Debit Tax

The Tax you will truly love to pay.


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The Debit Tax was invented some years ago in Australia.

For some time now i've been trying to fault the Debit Tax, but it just comes up looking better.

The Debit Tax is a tax on all withdrawals from all financial institutions, that also means transferring funds from one bank to another.  This tax was initially proposed at 1/3 of one percent.  It is being suggested by some that a more realistic figure would be a 1% tax.  A tax of 1% on withdrawals does not seem much but that would depend on how much money is withdrawn.  There are some who claim that about $200 billion is moved around Australia every working day.  That may be so but as yet, i can not find evidence for that amount.  However, there are some people at the Reserve bank who are quite helpful.  It appears that there are at least $120 billion worth of transactions every working day in Australia.  There are of course, transactions on the 100 days per year that account for weekends as well.

Just 1% tax on that $120 billion would give the government about $1.2 billion per day.  Each time there is a transaction the tax is instantaneous, and goes straight to the Reserve Bank.  At 250 working days per year the government would receive about $300 billion annually.  Some say that at present the government gets about $150 billion annually from taxes.  On such figures and if they are all correct, the government would get about twice what we get now.  What would that do for our foreign debt?

It all sounds too simple!  Well yes it does, because there is a catch.  At present, workers and small business pay about 80% of all tax collected in Australia.  Big business pays about 20%.  Some money minded people insist that we pay closer to 90% of that.  Whatever the true figures are, under this system of Debit Tax we all pay our fair share. That is the catch!

Perhaps it's time the big corporations who make their fortunes from our country and our planet paid their fair share of tax.  What do you think?  Watch the politicians who duck and weave to miss this point and you'll see who is not working for us and our kids.

Of course, once this tax is implemented in Australia there are big companies who would rationalise their transactions so as to avoid the one percent tax.  They would however, not leave the country because Australia would have become a tax haven to deposit money and not pay tax on interest.  There would be an instant flow of money into Australia.

Did you know that big foreign corporations in Australia do not pay anywhere near the tax that they must pay in the US?  In the so-called third world they pay almost nothing; they just pay off the head honchos who then brutalise their citizens to keep them silent.   Why is this so and why do we allow it to happen?   Perhaps you could ask your favourite politician about that.  What's the bet, you won't get a straight answer.

Let's say that big business did move less money around and a bit less of that $300 billion was available to the treasury.  Remember we are about $150 billion up on what we get now.  There are also just over 100 days of weekends when money still moves with credit cards and withdrawals from holes in the wall (ATMs) plus transactions over the Internet.

There are some who say that if we had a Debit Tax then people would just move to a cash economy.
Well how stupid of me, of course they would.
To save 1% tax on $1000, you could keep $1000 under your bed and you'd save $10.
Anyone bothered to do that to save $10 would have to have rocks in their head.  So let them do it.

At a one percent withdrawal tax i'd be very happy to pay my tax every time, and would look forward to doing so.  I would not care if the Debit Tax were 5%, at least i'd know where i stand.  So long as the Treasury books were open for all of us to see, we would all know where the money goes; which is how it should be anyway, after all it is our money.

In the real world the Debit Tax would have to be adjusted a few points up or down, but that would be OK.  So long as we know where we stand.  Which we don't know now.

Remember this is the only Federal tax.  It means that there are no more tax returns and no more GST and no more Department of Taxation as we know it, that would have to be abolished; those from the Tax Department could get a better job.

Don't be frightened of change just because it looks too easy.  Don't forget, we have just gone through the GST and just like 'all night shopping' the GST is designed to send as many small businesses broke as possible.
The GST and 24 hour shopping is there to help capitalism and monopolies, not free enterprise; if you hadn't noticed there is a difference.

Under a Debit Tax small businesses would flourish, more people would become employed and workers would have more in their pockets to spend.  With the public having more to spend that would in turn help small business that could in turn employ more people.

Imagine Australian businesses not having to be sold off overseas because we would own them outright.
Because businesses in Australia would flourish, Australian ingenuity would blossom and bloom and we would start to produce more of our own goods and services.  We would start to own our own country.
That is the clever country.  What we do now is not clever.

Businesses could then afford to get access to accountants to help them to run the financial side of the business.  This is the work that accountants should be doing anyway, not trying to help you to minimise your tax; that tax you should be happy to pay because it is fair.

No tax on: savings, interest or deposits and no GST, just 1% tax on withdrawals.

Withdrawals means: - cash, cheques, credit card, hole in the wall (ATMs) and any purchase over the Internet.  Whether or not banks pay tax i do not know but banks make money so i guess it'd only be fair that they pay their fair share of tax.  How the 1% Debit Tax could be factored into a banks transactions would have to be looked at; by all of us who use banks and pay tax.  By the way, do banks pay tax?  And, if not why not?  

All over the world, governments are scratching their heads to figure out a way to tax business transactions that are done on the Internet (E COMMERCE).

This type of  business on the Internet is growing.  With a Debit Tax, as soon the money changes hands there is a one percent tax instantly.  The Reserve Bank gets its money and you've paid your 1% tax, and that's it.

Add about half a percent to this tax, and we could eliminate all other state taxes and council rates.  Would that worry you?

It all sounds too easy doesn't it?  But do we really need a complicated time wasting and paper wasting tax just to prove how clever we are?

The only thing that will slow down the implementation of this tax is when people say, "it will never happen".  Those people have never looked at the Debit Tax.  Those people are usually the types who go around wondering, what the hell ever happend.

The truth is that when enough people know about the Debit Tax, we will expect it, we will demand it, and it will happen!

With the will of our leaders it would take no more than 48 hours to implement this tax.



Do you think we are old enough to work out a tax system for ourselves, regardless of what the rest of the world is doing?

Ask your friends if they can find a fault with this system of Debit Tax because to many of us it looks too good to be true and just so simple. The figures are so simple that any school kid can easily check them out.

Perhaps you could find out if that $150 billion that the government is supposed to receive each year in taxes is a true figure.  Because if that figure is correct then this Debit Tax is a goer.

There are some who hate even the idea of the Debit Tax so much so that they will trot out many answers as to why it would not work; instead of figuring out ways to make it work.  Ask them what they would say about a partial Debit Tax, meaning just a fraction of one percent to go towards free education available to all, good free public transport, old age pensions and see what they say.  That is a good way to see if you are talking to a drongo or a thinker.

With free public transport more people would become accustomed to using it.  We could eventually power it by hydrogen that has been converted from alternative energy and that would help clean up our air.  If the figures on the Debit Tax are correct then it would take less than, one half of one percent Debit Tax, to fund these three items.

Lets get the school kids to check out this Debit Tax after all it is their world and they would have to pay it.

Copy this and ask your friends what they think.

Next Page - What the Debit Tax can do!

Below are two Australian sites on the DEBIT TAX have a look and think about it.





Frequently asked questions about the Debit tax