Taxes
The United Cape States Transitional Authority (UCS-TA) advocates for the enactment of an Automated 5% (five percent) Transaction Tax (ATT). ATT is a reduced, uniform tax on all economic transactions, providing a simplified, base broadening, marginal tax rate reduction whilst eliminating the requirement of taxation and information returns via the automatic “at source” tax collection system. The ATT will replace all income and value-added taxation with this single, low-rate (estimated 5%) transaction tax on every transaction in the economy.
With the ATT system the following taxes will become obsolete (zero taxation):
- Value added Tax
- Personal Tax
- Corporate Tax
- Death Taxes
- Fuel Levy (Petrol Tax)
No toll fee will be levied against a United Cape States citizen.
These low tax rates will be made possible due to a lean, highly effective UCS central government structure envisaged and the elimination of, for example, ineffective revenue control department offices.
The UCS would ensure that the bulk of this 5% transaction tax income is allocated towards huge government capital expenditure in repairing and modernization of the current infrastructure, a reimplementation of nearly 3 decades of neglected maintenance programs, and the establishment of Economic Opportunity Zones, addressing the needs of our UCS citizens in regions and municipalities that have been affected by former inequality.
(Find more details on how this proposed 5% tax rate was determined under Chapter 14:The Vision of The Cape’s Exit document)