Currency Usage Tax

Introduction

The federal government imposes in excess of 100 taxes and fees on its citizens collecting about $3.7 trillion in FY 2020 of which $2.8 trillion is required to pay for entitlement programsWorkers pay 68.5% of the total federal tax burden through income tax and payroll taxes.  Americans also incur the additional hardship of numerous taxes from their states through income, property, sales, and other taxes and fees collecting approximately $3.1 trillion per year by the states and local governments.  That is $6,800,000,000,000 for one year from all revenue sources.

The Currency Usage Tax (CUT) eliminates all current federal and state revenue sources replacing them with a single fair flat 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 and provide more goods and services.  Eliminating corporate taxes will likewise allow corporations to hire more workers, 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.  Eliminating the burden of convoluted taxation on America’s economy and its citizens is so significant that the likelihood of the politician’s perpetrated recessions may never be realized ever again.

Overview

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 USCF eliminates all federal and state entitlement programs incorporating them into a single fund.  The CUT and USCF work together solving numerous issues Americans have endured with regard to the IRS, entitlement programs, education, health care, livable wage, retirement, crime, justice, and much more.  USCF solves America’s problems utilizing sound reform that increases government efficiency by improving quality and reducing overall costs.  Although 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 control USCF programs while preventing Fraud, Waste, and Abuse (FWA).

Since CUT eliminates all revenue sources for the federal government and states a simpler and more efficient revenue process is needed.  The CUT is a fair flat tax based on the Federal Reserve’s normal daily aggregate report of U.S. dollar funding flows.  Traditionally, in America, between $6 trillion and $7 trillion dollars (excluding intrabank transactions) flows through the economy each day.  Internationally, that amount is over $20 trillion per day.  The CUT will be limited by law to extract a maximum of one cent for every dollar that flows though the U.S. economy.  This will result in an approximate revenue stream of $65 billion per day, $2 trillion per month, or about $24 trillion per year.

Why The CUT Is Needed Now

The 2020 fiscal year began 1 October 2019.  The federal government anticipates it will spend $4.79 trillion in FY20.  However, the federal government expects it will only bring in $3.65 trillion from all revenue sources resulting in $1.14 trillion added to our $24 trillion national debt.  Social Security, Medicare, and Medicaid alone make up 60% of the federal government’s mandatory spending.  Mandatory spending ($2.84 trillion) and the interest on the federal debt ($480 billion) makes up 70% of the overall federal budget.  Mandatory spending as a percentage of the federal budget has more than doubled over the last 50 years and it continues to increase.

Americans spend approximately $3.8 trillion per year for all medical expenses.  The government’s subsidized part (Medicaid, Medicare, and CHIP) is $1.6 trillion.  The Affordable Care Act (ACA), commonly called Obamacare became law in 2010.  Since then Medicaid and CHIP payments have increased 30%.  ACA alone has added nearly $2 trillion to the federal debt.  Premiums for individual coverage more than doubled between 2013 and 2017 due to ACA regulations.  Despite the increase in premiums over 90% of Americans are satisfied with their health care coverage.  Now, elitists in power are calling for your private health care to be eliminated and replace by Medicare for All.  Medicare for All will cost $5.2 trillion per year and eliminate more than 2 million jobs!  Why would anyone want to do this?  Medicare has been in deficit spending since 2005 and is expected to go insolvent by 2025.  This is the real reason why some politicians want to take over Medicare and what they are not telling you about why it will cost so much to fix all of its problems.

OASDI (Social Security) payments exceeded non-interest income in 2010 and entered deficit spending in 2018.  The trust fund is forecast to go insolvent by 2034.  In 1935, when Social Security became law the average life expectancy for men was 58 and 62 for women.  This is why 65 was set as the retirement age when individuals were permitted to start collecting Social Security.  Today the average life expectancy for men is 76 and 81 for women.  Baby Boomers are retiring at a rate of 10,000 per day, 3.65 million per year, requiring $60 billion in additional SSB payouts each year and this is expected to continue until 2029.

The federal debt is over $24 trillion and on average has been growing by $1.15 trillion per year since 2008.  The federal deficit is expected to exceed $40 trillion before 2030.  Not one person has put forth a tax plan or economic structure that can solve all of America’s problems.  Under our current structure there are only 3 ways the government can proportion revenue which is by changing; taxes, programs, or benefits.  Since 2000, only payments to the interest on the national debt have been made and nothing goes to paying down the actual debt.  The interest payment alone on the federal debt for FY 2019 was $479 billion which was 13.2% of the overall federal revenue.  So far, American tax payers have paid more than $3.7 trillion to the interest on the national debt.  Take a few minutes to try and actually comprehend exactly how much $3.7 trillion is and how it could be better utilized.  $3.7 trillion is 3,700 times 1 billion dollars.  $3.7 trillion is 3.7 million times 1 million dollars.

The uncertainty of the COVID-19 pandemic and its impact on the U.S. economy necessitates a transition to CUT and USCF now!  The monies being paid out through the stimulus packages passed by Congress will be added to the national debt driving it to well over $25 trillion this year.  If businesses in America are unable to start back up as soon as July it may cause a domino effect that can completely collapse our economic structure.  If America fails the rest of the world will soon follow and the pandemic will pale in comparison to global economic collapse.  If this pandemic does not bring about apocalyptic failures how long before we ourselves create a global economic collapse through stifling regulations, failed economic policies, and strife?

If you truly want to be scared, take a look at America’s unfunded liabilities.  Study the economies of the world and see how many have debt that exceed their GDP by 100%, 200% and even 300%.  America’s national debt doubled from 2008 to 2016 by adding nearly $10 trillion over 8 years resulting in our debt exceeding the GDP in 2016.  You may have heard some individuals in positions of power suggest, “we have nothing to fear because America is a debt-based economy,” attempting to play down people’s fears of our enormous national debt.  May I suggest that anyone who makes a statement like this is either a fool or a liar.  Check out the U.S. Debt Clock here.

Sitting at home wondering what to do next?  Now is the time for every American to reflect on how our society has progressed from the changes in our culture over the last 60 years and contrast its consequences with what we have allowed to happen over the last few years.