Questions you may be thinking about

Question 1:  Will it raise as much tax at the present tax system?

  • It will raise more tax because it will tax vast amounts of spending not taxed by the present tax system. Examples:

    • Imports

    • Exports

    • Foreign owned companies trading

    • Multinational companies trading

    • Share trading

    • Currency trading

    • Money market trading

    • Derivatives trading

    • Gambling

    • Other speculative trading

    • Borrowings and consumer credit

    • Property sales, residential and commercial

    • Business sales

    • All other changes in ownership, real and beneficial

    • There are NO exemptions

  • Everyone pays 2 CENT TAX on all spending to contribute to Government and the Democracy we all enjoy.

  • Existing taxes – personal, business, payroll, goods and services -are removed to reduce the cost of employment and reduce the prices of goods and services. 2 CENT TAX is paid by the employer on the reduced cost of employment and on the reduced prices of goods and services sold.

  • Existing take-home-pays, savings and all monies will buy 40% more goods and services

  • 2 CENT TAX financially benefits all individuals, businesses and government.

2 CENT TAX can liberate Government from debt and provide cash in hand for new infrastructure to make Australia competitive.

Question 2:  Where else in the world has it been tried?

  • From the late 1700s up to the late 1800s many people in Britain were poverty stricken and those stealing a loaf of bread were sent to Australia

  • This was caused by high taxes and tariffs creating high prices which made Britain uncompetitive

  • These high taxes and tariffs were abolished and Britain’s economy boomed creating employment and wealth for the community.  Britain became Great Britain

  • In the mid 1950s the same happened in West Germany and Germany became the manufacturing powerhouse of Europe and the second largest exporter, by volume, in the world after China

2 CENT TAX can do the same for Australia and for all Australians to benefit from the vast resources of Australia.

Question 3:  Why isn’t the PM and Government taking it up?

  • Government are driven by vested interests

  • They are sitting pretty and see no need to change

  • Government have lost sight of:

    • Government of the people, by the people, for the people

    • Our Democracy

  • Government want to sell public assets to reduce their debt. Selling public assets has not worked and will not work.

  • The Government debt just gets bigger, even after the sale of public assets

2 CENT TAX can liberate Government from debt and provide cash in hand for new infrastructure to make Australia competitive.

See the chart of increasing Government Budget Debt compared to cash in hand with 2 CENT TAX.

Question 4:  Has 2 CENT TAX been financially modelled?

  1. It was first modelled in early 1985 and included in the “Taxation Summit Presentation” by Derek Smith dated 26 May 1985 and sent to Prime Minister Bob Hawke.

  2. The model in (1) was updated for the August 1985 book “A diet of 2 CENT TAX”

  3. In 1997 a 2 CENT TAX model of the Australian Economy was made by Unisearch of the Queensland  University of Technology Brisbane and is included in the May 1998 book “Your Future in Your Hands”

  4. The model was updated for the Submissions by Tax Reform Ltd dated 31 December 1988 and 4 January 1999 made to the Senate Select Committees on “A New Tax System”

  5. The model was updated for the Submission by Tax-Reform dated 11 April 2003 to the Senate Economics References Committee on “The Structure and Distributive Effects of the Australian Tax System”

  6. The letter to the Prime Minister dated 13 July 2014 includes a detailed update of the 2 CENT TAX Model and an Action Plan to build, load data and test a computer model of the 2 CENT TAX

All of the above modelling has shown that 2 CENT TAX will fund Government and provide opportunity to all Australians to financially benefit from resource rich Australia.