Abolish all Direct and Indirect taxes

http://www.optimaltaxation.net

--
Abolish all Direct and Indirect taxes
--
TOP Tax system is a new tax system which can be used as a common tax system for all nations to make the whole world into one fully open market.
Salient features of this new tax system....................
Taxation, tax collection, tax enforcement, tax compliance, allocation of revenues to various ministries or departments and money supply into the economy are unified and integrated in the banking system. Citizens need not maintain separate account books and submit tax returns annually for paying either Direct taxes on personal incomes or Indirect taxes while running business or industry. There will be no tax collection departments, tax enforcement agencies and tax tribunals. Yet, the tax revenues collected by banks from single tax called TOP Tax will be 30 to 40% more when compared to total tax revenues accrued from all taxes in the present tax system.
100% tax collections without tax collection departments
No tax collection expenditure for the Governments
No tax compliance cost for the people
No Direct and Indirect taxes and no tax returns
No check posts, way bills, accounting, auditing, tax laws, tax raids, etc.,
Tax component on any commodity or service will be less than 11% unlike more than 30% in the present tax system.
The prices will be substantially decreased
No tax evasion and its main product black money
Simplified budget preparation, presentation and implementation
-------------------------------------------------------

-----------------------------------------------------------

I am suggesting new methods, models, and innovative and alternative policies in the areas of monetary system, budget preparation, banking finance system, public finance, optimal taxation, tax collection, tax compliance, subsidies, money supply, and fiscal policy to help remove corruption, tax evasion, economic recession, black money, fake currency, ransoms, robberies and societal inequalities. In my opinion, the proposed new economic system may usher in good governance, 100% tax compliance and corruption free environment. It suggests a single tax called “TOP Tax” (Transfer Or Purchase Tax) for both Centre and States combined in place of present multiple Indirect taxes with different slab rates on different goods/commodities/services and multiple Direct taxes with different slab rates, relieving 6.9 billion people of the world from the cobweb of ambiguous and complex tax structures, plethora of tax laws, mandatory and cumbersome accounting, auditing, tax returns and consequent quagmire of all tax related cases. Taxation, tax collection, tax enforcement, tax compliance, allocation of revenues to various ministries or departments and money supply into the economy are unified and integrated in the banking system. Citizens need not maintain separate account books and submit tax returns annually for paying either Direct taxes on personal incomes or Indirect taxes while running business or industry. This new economic system involving a new tax system without multiple taxes, tax laws, tax collection departments, tax tribunals and tax enforcement agencies, envisages 20 to 30 % more revenues than presently accruing from multiple taxes collected by different tax collection departments/agencies. The availability of resources and capital flows, needed for economic recovery, is the self-priming character of the “TOP Tax system” without Government’s fiscal stimulus packages. This new economic system shall be operated by banks at minimum operating cost with limited paper currency (0.4%) and dematerialised money (99.6%) of the total money available in the economy in the particular country, thereby totally eliminating black money, tax evasion, fake currency, corruption and extortions.
Under this new taxation system the tax net, cast by banks, will be the broadest with absolutely no tax evasion, making it possible for the lowest tax slab rate and the cheapest prices of commodities/services. The redistribution of revenues from Government to people in the form of welfare schemes, subsidies and various relief funds will become easier without leakages, bribes and misappropriation. Although this new taxation system is a basic model suggested mainly for India, the basic concept of taxation, tax collection and tax compliance methods can be adopted and implemented by all the developed and developing countries alike to benefit 6.9 billion people of the world in all spheres of their lives in one form or the other.
This article contains seven parts: ----
1. Tax structure and direct benefits of the TOP Tax system.
2. Method of implementation of TOP Tax system.
3. Money supply and monetary policy
4. Operating cost of the TOP Tax system.
5. Comparative study of Tax revenues between present system and the proposed TOP Tax system.
6. Advantages of TOP Tax system
7. Summary of TOP Tax system
full paper is available at
http://www.optimaltaxation.net
posted by VIJAYA KRUSHNA VARMA

 

All the Yes points
All the No points
 

Abolish all Direct and Indirect taxes

Yes because... No because...

simplicity

The point of taxes today often seems to be to annoy everyone by being as complex as possible. Instead one of the main goal's of a taxation system should be to make tax simple and easy to understand. This is useful because it means that people have a better understanding of how much they are taxed and can then easier see how that money is spent.

Debates > Abolish all Direct and Indirect taxes
Category: