Tax Reform Anyone?
"...a revenue neutral tax that raises the same amount of revenue as is raised by the system of taxes that the APT tax is intended to replace."
A WORK IN PROGRESS
For my 2017 project, I am going to use Edgar Feige's Automated Payment Transaction Tax (APT) thesis using Canadian data to see what would be the model tax rate that would produce "revenue neutrality" in Canada.
Feige's conclusion is that an APT tax in the U.S. would be 0.6% on every financial transaction to produce revenue neutrality based on late 1990's U.S. economic data. That 0.6% tax would be borne by both sides of the financial transaction equally ie: 0.3% each. If you bought a $1000 fridge or sold $1000 worth of stock or received a $1000 employment cheque credited to your bank account, you would pay a mere $3 in automatically collected tax at the transaction terminal where it originated and the other side of the transaction would also pay $3. No tax filing would be required and this simple micro fee on every transaction would eliminate the collection of all other taxes necessary to operate the country.
See the Thesis page for elaboration, the Feige page for the actual thesis, the Objective page for the goal of this site and the Data page for what's still missing to test the model in the Canadian setting. If you have comments or data contributions please Contact me or use the Public Blog Page.