate all other taxes. If the government needs more money, just raise interest rates.
Firstly, the government doesn't have to take legal action against everyone, just a few people will suffice, the rest usually fall in line. Also anyone can check if their neighbor has paid their tax and ostracize, also public shaming.
Secondly, the government first creates a budget, then raises or lowers the tax per person.
Thirdly, government isn't allowed to invest or own anything (apart from militarily bases).
Hey I have an idea, let's combine this with the basic income!