I know this is a lot of math but this is my tax plan:
- The government prints money and gives it out to the people, but has to tax it back at some point to create real demand for the currency, otherwise the currency devalues and becomes meaningless.
- Since the government has to sooner or later tax back all money it hands out, the total government balance is always close to 0; i.e. there's no substantial government debt.
- The government hands out the money directly to the people. It is really a hand-out and not a loan-out. Big banks can also take credits, but these are loans, not hand-outs.
- The people continue to spend their money for products. A low sales tax would mean higher amount of sales and therefore higher revenue for companies.
- The companies get money from sales, but the companies can't meaningfully profit. If they profit, where does the money go? The shareholders can't invest that money anywhere meaningfully, since the market is already fully grown and new investments simply aren't worth that much. So, since profits are less meaningful, the company lowers their sales price to reduce profit, which in turn increases sales amount. As the company profits converges to zero, all the company's income is spent on expenses - either labor expenses or expenses in materials.
- The materials either come from agricultural farms, or from mining operations. Since these two can also be looked at as companies, the same applies and they will eventually lower their profit to the point where all their expenses go either towards wages or material expenses.
- The lower that sales taxes are, the longer the journey of the dollar is before it finally gets taxed back by the government.