The President declared: “Gross Taxable Product (GTP) shall replace GDP as the statistical measure of the U.S. economy” at 12:01 a.m. EDT today, April 1, 2016. “During 1991, the Republicans lowered the statistical value of the United States Economy by switching from the GNP measurement to the less-favorable GDP measurement. At no other time in history had any government official lowered the measurement of the perceived U.S. economy so drastically and made the government look so bad. The action I am taking today will more than recover from those damaging policies of the past, and make the U.S. economy to appear as taking an immediate $3 trillion jump in perceived performance”.
Most pundits responded quickly and positively to the move. MSNBC has been reporting that the announcement reverses the criticisms the President once received after having said that the United States is not exceptional. “No other country in the world measures their economy this way. Measuring the economy by the performance of its taxed individuals is something that no other country has ever done before. This is truly an exceptional announcement–contrary to what critics have been saying for so long”.
Fox News pundits immediately cast a less-than-positive light upon the announcement. “This is not the type of decision that should be made by a lame-duck president. This decision should have been put off until someone is in office who is much better at spending Americans’ money.”
Immediately after the midnight announcement, an instant polling service gathered data and comments. The results were extrapolated to the population. The results revealed
As a result of the survey, the Obama administration announced: “This new measure is a resounding success. An overwhelming majority has not objected”. “There are vey few meaningful persons that object to this measure.”
One 800 line was immediately set up for persons seeking more information about the announcement. There are no charges for the call if calling within the United States. Interest in the details of the announcement were intense. One caller from Iowa held the operator on the line for hours to acquire enough details to realize that the price of a bushel of corn won’t be affected. International callers on the (not toll-free-for-them) 1-800 line waited for hours for the Iowan to finish and to hear or have faxed the following explanation.
Gross Taxable Product (GTP) is the market value of all the products and services produced in one year by labor and property supplied by the taxable persons of a country (regardless of residence). Unlike gross domestic product (GDP), which defines production based on the geographical country of production, and Gross National Product (GNP) which allocates production based on country of ownership. GTP allocates taxable production based on country of taxation per that country’s rules of taxation..
GTP is an economic statistic that is equal to GDP plus any income earned by taxable persons from overseas investments minus income earned within the domestic economy by overseas non-taxable residents but not minus income earned globally by taxable persons and not minus income earned globally by taxable corporations.
Wheras GDP defines production based on country of production, and GNP allocates production based on country of ownership, GTP measures worldwide production of all taxable objects of a country.
The United States used GNP as its primary measure of total economic activity until 1991, when it began to use GDP. In making the switch, the Bureau of Economic Analysis (BEA) noted both that GDP provided an easier comparison of other measures of economic activity in the United States and that “virtually all other countries have already adopted GDP as their primary measure of production.”
GTP allows a measure of taxable gross production for countries which may have extra-territorial taxation of their citizens or business entities. Some countries tax their corporations worldwide, two countries (Eritrea and U.S.A) tax their citizens worldwide, and U.S.A. has worldwide taxation of United States Persons for Taxation Purposes. Finland, France, Hungary, Italy, and Spain have limited extra-territorial taxation of citizens. U.S.A. enforces this with FBAR and FATCA..
GTP is currently only completely relevant to Eritrea and U.S.A, and relevant in limited situations in Finland, France, Hungary, Italy, and Spain. Neither U.S. nor Eritrea publishes this statistic. The United States maintains all of the data for this statistic but the statistic is currently not published.
GTP is used commonly as a measure of the government’s ability to extract revenue from the productive society. Whereas GDP and GNP are measures of the success of the economy of the nation, GTP measures the success of the government in acquiring a geographically wider base from which to absorb revenues.
For the United States, Gross Taxable Product GTP is similar and nearly the same as the Gross National Person Product GNPP. GNPP measures the worldwide economy of all those labeled “persons” of that country. There can exist slight differences in a nation’s definition of “national person”. For example, in USA, there are United States Persons for the Foreign Corrupt Practices Act, United States persons according to the Securities Act of 1933, and a number of other definitions of United States Person, depending upon the whim of the bureaucrats who may have drafted any extra-territorial lawat any time in the history of the United States. The differences in the definition of “person” result in potentially different measures of the GNPP.
Reactions from the presidential candidates were mixed. From Senator Cruz “I don’t make any such distinctions of GDP or GTP–I will tax everybody at 10% whether or not they receive government services. The reductions in paperwork will be enormous.” Former Secretary of State Clinton stated “we plan to carry-on those extra-territorial taxations into my presidency, but we will be punishing any institution which plans not to enforce it”. Donald Trump responded “I’ve got my own GTP plan, it’s a good plan, and I’ve got good people to implement those plans. And people are looking to me to implement that plan. People all over. People that like me. It’s also called GTP, the Gross Trump Production.” Senator Sanders immediately responded “emigrants are leaving America, and renouncing their citizenship—and setting up companies that are much harder to tax. If they would all just move back to America–we’ll give them free healthcare and free education too. ”
The President declared that this was the crowning of the efforts in his career as Senator and President. “This statistic will mark the legacy of my leadership in my career”
The president announced that the plan is effective immediately, April 1, 2016, 12:01 a.m. EDT.
Reported by The Rag de l’asteroide B612, April 1, 2016, Special Edition.