Feige's team with better data access, got the transaction tax down to 0.3% per transaction for the US economy based on late 1990's data.
The $124 billion referred to in the BayStreet.ca article above does not appear in my data collection attempt so clearly I'm missing a lot of potential transactions that could be taxed at a much smaller percent than 8.425%.
When it comes to "tax reform" the Canadian government of the day is fiddling with carrots and sticks when what we need is a transformation of the institution of tax collection to bring it in to the digital age. As far as I know, that $124 billion flow into Canadian securities was not taxed. It should be if we want to get a transaction micro tax into the 1% range as Feige has demonstrated is possible.
As Barack Obama said today at the United Nations:
I draw strength from the young Americans -- entrepreneurs, activists, soldiers, new citizens -- who are remaking our nation once again, who are unconstrained by old habits and old conventions, and unencumbered by what is, but are instead ready to seize what ought to be.
Max Planck's famous maxim (WikiQuote):
A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it.
So the challenge is up to the new generation of dreamers and coders to even out the playing field and get the individual tax burden down to the smallest amount by spreading the burden over the largest number of transactions.
Imagine a tax rate of 1%. If it's possible, why not take up the challenge? There is a huge upside for the private sector.
Hat tip to MigrationBureau.ca for the use of the image above.
Not only do we pay more taxes (9% more) but our household earnings have decreased relative to the tax increases. Since 1961, taxes have increased 2007% (36.5%/yr) whereas household earnings have increased 1562% (28.4%/yr).
As this blog has repeatedly demonstrated, there is a much better, cheaper and fairer way to collect taxes that would spread the burden over many more transactions than are currently taxed. Not only would the burden be spread over a much bigger universe of transactions, but the industry of tax assessment, filing and compliance would disappear.
As noted on the home page: "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."
Our current governments are not going to take on this project. The private sector could, especially the latest generation of technocrats who have the skills to implement a large scale social revolution. As I have demonstrated with incomplete data, we could get our tax burden down to 4.25% per financial transaction. But look at Feige's results with better data access, his team got the transaction tax down to 0.3% per transaction for the US economy based on late 1990's data.
If you have access to the data I am missing, please let me know and I will update my trial.
Morneau plans to impose a "reasonableness" test so this does not punish legitimate family businesses. That test will determine just how much work a family member actually does at a business, and if they can really lay claim to profits. Approximately 50,000 Canadian families will be affected by this change, Finance Canada estimates.
More endless twiddling of knobs by the federal government of the day; when will a new generation of computer scientists take on the job of modernizing the way taxes are calculated and collected in this country?
As I have been droning on, there is an existing model, the Automated Payment Transaction Tax (APT) that eliminates the institution of tax collectors and all the parasitic businesses feeding off it.
And as I have demonstrated in March 2017, the model, based on incomplete Canadian data, can get the tax rate down to 4.25% per financial transaction. Feige's original model for the U.S. based on late 1990's early 2000's data produced an astonishing transaction rate of less than 0.5% per transaction.
That's right, less than a half of a percent per financial transaction would produce revenue neutrality.
Tiny soft robots could deliver drugs from under your skin. The Verge, January 5, 2017
Are we really going to add robot taxes onto layers of personal and corporate income, sales, excise, capital gains, import-export duties, gift and estate taxes etc?
As Edgar Feige's Automated Payment Transaction Tax (APT) thesis demonstrates - we can replace all existing taxes and all proxy taxes masquerading as fees with one simplified automatically collected tax.
And guess what - robots will be doing the collection. They're called computers; hardware and software.
As I have demonstrated using Feige's formula, in Canada we can get our tax rate down to at least 4.25% per financial transaction and my Canadian model based on Feige's work still does not have all the inputs factored in, ie: we can get the 4.25% tax rate even lower. Feige's work showed that in the U.S. the rate could drop to as low as 0.3% !!!
If you have a position of influence in Canadian society, you should be involved in at least getting a public discussion underway. If you are a frustrated tax payer, write your member of parliament with the APT details.
We need a new generation of engineers and computer scientists to take this project on. We have the technology, but we need a new social contract.