Political Wager
Radical problems call for radical solutions



The solution is simple. And the good news is ...

All this sounds too good to be true but the answer is obvious. Anyone can see it. Some of the wealthiest 25% of Americans will think they are being negatively affected by it but they will actually benefit. In fact, the higher their bracket the more they will benefit because it will stimulate the American economy and rapidly increase the value of every dollar they keep..

How to instantly eliminate the entire accumulated federal deficit

It's easy to be frightened when seeing a completely new idea like this. You will hear some very reasonable objections. Here are a few and if you think of any that should be added, contact me. I'll be happy to add it to the list.

  1. Most of my net worth is tied up in my house. I can't sell it. The rest is in my retirement fund that I can't withdraw for years!
    Don't worry. There is a lower rate that applies in your situation and what little would apply can be paid off over time as an interest free loan from the IRS.
  2. I worked hard for my money. It's not fair that it should be taken away.
    Great point! All taxes are unfair. Then again, it's about to be taken away because we can no longer afford to defend our country and because the American dollar is about to plummet into the abyss while the entire American infrastructure collapses as the amount of interest that has to be paid on the federal deficit exceeds our entire annual budget. See "US Total Interest 2012" - that is what we pay. Now ask "how big is our annual budget?" You see that the whole annual budget is already being eaten away by interest payments on this debt. We are very close to not having a government. If we wait any longer even this proposal will not solve the problem because we will owe more than our accumulated net worth. Radical times sometimes require radical measures. Everyone knows we are going bankrupt. This prevents it. Many Americans have given their lives for their country, the ultimate sacrifice, to defend our country. They have given all. We are called to honor their service by doing what we also can to defend our country from this more subtle but equally destructive enemy - debt.
  3. It's not fair that the bottom 75% don't contribute to this.
    Another good point, only that just doesn't solve the problem. The bottom 75% also pay other types of taxes. Even those below the poverty line pay sales tax.
  4. The rich will just move their money out of the country.
    That won't prevent it from being owed. It is a debt. As such the IRS would have the right to freeze any assets that don't get moved. It is hard for very wealthy people to take all of their assets out of the country in a single day. The IRS would have the right to seize the non-financial assets in the event there was money-flight.
  5. The rich can just refuse to pay.
    Not paying taxes is a very serious offence. Sudden seizure of property along with additional penalties is less preferred than planned forfeiture.
  6. The rich can just leave the country and take citizenship elsewhere.
    Yes, they can. That will make them criminals in the United States though. Whatever property remains here can be seized in lieu of the liquid property they will probably take with them. Further penalties are then added. It really doesn't work to their benefit. What is owed is owed. They are citizens here now.
  7. Can't the rich move their money out of the country before the tax event?
    Sure, but for some reason they have been counted as having some certain amount of net work, whether that money is kept abroad or not. That means it is taxable net worth. That the assets are not located in the United States does not make it any less taxable.
  8. Can't the rich just give their money away to charity prior to the tax event?
    Yes. This can lower their bracket. However, this is not an event that will involve tax planning. It takes a retroactive snap shot of net worth to a date to be determined by Congress.
  9. If the rich have to sell their stocks and other investments won't this create a run on the stock market?
    No. The IRS will accept the stocks and other assets as payment at the market price. The government will then sell the assets very slowly and methodically to control inflation, interest rates and market volitility.
  10. If suddenly wealthy Americans no longer have trillions of dollars of net worth, can't foreigners come in and buy us out?
    Quite the contrary. The market will be very stable and the US dollar will be increasing in value. That means that their purchasing power will decrease while ours increases. The exception to this is foreign investments. These may lose value. You should learn to buy American.
  11. Won't the sudden disappearnace of so many assets cause a tremendous loss in U.S. buying power?
    No, just the opposite. Currently the buying power is in the hands of wealthy citizens. There will be a temporary transfer of that power to the U.S. government. The buying power stays American. Then as the value of the dollar increases both Americans and the American government will enjoy an increase in buying power.
  12. Isn't wealth redistribution socialism?
    Socialism is where the government owns all the means of production. It is connected with communism, where personal property is abolished. This proposal has the opposite intention and effect. The majority of people will enjoy greater ownership in their own possessions because they are released from the current and increasing accumulating debt and interest due. The accumulated deficit is erroneously viewed as the "government's debt" but it is the bottom 75% that has to pay it because of the weakening US dollar and the effect it has on the economy. In short, the government is already seizing our property through income tax and sales tax. The only difference here is that it won't force each person into personal bankruptcy by exercising the only alternative, which is increasing existing forms of taxation thereby reducing the value of property goods and services or by reducing income taxes in the hope that business activity will increase and trickle down to the working class. Neither of these approaches is sufficient to even begin to eliminate the debt that is crippling our economy now and will irreversibly destroy us within a few years. Radical problems require radical solutions.
  13. This creates "triple" taxation - first the corporations I own pay income tax (federal and state), then I pay personal income tax, and now what little is left over for me after capital gains this net worth tax will take away!
    Great point! Also a good case for eliminating corporate taxes. The question, however, is whether you wish to be an American or whether you prefer that America continue to disintegrate into a third world country because if we don't make this radical change right now that is what is going to happen. This is a one time tax event. Hopefully, we will never act so irresponsibly that we have to do it again. We need to tie it in with legislation that does the following:

I'm just a guy with an idea. Do you want to improve on this and organize? Why not help me refine this idea and make this web site better? Thanks!

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