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1)
Keep the same net budget of $1.6 trillion that the U.S.
Federal government now has.
2)
Spend this budget primarily in three ways, but two are
dividends to people, builders of capital, in cash for food and
shelter and via government paid healthcare insurance:
a.
A return on investment of USA’s wealth to all citizens
greater than 18 years of age of $700 to $750 per month till death.
Net annual cost: $477 billion or say $500 billion; a 1.25%
return on a $40 trillion U.S. worth.
b.
Healthcare for all citizens, cradle to grave, with a true
free market mechanism. Estimated
cost of $275 to $300 per month per citizen.
Net annual cost: $428 billion or say $450 billion; 1.1%.
c.
National Defense, Administration, Law Enforcement, Interest
and Miscellaneous. Net
annual cost: $650 billion, which, given current costs, actually
saves $100 billion, usable for sustainability/ecosystems,
transitions and debt reduction.
The
above three eliminate and replace minimum wages, social security,
Medicare, Medicaid, and essentially
all welfare programs. People
will be free to choose how they individually spend their own
money. Government
administration will downsize and poverty, for all practical
purposes, faces a major blow, financially its end.
3)
Charge no more federal income taxes to people.
Charge a sale’s or excise taxes (as accords with the U.S.
Constitution) principally in three ways and calculated to be of a
tax rate of less than 78%. (It seems high, but will not net to more than current taxes
and would decline over the long run, given the free market
mechanism in healthcare mentioned with a $1,000 award in the www.amend16.org
website). A 78% tax:
a.
To employers for wages they pay to workers – human
capital – for labor. (For example, if an employee is paid $1.00
an hour, employers would pay $.78 in taxes.
If a million dollars is paid to an executive in wages and
bonuses, the firm would pay $780 thousand in taxes on his wages. No more social taxes).
b.
To borrowers for interest they pay on borrowed capital.
(For example, if the Federal Reserve Bank targeted a zero
rate of inflation – which it should, constitutionally speaking,
to “fix” the money standard – then real interest rates might
not exceed 3% and a 78% tax would be an additional 2.34%.
This totals 5.34% in interest payments and related taxes.
c.
To firms for profits that they pay on permanent, paid-in
capital from owners. (For
example, if they earned $1.78 per share, they would pay $.78 in
taxes – 44% of the top value– and could pay $1.00 in
dividends, per share).
Use
initial excess tax revenues and future reduced expenditure/savings
to meet eco-system needs, reduce debt and/or to meet existing
long-term obligations for those who have paid into social security
and Medicare and who currently are due such plans.
The
above is a correct, economic way to eliminate poverty in a
capitalist model. Paraphrasing
the Results! organization, the question is, do we have the
political will to put it in place?
To be a global paradigm.
(Note, it can be a choice for those who do not want our
current system, co-existing with those who do).
- Amend16!robertwirengard |
