USCF Currency Usage Tax (CUT)

Introduction

     The average American worker is required to spend 105 out of 260 workdays 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 May 24th that they can start working for themselves and their family instead of for the government.

     The federal government imposes 100 taxes and fees on its citizens collecting $4.05 trillion in FY 2021; however, $5.18 trillion was required to pay for mandatory federal spending on entitlement and welfare programs.   With $562.4 billion required just to pay the interest on the federal debt, total expenditures for the federal government was $6.82 trillion adding an additional $2.77 trillion to the federal debt.   Workers alone paid 68% 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.   The states also had record spending of $2.65 trillion in FY 2021 but only collected $1.86 trillion in tax 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 in order to increase revenue from property taxes.   American workers certainly have always done their part, but even after collecting more than $5,900,000,000,000 in taxes during FY 2021, our government still fell well short of paying its bills.

     My Currency Usage Tax program 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, 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.   Removing the burden of America’s convoluted tax structure will help repair our economy while implementing the CUT system will permit the federal debt to be fully paid off in less than 4 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 USCF eliminates the 600+ federal and state welfare programs incorporating them into a single fund.   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 control USCF programs while preventing Fraud, Waste, and Abuse (FWA).

     CUT eliminates all revenue sources for the federal government and states utilizing a simpler and more efficient revenue process.   The Currency Usage Tax is a flat tax based on the Federal Reserve’s normal daily aggregate report of U.S. dollar funding flows.   Typically, 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 through 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 Office of Management and Budget (OMB) anticipates the federal government will spend $6.011 trillion in FY 2022; however, it expects to only bring in $4.174 trillion from all revenue sources.   Mandatory spending for Social Security, Medicare, Medicaid, and welfare programs is $4.018 trillion which takes up 96% of the FY 2022 revenue.   The interest on the federal debt is on track to exceed $600 billion.   Entitlements and interest on the debt alone surpass total federal revenue by $444 billion.   Every year the Feds must borrow money just to keep the government running.   In FY 2022, another $1.387 trillion is being adding to the federal government’s $30 trillion national debt.   Mandatory spending as a percentage of the federal budget has more than doubled over the last 20 years and it continues to increase.

     Americans spend approximately $3.8 trillion per year on 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 by 30% resulting in ACA alone adding over $4 trillion to the federal debt.   Prior to ACA, 92% of Americans said they were satisfied with their healthcare coverage.   Premiums for individual coverage more than doubled between 2013 and 2016 due to ACA regulations.   ACA was supposed to fix America’s healthcare enrollment and funding problems.   ACA claimed to make healthcare affordable for all but only increased enrollment 5.5% leaving 31 million American citizens without health insurance.

     Now, the elitists in power are calling for your private healthcare to be eliminated and replaced 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?   What politicians don’t tell you is that Medicare has been in deficit spending since 2007 and is expected to go insolvent by 2025.   This is the real reason why some politicians want to take over Medicare.   They foolishly believe if they can socialize America’s healthcare system, they can control who gets medical care and prevent the collapse of Medicare.

     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.   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, adding 3.65 million citizens per year who are collecting their Social Security payments.   That is $60 billion in additional SSB payouts each year and this rate is expected to continue until 2029.

     Since 2000, only interest payments have been made to the national debt and nothing goes to paying down the actual debt.   The federal debt doubled from 2008 to 2016 by adding nearly $10 trillion over 8 years resulting in our debt exceeding the GDP for the first time in 2016.   When the pandemic hit, the Feds had no options other than printing more money, adding $6.2 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.   At this rate, the national debt will be more than $50 trillion by 2030 where the interest alone on the debt will exceed $1 trillion a year.   The federal debt is unsustainable and must be paid off before we have another catastrophic economic collapse.   Implementing the United States Citizen Fund in conjunction with the Currency Usage Tax is now the only way this will be possible.

Check out the U.S. Debt Clock here.
Click here to read how the United States Citizen Fund (USCF) will fix America’s problems for the benefit of all.