One Tax · Europe
One Tax
One Tax replaces all taxes — like income tax, corporate tax or VAT — with one small automatic tax on the payments we already make. Simple and transparent.
Every time we transfer money, a small part goes to the common pot. Each payment is barely noticeable. Together we fund schools, roads, hospitals and social security.
It works like a small public share inside every payment. Imagine paying taxes is like leaving a tip for the community: almost invisible on its own, powerful together.
For those who sense that the old game has become obsolete and has no place in our future.
Why One Tax?
Less room for tax avoidance
The tax is applied directly to every transfer. There is less room to hide, because far fewer special rules are needed.
No timing games
The tax is settled immediately at the moment of payment. Deferring, shifting or disguising income stops being an effective strategy.
Transfers, not ownership
Inheritance, gifts and wealth are already taxed in some countries. One Tax asks a simpler question: where does money move, including large fortunes and financial markets?
Fewer reporting duties
Standard tax declarations, payroll withholding and advance filings would lose their central role.
The formula
What we need
The tax rate
Where the money comes from
Click a slice to switch it on or off. The tax rate updates.
The One Tax is a tiny tax on payment flows. When you pay, transfer money or buy shares, a small amount is collected automatically at the moment of payment.
The shift is radical, but the mechanism is simple: if each payment carries a small public share, routine tax returns disappear. No annual paperwork for standard cases. No waiting for settlement. The tax is cleared as the payment moves.
The One Tax also reaches wealth when it moves, including large financial transactions. Inheritance and gift taxes already exist in many countries; in Spain they even vary by region. One Tax starts from a different trigger: not ownership, not isolated tax events, but the payment itself. In the model, it replaces income tax, corporate tax and VAT.
The idea is old. In 1936, economist John Maynard Keynes proposed a tax on transactions to curb speculation. In 1972, James Tobin turned it into the Tobin tax on currency trades. In 1989, Edgar L. Feige presented the APT tax: a single tax on all transactions, designed to replace the entire tax system. The New York Times called the proposal "fair, simple, and efficient" in 2003.
Gebhard Borck changed the idea in three places. It applies to all money transfers, not just financial trades. Its rate is derived from public funding needs instead of being set by political guesswork. And it is designed to replace the tax system, not add another layer on top.
The name "Einsteuer" (One Tax) emerged from conversations. Older texts still speak of KTS (Kapitaltransfersteuer) or Capital Transfer Tax.
For the EU-27 scenario, including all three layers yields a tax rate of about 0.95% — or 0.47% per side. If the wider European perimeter from the matrix is included — EU-27 plus UK, Norway and Switzerland — the model yields about 0.46% per side.
Buy something for €100 and about €0.47 is due per side.
The One Tax works with three transaction pools. Each pool adds a larger slice of the payment system. The broader the base, the lower the rate, because the same public need is spread across more transactions.
Customer Transactions
All cashless payments by individuals and businesses via domestic payment service providers. Bank transfers, direct debits, card payments, standing orders.
EU-27: 289.5 €tn.
3.5% total · 1.73% per side.
Large-Value Payments
Interbank payments, large amounts, central bank money. The T2/RTGS system settles payments between banks — amounts that never appear on private accounts.
EU-27: 859.8 €tn.
1.2% total · 0.58% per side.
Securities Clearing
Settlement of stock, bond, and derivatives trading via T2S and national CSDs. In the EU-27 scenario, the relevant question is the combined clearing space, not one domestic venue.
EU-27: 1,054.6 €tn.
0.95% total · 0.47% per side.
Schematic. Bar heights are proportional to transaction volume.
The One Tax uses three transaction pools. Each pool adds another part of the payment system. Together they cover the main flows through which money moves in an economy.
The rate comes from one calculation: how much public funding is needed, and across which transaction volume is that need spread? The factor of 1.5 adds a 50% buffer for transition, investment and reserves.
The One Tax is not the first transaction tax. But it is the most comprehensive — and the only one designed to replace the entire tax system.
| Model | Rate | Scope |
|---|---|---|
| Tobin Tax (Original, 1972) | 0.05–1.0% | Cross-border currency transfers only |
| EU Commission (Proposal 2011) | 0.1% stocks / 0.01% derivatives | Selected financial instruments, EU-wide |
| France (in force) | 0.2–0.4% | Selected stock purchases of French companies |
| Spain (in force) | 0.2–0.4% | Selected stock purchases of Spanish companies |
| One Tax / Einsteuer (EU-27 scenario) | ~0.95% (0.47% per side) | All money transfers, all pools |
The One Tax replaces income tax, corporate tax, VAT and social contributions. Some taxes still have a different job: they correct incentives, rather than funding the public budget.
Those corrective taxes can remain or be added. They are not the funding engine; they are tools for making harmful behaviour more expensive.
The distinction is simple: One Tax funds the public budget. Corrective taxes change incentives.
Corrective taxes should not be the backbone of public finance. Their revenue is a side effect. Ideally it falls because the harmful behaviour falls. One Tax, by contrast, is designed to provide stable, predictable funding.
The One Tax is still being developed. These questions remain open, which is why the model needs calculation, debate and better data.
- Double counting in supply chains
- Money circulates several times: one euro can change hands several times in a supply chain before reaching the end customer. This raises the effective tax rate. The question is: how often does money actually change hands — and when does the burden rise above today's tax load?
- Cash avoidance
- Cash payments avoid the tax. In Germany, cash is still widespread. One option would be a higher rate on cash. Another would be a cash ceiling or a fully digital payment system.
- International relocation
- Without global consensus, financial trades could move to offshore centers. The One Tax only works in a large economic area — at minimum the EU, ideally EU plus UK, Norway, Switzerland. Whether it attracts people or wealth depends on the whole package: income taxes, social contributions, inheritance, gift, and wealth taxes differ strongly from country to country.
- Financial market liquidity
- A tax on every transaction could reduce market liquidity. Some studies suggest that lower liquidity may increase price swings. This would have to be measured.
- Burden on end customers
- Financial institutions could pass the tax on to consumers as higher fees or prices. The question is: by how much — and is that fairer than today's system?
Data and Calculations
The complete Excel matrix with all 30 countries, sources, and the calculation logic. The file is write-protected — you can copy and reuse all values.
Creative Commons BY 4.0 — free use, including commercial, with attribution.
Comparison Calculator
Coming soon: A calculator that compares your current tax burden with the One Tax. Enter your income and spending data and see whether you would be better or worse off under the One Tax. The calculator uses only the raw numbers for statistical analysis — no personal data.