For a number of years now, 97% of the total volume of money transactions has been used for speculation. As a result, banks and speculators are making large profits which in reality do not exist. This comes 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 to see VAT and taxes on labor abolished and replaced with a transaction tax at a rate of around 10%.
This new tax will be levied on every euro, dollar or other currency unit. that one receives from someone else. This idea is in line with the tenth-penny rule which in the past was applied for a long time in Europe. The new transaction tax is the best way of meeting UPF's objective of introducing a fair, efficient, simple and transparent tax system.
Bearing in mind that by introducing this new tax the speculative use of money will almost entirely cease, 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 already introducing a transaction tax system. Click here for more information about the introduction of a transaction tax.