Global Tax Reform

Why Global Tax Reform? Why not tax reform one country at a time? It is of course logical that of all the possible systems of taxation in the World that there is one tax system that is superior to all the others.

It makes then perfect sense for all countries to adopt such a superior method of taxation as the one that will replace all separate incomprehensible tax systems in all countries so that the current vast differences that  are very costly for trade between every pair of trading partner will no longer have to deal with all these tax related trade barriers.

A major cause of Global financial turmoil and unstable economies are the extremely burdensome and time consuming taxation systems that are in use in most countries.

The worst taxation systems are those that are based on an income tax. Those income tax based systems have the greatest destabilizing influence on the economy for reasons not well understood by the politicians that have created these very labor intensive income tax systems.

How is it possible?
How is it possible that all governments in all the largest economies around the Globe were able to create these complicated systems of taxation that border on insanity? For example in the United States its Cogress gradually has created  an incomprehensible 75,000 page Federal (IRS) tax code that costs the USA economy about 12% to 16% of its workforce being tied up in utterly non-productive tasks associated with taxation. That costs the USA economy more than one trillion around in 2011. Yes indeed, that is SEVENTYFIVE THOUSAND PAGES and a whopping ONE TRILLION DOLLARS of wasted human time and energy per year!! All other large economies are similarly burdened by insane taxation systems that border on criminal intent.

Is this deliberate government corruption or just ignorance?
Most likely it is corruption, but who knows, they might actually be just plain stupid. A large amount of ignorance plus an enormous amount of government corruption by elected and unelected government officials that sell their votes and influence to the lobbyists that work on behalf of special interest clients whose interest it is to create tax loopholes favorable to them and their businesses by shifting tax burdens away from them and loading them on all the rest of the population. It really does not matter whether it is ignorance or corruption that create these insane tax codes and create totally unproductive jobs for up to 16% of the working population (that is how many people in the United States have their job directly or indirectly depending on taxation). Not only does this cost the economy 16% of its GDP but it also is a big factor that has made American industry less competitive and has caused the closure of many businesses and the loss of many productive jobs. It is very important to eliminate these wasteful systems of taxation in a careful and gradual manner. The very large number of people that are involved in these useless unproductive tax-related activities must not suddenly face unemployment because that would result in an instant economic recession. is the perfect tax proposal that can accomplish a transition from insane tax codes to this extremely cost effective new system of taxation.
An excellent tax system
This system is so excellently simple that it sounds too good to be true. The corrupt special interests, that have burdened all countries  with these current rediculous systems of taxation, will likely fight this new tax system with whatever means and methods to their disposal to preserve the status-quo of their tax advantages they have paid for so dearly with their lobbyists and their bribes to the politicians that were rewarded and directed by them to create the current economy destroying tax systems.. 

Short explanation
This simple new method of tax collection replaces all forms of taxation at all levels of government at Federal, State, County and City levels. In the United States it will replace a total of over 30,000 taxing agencies with a single extremely simple form of taxation.  It is an excise tax with a tax percentage that is very low as compared to current income tax percentages. And best of all, it requires no accounting, no tax return forms to be filed and it never requires any audits. The problem with things that sound too good to be true is that they are immediately dismissed as nonsense. Specially all so-called "Experts" in the field of finance and taxation will dismiss it as impossible or unworkable. They would be completelt wrong.

Restores privacy, saves billions
No accounting, no record keeping, no tax reporting or tax form filing , no audits. The tax rate that will collect more money than the current 30,000 taxing agencies combined is extremely low as compared to current conventional income taxes. It is a low 4% to 6% that is collected by the banking system by deducting the tax percentage from all deposits made into bank accounts and on all money transfers of any kind. The banks transfer the collected tax to a government revenue disbursement office which in turn distributes the total revenue received to all governments at all levels of jurisdiction, Federal, State, County and Cities. As "experts" do in all other fields of expertise, they will dismiss anything that differs a great deal with their current beliefs. Some of their many wrong observations: Too simple, tax percentage too low, cash economy will grow dramatically, it will create unemployment and create economic havoc. They will not even bother to study this tax replacement proposal because they reason, as "experts" allways do, that if this proposal would really work then it would have been implemented many years ago.

Slow transition to the new tax
To avoid sudden massive unemployment, the transition from the current systems of taxation to the new combined tax collection system must be done with good planning to not create such massive unemployment without providing for income for all these suddenly unemployed people. The new GlobalTaxReform will eliminate literally millions of unproductive tax related jobs. Such totally unproductive jobs as tax related accounting, tax return preparation, tax reducing schemes, offshore tax avoidance schemes and many other such jobs diectly or indirectly created as a result of current taxation systems will disappear. All these jobs can be gradually replaced with productive jobs that will add to the standard of living for everyone.

Massive job losses of unproductive jobs that are not replaced immediately with other jobs will create a temporary economic recession or even depression. Therefore any tax replacement  proposal must provide for a gradual transition over a long time period so that at no time sudden large unemployment will be created. This Global Tax Reform proposal provides for a very slow incremental transition over a ten to twenty year period. Over a period of 10 to 20 years many people will retire and many more have abundant  time to seek other employement. But the government must provide for unemployment compensation for the people that cannot transition immediately and need more time to transition into a new job or until they retire.

A complete detailed explanation of this tax reform proposal can be found at two locations on the internet and on the website of the United States Patent office here