TEAL, the Can-Do Tax
We all pay tax. Some of the obvious taxes can amount to 60% of your income: 35% on your salary, 14% vat, Fuel Levies, Toll Tax (65c/km perhaps 10% of the average salary?) IMAGINE IF ALL TAXES COULD BE REPLACED BY A SINGLE SIMPLE TAX.
TEAL does that.
TEAL is a levy, hoped to be less than 1%, on all economic activity as reflected by the flow of money through the banking system. It is all inclusive, no exceptions, no variations. Whether you are a street vendor, a business executive, a priest, a drug lord, the Chief of Police or even the President himself, every payment and receipt in all bank accounts will be levied by the banks on behalf of the state, perhaps at a rate of just one half of a percent (1/2%), just as the banks now collect and pay VAT.
TEAL is expected to replace every other source of state revenue.
In 2010, we did an exercise replacing conventional tax with TEAL for the period from 2006 to 2013, We estimated the flow of money through the banking system, the TEA or Total Economic Activity, as 30 Times the GDP or Gross Domestic Product We then plugged that factor into our model and compared the actual/budgeted income and expenditure for the Republic of SA (extracted from Minister of Finance’s budget presentations) for the periods 2006 to 2013.
The chart below shows for each year, the
- TEA (Total Economic Activity)
- The TEAL (Total Economic Activity Levy)
- The National Debt (as possible when repaid by TEAL)
- The National Debt as expected under the conventional tax systems:
The National Debt is the NATION’S OVERDRAFT and is the extent to which the nation has borrowed to cover expenditure that exceeds income. Go into overdraft, pay interest and cede your assets as collateral. Our largest asset is our population and their earnings. This is ceded as collateral for government’s overdraft. Government says we and our children and their children ad nausium will pay this debt. But the debt is ever increasing, so how and when is this going to be paid? Never? And who is ever getting richer on that arrangement?
Notice how the national debt is reduced to Zero after application of TEAL (see supporting table TEAL Computations 2006-13 ).
Recent figures indicate the TEA and TEAL values (but not the rate) should have been increased by up to 68%, further shortening the time taken to reduce the national debt to zero. Imagine this; by 2011/12 we could have been living with a zero national debt for three or more years.
Not only will TEAL result in the elimination of the national debt, it will allow government to fully satisfy all the economic, social and security needs of the country, at the same time as eliminating the national debt.
THIS IS WHY WE CALL TEAL THE CAN-DO TAX
There Can Be ONLY ONE TAX