Rehctub, I understand the proposed mechanics. What I have not read in any past proposal for it nor your own is anything that would make it capable of what is claimed.

Straight off, what "small percentage" applied only to actual transfers would replace normal taxation on an average income?

Secondly, it places the power of taxation largely in the hands of banks (whose fees you already protest) with the added obfuscation of a further mandatory tax behind which they can invisibly mulct the commonwealth with a "handling fee".

You claim it only taxes money, not people. What it taxes is the need to spend money, which relates directly to the needs of people. Obviously someone who has to spend most or all of their income will be paying a higher proportion of their total income than someone who only has to spend a tiny fraction of their income. If you think that constitutes a "fair share" of tax then I cannot agree with you.

Why on earth would you presume that the 1% will not dodge it? Simply using normal bookkeeping and only "transferring" outstanding residual balances between entities (like holding companies and subsidiaries) at rare intervals ensures that many otherwise taxable transfers are avoided.

Glad you're happy to pay the dole to those out-of work accountants, but you're not are you? Think how much more they'll contribute to the economy after you've ejected them from their make-work. Better hope you're not similarly ejected...

Yes, it *is* time to stop pussyfooting around. The first step is putting a withholding tax on overseas transfers that is equal to the company tax rate, and only refund to the value of documented tax receipts showing proper tax at destination. Transfers to tax-havens should simply be taxed at the maximum rate just like someone without a TFN. Ignoring tax havens is no longer a naive act of good faith, it is now simple incompetence.

Your suggestion to reduce subsidy to non-workers may not work. Reducing welfare won't increase your sales, just ALDI's, and reducing middle-class subsidies probably won't sell more artisanal cuts either.

Rusty

Rusty, do you honestly think big business will stay here if they are forced to pay 30 cents in the dollar? I don't.

You have to look at the whole picture here and take into account the amount of taxes they generate, not just what they pay. We already provide a very expensive, highly regulated trading place to do business remember.

I guess we will never know unless some government actually goes after them, but to be honest, I'm not prepared to take that gamble because I'm happy with what they bring to the table and cant imagine life without them.

Yeah that's the problem.
In today's global environment companies shop around for whichever nation is offering the best deal on corporate tax, and countries are undercutting other countries to get those jobs and businesses into their economies.

As a result companies end up paying little tax and the middle class is left to take up the slack.

Rehctub,

Yeah, standard company tax rates are a bit too much aren't they? I guess they just don't have the viability of your own business. You have an inordinate amount of respect for businesses that don't have the backbone to meet requirements you yourself cannot avoid.

I imagine you similarly respect the achievements of Lance Armstrong?

*I* think they make plenty, that company tax is well within their capacity, and they are happy to take any further donations till someone calls their bluff.

If your weak sisters at the big end want to chuck a hissy and abandon their operation, leases, plant, customer base, workforce etc, so be it. It gets auctioned off to someone willing to operate a profitable business on local tax terms. Terms that support good established infrastructure, educated workforce (with reasonable healthcare to maintain productivity), low crime, and moderately consistent appealable courts that protect them from damaging crimes. I understand that many of our resources are unmatched, and unlikely to get less valuable.

What "transaction Tax" rate would replace current tax collections? Bet it's not as small as you think.

Rusty.

so the challenge is simple arm chair, chase them away ad see how we fare.

Take the top companies that pay less than a calculated 30 cents in the dollar, and remove all their revenues, taxes collected and see where we end up. Of cause add all those employed by them to the unemployment list while you're at it.

No challenge at all Rehctub,

Just enabling compliance with existing law by the simple administrative method of adjusting withholdings on overseas transfers. Clearly identified by the tax commissioner as the current weak spot.
They won't abandon, and you are catastophisiing.

Speaking of armchairs, How about your suggestion? What transaction tax will extract the same tax as currently might be collected? Use an average wage as an example.
You have also not explained how taxing the poor more, or helping less will increase the economy. Bit hard?

Rusty