Tuesday, April 14, 2015

The Flow of Money

One of the primary themes of "The Object Tax is that reform should consider the way that money flows through the economy. Here is a snippet from the work that would be published if my Kickstarter campaign is success.

"A bureaucracy tends to form to the flow of the money through the system. In the current withholding system, money from flows from employers to the Federal government. Since money flows from large corporate entities to the government, the bureaucracy naturally forms around the flow of money between large entities.

Taxpayers file an annual return. If the IRS feels that a given tax return is in order, the IRS might send a refund check. If the IRS feels there are mistakes with the return; the IRS might audit or fine the individual.

The flow of money places the individual taxpayer in a subordinate position.

The Object Tax creates an alternative flow for the money. In this structure, employees receive their entire paycheck and the money flows from Tax Aware Accounts held by individuals to the government. This change in the flow of money will cause the internal bureaucracy to be better in line with the needs of the people.
This study in the flow of money is not simply an academic exercise. The flow of money has profound effects on the way that government operates.

In the status quo, the money that the government needs to run comes in the form of large checks from huge corporations. Corporations are able to use the flow of money to gain political influence. Industrial lobbyists routinely point to the taxes paid by their industries to gain favor in Washington.

The Object Tax does not change the tax rate. It simply changes the flow of money. Taxpayer dollars will flow from the corporation into Tax Aware Accounts. Tax dollars then flow from individuals to the government.

The reform will change the relation between government, employers and individuals. Changing the flow of money so that tax dollars flow directly from the people to the government will cause the bureaucracy to realign with the needs of the people while reducing the political clout of large corporations.

Changing the flow of taxpayer dollars so that the money flows from individual accounts to the government should have a positive effect on our government.

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