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The idea is certainly a big improvement over the
current
system. However, if there is to be a major
renovation
of the money system, why not go all the way,
and
replace the GDP with something like the
Genuine
Progress Indicators, so we can tell how the
economy
is really doing.
Removing the exponential driver that is compound
interest from the system is also absolutely
necessary
in order to have a good money system.
In the final analysis, money functions as
information.
If the root causes of the current problems, such
as
the method of money creation are solved; the
income
tax and distribution system could look after
themselves,
without the need to introduce "noise" into the
monetary
(information) system (i.e. a tax on
transactions).
Again, keeping money circulating was a valid
concern
of some such as Gesell et al.
Engineer Theordore Thoren, after he retired as a
v.p.
of an aerospace firm, worked out a schematic
whereby no
income or transaction taxes would be necessary,
if
the government created the money supply of a
country.
He also advocated banks borrowing from the
government at a discount rate, and truly making
their
money on the 'spread'.
I'm not saying Thoren's way is the best
solution. A
lot of study would be needed in getting money
to
reflect actual wealth creation. However, I do
think
compound interest has to go, and that a better
feedback system than GDP is needed.
Regards
Dan Parker
----- Original Message -----
Sent: Sunday, October 13, 2002 7:26
AM
Subject: Re: MONETARY: Discussing the
unjust monopoly
The Transaction Tax/User Fee broadens the tax base to the
maximum allowing for a minimum tax rate. It only taxes money that is created
(fiat money) or money that is moved. The effect will be that revenues will be
come from the top down. The rate is so low it would be insignificant to the
average taxpayer. The present tax code penalizes the workers and the small
firms that are honest and report profits. It will end debacles like Enron,
WorldCom, Global crossing and a host of other that use the movement of money
to escape tax obligations.
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