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Financial
Transaction Tax - FTT
A
National Debit Tax Concept
"For 44 years, Multi-Nationals have
paid little or no tax!"
(Jim Kilally, Asst. Commissioner, Australian Taxation Office,
Sydney
Morning Herald 28/1/97)
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What is the
Financial
Transaction Tax (FTT)
The FTT Formula
The FTT Formula is simply an added percentage, one
third of one percent (0.33%) is
suggested, to the amount withdrawn from all accounts by Banking and Financial
institutions.
This tax, when cleared, is instantly deposited through the
Electronic Funds Transfer (EFT) system into the National Treasury.
How the Financial
Transaction Tax (FTT) Concept
Works
Every hour of the day money is withdrawn from savings
accounts, cheque accounts, insurance companies, business and investment organisations, and
financial institutions of all kinds. Indeed, ALL monetary transactions are withdrawn from
some type of bank or financial institution that holds money in trust.
The Australian Payments System Council Report 1991 - 1992,
issued by the Reserve Bank of Australia, states that $120 BILLION is withdrawn from banks
EVERY WORKING DAY in ordinary business and trading.
Just one simple and moderate Transaction Tax of ONE THIRD OF ONE PERCENT - 0.33% - added on all monies withdrawn provides the National
Treasury with annual revenue of $99 BILLION.
A Debit Tax of only
0.33%
on DAILY withdrawals of $120 BILLION
EQUALS
$396 MILLION IN FEDERAL REVENUE
DAILY
OR EQUALS
$99 BILLION IN FEDERAL REVENUE
ANNUALLY
(These figures are based on the 1991 - 1992
Reserve Bank Reports of
NON- CASH withdrawals)
The amount of CASH withdrawals made from ATM's and EFTPOS,
and withdrawals made on weekends and public holidays are NOT taken into account here. It
is estimated that a more realistic figure for 1995 is around $200 BILLION in withdrawals
per WORKING DAY.
A Debit Tax of only
0.33%
on DAILY withdrawals of $200 BILLION
EQUALS
$660 MILLION IN FEDERAL REVENUE
DAILY
OR EQUALS
$165 BILLION IN FEDERAL REVENUE
ANNUALLY
The Government requires $96
Billion in revenue per year. The National Debit Tax Concept provides the Government with an
ANNUAL
SURPLUS OF $69 BILLION.
Note 1 : Annual calculations are based
on 250 working days ( 52 x 5 day weeks less 10 days in public holidays)
Note 2 : These figures are bases on Reserve Bank of
Australia Reports for 1991/1992 and 1995. Current figures are not available.
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Advantages of the
Financial
Transaction Tax Concept
Some of the advantages of using just one Transaction Tax of only 0.33%
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Income Tax and all other Federal
Taxes become unnecessary
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No tax on profits, savings,
investments, assets or pay cheques
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No taxes on income, payroll,
provisional, property, inheritance, or goods and services
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No income tax means an instant
tangible wage rise for everyone
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Goods and services will be
cheaper without sales tax and import tax
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No sales or hidden taxes mean
more in the pocket for those in the Welfare System
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The method of collecting revenue
will be effected by Electronic Transfer Systems (EFT) - the ultimate in
efficiency
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No more time, money and paper
wasted on daunting tax laws and complex tax returns
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Tax collectors will be appointed
to more productive and useful positions
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Accountants employed by
businesses, large and small, would be able to use their training and experience in the
manner in which it was meant to be used, ie. making business more productive and cost
efficient
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Small businesses will not be
hindered by our present time consuming system, and will consequently be encouraged to grow
and employ more people
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ALL Multi-National Companies will
be required to pay their fair share
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NO tax cheating or tax avoidance
necessary or possible
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It would create a real user pays system
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Continuous flow of revenue to the
National Treasury
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Our large and expanding national
debt will be settled very quickly
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Australia will become the
TAX
HAVEN OF THE WORLD
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Australia will indeed be the
"Lucky Country"
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It would allow people to save
money for retirement, with no penalties
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Our National Fund Reserves would
be rebuilt by the increase in savings deposits, deposits encouraged by the
Financial Transaction Tax Concept. At present our reserves are at there lowest since the Great Depression. |
DISADVANTAGES
OF OUR PRESENT SYSTEM
Our current outmoded Tax System has proven to
be complicated and impracticable to businesses and individuals. It has many disadvantages:
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It pushes production out of
Australia, creating an imbalance in trade and our increasing overseas debt
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It is inequitable and unjust
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It is costly in time and money
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It is complicated
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It destroys incentive
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It penalizes individuals who wish
to succeed
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It is taxing on small business
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It creates tax avoidance and cheating
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Multi-National companies pay
little or NO tax
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The Financial Transaction Tax Concept Scale - 'A' and 'B' indicates
current Tax scale.
| Wage/Salary |
$30,000p/a
($575 p/w) |
$35,000p/a
($675 p/w) |
$40,000p/a
($770 p/w) |
$45,000p/a
($865 p/w) |
$50,000p/a
($960 p/w) |
'A'
With Tax Free
Threshold |
$131 |
$166 |
$204 |
$246 |
$289 |
'B'
No Tax Free
Threshold |
$201 |
$246 |
$292 |
$338 |
$384 |
FTT - (Debit Tax)
|
$2 |
$2 |
$3 |
$3 |
$3 |
INCREASED
take-home
PAY |
'A' - $129
'B' - $199 |
'A' - $164
'B' - $244 |
'A' - $201
'B' - $289 |
'A' - $243
'B' - $335 |
'A' - $286
'B' - $381 |
The Australian Taxpayer's personal income tax,
accounts for $59 billion of Taxation revenue raised.
The revenue raised on behalf of Company Tax was
$12 billion.
The Question:
WHY
the vast discrepancy?
The Answer:
Australian Small businesses and companies pay their taxation commitments by contributing
the greater part of the Company Tax raised but...
MULTI-NATIONALS
COMPANIES
PAY LITTLE OR NO
TAX!
The government has manipulated the Australian
Taxpayer into paying not only their own taxes, but also those of the multi-national
companies.
Australians are demanding Taxation Reforms that
include the multi-national companies paying the equivalent rate of taxation as that of ALL
Australian Small businesses and companies. The THOUSANDS of millions of untaxed Australian
dollars being remitted annually to international banks, at the expense of the Australian
Taxpayer,
MUST STOP NOW.
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Extract from the GST Legislation, Section 165-55
165-55:
The Commissioner may disregard a scheme in making declarations for the purposes
of making a declaration under this Subdivision, the Commissioner may:
a)
Treat
a particular event that actually happened as not having happened; and
b)
Treat
a particular event that did not actually happen as having happened and, if
appropriate, treat the event as:
i)
Having happened at a particular time; and
ii)
Having
involved a particular action by a
particular
entity; and
c)
Treat
a particular event that actually happened as:
i)
Having
happened at a time different from the time it actually happened; or
ii)
Having involved a particular action by a particular entity (whether or
not the event actually involved any action by that entity).
The above piece of Australian
Taxation Legislation
confirms the words of Mark Twain when he said:
'The World is
run by very intelligent people who are having us on, or
by imbeciles who mean what they say.'
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