Taxes, Tuition, And You

By

Benjamin Keough
Author of The True State of the Union 2012

Overview
Government financial aid is a privilege, not a right. As the revenue from taxes continues to drop, and the demands for funding for unemployment, Medicare/Medicaid and basic welfare increases, the governments will be forced to reduce spending in higher education. Currently the state and federal governments are speaking of tax increases. A tax increase anywhere will further stagnate the economy. Our state and federal governments have not found a solution to the problem. We have not truly begun to feel the effects of the financial crunch.

Can You Afford College Without Aid from the County, State, and Federal Government?

33% of the cost of education is covered by the county.

28% by the State And 1% by other The student only pays 38% of cost of classes. How much of your tuition is covered by Federal Financial aid?

The Flaw with the Current Tax Code

The current tax code is based off of profit, income, and excise taxes. As unemployment rises income and profit decreases and government revenue decreases. Governments have greater demand for revenue and less revenue to fill the demand. Raising taxes further reduces profit causing less investment.
Funding gets reduced to non-critical infrastructure.

The Solution (The Smart Tax)

What is The Smart Tax

The Smart Tax is comprised of 5-tiers

The National Investment Tax (0.04%-1% tax on investments) The Currency Exchange Tax ( .15-.25% tax on currency trades) The National Sales Tax (0-3% sales tax) The National Employment Tax (1% tax on employment)

The Fair Tariff Law

Includes

Social Security Reconstruction Act

Medicare/Medicaid Reconstruction Act

Unemployment Reconstruction Act

The National Investment Tax (NIT)

The Currency Exchange Tax (CET)

Currency exchange is the process of trading one currency for another. In 2008 nearly $4 trillion a day was traded. 84% of these trades involved the Dollar. This tax places a .15% tax on the purchase of a dollar and a .25% tax on the sale of a dollar. According to 2008 estimates, this tax would generate $3-5 billion a day.

The National Sales Tax (NST)

The National Sales Tax is essentially an investment tax on the quality of life.

Food and gasoline are exempt from taxation Housing, transportation, and cloths are taxed at 1% Entertainment is taxed at 2% Alcohol and cigarets at 3%

These taxes are added to local sales taxes

The National Employment Tax (NET)

Simply put NET is a sales or investment tax paid by businesses on labor. NET is a 1% tax. In 2008 $12 trillion was invested in labor in the US. This tax would have generated $120 billion.

The Fair Tariff Law (FTL)

The FTL is designed to protect American businesses. It set tariffs by and easy formula.
Domestic Per Capita/ Foreign Per Capita * Imports/exports +2%

Providing For Public Welfare

While Individuals pay no income tax 10% of their annual income would be placed in personal savings accounts; 5% would go into an IRA, 3% into medical flex account, and 2% into an unemployment reserve account. Employers would place 10% of the cost of employment into universal funds; 5% Universal Retirement, 3% Universal Medicine, 2% Universal Unemployment.

Half of the universal funds would be divided equally among the populace while the other half would form emergency relief funds.

Public Education And Higher Education

The NST would be reserved fully for education and an additional 5% of the General Funds would support education. This would place over a $140 billion a year into a national education fund. Primary and secondary education would receive 80% of these funds with higher education receiving 20%. $112 billion dollars would be invested in primary and secondary education totaling 1/5 of the revenue invested in education a year. This would drastically reduce the strain of education on the state and local governments, who now provide over 95% of all educational revenue. $28 billion would be reserved for grants and loans for higher education.

Infrastructure
The CET provides revenue for infrastructure 20% of this fund is reserved for Educational Infrastructure. This fund would place an additional $120- $200 billion a year into educational buildings, technology, and transportation. Half of this fund would go to Higher education.

Personal Benefits

90% of your income would be dispensable.

You would have guaranteed retirement at the age of 63. Government Financial aid for higher education is assured.

Medical funds available to all.

No filing income tax.

100% control of personal income

Conclusion
It is essential that we force change in a tax system. Though this tax system is not currently on the radar, this is an election year. This is the best time to be heard. Many of us cannot afford education without financial aid and we currently only cover 38% of the true cost of our education. What happens when we must cover 50%, 75%, or a 100% of the cost?