THE CAMAHORT TRANSACTION TAX

By Jose Luis "Joe" (Olivares) Camahort, Ph.D.

Replace all Taxes with a fair, flat Transaction Tax on everything paid by everyone. NO exceptions and NO exemptions. Employers pay on their payroll; Importers (Foreign and Domestic) pay on all imports; buyers pay on all retail and wholesale purchases, including real estate and equity transactions.

In Position Paper #1, I discussed the CAMAHORT PLAN plan to end poverty while sustaining the environment. The first major element was: (1.)Scrap the Tax Code, abolish the IRS, and replace all taxes with a fair, flat transaction tax on everything paid by everyone. NO exceptions and NO exemptions; and the fourth was: (4.) Be as productive as possible with our resources.

Nobody can disagree that we must make efficient and productive use of our precious resources (human labor, raw materials, facilities, equipment, energy, etc.). Nobody can favor wasting resources. Every activity can be easily classified as either resource productive (essential, beneficial, value-adding) or resource consumptive (non-essential, frivolous, wasteful).

A perfect example would be the Federal Tax Code, definitely resource consumptive, to wit: (1.) The Gettysburg address is 269 words and the Declaration of Independence is 1,337 words. However, the tax code has grown from 11,400 words in 1913, to 7 million words today. (2.) There are at least 480 different tax forms, each with many pages of instructions. Even the simplest form, the 1040E has 33 pages in instructions. (3.) The IRS sends out 8 billion pages of forms and instructions each year. Laid end to end, they would stretch 28 times around the earth. (4.) Nearly 300,000 trees are cut down yearly to produce the paper for all the IRS forms and instructions. (5.) American taxpayers spend $200 billion and 5.4 billion hours working to comply with federal taxes each year, more than it takes to produce every car, truck, and van in the United States. (6.) The IRS employs 114,000 people; that's twice as many as the CIA and five times more than the FBI. (7.) 60% of taxpayers must hire a professional to get through their own return.

A simple, fair, computerized transaction tax on everything paid by everyone could replace all federal taxes and still pay off the National Debt over the next 30 years. Definitely resource productive! Employers pay the transaction tax on their payroll; importers(foreign and domestic) pay on all imports; individuals and businesses pay the transaction tax on all their wholesale and retail purchases, including real estate, stock transactions, and e-commerce. It's time that everybody pay their fair share of taxes. No more exemptions for the "Holy Economy" (Organized Religion), the "Digital Economy" (The Internet/E-commerce), or even the "Underground Economy" (the Cash Society). Cash deposits or withdrawals should be charged the transaction tax to discourage cash transactions which evade taxes; and stop money laundering by criminal elements. Tax rates proposed by National Sales Tax advocates (Retail Sales only) vary between 17-23%. Because my transaction tax has NO exceptions and NO exemptions, a rate of 5% or LESS may be sufficient to not only balance the budget; but also pay down the National Debt over the next 30 years.

My sweeping proposals for reform will allow workers and retirees to receive their incomes INTACT, renters and the working homeless to become homeowners. It will provide two-parent families the option of having one parent stay home with the children. My twin goals of sustaining the environment and ending poverty is the one-two punch that can knock out Mrs. Richard Blum (AKA Dianne Feinstein) next November. Our job is to get the message out. It's a winning message. If you want to enlist as a CAMAHORT COHORT; please let me know by e-mail, FAX (408) 249-1048, Voice (408) 249-0803, or snailmail at 457 South Monroe, San José, CA 95128-5144.