It seems a petite, very small tax of 0.1 cents on each dollar processed thru Federal Reserve Bank daily would cover the whole budget of the United States of 3.5 trillion a year.
Math proof (please check) follows.
Please assume a $1 tax on 1000 dollars.
14 trillion divided by $1000 = 14 billion a day
14 billion times 5 days a week = 70 billion
70 billion times 52 weeks = 3 trillion 640 billion a year ~ yearly federal budget
Now that works if my math on $1 on each $1000 is correct.
One dollar is 100 cents. One thousand dollars is 10000 cents therefore
the financial transaction tax is 0.1 cent per each dollar.
The Federal Reserve Bank processes all retail, all goods and services, stocks, bonds, every transaction that goes thru banks.
I am not an economist so this seems so easy to me that I must be making some horrible calculations here or there is some "moral hazard" with taxing the Federal Reserve to pay for the Federal Government, or there is some "funny money" all mixed in with the balance sheets of the Federal Reserve that makes this proposal not a viable way to pay for our debts.
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