TEAL is an acronym for Total Economic Activity Levy.
The idea, in its most simple form, is that instead of heavily taxing income, profits and all the plethora of sources available to the modern state, with all their costs, to the state and the tax-payers, and all the exceptions and special considerations (meaning that if you have sufficient access to the tax system you may be exempted from all or part of a tax), instead of all that complexity, everyone pays a small percentage of their activity in the economy.
This may appear complicated until you realise that all the major economic activity of an economy pass through the banking system. By levying a very small percentage of each transaction, of each and every deposit and payment of each and every bank account in the economy, you collect an enormous sum of money.
The principle advantages of this system include:
- A simple “catch-all” collection system
- Low administration costs
- Fewer tax collection points
- hugely expanded tax net (as much as 38 times the conventional tax base)
- hugely diminished tax rates (about 1/38 or about 2,5% of a normal tax rate) .
- everyone, from a President to a pauper, will pay exactly the same portion of their economic activity.
- All inclusive – no exceptions, no omissions, not tax avoidance, no tax evasion.
That in essence is what TEAL is. Simple , efficient and cost effective.