I can at best “guesstimate” that for the US the transaction tax base is roughly 50 times GDP = $775 Trillion. If the US would adopt an APT tax of 10 basis points, .1% (not 1%) (hopefully in negotiations with UK and EU and best with G20) that would reduce the taxable base by perhaps 30% by eliminating short term trades that would no longer be profitable. That would reduce the tax base to $420 trillion and raise very roughly..an estimated $400 billion in added revenue. With luck, one could eliminate most tax expenditures yielding roughly $ 1 trillion which will be reduced to at most $500 Billion by rate reductions for corporate and personal incomes to get acceptance of the APT tax. So my best guess….is that we could raise roughly 1 trillion per year in added revenue.
Received via Email 20 November 2012
ROBERT STEELE: Dr. Feige has withdrawn from his earlier view that the APT Tax could replace all other taxes, and is now focused on the need to establish the APT Tax as a global (universally applied) tax within every country so as to avoid any bias against any national financial system. For myself, what is important is his estimate that the USA transaction tax playing field is perhaps 50 times GDP or $775 Trillion. One half of one percent of $775 trillion is $3.875 trillion. In my personal view, the US Government needs to begin moving toward a maximum total cost per year of $2 trillion, without borrowing, but in the near-term, must remain at or near the enacted $3.796 (2012). This amount can be achieved with 50 basis points (one half of one percent APT Tax on every transaction). Dr. Feige rejects any APT Tax over 30 basis points at this time, for fear of harm to the financial industry. Layman generalist that I am, I have no such fear, and believe that the elimination of all income taxes and all other taxes would have two major dividends: boost individual relief; and eliminate the US tax code that is an impediment to legitimate businesses at the same time that it is used by the US Congress to extort money from special interests.
A Tax Revolution – Replace All Taxes On Few with One Tiny Tax on All Transactions Including Stock and Currency Trades
….1 21st Century Governance Revenue (Plain English)
….2 21st Century Governance Revenue (Business-Speak)
….3 21st Century Governance Revenue (Economist-Speak)
….4 Dr. Edgar Feige, Professor of Economics
….5 References on Government Revenue and Economy
….6 Discussion of the APT Tax
B National Security Fundamentals
C Protecting Social Security & MEDICARE
D Ron Paul’s Plan to Restore America
E Ron Paul’s Austerity Plan Deconstructed by Historian Webster Tarpley
F Paul Craig Roberts Criticizes Ron Paul Campaign Failure on Social Security and Medicare
G Obvious Needed Cuts