Your $1.4 Million Unpaid Tax Bill
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On all four Sunday talk shows Americans were deceived into believing that our current debt was only $16 trillion. This illustrates how our first amendment rights have been selectively distorted by the media. I have attempted to illustrate below what the facts really are. Sunday talk stopped at the “funded debt” level and stated that the “family” credit card debt had only been reduced by $164 or one-thousandth of the estimated $164,000 of family credit card debt.
On each show however the entitlement debt of $122 trillion was never mentioned but yet was the focus of the discussions. The reality is as Bowles of The Simpson-Bowles Debt Commission said “America is the healthiest horse in the glue factory” – the reality being a “conservative” $1.4 million debt per family as computed below. See www.usdebtclock.org for the current figures.
I only draw your attention to the figures because Americans have been soothed into believing Congress with all its bright lights have been working on real solutions to the impending fiscal crisis. The figures below illustrate they have not. They have been playing in the sandbox of politics so long that after 70 years of “social good” legislation every household in America has an unpaid tax bill of almost $1.4 million.
I want to wake Americans up to the reality and point them in a different direction. My USA Plan immediately cuts the $138 trillion of debt to $30 trillion upon enactment. And this is what Americans need – a time out from the politics of ideologues in Congress, political parties and the media and a simple easy-to-understand solution to the many problems we face. My solution is simple but outside the box of conventional thinking.
For those of you who aren’t familiar with “unfunded debt” here is what it is. Unfunded debt is the total anticipated debt Congress has incurred for this and future beneficiaries of Social Security, Prescription Drugs and Medicare Programs – again see www.usdebtclock.org . Stated differently when you take the anticipated cost of the benefits to be provided to future beneficiaries and subtract the anticipated tax revenues generated by those programs we come up $122.2 trillion short. We can blame it all on Congress but we can’t expect them to solve it. They are incapable – they all are various forms of “sink or swim” or “cradle-to-grave” intractable ideologues.
Now you could have been impressed by President Obama’s “tax the rich” campaign but his stated solution would have saved your family a measly $800 out of your $1,385,647 debt. I’m sure the $600 they did save you didn’t float your boat either. In fact you should be getting really mad about now because you have been had by politicians for over 75 years.
Now as far as solutions go, today’s politicians are blaming the dilemma on prior Congresses and presidents. Recently the only solutions both sides of the aisle have proposed are drastic cuts to entitlements. Cuts like making you work three years longer to get Social Security, Prescription Drugs or Medicare benefits; denying benefits to those who paid into these programs their whole life merely because they have been economically successful (a negative incentive) or cutting COLA increases to beneficiaries.
As a bow to the most liberal Democrats the President and his minions are proposing a “balanced approach” which means higher taxes on the rich as a condition for cutting benefits and reducing the debt. The Republicans are saying that tax increases are no longer on the table as 99% of the people just got their taxes lowered (in fact the Bush tax cuts were retained and the scheduled increases were averted).
Neither party, nor any leader in any party has a clue how to solve our dilemma other than (1) incidental fixes that kick the can down the street, (2) just put a miniscule dent in our national debt and (3) burden our children with taxes so large in amount they never con pay them.
Don’t you think it is time to think outside the box? I do and I have been thinking long and hard how to solve the problem. Now whether or not you have the knowledge of such facts FDR, Clinton and Bush the younger recommended that Social Security be privatized. FDR recommended in the 40’s that Social Security be turned into each individual’s insurance annuity program by 1965. Clinton formed a commission in the 90’s and they recommended privatization. Clinton turned it down. George W. Bush pushed for a watered-down version of privatization in the 00”s that was poorly conceived and promoted and failed.
I believe their version of privatizing was and is unworkable. Giving back payroll taxes to taxpayers would be chaotic. Many of the poorest will just spend the extra money and not invest it for retirement. Young people generally have no interest early in life to plan for retirement or death and they would spend the extra money. Many others would do the same and force the government to provide for them at retirement. That makes conventional privatization a non-starter. For my plan to work we needed a spendthrift provision.
In my USA Plan we do just that. I call it “Collective Privatization.” It too turns payroll taxes into the private property of the taxpayer (and spouse) but doesn’t allow them to touch the money until they retire. Collectively they invest their payroll taxes weekly into the stock market through their own trust to accumulate and grow for the average earner making $50,000 a year over their 40-year working life into a $4 million nest egg. They will have numerous indexed stock funds to choose to invest their money in during that time. Each fund offered will contain a minimum of 500 stocks to minimize the risk from a singular catastrophe.
My plan is comprehensive and solves the age old problem of “trickle down” economics. Make no mistake “trickle down” is not the invention of the Republican Party. Every government in the history of our planet was a “trickle-down” economy where the insiders from the King’s Court to today’s crony capitalists keep the poor and middle-class from every becoming wealthy.
The USA Plan is based on what I call the Rise Up Theory of Economics. It is designed to make the poor and middle-class wealthy enough to retire comfortably and afford the best health care on the planet and do both out of their own funds. Of course they need to work and be industrious and stable during their working life.
This is a tack no one has ever tried before other than mouthing the rhetoric of populism and redistribution. Face it—500,000 Communist Party members in the USSR proved socialism even in its most violent form was still “top-down” as it had 500,000 elites while 140 million remained tragically poor. It was proof that central planning is a failed economic model.
There is no use to elaborate on a plan that immediately cuts our $138 trillion debt to $30 trillion, makes everyone on average worth $4 million at retirement and retains as the floor under which no future entitlement benefits can fall the existing Social Security, Prescription Drug and Medicare benefits – because there are hundreds of other benefits generated by the plan. Eradicating poverty from the population can do that.
Join in and help – the politicians need to be taught a new principle.
“It is the people, stupid.”