Taxes Tuition and You

8/2/2019 Taxes Tuition and You

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Taxes, Tuition, And You

By

Benjamin KeoughAuthor of

The True State of the Union 2012


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Overview

Government financial aid is a privilege, not a right. As therevenue from taxes continues to drop, and the demands forfunding for unemployment, Medicare/Medicaid and basicwelfare increases, the governments will be forced to reduce

spending in higher education. Currently the state andfederal governments are speaking of tax increases. A taxincrease anywhere will further stagnate the economy. Ourstate and federal governments have not found a solution to

the problem. We have not truly begun to feel the effects ofthe financial crunch.


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Can You Afford College WithoutAid from the County, State, and Federal

Government? 33% of the cost of education is covered by thecounty.

28% by the State

And 1% by other

The student only pays 38% of cost of classes.

How much of your tuition is covered by FederalFinancial aid?


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The Flaw with the Current Tax Code

The current tax code is based off of profit, income,and excise taxes. As unemployment rises incomeand profit decreases and government revenue

decreases. Governments have greater demand forrevenue and less revenue to fill the demand. Raisingtaxes further reduces profit causing less investment.

Funding gets reduced to non-critical infrastructure.


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The Solution(The Smart Tax)


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What is The Smart Tax

The Smart Tax is comprised of 5-tiers

The National Investment Tax (0.04%-1% tax on investments)

The Currency Exchange Tax ( .15-.25% tax on currency trades)

The National Sales Tax (0-3% sales tax)

The National Employment Tax (1% tax on employment)

The Fair Tariff Law

Includes Social Security Reconstruction Act

Medicare/Medicaid Reconstruction Act

Unemployment Reconstruction Act


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The National Investment Tax(NIT)


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The Currency Exchange Tax(CET)

Currency exchange is the process of trading onecurrency for another. In 2008 nearly $4 trillion aday was traded. 84% of these trades involved the

Dollar. This tax places a .15% tax on the purchaseof a dollar and a .25% tax on the sale of a dollar.According to 2008 estimates, this tax wouldgenerate $3-5 billion a day.


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The National Sales Tax(NST)

The National Sales Tax is essentially an investmenttax on the quality of life.

Food and gasoline are exempt from taxation

Housing, transportation, and cloths are taxed at 1%

Entertainment is taxed at 2%

Alcohol and cigarets at 3%

These taxes are added to local sales taxes


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The National Employment Tax(NET)

Simply put NET is a sales or investment tax paid bybusinesses on labor. NET is a 1% tax. In 2008 $12trillion was invested in labor in the US. This tax

would have generated $120 billion.


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The Fair Tariff Law(FTL)

The FTL is designed to protect American businesses.It set tariffs by and easy formula.

Domestic Per Capita/ Foreign Per Capita *Imports/exports +2%


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Providing For Public Welfare

While Individuals pay no income tax 10% of their annual incomewould be placed in personal savings accounts; 5% would go intoan IRA, 3% into medical flex account, and 2% into anunemployment reserve account.

Employers would place 10% of the cost of employment intouniversal funds; 5% Universal Retirement, 3% Universal

Medicine, 2% Universal Unemployment.

Half of the universal funds would be divided equallyamong the populace while the other half would formemergency relief funds.


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Public EducationAnd Higher Education

The NST would be reserved fully for education and an additional 5% ofthe General Funds would support education. This would place over a$140 billion a year into a national education fund. Primary andsecondary education would receive 80% of these funds with highereducation receiving 20%. $112 billion dollars would be invested in

primary and secondary education totaling 1/5 of the revenue investedin education a year. This would drastically reduce the strain ofeducation on the state and local governments, who now provide over95% of all educational revenue.

$28 billion would be reserved for grants and loans for higher education.


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Infrastructure

The CET provides revenue for infrastructure 20% ofthis fund is reserved for Educational Infrastructure.This fund would place an additional $120- $200

billion a year into educational buildings, technology,and transportation. Half of this fund would go toHigher education.


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Personal Benefits

90% of your income would be dispensable.

You would have guaranteed retirement at the age of63.

Government Financial aid for higher education isassured.

Medical funds available to all.

No filing income tax.

100% control of personal income


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Conclusion

It is essential that we force change in a tax system.Though this tax system is not currently on the radar,this is an election year. This is the best time to be

heard. Many of us cannot afford education withoutfinancial aid and we currently only cover 38% of thetrue cost of our education. What happens when wemust cover 50%, 75%, or a 100% of the cost?

Taxes Tuition and You

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