The Barber Plan
I propose to replace the present income tax system our federal government uses with two simple tax methods, 1) a small fee on the money which the Federal Reserve Bank handles for the federal government called the "Fee On Transfers" tax, and 2) a small purchase percentage rate of 1% to 15% tax on most goods and services, a smaller tax on the least product price, and a higher tax on luxury items, to be collected from all States according to the population in each State, known as "Apportioned PPR". The two simple taxes are discussed in "The Barber Plan":
Part A - Fee on Transfers A1. One half of one percent is collected on the FRB's daily total of funds and securities transfers. A2. One half of one percent is collected on ALL monetary transfers except on loans from the government (not including loans from Government Sponsored Enterprises (GSEs). GSEs pay the fees. A3. One half of one percent is collected on ALL State's daily Gaming and Lottery monies wagered. Part A should do it. Or at least half of the budget. If not, then we implement Part B. Part B - Apportioned PPR B1. The federal government determines fiscal budgeted tax requirements. B2. People and businesses give voluntarily to the State government anonymously to reduce apportioned tax requirement to the several States. Since there will be no federal income taxation, this step will offer the underground economy, individuals and businesses to contribute as much as they desire to the State to reduce the federal tax liability to the State. B3. The federal tax liability balance is apportioned among the several States. What does Apportioned mean? Both the Constitution for the united States Of America and The Federalist Papers discuss apportionment concerning taxation. Apportionment under The Barber Plan means that the balance of revenues needed after Social Security, Unemployment Insurance, Payroll Taxes and donations have been subtracted from the federal tax requirement until 2004, are allocated to each State according to population. After 2004, apportionment under The Barber Plan means that the balance of revenues needed after donations have been subtracted from the federal tax requirement, are allocated to each State according to population. Phase I - Abolish Federal Income Taxes Individual and Corporate (1999) Phase II - Abolish Unemployment and Payroll Taxes(2001) Phase III - Abolish Social Security Taxes (2003) B4. A Purchase Percentage Rate (PPR) is collected at the State level. What is PPR ? PPR is Purchase Percentage Rate. The PPR may be variable and change at a moments notice. The PPR is taxed on price and not on the total sale as is currently being done with sales taxes. The PPR tax is collected until a State has meet the allocated apportioned amount of revenue needed from that State. The federal government and States may collect SURPLUS monies using the PPR tax method. Example PPR Chart Purchase Price % $.01 - $3 0 $3.01 - $10 1 $10.01 - $25 2 $25.01 - $50 3 $50.01 - $100 4 $100.01 - $250 5 $250.01 - $5,000 6 $5,000.01 - $10,000 7 $10,000.01 - $20,000 8 $20,000.01 - $30,000 9 $30,000.01 - $40,000 10 $40,000.01 - $50,000 11 $50,000.01 - $100,000 12 $100,000.01 - 500,000 13 $500,000.01 - 1,000,000 14 $1,000,000.01 and over 15Don't be misled by the press or any think tank into making you think that The Barber Plan won't work. The Barber Plan will work and the government knows it! The Barber Plan is fair and will help our Country get out of the big economic mess it is currently in.