What Is Total Economic Activity?
Virtually every transaction of value in an economic arena is facilitated by a clearing firm that ensures the valid completion of the exchange. Recent annual reports by only four of the larger clearinghouses, The Clearing House ($520 trillion), DTCC ($446 trillion), Federal Reserve Financial Services ($1.3 quadrillion), and FedWire (1.1 quadrillion) cleared exchanges totaling over $3.366 quadrillion. Hyperlinks?
Research shows that there is a plethora of clearinghouses facilitating an untold number of trades of value, financial and otherwise. From stocks and bonds to crypto and copper to pork bellies and petroleum, quadrillions more in transactions are being documented and cleared by facilitators, raising the question, how large is an arena's Total Economic Activity? Five quadrillion? Ten?
Interactive Calculator
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Simple & Fair
The simplicity of Universal Exchange Tax is a result of enormous amounts of money and value that is processed by financial clearinghouses. Every check, stock trade, insurance transaction, loan, investment payout, etc, is handled by a firm which ensures financial activities are legitimately executed. Under UET, the assessed tax is removed from the payor's amount by the clearing firm and remitted to the treasury with the payee receiving the rest.
For Everyone
UET benefits all citizens equally, creating a fairer distribution of tax burden across society.
For Everyone
UET benefits all citizens equally, creating a fairer distribution of tax burden across society.
Economic Growth
By shifting the tax burden away from labor and production, UET encourages economic growth and innovation.
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Pay-to-pay
0.01% Base Tax Rate (Multiplier × 0.01%) Simple One Rate, Applied Universally Fair Tax Exchanges, Not Work
Understanding the Universal Exchange Tax and Its Impact
Universal Exchange Tax is a proposed general revenue excise tax. UET is is not discriminatory or difficult, it simply removes 0.01%, or a multiple thereof, from nearly every transaction of value within an economic arena, with 0.01% equal to one cent per hundred dollars
The viability of UET is based upon the Total Economic Activity of an economic arena which is an extremely large amount of monetary value measured in quadrillions of dollars because it includes every documented exchange of value from buying goods to multi billion dollar corporate mergers. A reasonable but low estimate of TEA for the US is five quadrillion dollars yielding $500 billion in revenue with a UET multiplier of one but yeilds $2.5 trillion with a multiplier of five.
Cons of Universal Exchange Tax:
Likely to negatively affect speculative and computerized stock trades
Pros of Universal Exchange Tax:
Equity
Simplicity
Low cost implementation
No clawbacks
No assessing added value
Easily adjustable for changes in desired revenue
Eliminates personal involvement
Removes incentives and opportunities to cheat
Pay to play
Predictable cost of doing business
Cons of Universal Exchange Tax:
Likely to negatively affect speculative and computerized stock trades