What All Americans Want?
Faced with the competing interests of right and left - Republicans and Democrats – it was up to me if I was to construct a new economic theory to meet certain basic requirements of both philosophies. The right has always been focused on ways to increase the flow of capital into the equity markets to keep the economy growing. They have devised both the Fair Tax and the Flat Tax to free segments of our society from punitive taxation to increase that flow. Unfortunately neither advocated a reduction in the total tax load Americans have to bear. They were both just adjusting which Americans were going to do the carrying.
On the other hand, Democrats and their many diverse special interest groups continue to look to the state for answers to their varied social and economic needs and to finance their myriad of programs by taxing the rich.
Essentially both sides are fighting for money. Republicans were fighting to keep what they had and make more of it and Democrats were fighting the rich to share “some” of it. It boiled down to man’s reason for creating governments in the first place – property – who has it and how can we get it.
These philosophies differ in their way to get property. The Democrats, even the wealthiest of them, come down on the side of compassion believing that taking from the rich to redistribute to the poor is fair and just. On the other hand, Republicans want less taxation in order to pour their funds into the capital markets to create jobs and business that makes America’s capitalist economic system keep pace with its expanding population while improving their quality of life.
How can one economic theory meet the “property” demands of both parties? How can it increase the property of the “have-nots” while at the same time increase the property of the “haves”?
There is a simple answer; create an economic theory that does both. It must let the have-nots become rich and at the same time let the rich get even richer. To travel that road we have to think outside the box. Religious texts have for millenniums preached that there always will be poor people. If we were to create an economic and societal fix that made the poor rich we would be flying in the face of established religious and political doctrine not to mention the skepticism of most people. That will be the cross that we - and if they agree to it - the American people will have to bear if they want to free themselves from the “big government” nightmare that is confiscating and wasting “their property” in the form of “taxes.”
As a veteran of 40 years of tax planning and shelter operations directed at reducing the tax burden of the rich, I said why not adopt what my Dad drilled into me when I was four and what I eventually did for 40 years; let the people keep their taxes and invest them for themselves in the capital markets to eventually become wealthy. Letting government take their money is like flushing it down the toilet.
So the question came up how can we pump money into the capital markets to make the Republicans happy and at the same time make the Democrats happy by making the poor and middle class rich? To a tax man that was simple. (1) Repeal our entitlement programs, (2) guarantee that the entitlement benefits now in place would all be honored and (3) create involuntary personal investment accounts (“USA” – Universal Savings Accounts) using the payroll taxes deducted every year in the amount of 15% of the income of working Americans.
Then invest those personal account funds directly into the capital markets to put the economy into hyper drive and make the poor rich. Viola everyone is happy; ordinary Americans, political parties and most of all the citizens of the world who look to America to guide them to a better life. Republicans get their mother’s milk - a capital infusion - that will make than richer than ever and the poor and middle class finally get their American Dream.
There you have it; a solution that satisfies the needs of both parties and all Americans. I call it the “rise up theory of economics” and it is the big brother of the “trickle down theory” that has worked wonders for the rich in the last 25 years. However “rise up” doesn’t just voluntarily “trickle down” from the rich to the middle class and poor. It is going to be an involuntary rain storm of mammoth proportions for all classes of Americans and substantially close the gap between the rich and the poor.
The infusion of over $100 billion of new investment capital into the stock market every month will put an end to economic stagnation and accelerate job creation. It should put the economy into hyper-drive.
If you are interested go to: