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Universal Exchange Tax (UET) is a proposed baseline general revenue tax that removes a very low
percentage tax, likely between 0.01% and 0.05%, from every transaction of value within an economic
arena. UET is a fundamental and equitable method of taxation ensuring every citizen contributes based solely upon their level of economic activity.
Implementing UET will provide the platform for total tax reform, wherein other targeted, percentage based assessments will be added as necessary to achieve total funding. Social, medical, income, sales, and other classifications of financial activity will likely be taxed based upon separate factors and added to UET revenue.
The concept for UET is the standard practice of removing a set
percentage fee from a transaction as compensation for facilitating the
transaction. The federal government is the primary facilitator for all
transactions occurring within its jurisdiction and is due the fee from
every exchange of value, regardless of size or classification.
UET does not add to the amount of a
transaction, instead reducing the amount credited to the receiving
account. With a UET rate of 0.01%, a transfer of $1000 nets ten cents for the federal treasury, with no increased cost to
the payer.
That's roughly $3 quadrillion dollars
in transactions cleared by only three processors. Factoring in all the
other clearinghouses, banks, credit unions, credit card companies, etc,
that handle the day to day business of America, it is apparent total financial activity in the US is easily in excess of four quadrillion dollars.
With a tax base of $4 quadrillion, a small assessment produces impressive sums of revenue...
Ten cents per thousand, 0.01%, generates $400 billion.
Fifty cents per thousand, 0.05%, yields $2 trillion, enough to fund half the federal budget.
It is likely that UET will negatively affect some financial activities and shrink the tax base. However, even if the totality of exchanges fell fifty percent, revenues will be in the hundreds of billions.
UET is cost effective, a simple accounting provision within the existing financial network.
UET is transparent and private, requiring only confirmation that an exchange is taxed.
Universal Exchange Tax is the only
truly fair method of taxation, linked solely to the movement of value.
No means test, no discrimination, no politics... The more you play,
the more you pay.
Transfers of titles and deeds, are documented
and facilitated by responsible parties such as tax
collectors and title agencies that routinely assess and collect percentage based fees.
Transfers between closely held accounts of the same entity, between savings and checking for example, are exempt from UET assessment.
Under UET, any need to
adjust revenues is a matter of changing the percentage rate.
UET relieves the subject economy of the
expenses associated with tax compliance and avoidance. Compliance is transparent, affordable,
democratic, and automatic. Avoidance is difficult, unprofitable, and
impolitic.
It is likely that
transactions of value
for obfuscation of ownership, or those that are speculative in
nature, are negatively impacted by UET.
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