1. Taxes in the United States should be reformed with all federal taxes combined into one single tax only. This tax should be an Excise Tax at the rate of ten percent on all goods and services in the country. All other federal taxes should be eliminated. The Excise Tax should be levied on all transactions of goods and services that make up the GDP of the United States, financial transactions are excluded but should be taxed separately. This Excise Tax levied on all incoming and outgoing transactions can generate all the revenue needed to run the government, including all government programs, it does not represent too great a burden on taxpayers, and it will not be overly large thereby not competing with other economic activity. The Excise Tax will be collected electronically and instantly in real time at the point of execution of each transaction.
2. The economy of the United States has functioned at optimum growth historically when the total tax was around 18-20% of GDP. Collection and enforcement for all federal taxes other than the excise tax above shall be eliminated.
3. Financial transactions at the various world bourses and exchanges shall not be immediately taxed. However, a 1% tax on financial transactions is recommended if world exchanges would agree to this international tax. The tax could accrue to a country or group of countries as determined.
4. It is estimated the Excise Tax will generate at least $3 Trillion in revenue in 2011 Dollars, thereby providing sufficient funds for general welfare and common defense of the United States. By the term “Government” is meant: all programs, departments, systems, agencies, commitments, and common defense of the Nation.