rehctub,
what does a transaction tax do that a GST doesn't ? Flat income tax & fixed for 10 years GST & we'd see a much improved economy benefitting all not just the hangers-on.

Indi, it has been suggested a TT of just 2% would eliminate every other form of tax we have ,including both,income tax and the GST.

While I am not an economist, the thought of any individual paying only 2% tax on thier income must be beneficial to thier financial well being.

My understanding is that it is a tax that is added to every single financial transaction made, collected by the financial institutions and passed on to the government.

Now just think of any $100 transaction.

The initial dollars are spent, and taxed.

A finacial transaction is when money goes from one institution to another. Bank withdrawals, automatic payments, EFTPOS, are all FT.o

How many times do you think that $100 is placed into an account, then drawn out again in any single day.

Now considering we have something like a three trillion dollar economy, with all that money circulating, time and time again, day after day, week after week, month after month and, collecting 2% each time.

The numbers are staggering and, no matter what happens, we, the individuals can only ever pay 2% of our personal income in tax as we can only spend money once.

It's what happens to our money that makes the difference.

The money is being taxed, not the wage earner.

Of cause big business and the banks hate the idear.

Now that's my take on it, but perhaps an economist can shed more light on the subject.

Wayne Swan touched on it at the forum, however he suggested it would have to be a global tax, which, by the way plays into the hands of those who have the one world government theory.

ps. You can be taxed twice, but only if you take your money from one bank and place it in to another.

Indi, for the record I am of the opinion we should introduce a 0.2% TT just so we can monitor it and test the water.

0.2% won't hurt really, but it could be a worthwhile model.

I suggested this as an alternative to the flood levey in QLD, but no reply.

Sorry to keep butting in Indi, but my whole concern is this.

We have a situation whereby many small to medium businesses, and some large, are struggling.

We also have a situation whereby wages are becoming a deterrent for employers,yet, they are also becoming to low to live on.

Add to this the deminishing tax that is being collected and, the increasing hand outs that are continuing to head north and there can only be one end.

So, unless the cost of living burden is removed from business and either placed on governments, or, better still, a more effective tax collection system is found, we are quit simply doomed, it's just a matter of, When, not If.

Despite the repeated slack I cop from the unionists and labor die hards, I think I am in a strong position to comment as rather than being I'll Informed, as I have been accused, I have actually been in the business of providing jobs for 20+ years an I can tell you, the rewards for small business are gone.

Every time we have a cost increase, that adds to the risk of us loosing our house as we have had to put that on the line in most cases.

rehctub,
I'm no economist either & agree with your points. The burden on the cost of living is imposed by the very people who should be working on removing the burden & that's our public service. I'm not proposing to do away with it because we couldn't afford not to employ the unemployable but what we can do is to reduce the benefits they help themselves to. Where I live we have bureaucrats who literally work to ruin us & get paid more in allowances alone than the rest of us gets in wages. I wouldn't object to those pays if they worked for us but they actually focus on working against us.

Yes indi, but if we halves there wages accoss the board it wouldn't fix the problem.

I am convinced that a better tax system is the answer.

Everyone wants to tax the miners, but not the banks.

The miners take huge risks, the banks take next to none, unless of cause they decide to invest OUR MONEY in some unsecured OS fund that we, the owners of that money have no say in.

Besides, the miners are being taxed per the amount of minerals they extrCt, it's called royalties.
now if these are to low, then increase tem.