> Here are the rates that we need to tax on qualifying financial transactions to replace all other taxes and fund universal healthcare.

wrote:

Describe what constitutes a 'qualifying financial transaction'.

Here’s an expanded **revenue-replacement model** that incorporates *eliminating property tax, sales tax, income tax, payroll tax*, and *funding universal health care* — all paid for via a **financial transaction tax (FTT)** on transactions over $2,000.

---

## 🧾 **1. Total Tax & Spending Obligation (Baseline)**

### **Taxes You Proposed Eliminating**

We start with most major tax categories *except corporate taxes*:

| Tax Category                               | Approx. Annual U.S. Revenue                  |
| ------------------------------------------ | -------------------------------------------- |
| Federal income tax                         | ~$2.2 T federal only in 2023 ([USAFacts][1]) |
| State & local income tax                   | ~$0.54 T estimate (state/local)              |
| Sales tax (state & local)                  | ~$0.59 T estimate                            |
| Property tax (local)                       | ~$0.80 T estimate                            |
| Payroll taxes (Social Security & Medicare) | ~$1.6 T federal ([Congress.gov][2])          |

👉 **Estimated total lost revenue if all were eliminated:**
**~$5.7 trillion per year** (rounded)

This includes revenue that currently *funds Social Security & Medicare* via payroll taxes; eliminating them means those programs must be re-funded.
(*Note:* These figures are approximate and rounded, aggregated across federal, state & local levels.)

---

## 🏥 **2. Add Universal Healthcare Funding Requirement**

The U.S. spends about **$5.3 trillion per year on health care overall** (total national health expenditure, public + private) ([CMS][3]).

If a *universal, government-funded healthcare system* were adopted, many estimates show federal health spending would rise relative to today. Proposals vary, but a rough central estimate (e.g., “Medicare for All”-style plans) is on the order of **$4 trillion+ annually** to fully cover the population, depending on scope and cost controls ([AAF][4]).

So to fully replace current health spending *and* bring everyone under comprehensive public coverage, assume an additional obligation of around:

👉 **$4.0 trillion per year** (illustrative target)

---

## ➕ **3. Total Annual Revenue Need (All Combined)**

| Category                  | Annual Amount           |
| ------------------------- | ----------------------- |
| Lost tax revenue          | ~$5.7 trillion          |
| Universal healthcare cost | ~$4.0 trillion          |
| **Total to replace/fund** | **~$9.7 trillion/year** |

*(This excludes corporate taxes and other small revenue sources — if retained, they could offset part of the burden.)*

---

## 📊 **4. How Big an FTT Would Be Required?**

To estimate the tax rate:

### **What tax base could you use?**

A comprehensive financial transaction tax would apply to *all financial transactions above $2,000*, such as:

* Stock trades
* Bond trades
* Derivatives
* Currency trades
* Institutional and retail transfers

The **total value of U.S. financial transactions annually is enormous** — often estimated in the **thousands of trillions of dollars per year** when markets and replication trades are included.

For simplicity, let’s use a **hypothetical annual taxable base of $1,000 trillion** (i.e., $1 quadrillion) of transactions over $2,000 — this is *illustrative*, not an exact figure (actual global markets are even larger).

Then:

[
\frac{$9.7\ \text{trillion annual need}}{$1{,}000\ \text{trillion transaction base}} = 0.97%
]

That implies:

👉 **About a 1.0% FTT on all eligible transactions over $2,000**

That’s roughly *$1 on every $100 traded*.

---

## 📌 **Key Points & Real-World Considerations**

#### 🔹 **1) The base matters enormously**

* If the actual taxable base is larger (e.g., $5,000 trillion), the required rate falls proportionally (e.g., 0.2%).
* If the base is smaller due to avoidance or exclusion, the rate must be higher.

#### 🔹 **2) Many transactions are highly fungible**

High-frequency trading and derivatives could be restructured to avoid the tax, shrinking the effective base and pushing the required rate up.

#### 🔹 **3) Healthcare cost savings could reduce the burden**

Most universal coverage proposals argue for *net savings* over the current system. If true, that could lower the additional revenue requirement.

For example, some studies find that a single-payer universal system could reduce overall national health spending by ~10–15% (≈$450 billion) by cutting administrative costs and prices ([PMC][5]).

Even with systematic savings:

[
\text{New total need} ≈ $9.7 T − $0.45 T ≈ $9.25 T
]

…the FTT rate would adjust correspondingly.

#### 🔹 **4) Political & macroeconomic effects**

A large FTT changes market liquidity, investment strategies, and capital flows — with wide effects on pricing, market functioning, and corporate behavior.

---

## 📌 **Summary — Combined FTT Rate Needed**

| Scenario                                                                    | Rough Required FTT Rate* |
| --------------------------------------------------------------------------- | ------------------------ |
| Replace income, payroll, property, sales taxes + fund universal health care | **~1.0%**                |
| Same, with 10–15% healthcare savings                                        | **~0.9%**                |
| Replace only income, property, and sales taxes (no health care or payroll)  | ~0.4% (from earlier)     |

*These are *illustrative estimates* based on broad revenue totals and an assumed financial transactions base, not exact modeled forecasts.

---

If you want, I can model alternative versions — for example, **assuming only federal revenue replacement** (not state/local), or **a smaller FTT base (e.g., equities only)** — to show how the required tax rate would change.

[1]: https://usafacts.org/articles/how-much- … hatgpt.com "How much revenue does the federal government collect? | USAFacts"
[2]: https://www.congress.gov/crs-products/p … hatgpt.com "Overview of the Federal Tax System in 2024 | Congress.gov | Library of Congress"
[3]: https://www.cms.gov/data-research/stati … hatgpt.com "NHE Fact Sheet"
[4]: https://www.americanactionforum.org/res … hatgpt.com "Medicare for All: The Harris Plan - AAF"
[5]: https://pmc.ncbi.nlm.nih.gov/articles/P … hatgpt.com "Improving the Prognosis of Healthcare in the United States"

wrote:

The market will lose most of its liquidity.

Nah, what would happen is the wealthy will find ways to avoid the tax. It would work because most people would hardly notice it until they make large purchases, inherit wealth, or operate payroles.

Better yet, make it exponential with a curve that ramps up to 1% at $2k and then slowly rises for the ultra-wealthy. This would also get foreign investment to fund Americans.

Or everything will just crash anyway.