Tax-and-Dividend

The American Citizen’s Dividend provides a mechanism for remitting funds to all adults roughly every two weeks.

Movement of taxes through the Dividend fund.

As shown above, the Dividend Trust Fund can act as a dumping ground for all forms of distributive cash policy, such as tax-and-dividend policies or currency-issue monetary policy. Revenues for immediate distribution flow out with regular Dividend payments.

These tax-and-dividend policies may take the form of a per-unit excise tax or a sales excise tax, 100% of the revenue for which goes to a subledger of the Dividend Trust for immediate distribution.

Possible excises include:

  • A per-gallon fuel tax (biofuel exempt)
  • A per-tonne-CO2 carbon tax
  • A per-battery tax on one-use batteries (AA, AAA, C, D, 9V)
  • A sales tax on alcoholic beverages

While the average consumption would produce a net-zero change in personal spendable income over two weeks, anyone consuming more pays more in, and those consuming less have a net gain. Behaviorally, it is beneficial for any individual to seek to engage in the taxed behaviors less.

At the same time, those in poverty such that they don’t consume as much—such as by having no car and thus no fuel tax—receive a stronger benefit. In long terms this is not an effective anti-poverty strategy because it diminishes these behaviors; the Citizen’s Dividend provides a stable, ongoing anti-poverty program.

Such policies can favor electric cars and mass transit; biofuel over fossil fuel, both for cars and for electricity; solar, wind, and geothermal over fossil fuel electricity generation; and NiMH and sodium ion batteries over carbon-zinc and alkaline.