It also undermines our democratic ideals, and leads to widespread resentment and distrust of our entire system. Under the Transaction Tax, everybody would pay their share with the assurance that everybody else was doing the same." Proposed Implementation Because the APT Tax would radically affect taxation and the US economy, Dr. Feige recommends a 3 phase implementation. All rates listed below are based on Dr. Feige's 2005 report. Phase I: All Federal income, estate, and excise taxes are removed over a period of a few years with adjustments in the money supply to avoid excessive inflationary pressures.(0.15% ESSR) Phase II: Social security payroll taxes would be rolled into the APT rate.(0.24% ESSR) Phase III: A mechanism could be established, probably requiring a Constitutional amendment, where an entity controlled by Congress, would collect additional taxes under the APT system to fund all state budgets allowing the elimination of state income, sales, and excise taxes as well as the public school portion of the local property tax. (0.28% ESSR) See also Income tax in the United States Sales taxes in the United States Taxation in the United States Tax reform References Other sources External links Automated Payment Transaction Tax plan website The Transaction Tax official website at thetransactiontax.org Tax reform in the United States Transfer tax