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THE DEBIT TAX CONCEPT

What is the Debit Tax?

How the Debit Tax works.

Advantages of using the Debit Tax

The Debit Tax Table.

Current Indirect Taxation Rates.

What is The Debit Tax Council?

The Debit Tax Formula

The Debit Tax Formula is simply an added percentage, one third of one percent (0.33%) is suggested,
to the amount withdrawn from all accounts by Banking and Financial institutions.
This tax, when cleared, is instantly deposited through the Electronic Funds Transfer (EFT) system into the National Treasury.

How The Debit Tax Works

Every hour of the day money is withdrawn from savings accounts,cheque accounts, insurance companies, business and investment organisations, and financial institutions of all kinds. Indeed, ALL monetary transactions are withdrawn from some type of bank or financial institution that holds money in trust.

The Australian Payments System Council Report 1991 - 1992, issued by the Reserve Bank of Australia, states that $120 BILLION is withdrawn from banks EVERY WORKING DAY in ordinary business and trading.

Just one simple and moderate Debit Tax of ONE THIRD OF ONE PERCENT (0.33%) added on all monies withdrawn provides the National Treasury with an annual revenue of $99 BILLION (See Debit Tax Table)

A Debit Tax of ONLY 0.33% on DAILY withdrawals of $120 BILLION

EQUALS
$396 MILLION IN FEDERAL REVENUE DAILY
EQUALS
$99 BILLION IN FEDERAL REVENUE YEARLY


These figures are based on the 1991 - 1992 Reserve Bank Report of NON CASH withdrawals.
The amount of CASH withdrawals made from ATM's and EFTPOS, and withdrawals made on week-ends and public holidays are NOT taken into account here. It is estimated that a more realistic figure for 1995 is around $200 BILLION IN WITHDRAWALS PER WORKING DAY.

A Debit Tax of ONLY 0.33% on DAILY WITHDRAWALS of $200 BILLION

EQUALS
$660 MILLION IN FEDERAL REVENUE DAILY
EQUALS
$165 BILLION IN FEDERAL REVENUE YEARLY

 

 

The Government requires $96 Billion in revenue per year.
The Debit Tax System provides the Government with an ANNUAL SURPLUS OF $69 BILLION

Advantages of using The Debit Tax

These are just some of the advantages of using just one Debit Tax of only 0.33%:
1.   Income Tax and all other Federal Taxes become invalid.
2.   No tax on profits, savings, investments,assets or pay cheques.
3.   No taxes on income, payroll, provisional,property, inheritance, or goods and services.
4.   No income tax means an instant tangible wage rise for everyone.
5.   Goods and services will be cheaper without sales tax and import tax.
6.   No sales or hidden taxes means more in the pocket for those in the Welfare System.
7.   The method of collecting revenue will be effected by Electronic Transfer Systems (EFT) - the ultimate in
      efficiency.
8.   No more time, money and paper wasted on daunting tax laws and complex tax returns.
9.   Tax collectors will be appointed to more productive and useful positions.
10. Accountants employed by businesses, large and small, would be able use their training and experience in the
      manner in which it was meant to be used, ie. making business more productive and cost efficient.
11. Small businesses will not be hindered by our present time consuming system, and will consequently be
      encouraged to grow and employ more people.
12. Big Multi-National Companies will be required to pay their fair share.
13. No tax cheating or tax avoidance necessary or possible.
14. It would create a real user pays system.
15. Continuous flow of revenue to the National Treasury.
16. Our large and expanding national debt will be settled very quickly.
17. Australia will become the TAX HAVEN OF THE WORLD
18. Australia will indeed be the "Lucky Country".
19. It would allow people to save money for retirement, with no penalties.
20. Our National Fund Reserves would be rebuilt by the increase in savings deposits, deposits encouraged by the
      Debit Tax System . At present our reserves are at their lowest since the Great Depression.

Disadvantages of our present system

Our current outmoded Tax System has proven to be complicated and impracticable to businesses and individuals.

It has many disadvantages:
1. It pushes production out of Australia, creating an imbalance in trade and our increasing overseas debt.
2. It is inequitable and unjust.
3. It is costly in time and money.
4. It is complicated.
5. It destroys incentive.
6. It penalises individuals who wish to succeed.
7. It is taxing on small business.
8. It creates tax avoidance and cheating.

The Debit Tax Table

Dollars
$
Debit Tax Deductions
One Hundred 100 0.33
Five Hundred 500 1.65
One Thousand 1 000 3.30
Ten Thousand 10 000 33.00
One Hundred Thousand 100 000 330.00
Two Hundred Thousand 200 000 660.00
Four Hundred Thousand 400 000 1 320.00
Eight Hundred Thousand 800 000 2 640.00
One Million 1 000 000 3 300.00
Ten Million 10 000 000 33 000.00
One Hundred Million 100 000 000 330 000.00
One Billion 1 000 000 000 3 300 000.00
Ten Billion 10 000 000 000 33 000 000.00
Twenty Billion 20 000 000 000 66 000 000.00
One Hundred Billion 100 000 000 000 330 000 000.00
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Current Indirect Tax Rates

Items Taxed At 32%

Radios & Television Receivers, Video Recorders & Players, Tape Recorders, Record Players, Photographic Equipment, Watches/Clocks, Jewellry, Goods made principally from precious metals, Cameras, poker Machines, Other Amusement machines.
Items Taxed At 22%

Toothpaste, Tooth powders, Recycled Paper Products, Soft Drinks, Stationary, Pens, Pencils, Bookmarks, Paperweights, Toilet paper, Toys, Games, Amusement Equipment, Umbrellas, Sporting Equipment, Firearms, Ammunition, Musical Instruments, Commercial Motor Vehicles, Photographic Negatives, Transparencies, Filmstrips, Motorbikes, Bicycles, Caravans, Trailers, Motor Vehicle Parts & Accessories, Oils & Lubricants, Computers, Non-Luxury Motor Vehicles, Sunscreens less than 4SPF, Equipment not exempted as aids to manufacture, Business Equipment, Industrial & Business Machinery, Commercial Laundering & Dry Cleaning Equipment, Radio & Television Transmission Equipment, Vending Machines, Commercial Air-Conditioning Equipment, Chemicals, Detergents, Soaps, Sopa Powders, Polishes, Glues, Starches, Disinfectants, Advertising Matter, Lawnmowers, Garden Sprinkler/Hoses, Travelware, Handbags, Baskets, Swimming Pools & Spas, Household Insecticides, Saddlery, Harnesses, Horse Rugs, Ropes, Tents, Tarpaulins, Car Covers, Pet Food for Domestic Pets, Dog Soap etc. for Domestic Pets, Water Treatment Appliances for Swimming Pools, Cigar/Cigarette Cases, Cigarette Lighters, Ornaments, Artificial Flowers/Fruit/Plants, Safety Razors/Blades, Electric Shavers, Shaving Preparations, Shaving Brushes, Toilet/Dressing Cases, Hair Brushes & Combs, Musical Boxes, Records or Audio Discs, Recordable Video Tapes for Home Use.
Items Taxed At 12%

Flavoured Milk Drinks, Australian Fruit & Vegetable Juices, Matches, Biscuits & Snack Foods, Ice Cream, Confectionary, Furniture, Crockery, Baths, Shower Screens, Vases, Maps, Street Directories, Atlases (other than school), Cutlery, Refrigerators, Washing machines, Domestic Spce heaters, Domestic Cooking Facilities, Candles & Tapers, Toasters, Mixing machines, Immersion Heaters, bathroom Fittings, Glassware, Electric Fans, Air-Conditioners, Kitchen utensils, Sewing/Knitting machines, Spinning Wheels & Weaving Looms, Lighting Appliances, Drapery & Soft Furnishings, Water Heating & Hot Water Storage Equipment, Hot Water Jugs & Kettles, Percolators, Toilet Pans & Seats, Septic Tanks & Filter Tanks, Chemical Sanitary Units/Tanks.
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What is The Debit Tax Council?

The Debit Tax Council Australia is a non-profit, non-political organisation, operating under the guidelines of Leonard C. Crisp, the innovator of this revolutionary tax system. The Council's objective is to bring about a radical and innovative taxation reform that will generate wealth, encourage business growth, erase unemployment, eliminate our overseas debt. This tax system is non-discriminatory and will benefit all Australians.

Secretary 
Debit Tax Association 
P.O. Box 61 
Mt Crosby News 
Mt Crosby Qld 4306

If you have questions to ask or comments to make, please write to the above address, or send an

E-mail to Michael Gray mrgray@gil.com.au

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