HOW A PAYMENTS TAX WORKS
Your Fair Share in Taxes is Much Less Than You Pay Today
We Are Simply Taxing the Wrong Thing
Collectively, we earn $20 trillion per year. However, there are over $7,244 trillion in payments each year that are currently untaxed.
We should be taxing payments instead of income.
The graph below compares our income to the total payments in the economy.
The volume of payments in our economy - $7,244
Versus our income -
Today we tax our income, which is 0.3% the size of the total economy. That's why taxes are so high!
If we were to tax payments instead of income, we could reduce the tax rate to 0.2%, while enjoying many benefits we cannot afford today.
Breakdown of Payments in the U.S. in 2019
Credit transfers - $44.3
Direct debits - $25.6
Checks - $25.8
Cards/e-money - $7.2
Payment Systems & Critical Service Providers
Fed check clearing - $8.5
Private check clearing - $11.5
CHIPS - $417.5
EPN - $27.9
Fed ACH - $27.9
Fedwire Funds Service - $695.8
NSS - $20.8
Central Counterparties and Clearing Houses
FICC - $1,575.2
FICC: GSD - $1,477.7
FICC: MBSD - $97.5
NCSS - $297.7
Central Securities Depositories
DTC - $119.7
Fedwire Securities Svc - $345.8
Stock Exchanges - $125.0
CME Group - $1,435.0
Other FX Turnover - $458.0
Grand Total - $7,244.4