ASP Tax Policy - An Economic Revolution!
The Australian Sovereignty Party has an astonishing plan to completely overhaul and revolutionise the Australian economy as we know it. This will be accomplished by implementing our well-researched, logical, statistically verifiable, incontestable, incredibly fair and simple tax and monetary policy that will bring wealth and prosperity within easy reach of all Australians. This is a plan that will cause jobs to abound, manufacturing to return to our shores, and will allow individuals, families and businesses to flourish unlike any former time in history.
Our current oppressive tax system is overly complex and favours the ultra-rich and transnational corporations at the expense of ordinary citizens. The federal, state and local governments are subjugating the people with an estimated 125 different taxes, fees, levies and rates which in total rake in approximately $430 Billion in revenue, which is apportioned to the 3 levels of government and then used to fund everything from welfare, to education, health care, defence, infrastructure and other services.
The Australian Sovereignty Party, if elected, CAN AND WILL ABOLISH ALL EXISTING TAXES except for import customs and excise duties/tariffs. That means; no more personal income tax, no more GST, no more payroll tax, company tax, capital gains tax, no more council rates, car registration fees, land taxes, stamp duties, NO MORE TAXES! No more BAS statements, tax returns, tax compliance, paperwork, no more headaches, ALL GONE!
The Debit Tax!
So how then do we generate the revenue required to fund all the necessary services? It is easy! The Australian Sovereignty Party will introduce a single Debit Tax at a flat rate of 2% - this will replace all current taxes. This Debit Tax will be applied equally to everyone without exception! This debit transaction tax works by taxing your spending, not your earnings. In other words, no tax is paid on the receipt of any money, only a flat tax of 2% is levied on all payments made.
The following is an example of how it works:
1). A business pays you a weekly wage of $1,000. When that business processed the wages through the Australian payments system (in this case via direct entry payments), a 2% debit tax was automatically applied, so the total cost to the employer payment would be $1,020 ($1,000 transferred to the employee for wages + $20 as an automatically processed 2% debit tax immediately collected by the government).
2). You then keep your $1,000 weekly wage, no further income tax is applied.
3). You have your weekly mortgage payment of $400 automatically debited from your account; the cost to you is $408 ($400 transferred to the bank + $8 automatically debited as tax).
4). You pay your utilities bill of $150 by using BPAY, the total cost to you is $153.
5). You head down to the supermarket and purchases $200 worth of groceries, and take out $100 as cash; total cost to you is $306.
6). You then head out for a fancy dinner with your better half, the cost of the meals plus wine came to $74. You decide to pay with cash. No debit tax is applied to your cash payment, as the cash you took out at the supermarket already had the 2% debit tax applied to it.
If you spent your entire weekly wages of $1,000.00, you would have only paid a maximum of $20 in taxes, that is all, just $20! Compare that to the current $183 in tax that you would pay if your weekly earnings were $1000.
Should you decide to save $200 each week, and spend the rest, then you would only be paying $16 a week in taxes. However, if after saving for 2 years you decide to purchase a new $20,000 car using your cash savings, you will then pay a total of $20,400 ($20k for the car, plus $400 collected as tax). So inevitably everyone, including savers, end up paying the 2% Debit Tax.
If the above example sounds very simple, it is because it is simple!
How? Because the tax is automatically applied through the Australian payments system that includes direct entry payments, cheque processing, credit and debit card payments, EFTPOS payments, payments made through the high value clearance system, etc. There is no need for any account keeping, tax compliance, tax returns, BAS statements or any other paperwork. It is all processed automatically and efficiently. Easy!
How is it we can generate sufficient revenue through only this 2% Debit Tax?
According to the Federal Treasury, the Reserve Bank of Australia, and APCA (Australian Payments Clearing Association), in the financial year 2014 to 2015 there were over $50 Trillion dollars processed through the Australian payments system (outgoings, not incomings).
You do the maths. 2% of $50 trillion = $1 Trillion! That is two and a half times the amount currently collected by over 125 different taxes!
Since at least $15 trillion worth of transactions currently being processed through the "high value clearing system" is of a speculative nature (ie; currency trading etc), we expect the overall value of these transactions to be reduced as large banks and investors will be dissuaded from marginal speculative trading. Also, large businesses may seek to reduce their transaction levels via sideways and vertical integration, and so the total value of business transactions may decline.
However, due to the incredible stimulus effect this policy will have on the broader economy, we expect that the value of retail payments in particular will rise. Thus, based on our actuarial modelling, we expect that a 2% debit transaction tax will conservatively generate in in excess of $750 billion in revenue.
In addition to this $750+ billion in tax revenue, the government through the RBA will have access to an additional $120 plus Billion every year to spend on infrastructure. This money is created by the RBA to account for the private banks wiping off the digital money they created out of thin air and lent into circulation via their ledger entry scam, which we will put a stop to.
As all existing loans are repaid to the private banks, the banks wipe off the principle portion of the money they created out of thin air. In order to help keep the inflation rate at zero by keeping the broad money supply at the same level, per head of population, the RBA has to recreate this digital money, transfer it into the consolidated government revenue fund, and then spent into circulation by building infrastructure. (Please read our Monetary Policy for more details).
The End Result!
By combining over $750 billion collected through the 2% Debit Tax, an additional $120+ billion via our monetary policy, $20 billion approx. collected in Customs and Excise duties (which can be adjusted to reverse the outflow of jobs from Australia to countries that use slave labour and destroy their environment), and $20 billion approx. collected via other non-taxation revenues, an elected ASP government (Stewardship) will have access to more than $910 Billion with which to “run” the country. That is more than DOUBLE the current revenue collected through 125 federal, state and local oppressive taxes. We challenge any academic to disprove these figures!
So, when the Australian Sovereignty Party promises 100% free high quality health care (free means no Medicare levy), we can afford it. When we promise to abolish all toll roads and vehicle registration costs, yet still provide 1st class infrastructure, we can afford it. When we say that we can considerably increase the living conditions of senior Australians who rely on the pension, we can afford it.
When The Australian Sovereignty Party promises that we can build a world class high speed rail network to connect all major Australian cities, we can afford it. When we say that we will significantly increase funding to roll out residential solar (combining locally developed and manufactured grid-connected battery systems that can store excess power generated), we can afford it. When we say that we can TRIPLE the size and capability of our defence forces, WE CAN AFFORD IT! The ASP does not make empty promises, we can do it, we will do it and, WE CAN AFFORD IT!
What will life look like under the ASP Economic Revolution?
Under ASP economic stewardship, our great nation will experience new life as the economy is born-again. The high level of hope, goodwill and joy in the air will be profound and palpable. Life as we know it will improve so strikingly that Australia will rapidly ascend as the happiest, wealthiest and most prosperous nation on earth!
Consider the following…
When all existing taxes are once and for all done away with and replaced with the ASP 2% Debit Tax, everyday Australians will be keeping their income and thus have more free money to spend. Everything you purchase will also become cheaper. Businesses can improve upon their profit margins while still lowering the sale prices of all their goods and services because they are no longer being taxed into submission, because they will not need to build the cost of all the taxes into their products. Thus, everyone will have more free money, and everything that you purchase will be cheaper.
When people have more free money, what do they do? They spend more! They buy new televisions, new appliances, new furniture, new cars, new houses and so on. People go out for dinner more often, they can take holidays more often, and they enjoy life more. As the average Australian is loosed from the bondage of taxation and poverty and start to spend more, businesses start to boom. In fact, companies start receiving so much additional business; they will have no choice but to hire more employees to deal with all the extra business they receive. Thus, new jobs are created left, right and centre!
Manufacturers say, “let us come and manufacture our goods in Australia, because we no longer have to pay all these oppressive taxes and are no longer burdened by all this regulatory red tape”, thus, new jobs are created left, right and centre! Australia will again become a manufacturing powerhouse of high quality goods. So many new jobs!
The ASP government will be spending upwards of $120 billion per year of debt free money on massive nation building infrastructure projects, bringing Australia into the 21st century. Multiple tens of thousands of jobs will be created over the next 25 years as we build high tech mag lev train lines, drought proofing water pipe lines from the Kimberly, solar roads, renewable energy power plants, and many more such visionary projects that improve the life of all Australians, consequently creating more and more jobs.
Before you know it, Australia, under an ASP stewardship, has 100% FULL EMPLOYMENT. Everyone who possibly can work will be working. It will get to the point when businesses will gratefully employ a paraplegic in a wheel chair to come and operate a machine press because there is literally no one left to do it, as EVERYONE WILL BE EMPLOYED!
In such an environment, when you have true 100% employment, labour unions will no longer need to engage in strikes and industrial action in order to beg for a little more pay or better conditions for their members, because companies will freely be doing everything they can just to hold onto their existing employees because if they lose an employee, they may have a difficult time finding a replacement because everyone else is already employed, no one is looking for a job.
It is highly likely that companies will start offering better pay, better working conditions, will of their own volition choose to improve the safety of their workplace not because some government enforcers are inspecting them and threatening them with prosecution; they will improve their workplace safety because they will want to retain their employees. They will offer better facilities, more flexible working arrangements and other incentives; so basically, it becomes a workers paradise. But will businesses be complaining? Absolutely not, because they will not be paying all these taxes, and they will be receiving more and more business as the economy fires up like never before!
Larger companies that employ hundreds of people will likely start operating their own in-house child care facilities in order to attract stay at home mums and dads, or single parents who would otherwise be sitting at home on a single parent pension whilst looking after their children. These companies will offer a working arrangement for them whereby their children are cared for in-house, and they will have regular breaks to check up on their children. They will do this because there is 100% employment and businesses and companies will need to do everything they can to attract and retain workers who would otherwise be tied up at home.
# As an aside, whilst aged and “genuinely disabled” pensioners will be far better looked after under an ASP stewardship, with the pension rate increasing to $1200 per fortnight, the overall government expenditure on welfare won't increase significantly, due to the family tax benefit and unemployment benefits being made largely redundant.
All of these things happen as a natural consequence of liberating the economy by instituting ASP Tax and Monetary policy. We will not need a mountain of regulation, red tape and bureaucracy to force companies to comply with workplace safety and other standards, companies will do this willingly and of their own volition in order to provide the very best working conditions for their employees in order to retain them. That is what happens when you have 100% employment.
So, workers will be happy and prosperous. Businesses will be happy and prosperous. Everyone will have a real chance to significantly improve their living conditions and lifestyles. We will become savers, not borrowers. We will no longer need to become debt slaves to banks for more than half our lives. Cases of depression and suicide will decline. Divorce rates will reduce and families will be happier as fighting over lack of finances become a thing of the past. Life expectancy will increase as people will be able to afford healthier lifestyles and we no longer stress about lack of money.
Australia could become the greatest nation on earth… if the people will choose to elect the Australian Sovereignty Party to govern this nation!