If you’re still with me you might be familiar with my last few posts describing my idea of a simplified tax system. Basically, we tax transactions of money in exchange for goods and services, between two tax paying entities . The tax consists of two components:
- An across-the-board base rate to pay for managing the contribution to the economy and for infrastructure;
- A Discouragement Factor to essentially control demand for various products and services.
Technology allows easy processing of tax and communication with the public regarding current tax rates. There are no questionable exceptions to the rules, no special cases. Just various D-factors applied to the different products, services and categories of such. Such a system will greatly simplify the calculation and collection of taxation for the government and provide a fairer basis across all levels of society, resulting in less resentment, a reduction in the rich-poor gap and generally less crime and therefore a more stable society.
Recapping the specifics: