How then does the government collect enough taxes to pay its bills? Most of the revenues would be collected from the massive volume of stock and bond trades and foreign exchange transactions none of which are now taxed. One might be concerned that imposing taxes on these types of transactions would stifle economic activity in these critical areas, however, the tax is so small it would be dwarfed by the simple fluctuations in price that typically occur during the trading process. Although "day trading" and short term foreign exchange transactions will certainly decline, the reduction in these "hot money" transactions are only likely to reduce speculative market activity, thereby reducing the volatility of prices in these markets.
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No. It's nice for the wage earner to pay lower taxes. I am not saying it's evil, but it's shortsighted. All you do is grab money from another source and hurt business which is what is allowing the guy to collect his salary in the first place. What give him his job? Answer: companies in the market raising money from investors who also profit from trading. Calling it day trading, or anything else or saying hot money is false or bad, is simplifying to draw your intention away from another evil. Capital gains taxes. Take off capital gains tax and the economy would skyrocket. Few realize lack of capital gains tax and a lack of restriction on foreign investment built Canada and made it, circa 1965 one of the richest per-capita nations in the world. It is now number 17 or is it 23? We ain't rich any more. Reason. Fair taxes and reasonable foreign ownership rules. In other words in a man's life in this country he cannot make any money in business or speculation. It is against the law. 4 million people in Southern Ontario out produced and out traded the Island of Japan, a nation of 100 million people. The richest trade corridor in the world by an order of magnitude, yes, richer by far than New York-Boston or Mannheim-Stuttgart is Toronto-Montreal. It ships more than 5 million dollars worth of goods an hour. All you have to do is put a toll charge on that route and you would cut that in half in one year.
What they really should do is eliminate income tax entirely and VAT or sales tax too. And cut out all tax on capital gain. Yes, this tax shifting program would shift it to corporate tax. But the extra money the business's would get would allow them to pay it. Business would boom? Why? More investment money freed up, higher stock prices, more dividends, more income for business. More r&d money available, and more development. Real wealth would be created. Salaries would plunge as there would be no need for higher salaries. Cost of goods would drop dramatically, as the tax component in the salary would be that much less as well as the manufacturing and vat reduction. Would everything stay the same? No, as the lower cost goods from increase in business and profit allow more surplus capital even after lower salaries are factored in. After all, if you subtract the tax portion, you don't need the higher salary as it was wasted money, and the good is still cheaper, so you have more surplus. This goes into spending on more goods, allowing greater volume and even cheaper prices. Right away foreign trade increases and trade deficits disappear. Again taxes go down with business. Easier to raise money now and trade increases yet again, and prices fall. But salaries do not have to decline significantly. Drop government spending by 60%, as more people have jobs and welfare rolls decline. Advance retirement age 5 years and mandate healthy diets, people are more active longer and social security decreases. Taxes fall yet again. Eventually the tax on business would not exceed 18% and the US would be the richest country in the world again, bar none.
As more countries compete harder with the US to gain ascendancy their edge against the states economically and militarily declines and their aggression commensurately. Change to a hydrogen fusion economy and oil prices would decline to 20 dollars a barrel. Aggressive oil economies giving the states trouble would make peace, further reducing costs and barriers to trade. Again the US advances. It's all in the thinking and the freedom of the business creating individual. Pollution and refrigeration hfc's could be dispensed with in an electrical economy and air conditioners eventually turned off. Efficiency has to start now with economic efficiency.
EC<:-}
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