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What is not included in current account?

What do you think about a flat tax that only taxes your balance of your bank account, businesses included?

  • With removal of all income, sales and property taxes, and if you add the current sum of all bank accounts in the United States, I believe we are looking at a monthly tax of maybe 1% of your total savings. Now if the Federal, State, County and City all taxed on this basis, then we are looking at total of 4% tax monthly. So if you had $100 in your account then you paid $4.00 in tax, and if you had $10000 then you paid $400. This tax is much less than income tax and applies the same tax to people and companies. The nice thing about this new proportionate tax is the fortunate would be encouraged to invest their money rather than pay tax which translates into more jobs and equipment purchases. Also the government wouldn't need to know what you spend your money on, whether at McDonalds or a roof repair, they only tax what is left in your account. You get to write-off everything you spend your money on, and no more tax returns for people or companies !!! Also no tax on retired people with less than $100,000 saved.

  • Answer:

    "This tax is much less than income tax " Maybe for you. I'd pay 65 times more than I did in income tax. You are punishing savings. People without savings go on welfare when they lose their jobs.

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your bank balance does not represent income

This tax would make people spend and not save. The same savings would be taxes over and over again. Not fair for the frugal. And those without bank accounts would pay no tax and cash their paychecks and not have any retirement savings.

So you're suggesting that anyone who saves for the future, including for retirement, be punished for doing so while rewarding the people who spend every cent they make and depend on the other people to support them later? Just bank accounts? What about other assets? If just bank accounts, what do you think will happen to the banking industry? And how will that affect people's ability to get loans for houses, cars, and businesses? And you have done the math on your guess of 4% monthly for all levels of government to know that comes real close to 50% per year? What do I think of your proposal? Not much!

I think you'd need to start printing $100 bills a lot faster because a lot more people would keep their savings under the mattress instead of in the bank.

Uh, wrong. A flat tax should be based on one's income, set at a specific percentage for all earners (say, 10% across the board). If it was based on bank accounts, no one would keep anything put a token amount (to keep the account active and their taxes lower).

1. Sales tax is at the state level 2. property tax is at the county level 3. You wouldn't possibly get all levels of government to agree to the same tax structure 4. If you did this, people would simply take their money out of banks. Know what would happen? Government revenue would plummet to nothing and banks would all fail. 5. The governmet ALREADY doesn't care what you spend you money on. "You get to write-off everything you spend your money on, and no more tax returns for people or companies !!! " - If you get to write off everythign you spend money on, then no one ends up aying tax, and the givernment has no money again. You have NO concept of reality in this situation.

I am all for a flat tax system, but running it through the banks would make tax evasion easy. all you would have to do is deal in cash and when you did get checks cash them in foreign bank accounts.

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