USCF Currency Usage Tax (CUT)
Introduction
The average American worker is required to spend 105 out of 260 workdays (40%) on the job each year just to pay off the taxes required of them by their state and the federal government. So, it is not until June 2nd of 2023 that you can start working for yourself and your family instead of for the government.
The federal government imposes 100 taxes and fees on its citizens and set a new record in FY 2022 collecting $4.896 trillion. President Biden also set a record in FY 2022 with his $6.1 trillion budget request. The highest budget ever requested by any president. Unfortunately, as with every year, the federal government spends more than it takes from you. In true form, the Biden administration spent $6.27 trillion creating a $1.374 trillion deficit. Now with the federal debt at $31.5 trillion and $180 trillion in unfunded liabilities your share of responsibility for this debt is $550,000. That means you, every member of your family, and every one of the 334,300,000 citizens in the U.S. owes the federal government $550,000.
Besides federal taxes, Americans also incur the additional hardship of numerous taxes from their states through income, property, sales, and other taxes and fees. The states also had record spending of $2.86 trillion in FY 2022 but only collected a little more than $1.84 trillion in revenue. States tend to run deficits during economic hard times as revenue from income and sales taxes decrease. To offset lost revenue, states artificially inflate the value of homes and other estates in order to increase revenue from property taxes. Americans certainly have always done their part, but even after collecting $6,736,000,000,000 in taxes during FY 2022, our government still fell well short of paying its bills.
A significant problem with the current U.S. tax structure of corporate, income, property, and sales taxes are that they not only cause inflation and recessions but make it more difficult for the Federal Reserve to manage these problems. When the government decides they need additional funds for new programs they only have two methods to increase revenue. They can print more money adding to the federal debt or they can raise your taxes, both of which adds to the inflation equation. When the government raises taxes, goods and services become more expensive. Businesses must raise their prices to offset the losses of higher costs. Therefore, goods and services become more expensive adding to inflation. Then the government must raise taxes again to offset the higher prices they caused. It becomes a vicious cycle that requires a recession every several years to put a shock to the economy. People lose money, businesses fail, adjustments are made, and the cycle starts all over again. Our economy has not been a free market economy for a very long time, and this demonstrates how our highly regulated form of capitalism continues to fail Americans by perpetually increasing the costs of goods and services.
The Currency Usage Tax eliminates all current federal and state revenue sources by replacing them with a single fair flat consumption tax. Eliminating income tax and payroll taxes not only increases a worker’s spending power but provides them with a greater opportunity to invest and save. Eliminating property tax means you can pay off your home or business sooner and the government no longer has the power to take your property through taxation. Eliminating all small business taxes and fees affords them the opportunity to hire more people, pay better wages, and provide more goods and services. Eliminating corporate taxes will likewise allow corporations to hire more workers, increase salaries, improve inventories, and create more products at a lower cost. The numerous U.S. companies that prefer to do business or have moved their headquarters overseas because of America’s high corporate tax rate will eagerly come back and companies from all around the world will want to join them.
CUT is a simple flat consumption tax utilizing a more efficient revenue process. The Currency Usage Tax is based on the Federal Reserve’s Normal Daily Aggregate report of U.S. Dollar Funding Flows. Typically, in America, $7 trillion dollars (excluding intrabank transactions) flows through the economy each day of which $1.5 trillion per day relates to goods and services. A simple 1% consumption tax will easily bring in over $6 trillion per year. This is 12.2% more revenue than the federal government ever collected in its best year through its convoluted system of 100 taxes and fees. A higher rate consumption tax will be required to pay off the federal debt but, removing the burden of America’s complex tax structure will help repair our economy and permit the $31.5 trillion federal debt to be fully paid off in less than 5 years.
The Currency Usage Tax is part of the United States Citizen Fund (USCF) which is designed to significantly reduce government costs by reforming entitlement programs. The CUT and USCF work together to solve numerous issues Americans have endured with regard to the IRS, entitlement programs, education, healthcare, livable wage, retirement, crime, justice, and much more. USCF solves America’s problems utilizing sound reform that increases government efficiency, streamlines bureaucracy, improves quality, and reduces overall costs. While some Americans may be disappointed with the elimination of the IRS, it is important to understand that its personnel and resources are needed for USCF management and oversight. The IRS will be transformed to assist Americans with their benefit programs as part of the Federal (FMS) and State Management Systems (SMS). The resources of the former IRS will be utilized by FMS and SMS to monitor and manage USCF programs while preventing Fraud, Waste, and Abuse (FWA).
Why The CUT Is Needed Now
Mandatory spending on welfare and entitlement programs as a percentage of the federal budget has more than doubled over the last 20 years (Cloward / Piven Strategy) requiring up to 80% of the overall federal revenue each year and it continues to increase. The interest on the federal debt typically takes up another 8-10% requiring the federal government to borrow trillions of dollars each year just to keep the government running. The out-of-control federal spending makes it impossible to solve any of America’s problems and politicians have no clue, or desire as it seems, to solve any of them.
Americans paid $4.52 trillion in 2022 for all medical expenses. The government’s subsidized part (Medicaid, Medicare, and CHIP) is expected to exceed $2 trillion in FY 2023. The Affordable Care Act (ACA), commonly called Obamacare became law on 23 March 2010. Medicaid and CHIP added 16 million individuals by the end of President Obama’s second term in January 2017. This added over $4 trillion to the federal debt during that same period of time, Prior to ACA, 92% of Americans said they were satisfied with their healthcare coverage. Now, only 56% of Americans report they are satisfied with their healthcare. Premiums for individual coverage more than doubled from 2013 through 2016 due to the implementation of ACA regulations. ACA was supposed to fix America’s healthcare enrollment and funding problems by making healthcare more affordable. However, from 2010 to 2022 enrollment only increased 7% leaving over 27 million American citizens still without health insurance.
Democrats continue to call for the elimination of your private healthcare and replace it with Medicare for All. Medicare for All would cost $5.2 trillion per year and eliminate more than 2 million jobs! Why would anyone want to do this? What politicians do not tell you about Medicare is that after it became law in 1965 it has required federal subsidies since 1969. And, even though the federal government has been screwing hospitals and healthcare organizations by reducing their Medicare reimbursements several times over the last two decades it is still expected that Medicare will be insolvent by 2025. Despite President Biden increasing taxes on businesses and diverting billions of dollars to the Medicare Hospital Insurance (HI) trust fund, Medicare is still projected to go insolvent. These are the real reason why Democrats want to take over Medicare. They foolishly believe if they can take control and socialize America’s healthcare system, they can decide who gets medical care to prevent its inevitable collapse.
OASDI (Social Security) payments exceeded non-interest income in 2010 and entered deficit spending in 2016. The Social Security Board of Trustees estimates that the trust fund will be depleted by 2033. In 1935, when Social Security became law the average life expectancy for men was 58 and 62 for women. This is why 65 was originally set as the retirement age when individuals were permitted to start collecting Social Security payments. Today the average life expectancy for men is 75 and 80 for women. Baby Boomers are retiring at a rate of 10,000 per day, adding 3.65 million citizens each year who are collecting their Social Security payments. That is $60 billion in additional SSB payouts per year and these rates are expected to continue until 2029.
Since 2000, only interest payments have been made to the federal debt and nothing goes into paying down the actual debt. The federal debt doubled from 2008 to 2016 by adding $8.8 trillion over 8 years resulting in the debt exceeding GDP for the first time since WW II in 2014. The federal debt and unfunded liabilities have been unsustainable since 2013 when our politicians threw America off the proverbial fiscal cliff with sequestration. When the COVID-19 pandemic hit the U.S. in 2020, the out-of-control federal debt left the Feds with no options other than printing more money. This added $5.2 trillion to the debt in less than 2 years. The federal debt passed $30 trillion on 31 January 2022 and is expected to exceed $40 trillion by 2026. This means the federal debt will be increasing at a rate of $5.5 billion per day. Again, this is unsustainable and will invariably result in economic collapse. The federal debt must be paid off before U.S. politicians create another worldwide economic collapse like 2007-2009. Implementing the Currency Usage Tax in conjunction with the United States Citizen Fund is the only way to pay off the federal debt and return viability to other liabilities without an economic collapse.
Read about the Issues That Broke American.
Return to the United States Citizen Fund.
