Corporate accountability without killing business
The GRT replaces all federal income taxes with a simple point-of-sale collection that is extremely difficult to evade.
As efficiency gains compound and the Alliance expands, the rate declines:
Every transaction automatically includes GRT. No filing, no reporting, no compliance burden.
Current corporate tax evasion relies on:
| Factor | Impact |
|---|---|
| Minimal compliance costs | Save $50B+/year in accounting |
| Minimal audits | Minimal legal risk |
| Richer customers | +160% worker purchasing power |
| Larger market | 730M Alliance consumers |
| Declining rate | 13.2% → 2.5% over time |
| Healthier workforce | Universal healthcare |
Result: Corporate profits +360% over 30 years
The key to non-inflationary growth: wages rise with output. This is the primary criterion. Additional bonuses reward profit-sharing and domestic production.
PRIMARY (Required for any bonus):
BONUS (Additional reductions):
Maximum: 13.2% → ~9.5% (with all criteria)
Companies pay penalties when wages lag productivity:
Maximum penalty: 13.2% → 17.2%
| Company Behavior | Adjustment | Effective Rate |
|---|---|---|
| Full compliance (wages track productivity + profit-sharing + domestic) | -10.5% -2% -2% | ~9.5% |
| Wages track productivity only | -10.5% bonus | ~11.8% |
| Baseline (no adjustment) | Neutral | 13.2% |
| Wages lag productivity | +10% penalty | ~14.5% |
| Wages stagnant while profits rise | +15% penalty | ~15.2% |
| All violations (wages lag + offshore) | +25-30% penalty | ~17.2% |
When output rises, wages rise—not because it's mandated, but because it's the rational economic choice.
Under current tax law, billionaires can accumulate wealth, borrow against it tax-free, and pass it to heirs with the gains never taxed. AIP closes this loophole.
Result: $9M gain NEVER taxed
Result: All gains eventually taxed
| Rule | Threshold | Treatment |
|---|---|---|
| Asset-Backed Loans | Loans > $1M secured by appreciated assets | GRT applies to proportional unrealized gain |
| Death Realization | All unrealized gains at death | Full realization event (no step-up basis) |
Example: Borrow $5M against $10M stock (cost basis $1M). Proportional gain = $4.5M. GRT = $594K (13.2%). Still far simpler than current capital gains system—and no escape at death.
| Revenue Source | Current System | GRT System (Year 1) |
|---|---|---|
| Individual Income Tax | $2.2T | $0 (eliminated) |
| Corporate Income Tax | $0.4T | $0 (eliminated) |
| GRT (13.2% on $46T GDP) | $0 | $6.1T |
| Payroll Tax (unchanged) | $1.5T | $1.5T |
| Other (fees, tariffs, etc.) | $0.5T | $0.5T |
| TOTAL | $4.6T | $8.1T |
GRT generates 76% more revenue while eliminating all income tax filing.
The GRT rate automatically adjusts based on spending needs—here's how it works
| Factor | Example | Rate Impact |
|---|---|---|
| New government programs | Congress adds $200B infrastructure bill | +0.4% |
| Economic recession | GDP drops 5%, revenue falls $300B | +0.6% |
| Emergency spending | Natural disaster requires $100B | +0.2% (temporary) |
| Higher healthcare costs | Medical costs rise faster than projected | +0.1-0.3% |
⚠️ Important: Rate increases only occur during RECOVERY, never during crisis. See Stability Reserve below.
Raising taxes during a crisis deepens recessions. The Stability Reserve prevents this:
| Parameter | Specification |
|---|---|
| Target Size | $2T (4% of GDP, adjusts with economy) |
| Trigger | GDP decline >2% OR declared emergency |
| Rule | Reserve MUST be used before any rate increase |
| Repayment | 7 years max, +0.3-0.5% surcharge during recovery |
Real World Example: COVID cost $2T. Under AIP: Reserve depletes (rate stays 13.2%), then rebuilds over 7 years at 13.5% during recovery. No pro-cyclical damage.
| Factor | Example | Rate Impact |
|---|---|---|
| Debt elimination | No more $1T+ annual interest payments | -2.0% |
| Economic growth | GDP grows 4%, revenue increases $250B | -0.5% |
| Stability Account recoveries | Deceased citizens' accounts return $500B/year | -1.0% |
| Healthcare efficiency | Admin costs drop from 31% to 15% | -0.5% |
| Military reduction | $850B → $200B over 10 years | -1.3% |
| Alliance economies of scale | 15 nations sharing infrastructure costs | -0.5% |
Real World Example: By Year 30, debt interest savings ($1T/year) + Stability Account recoveries ($500B/year) + military reduction ($650B/year) = $2.15T less spending. This allows GRT to drop from 13.2% to ~7%.
Unlike current budgets, GRT enforces fiscal discipline automatically:
Congress spends $6.5T, collects $4.6T, borrows $1.9T. Debt grows forever.
Congress sets spending, GRT rate adjusts to collect exactly that amount. Zero deficit.
Politicians must choose: higher spending = higher visible tax rate. Voters see the cost immediately.
| Year | GRT Rate | Why |
|---|---|---|
| Year 1 | 13.2% | Full program launch + debt servicing |
| Year 10 | 10.5% | Debt reduced 50%, healthcare efficiency gains |
| Year 20 | 8.2% | Debt nearly eliminated, military at $200B |
| Year 30 | 7.0% | Debt-free + Stability Account recoveries begin |
| Year 65+ | 2.5% | Full Stability Account maturity, system self-funds |
No. The rate applies to all transactions equally, but the poor pay net-zero because:
Cash transactions still exist, but:
Exports are GRT-exempt to maintain competitiveness. Only domestic consumption is taxed.