Rise Up and Its Many Benefits
Vince I want to thank for this chance to introduce to your audience my “rise up theory of economics”. Unlike the “trickle down” theory that favored the rich, my “rise up theory” favors the poor and middle class.
It is quite simple to understand,
When trickle down was enacted early in the 1980s, tax rates on the rich were drastically reduced. Over time the rich took that extra cash and invested it in the economy creating jobs and expanding businesses. Today – 25 years later – the rich are so rich under the trickle down theory that the gap between the rich and poor is actually quite upsetting to a fair and just people like average Americans. In fact I believe that is why the latest poll on the approval of Congress is a miserable 14%.
I have constructed my “rise up theory” not to punish the rich for their success but to create a law that essentially allows the poor and middle class to become rich too. In a sense “rise up” - to the average American - does what “trickle down” did for the rich. It will make them wealthy.
To make the average American wealthy will require that we create a pool of capital for them to invest in our capitalist economy. It has to be capital that can’t be reached by government or private parties and especially by the taxpayer himself - or his or her spouse. It has to be safely invested during his or her working life and not invaded for any reason by anyone until retirement; by then the pool will have grown so large that the taxpayer (and his spouse) can live - just off the income - and pass their entire nest egg to their children.
Where does the rise up theory get the pool of capital for average Americans? Well quite simply we use the taxpayer’s own money. We take that 15% that the government takes from each taxpayer in the form of payroll taxes and place that money in a personal investment account owned solely by the taxpayer until they retire.
If you are unaware of it, a self-employed person pays 15.3% to the government for Social Security, Disability and Medicare taxes. Employees pay half the 15.3% and their employers pay the other half. Anyway you cut it, it is 15% out of every person’s income paid to the government, and then we taxpayers suffer the indignity of having that 15% subject to double taxation by having to include it in the computation of our taxable income.
Now don’t go wobbly before I explain how we can afford to do this. But first let’s look at what we are trying to accomplish. In an average 40-year working life a minimum wage earner stuck at $7.25 per hour for 40 years will accumulate a nest egg of $1.2 Million dollars just from the investment of that 15% and the earnings over the years that compounds like a snowball.
A $1.2 Million nest egg will throw off an income of $10,000 a month; greatly exceeding the $800 per month now paid by Social Security. A $10,000 a month income for a minimum wage worker will allow him to retire comfortably and get the best medical care available.
Now I don’t expect your audience to accept what I say. So I have set up a website makethepoorrich.com on which I have posted three different 40-year schedules, One each for $20,000, $40,000 and $60,000 a year taxpayers to prove how their nest eggs and monthly incomes are created. Go to the site and click the amount you want to verify to prove to yourself what you as an American have been missing.
The creation of million dollar nest eggs is the process of the rise up theory. The nest egg itself and the income earned on it are the mechanisms with which we solve so many of society’s problems.
ΔWith just one very large nest egg Americans can take back the power they ceded to the government when they agreed to these taxes in the first place. ΔOrdinary Americans who work for a living need not be socially or educationally capable of - or for that matter even interested in - making the big bucks as “rise up” has been constructed so they don’t need that desire or those skills or education. All they need is to be stable and industrious during their working life. ΔPoverty as we know it will be reduced to those sick and infirm - -everyone else will prosper ΔThe Trillions of unfunded promises made by politicians will be wiped off the books and replaced by the income off the nest eggs in personal accounts ΔBy repealing the entitlements the size of the Federal and state governments will be cut in half. ΔBy repealing the entitlements Americans will have giving themselves the biggest tax cut in history – a tax cut that favors the poor and middle class. ΔBusiness can cease its attempt to supplement their employee’s retirement and reduce the cost of their products to better compete in the global marketplace. ΔBy each spouse owning half of the other spouses nest egg, women will finally be emancipated economically and not be under the thumb of their husband nor their government. ΔBy investing that 15% directly into the capital markets their monies will fund what we predict will be phenomenal growth in the American economy. ΔBy establishing personal accounts there will be no need for tens of thousands of 401(k) plans or millions of IRAs nor union, teacher and governmental pension plans nor Social Security or Medicare.
There are many more benefits but let’s stop here.
Those who may have hit the panic button let me assure you that under my plan, there will be no reduction in amounts due or benefits paid to present or future retirees. They will be frozen at their present rates with annual upward adjustments for inflation and price increases; that will be the floor under which benefits will not fall. No one will ever get less than what is promised under present Social Security, Disability and Medicare law. Until the time their personal account is sufficient in size to pay more the participant is getting under the old plan he or she will remain on the old benefit rolls.
Now let’s consider the cost to take payroll tax receipts away from the government and put them in personal accounts while at the same time paying benefits to existing and soon-to-be participants. It is easier than you might think.
The $9 Trillion in our national debt is a political fiction. $ 4 Trillion of it was never money borrowed by the government. It was the confiscation of receipts from entitlement programs that had exceeded the benefits paid. Congress confiscated those excess receipts to spend on other programs and now want the public to pay for it again. The $4 Trillion merely accounts for this “hidden tax” on the American people the politicians are trying to duck the responsibility for and stick the taxpayer with. The rise up theory of economics will eliminate this fraudulent practice.
Therefore we never received the money for this debt so we could cancel it and borrow the $4 trillion in real money to get us through the first three years of the transition.
When those funds run out we can use the increased revenue from the income tax to easily pay off the additional $2 trillion it will take to complete the transition. Remember the Reagan tax cuts doubled the income tax receipts and they were stimulated by voluntary infusions of money into the economy – you know the “trickle down”. What I propose is a massive involuntary infusion of capital reducing to insignificance the first couple of years of the Reagan tax cut increases in government income tax revenues.
Since the Reagan tax cut doubled revenues in the first seven years, I believe my plan will triple it within 3 years. That would be an extra $3 Trillion per year in revenue to easily finance the transition and pay off any debt incurred in the first three years of transition. In fact it could easily finance the annual cost of the old program ad infinitum.
Americans should realize that the negative economic news is just the reporting of the mismanagement of our government by politicians. They have failed to realize the method of funding retirement was a zero sum game. That it would eventually implode.
In addition the constant bombardment about our national debt is so much nonsense. We only owe $2.3 trillion to non-Americans; $4 trillion of the $9 Trillion isn’t a debt at all but merely an accounting of Congress’s theft from entitlement programs and the remaining $2.7 trillion is owed to Americans.
Don’t get confused. America is so filthy rich it is embarrassing. On a fair market basis its 4 million miles of interstate would require a replacement cost of over $100 Trillion. Thinking of all of America it is no doubt worth $400 Trillion with a debt to foreigners of a measly $2.2 Trillion. Now ask yourself “Can we afford the transition”. Can we afford a transition that will MAKE THE POOR RICH? That will cut the government and taxes in half?
Yes the RISE UP THEORY OF ECONOMICS is a revolution needing a political base. That base is the American people who have voted overwhelmingly that their politicians in Congress have been doing a poor to miserable job of fulfilling their needs. They are taxing hard working Americans on their earnings not rich people, Rich people already have their nest egg and that nest egg is not being taxed – only the income from it. Poor people need nest eggs too.
Now if what I have said doesn’t make you mad enough, know that your Senators and Congressmen and 3.3 million Federal employees already have personal accounts funded by your tax dollars. They are on their way to becoming millionaires; why not you.
If you want to help us elect those who will support personal accounts please go to the website - makethepoorrich.com - and contribute. To fight this battle we will need all the financial help we can get. If 2005 was any indication what the media, academe and special interests like the NEA and AARP will do to keep the poor poor we have a hell of a fight on our hands – we need your help to make you rich. If we don’t who will?
Visit MAKETHEPOORRICH.COM, make a contribution, and add your name and E-Mail address and we will keep you advised on our progress and what you can do in your community. We represent all those 86% of Americans who want to revolutionize our republic and restore its pioneering spirit and smaller government and lower taxes. Please help.