For a number of years now 97% of the total amount of money transactions is being used for speculation. As a result banks and speculators are making large profits which in reality do not exist. At the expense of large groups of citizens.
Also for years now, consumption and labor have been heavily taxed, while the speculative use of money is hardly taxed at all. United People Foundation (UPF) wants the VAT and tax on labour abolished and replaced by a transaction tax with a rate of ca. 10%.
This new tax is levied on every euro or dollar etc. that one receives from someone else. This idea is in line with the tenth-penny rule that in the past was applied for a long time in Europe. The new transaction tax corresponds best with the objective of UPF to introduce a fair, efficient, simple and transparent tax system.
If we keep in mind that by introducing this new tax the speculative use of money will almost entirely cease to exist, the new transaction tax will still provide enough money to pay for the costs of the basic structure of the social security system, including the costs of healthcare and education.
Eleven countries in Europe have made a good step forward by introducing a transaction tax system. Click here for more information about the introduction of a transaction tax.