Thursday, April 10, 2008

What would 14.355 Trillion dollars do for the economy?

Now that is an economic stimulus plan! 14.355 TRILLION dollars pumped back into the economy as quick as it could find it's way back to the U.S. - yes that is trillion with a "T". This would cause an economic boom like no one has ever seen - it may even register on the Richter scale.

So I guess you are probably wondering where the 14.355 trillion dollars would come from? and why are we not doing this now? I can tell you where from but not the why part because I don't understand either why we are not already doing this plan.
This plan would cause the U.S. to be the #1 Tax Haven in the WORLD!!! Investors from other countries and businesses would be fighting to get in and unlike those who fight to get in and drain the economy this would be people who would bring jobs and money to our country and cause the economy to grow in leaps and bounds and decrease inflation which would decrease the cost of gas and food and all other items we see increasing at present time. Gas is actually a little more complicated than some items with rising costs but it would help.
This plan was created in the free market by business people who invested about 22 million dollars of their money to find a real economic stimulus plan. These people started this plan in the 1990's way ahead of the curve like the free market is in comparison to government. This group of businessmen hired the best economists they could find in the country. They came from MIT, Harvard, Boston U., etc... They were given a goal, 22 million dollars, and time to come up with a plan to stimulate the economy - not just for the rich, but also the middle class and the poor. This group of expert economists put together several plans and set up a group of citizens just like you and I and evaluated the different plans - OVERWHELMINGLY the public - the group of citizens made up of all different type of backgrounds including poor, rich, middle class, retired, etc... chose one plan. This plan is non-partisan and does not favor one party or another this is for all Americans regardless of their political beliefs.
This plan would include receiving a monthly check from the government (not welfare) this is given to all legal residents with valid social security #'s and sent every month to the head of the household based on the size of the family in order to bring ALL Americans here legally with valid social security #'s up to the level of poverty - this would also encourage those here illegally to become legal citizens.
This plan also ensures that all people living in America pay taxes across the board - legal citizens and those who are here illegally or participating in illegal activities such as drug dealing, pimps, prostitutes, etc... which it is estimated that just the underground economy - those who are here illegally or participating in illegal activities cost our economy approximately 1 TRILLION dollars per year (yes that is again trillion with a "T"). Now if you add that trillion with the other 13 trillion, we are already up to 14 trillion dollars that would pour in to the U.S. economy rather quickly. You could say it would pour in as fast as those could fight each other to see who could get here the quickest.
Also, this plan would eliminate the uncollected taxes that we currently have which is estimated at 345 Billion dollars per year (yes, that is a "B" - we are past millions these days). So let us add that on to the 14 Trillion and we would then have 14.345 Trillion dollars in our economy that we currently do not have. The uncollected taxes come from those who are evading taxes (hiding their money and avoiding paying taxes), those who are confused by the 17,000 pages in our current tax code which has been changed 11,000 times just since 1986. Also, the IRS itself gobbles up 10 Billion dollars per year (yes another "B") - so if there was a way to spread out the taxes and make it fair for those who are poor, middle class, and rich and eliminate 10 billion dollars per year would you be interested? Let's say you all say yes and agree with me that taxes could be collected in a better more efficient and fair way so let us add 10 billion dollars to the 14.345 Trillion dollars, now we have 14.355 Trillion dollars into the U.S. economy.
Also, an economist from Harvard named Dale Jorgensen has stated that GDP (Gross Domestic Product) would be expected to grow 9 to 13% QUICKLY. Another economist from Boston U. - Laurence Kotlikoff stated that stock in U.S. capital would increase 13% in the near term and as much as 83% in the long term, as well as, GDP increase of 7 to 14%.
At this point that is getting amazing - 14.345 Trillion dollars into our economy and quickly and includes eliminating a broken inefficient system which is not working out well for Americans and taking the power away from the IRS and closing their doors for good!!!
Back in the 1980's there was a great and wise man who was a great President (one of the best there ever was in my opinion), as you know his name was Ronald Reagan. What President Reagan realized was if you decrease the tax burden then this would help and grow the economy. President Reagan was correct and by decreasing the marginal tax rate from 70% down to 28% guess what happened? I'll tell you nearly 1/2 Trillion dollars flooded in to the U.S. economy and thus the economy turned around and headed upwards and grew. Interest rates decreased and jobs grew and those who worked hard felt the difference in their wallets.
Now back to the 14.355 trillion dollars - just imagine for a moment what that would do for the economy. Imagine a plan that treated exports and imports the same. Imagine a plan that would promote jobs coming here vs. going to other countries. Imagine a plan that eliminates ALL current federal taxes. Imagine a plan that abolishes the 16th amendment and returns our taxation back to the way our founding fathers intended. Imagine a plan that would let you keep your entire paycheck (except state taxes - unless your state has a similar plan such as Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming - in which you would keep your entire paycheck). Imagine a plan that brings all legal American citizens up to poverty level and encourages those here illegally to become legal. Imagine a plan that pays business owners (who already collect state taxes in 43 states) to collect the tax at the point of sale (at the cash register) to receive a percentage of the sales they make just for sending the money on in to the state they live in and the state would in turn receive a percentage for forwarding this money on in to the federal government. Imagine a plan that would not change social security or medicare benefits and would not change the amount going in to those programs as this plan is revenue neutral (government takes in same amount it takes in now - just collected in a different way).
So I bet you are wondering how this could work? Well, I'll tell you. If you take the 13 trillion in off shore money and bring it back home that would stimulate the economy more than you can imagine. If you are able to tax those who participate in illegal activities known as the underground economy then that would bring in another trillion dollars (per year) which would serve two important purposes - stimulate the economy AND decrease the burden from those who do follow the law and would distribute the tax to ALL who live in America. This plan would cut out tax loopholes and evasion and when you add in the other 355 billion dollars (per year) from uncollected taxes and 10 billion dollars (per year) that it cost to run and operate the IRS you are taking the burden of the taxation from those who work or produce goods and services and applying the tax to all citizens in a fair way and bringing all legal citizens up to at least a level of poverty plus all are able to keep their entire paycheck. You are not punishing working hard or productivity you are not making it harder for those who work harder - you are making it fair for all.
Now I bet you want to know how this would work. As explained above you see where the 14.355 trillion dollars comes from. Now the how part. I must first back up just a few steps and explain one more thing. I think everyone knows what Coca Cola (Coke soft drink) is so let us use a 20 oz. bottle of Coke as an example. Today if you went to the store and purchased a Coke it would cost you $1.00 (I'm using $1.00 to keep the math simple - plus it is close to what one actually costs).
  • Do you think there are any taxes in the Coke you are buying? (I'm not speaking of the state sales tax if you live in one of the 43 states which has an income tax - I am speaking of FEDERAL TAXES).
  1. If you said yes then you are correct.
  2. If you said no let me explain why there are federal taxes in the bottle of Coke you are buying.
There is a myth out there that corporations pay taxes, they do not, have not, and never will.
What a corporation does is add the tax into the cost of the product which has been calculated by economists to be 22% of the purchase price.
Back to our example, 20 oz. bottle of Coca Cola, at the cash register it costs $1.00 in that dollar you are paying 78 cents for the cost of the Coke and 22 cents to all companies who helped get the Coke to the cash register.
Let's take a trip with the Coke as it is born. First you have to have a bottle to put the coke in and then you have to have a label to identify it ever before the Coke is born - those companies pay taxes. Now the Coke itself is at a Coca Cola facility and the ingredients used to make the Coke - yes taxes are due from those companies and tax is added on here too. Once the Coke makes it way into the bottle it has to get on a truck and be delivered to the store - again more taxes added on here. Once the Coke arrives at the store there has to be marketing and advertising or who would know what a Coke was (we all know now but when Coca Cola started people did not know) yet again more taxes added on. Now the Coke is in the store and you know about it and the store sells the Coke to you, guess what the store owner has to pay taxes - a little more is added on here. By the time that process ends and you are drinking your Coke, 22 cents in taxes out of the dollar you paid were collected and you paid them.
Now you get to work and work hard and you get your paycheck - you are taxed again!!!
You go buy gas to get to work - gas prices are up but guess what you are again taxed and these taxes in gas by the time they are added up come to around 40 cents per gallon to the government.
But does the madness stop here? No, when you die they tax you, when you are married they tax you, when you win a prize they tax you, when you work harder they tax you at a higher rate and take away the benefit of working harder. When I say they I mean the federal government.
There are more examples but I don't want to depress you too much but do you see why now I say people like you and I pay the taxes now - Corporations do not pay taxes they just raise our prices when the taxes increase, underground economy does not pay over and above the 22 cents embedded into the products/services we all buy, those who have a lot of money and want to keep a lot of money who move their money south of the U.S. known as off shore money they do not pay taxes above the 22 cents embedded into the products/services we buy now - just you and I do.
Don't fret though, I know a plan which can change all of this. What this plan which is fair to all does is correct the biggest mistake ever made in our country which dates back to 2/12/1913. That was one sad day when one political group played a political game with the other side of the aisle and the game went on and you and I lost out on the deal. This is the day the IRS was born and the 16 amendment was originated. Did you know that we had NO IRS until 1913? And the kicker even in 1913 they did not take money from your paycheck which was ruled unconstitutional several times, as well as, the IRS until the 16th amendment passed.
The plan I speak of is the ONLY PLAN that abolishes the 16th amendment and CLOSES THE IRS FOREVER!!!! A provision is in this plan that abolishes the 16th amendment!!!!
Withholding (which is code word for we are going to take your money before you ever see it, so that you do not clue how much money you make if you are not paying attention which the government planned on when starting withholding). Up until 1943 people would write one check and send it in once a year and could see how much Federal Income Tax they were paying. Well, the government could see that people would not stand for the government continuing to raise their taxes to ridiculous amounts if they knew how much they were taking. The government decided on a plan to hide the taxes by taking your money before you see it - IN YOUR PAYCHECK. And per Neal Boortz in an awesome book Boortz and Congressman John Linder wrote (The Fair Tax Book and has a new book as well Fair Tax - the Truth - answering the critics) the government even used Donald Duck in advertisements and used tricky deceptive language to convince the people to accept withholding. Yet again more power shifted from the people to the federal government!!!
Now with that said you see how 22% of every dollar you pay for something is already TAX that you are already paying. Also, you see they take more money out of your paycheck before you ever see it. How does this plan I speak of work?
The government sends you a check to your house in a prebate check every month it arrives to the head of the household and amount depends on the number of legal citizens in the family. Which is a nice amount and brings all Americans up to the level of poverty and above. You only pay taxes on NEW goods and services. YOU DO NOT PAY TAXES ON USED GOODS. That means you are able to control when, where, and how much tax you pay to the federal government because this plan is a consumption tax. If you want a car and you buy a used car no taxes are paid (now they are) with this plan they are not. Remember the days of flipping houses - yes that is right - used house NO TAX thus would stimulate the real estate sector of the economy!!! Another way this plan stimulates real estate sector of economy - this plan decreases interest rates because economy itself improves. Imagine you make x amount of money per hour you work 40 hours a week you get paid that full amount, you work 60 hours that week you are not penalized as you are now - with this plan you get to keep all that money!!!
What is done with this plan is you go to the same store you went to before and you buy a Coke, you go up to the register and pull out $1.00 and hand it to the clerk and leave. But wait you say - I thought there was a consumption tax added on? It is but in a different way than you are thinking. Think about this plan like algebra - if you take it from one side then you add to the other side then it is still even. Now when you go to the register the Coke has a price tag which says 77 cents the clerk rings it up and adds the consumption tax of 23 cents (23% of every dollar on new goods and services) and that total comes up to $1.00.
So you may be thinking well what is the difference in now and this new plan I speak of. Let me tell you why this plan is better than now and any other consumption tax plan out there such as the flat tax or VAT (Value Added Tax). The plan I speak of is the only plan that abolishes the IRS under the other plans out there and now as we currently are your taxes are taken out of your paycheck and with the two taxes listed above you still pay Federal INCOME Tax. Also, the plan I speak of is the only plan that has the monthly prebate check you receive to bring ALL AMERICANS up to the level of poverty or higher. This plan allows you to keep all the money you work hard to earn - you make as much as you want to without penalty under this plan. The cost of goods do not increase as they do in the above plans, if you pay $1.00 today, then you pay $1.00 with this plan due to competition in the free market.
So I bet you are probably screaming the only question left -
The FairTax Act (HR 25, S 1025)
Yes, the Fair Tax!!!
Do you know how the Fair Tax was named?
By a citizen like you and me!!!
Learn more at:
if you can
please join us
At the National Fair Tax Freedom Rally this weekend Saturday 4/12/08 at 12PM
Hall of Fame Park
Between 4th and 5th Avenues
(in front of Country Music Hall of Fame)
Downtown Nashville, Tennessee
Rally: 12:00 - 2:30 pm
March: 2:30 pm to the Tennessee State Capitol.
People will be there to direct you when you get close!!!

And my pick for presidential candidate:

Some people said Huckabee ONLY did good because of EVANGELICAL Christians - I am a Christian and Gov. Huckabee's faith was a plus for me- but the way I heard of Huckabee in the beginning and the main reason I supported Huckabee is the FAIR TAX!!!

1 comment:

Jim said...

Thank you very much for this blog post.

The Nashville Freedom Rally was GREAT! We learned a whole lot about how to get it done.

Who wants to do another one?

And Where?

Jim Tomasik
Rally Organizer