The hopes of the American people are fading fast. The Republicans just held their Presidential debate on economic matters and no substantive proposals were advanced that would reduce the size of government. The excuse again was mandated entitlements – Social Security, Medicare, Medicaid, etc – programs they claim politicians have no control over. They repeated that they will again try to cut discretionary spending but offered no significant proposals.

Americans don’t have to consider the Democrat candidates as they have been advancing new spending BIGGER-GOVERNMENT programs daily.

Reducing the size of government is what the people want because then the politicians would not tax them as much to pay for the big bureaucracy and government give-aways. Politicians seem content to avoid this most serious issue.

The claim by some candidates that they favor the Fair Tax and the Flat Tax as a way to lower taxes contradicts the stated position of their sponsors that these taxes are “revenue neutral” meaning that they will raise the same amount of government receipts as the present law extracts from the people. The reality is that neither tax will lower the tax load Americans bear – neither will reduce the size of government. They will merely extract their pound of flesh from a different set of taxpayers - nothing more than rearranging the deck chairs on the Titanic. So what can Americans do?


Then out of the blue Hilary Clinton announces her plan – American Retirement Accounts. Her plan is rightly based on generating a pool of capital for all Americans by starting them off with a $1,000 gift from the Treasury (inheritance taxes on rich taxpayers) and an “investment” savings account in which they can save up to $5,000 a year tax free out of their own pocket. Her plan is to encourage people to save for their retirement out of the money left over after the oppressive taxes and ever-higher prices they already pay.

Unfortunately her plan is a solution that favors the rich and the upper middle-class as 45% of Americans according to her party’s own talking points live pay check to pay check and have no way of savings $500 a year much less $5,000. Her plan will be a godsend for the other 55% of the population as they will be getting a vehicle (that personal investment account) to generate wealth and capital TAX-FREE.

Her plan cleverly avoids the elephant in the room – today’s dysfunctional funding of Social Security and Medicare. These “mandated” entitlements extract 15.3% of the lifetime income of working Americans yet fails to deliver the wealth and security Senator Clinton claims her American Retirement Accounts will do.

Senator Clinton is a smart and clever politician whose very future is tied to diverting attention away from replacing mandated entitlements with personal investment accounts because if every American becomes wealthy her siren song of “sharing the wealth”, her “village” solutions will fall on the deaf ears of those same Americans who took her underlying advice and found their own pool of capital.


How would Americans like to fund entitlements themselves? How would they like to take that responsibility away from government? Instead of government financing Social Security and Medicare THROUGH PAYROLL TAXES would Americans consider financing these programs themselves? Of course they wouldn’t under present circumstances. However, if they all were rich enough to self-finance an affluent retirement and the best medical care on the planet, Americans would jump at the chance.

Financial independence is what every American wants – it is the American Dream. Too many are frustrated with capitalism as they don’t have the tools to compete for the big bucks and big government-type socialist democracy is not making them wealthy but more dependent than ever on income redistribution schemes that tax the rich. So what are the prospects for making everyone rich?


The prospects for making everyone rich are better than ever. To get rich in America each American needs a pool of capital (thank you Hillary Clinton). What could be easier than to redirect the 15.3% of the lifetime income a worker now pays to government as payroll taxes into an investment account (a “personal account) personally owned by the taxpayer (again thank you Hillary Clinton). It wouldn’t require the taxpayer to pay one dime more than he is paying now. However, under Rise Up he or she would be paying that 15,3% to themselves – right into their own personal account.

Under present law that “investment” into Social Security and Medicare does not result in Americans having a nest egg to retire on. After paying into that system for 40 or 50 years there is no nest egg but merely a promise of a starvation-avoiding pittance of a monthly check. Today Americans need that “pool of capital” more than ever as Hillary Clinton so clearly points out.

Under the Rise Up America plan the $6,000 annual payroll tax withholding of the average householder earning $40,000 per year pays is invested in the American economy in the form of indexed stock funds (thanks again to Senator Clinton) that the 40-year investment of $240,000 grows through compounding (thanks again to the Senator) into a $3.2 million nest egg just using historical rates of return on the S&P 500 stock fund index (thanks once again to the Senator).

That nest egg performs two functions for the taxpayer. First is that of generating a monthly check and the second is creating an estate to pass to his or her heirs. The $3.2 million nest egg if left in stocks would generate an average monthly retirement check of $27,000 ($3.2 million x 10% / 12 months). Should the taxpayer decide at retirement to move out of stocks and invest in a savings account at, say 6%, then the monthly check would still be a whopping $16,000 per month.


Under Rise Up everyone can become a millionaire. No one should be offended that capitalism solves poverty (Senator Clinton actually endorses it). The constituencies of both the Democrat and Republican parties – the American people - would have to rejoice. The Democrats will have delivered the poor out of poverty without penalizing the rich and the Republicans will be ecstatic by having an infusion of $1.2 Trillion into the capital markets in the first year and greater amounts in each year thereafter. Rise Up is a win-win proposition all around.


So what can you do to make Rise Up a reality. First go to our website www.riseupamerica.us and read our mission statement and review the tables proving the mathematics. Then send us a contribution. The donation button is on the website. As many politicians will be unwilling to cut the national budget in half thereby significantly reducing the size of government and the amount of tax they collect, Rise Up is a grass roots movement that needs money to get the message to all Americans in order for them to force their representatives to consider changing the law to benefit the people.

We have formed a non-profit organization that qualifies as a charitable organization under Section 501(c)(3) of the Internal Revenue Code. It is called the Ownership Society Institute (OSI). All contributions to OSI will be tax deductible. We are actively seeking organizations and individuals that are willing to donate or make a bequest to an educational organization that promotes small government and the limited tax load it takes to run a smaller federal bureaucracy. Those interested can contact Dick McDonald at 818-998-6800 in Los Angeles.

RISE UP AMERICA – because if you don’t, expect to pay more taxes in the coming years and prolong the agony of poverty. Poverty is not a given if we all just Rise Up.