The Withdrawals Tax

• 발행기관: 한국세무학회
• 저자명: Patrick R Colabella Richard J Coppinger Yeong Choi
• 간행물 정보: 『세무학연구』제23권 제4호, 247~272쪽, 전체 26쪽
• 주제분류: 경제경영 > 회계학
• 파일형태: PDF
• 발행일자: 2006.12.30

영문 초록

This paper presents one of the U.S. recent tax reform movements with a view to help Korean tax researchers, tax policy makers, and tax administration understand and develop the Korea’s better taxation system. As is the U.S. government, the Korean government is also looking for a better tax system to enhance the competitiveness of Korea in the global marketplace. For any modern tax system development, fairness, efficiency and simplicity are prerequisite qualities. However, there has been almost undisputable criticism to the U.S. tax system’s complex tax system. The polls by a grassroots reform group show that people want to get rid of the IRS and Income Tax, and they want their privacy back. They want a fair and simple tax to raise the funds that government needs. Many grassroots tax reform movements advocate simpler, fairer, flatter, more visible, and lower taxes. In general, there are currently two schools of fundamental tax reform movements. One is a revision of the income tax as single rate tax over the current multiple tax rates. The other is a consumption tax which taxes at a flat rate on national sales. This paper advocates the consumption approach but not as a national sales tax. It is called the Withdrawals Tax. Conceptually, the Withdrawals tax is based on a single flat rate which can and should be progressively applied on an automated basis to the withdrawal or usage of cash outflows and/or their equivalent. The tax will be collected from taxpayers’ accounts by computer operation functioning within a bank clearing house operation which will be linked to all financial intermediaries. It will apply to individuals and businesses alike. The Withdrawals tax does not tax all monetary transactions. It does not tax bank credits or deposits and it does not tax uses of funds from financing activities and inter‐bank transfers that are essentially rollovers. By taxing only the withdrawal aspect of cash flow, the tax effectively levies a simultaneous tax on income, consumption, and transfers of wealth. It is believed that combining the taxation of these elements in the proper application of the system will result in an infinitely simpler, less cost compliant and a more visible system of tax. We also believe that the Withdrawals tax will ultimately be more economically efficient to the markets affected, despite its drawbacks, as compared with the current three taxes. By uniformly taxing all cash outflows from business, a standardized cost to capital is created that is controllable by the government which can also be a uniquely powerful fiscal policy tool. At the same time this standardized tax will eliminate any unfair balance in the dynamic of capital production that is cause by the simultaneous operation of three taxes: the income tax, estate tax and sales tax. The tax is designed to raise the equivalent revenue for the Federal as well and state governments and eliminate these three major taxation systems nationwide. It is believed that automating the collection process will eliminate virtually all tax reporting, computation and compliance as well as the confrontations that readily persist between government and the taxpayer. The tax is expected to be implemented as revenue neutral; and provide enough revenue for both the federal and state governments. Implementation of the tax is expected to result in a huge reduction in compliance costs in both the public and private sector which will ideally go to increase to capital production, reduce overall taxation and result in substantial economic growth.

목차

Ⅰ. Introduction

Ⅱ. System overview

Ⅲ. The Model

Ⅳ. Detailed operation

Ⅴ. Other Features

Ⅵ. Tactics for evasion

Ⅶ. Implementation

Ⅷ. Conclusion

Perishable Currency

References

키워드

Tax Reform Movements Withdrawals Tax Consumption Tax