Theoretically, this perceived benefit is what is taxed. He notes that wealthier individuals have a disproportionate amount of wealth and would therefore bear a disproportionately larger portion of the APT tax. Feigel addresses the concern of currency use and hoarding by charging a multiple of the normal tax rate when currency is withdrawn. He argues that currency is generally used in a number of transactions between the time it is removed from the banking system and the time it is redeposited. Therefore, a larger tax should be charged upon withdrawal, which has the added design benefit of discouraging currency withdrawal in the first place.
Implementation is much less problematic.
This requires a leap of faith that the new system will raise sufficient revenue without creating chaos as the economy adjusts to the new signals sent by the modified tax structure. Congress anticipated that some of these signals would be so earth-shattering that it included complicated transition rules in its proposals. For instance, a change from the current system to a consumption tax such as the USA tax would have had a punishing effect on the elderly, who paid large tax bills under the current tax system while building their wealth and who, after implementation of the consumption tax, would pay large tax bills while consuming their wealth as well. These cyber-tax proposals are different. The current tax system can be kept in place while banks reprogram and test their computers.