The APT tax seeks to maximize the goals of both the government and the people - collecting necessary revenue with the lowest possible tax rate. The difference between the APT tax and our current income tax, as well as the proposed consumption taxes, is simplicity, progressivity, and breadth-the APT tax allows for significantly lower rates spread more equally throughout the world of economic activity. The APT is a transaction tax, and as such, taxes every single transaction that occurs in the economy including fund transfers between accounts and transactions involving the exchange of bonds, securities and foreign exchange. Because the wealthy conduct a disproportionate share of these financial transactions, the tax is highly progressive despite its flat rate. Progressivity is achieved through the skewness of tax base itself rather than through the progressive income tax rate structure of the current system. The very small tax is "sliced" off each side of every transaction as it moves electronically through banks and all other qualifying financial institutions. The tax collection is orderly and transparent, the rules are simple and universal and apolitical. The APT system eliminates the entire present tax code. No more exemptions, no more deductions, no more special interest loopholes and no more tax returns.
http://www.apttax.com/execsummary.php
It sounds great to me. Tax everything equally and all of a sudden the super rich have nothing to complain about. Tax everything equally and you will have a progressive tax because it circumvents the tax structure developed by politicians who generally only do what their rich backers want them to do.
Originally posted by KazetNagorraI think the tax is any dealings with US companies. If you want to buy a US stock, then you have to pay a US tax. Of course you are correct, there is nothing to prevent companies from leaving the US and escape US taxes. Or course that's how it is today in any country. I guess the US would just have to trust that the loss of transactions would not be great enough to be a real problem.
It might be a good idea, the problem is that you'd have to implement this worldwide, otherwise people would just trade their stock wherever there is no transaction tax.
Originally posted by EladarSo US companies would simply not list at US stock exchanges.
I think the tax is any dealings with US companies. If you want to buy a US stock, then you have to pay a US tax. Of course you are correct, there is nothing to prevent companies from leaving the US and escape US taxes. Or course that's how it is today in any country. I guess the US would just have to trust that the loss of transactions would not be great enough to be a real problem.
Originally posted by EladarI like the tax, as I said, as it discourages speculation. But those same speculators will want to avoid this tax at all costs - even if it's only a small tax, it will completely eliminate day trading, for example.
I don't think so. This is a very small tax, not enough to go hyper over.
Nice to see that a European actually sees the negative side of taxation.
Originally posted by KazetNagorraI think we can do without day trading. True stock trading companies will take a hit, as will tax attorneys accountants and tax lawyers. But hey, I think anyone is going to be doing any crying over fewer attorneys, accountants and lawyers.
I like the tax, as I said, as it discourages speculation. But those same speculators will want to avoid this tax at all costs - even if it's only a small tax, it will completely eliminate day trading, for example.