Special Interests
Any idea that promises changes for the better will challenge the "Status-Quo"
and it will also be in conflict with Special Interests that benefit from keeping
everything the same.
Support from Special Interests
The AutomaticTAX proposal depends on the support of the Special Interests for
success. Rather than having to fight their powerful opposition this AutomaticTAX
wants to identify all the problems that would be created by adoption of
Automatic Tax as the new taxation system. It is important to
identify these problems and incorporate compensation for Special Interests that
would otherwise oppose the transition from the wasteful 17,000 page tax code that costs the
economy $900 billion dollars per year to a slick tax system that would propel
the economy to new great heights.
The two main problems
If AutomatixTAX would be implemented without caution, it would immediately
negatively affect all the non-profit organizations (churches, charities, etc.)
and it would create massive unemployment and a severe economic depression. If no
compensating measures are incorporated in the transition from our current 17,000
page 9 million word insane income tax system to the excellent AutomaticTAX there
will be dire economic consequences. Other smaller problems will be identified
and compensated for in the AutomaticTAX transition proposal.
Huge unemployment
A tax system, like AutomaticTAX, that promises $900 billion a
year in savings of costs for tax collection, tax compliance, enforcement, tax
preparation, tax accounting and more, will surprisingly also create $900 billion
in lost wages to people who were employed doing all that wasteful work. That
would then immediately create a large amount of unemployment and it would also
create an immediate economic depression. That is something to think about
whenever some clever politicians propose to "economize" on
this-that-and-the-other. You must be wondering why I would want to even mention
this great economic problem when I want to promote the adoption of the
AutomaticTAX that would create all these problems. The reason for which I am
mentioning these problems is because I have provided for measures that more than
compensate for these problems and even will boost the economy to greater levels
of prosperity.
A list of
some of the affected jobs
Following is a short list of people and businesses that would be adversely
affected by AutomaticTax when replacing the several taxes at Federal, State, Count and
Local levels of Government:
1. There are hundreds of thousands, maybe millions of people
employed in jobs that were created because of the tax systems in existence
today. The more complicated a tax system is, the more jobs it will create. Some
types of jobs created because of the tax systems in existence today are
accountants, tax lawyers, taxing agency employees, tax shelter specialists, tax
avoidance and tax evasion specialists, offshore tax heaven employees, tax
preparers, etc.
2. Companies that are also affected are involved in printing
all the tax forms, supply all the office supplies for all the tax related office
workers. Tax preparation companies and their stockholders. Offshore real estate
developers in foreign tax heaven countries where people establish official
residency for tax avoidance.
3. Whole industries that have gained favorable tax status will
lose that favorable status. All non-profit organizations are affected because
AutomaticTax is not a tax based on profits. Churches and charitable
organizations with millions of supporters are affected by losing their favorable
tax status.
Compensating the majority of the affected people over a very
long transition period is essential (maybe 10 or even 20 years). If such
compensation is not part of the tax reform proposal then the new tax has no hope
of ever being adopted. So AutomaticTax proposes to compensate the vast majority
of these special interests. Non-Profit organizations will even have a net gain in revenue
under AutomaticTax.