America, Inc - A business plan for our future - 1st draft

8/3/2019 America, Inc - A business plan for our future - 1st draft

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America,

Inc.

Building a betterAmerica today, nottomorrow.

Michael D. Ballantine


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America, Inc.

Executive Summary

This plan encompasses the desires and wishes of the American people to convert

their 20th

century economy based on fossil fuels to a 21st

century economy based onclean renewable energy. To do this America will make the necessary investments in

new technologies and restructure its economy to produce goods in a clean-

environmentally friendly manner. Additionally, America will change its foreign

policy from an offensive imperialistic stance to a purely defensive stance

recognizing the rights of other nations as an equal. Further, America will redevelop

its health care, education, and social programs to reflect its character as a free

democracy promoting the rights of life, liberty, and the pursuit of happiness.

The current economic climate presents a number of challenges that if not faced and

overcome could leave to a deep depression erasing all the progress the middle

class has made over the past 60 years. Specifically this nation faces the followingdilemmas:

Unemployment approaching 20 million workers

49 million adults without health insurance

$1 trillion in student loans

$2 trillion in sub-prime debt currently mired in foreclosure proceedings

A drop in housing prices equal on average to 32% leaving 25% of

homeowners underwater

The continuation of two major conflicts in Iraq and Afghanistan

New conflicts or potential ones in Libya, Syria, Yemen, and Pakistan.

An unresolved crisis between the Palestinians and the Israelis

The potential failure of the European Economic Union and/or the Euro

currency

Banks unable or unwilling to lend to small businesses

A trade currency conflict with China with global ramifications

A tax policy that is considered unfair by most citizens

A national deficit exceeding $14 trillion and an annual budget deficit of $1.5

trillion

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A failure rate of inner-city schools approaching 40-50% for minorities

12 million undocumented workers

A failed drug policy that has led to nearly 2 million citizens being imprisoned

A societal clash between the right and left that at times appears ready to split

the nation

The wholesale violation of civil rights by the Patriot Act and the TSA

A feeling that government has been subsumed by corporate interests

A Congress detached from the electorate

A general lack of leadership and vision

Through this document, we will identify the many problems faced by the nation aswell as the desired solutions to remedy them. Once adopted, this document will

become the blueprint for how we management our government and economy for

the next 20 years.

Mission Statement

Americas mission is to lead the world to a greater understanding of the benefits of

democracy and the advantages of adopting a clean-environmentally friendly

lifestyle. To provide the necessary support to all members of its society from the

young and elderly to the rich and poor.

Historical Perspective

In 2008, President Obama was elected to bring change. Despite the pundits

claims and interpretations of what change meant, it is clear that the people knew

exactly what they wanted, change. Instead, President Obama largely continued the

failed policies of his predecessor, President Bush. President Obama failed to close

Gitmo, end the Iraq war, provide transparency, or a host of other campaign

promises. Congress, instead of demanding the President honor his promises

supported him in his quest to cut taxes for the wealthiest 1% at the expense of the

poorest members of our society. Whereas, President Obama honored his campaign

pledge to not raise taxes in fact, he did not honor it in deed because a spending cutfor the poor has the same impact as a tax increase. This use of language to defraud

the public is unacceptable. The most recent manufactured debt crisis was done for

the sole-purpose of forcing Senior Citizens to accept a cut in a benefit they have

earned and is in no way in any immediate danger. In fact, the social security trust

fund is sufficiently funded for the next 20 years. To make matters worse, in

collusion, neither party is willing to offer a realistic economic plan to solve the many

problems identified in our Executive Summary.

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America is loosely governed by two parties with each party alternating the

Presidency to present a false impression that Americans have an electoral choice. In

fact, Americans have no or limited influence over who will be the party candidate

and most Americans feel they are asked to vote on which candidate is not as bad as

the other instead of who is the best candidate for the job. To offset this lack of

democracy, Americans Elect has chosen to offer an Internet primary where anypotential office seeker may challenge any other. It is hoped that this model can

spread to every election held in this great nation.

In 2007, despite the assurances of Ben Bernanke, this nation entered into a period

of recession that most believe has not ended and will continue into the forseeable

future. This downturn was caused by an expansionary policy of the Federal Reserve

that led to a housing bubble that has resulted in our economy being brought to its

knees. Despite trillions in quantitative easing, the FED has been unable to reinflate

the economy. To make any substantive progress it will take fiscal policy to get

things moving once again. However, someone drug out an old discredited idea that

you could cut your way to prosperity. The current wisdom among the pundits is

that by cutting spending and cutting taxes, the US economy will begin to pickup.

This notion is both fanciful and dangerous. The point of cutting taxes is to put cash

in the hands of business to spend on new equipment or hire employees. In fact,

there is $2 trillion in the banks, this means that businesses have plenty of cash.

The second objective cutting spending will result in a contractionary response by

consumers affected by the cuts. The two actions together will worsen the deficit,

cut spending, and push into an official recession. It would be understandable if this

was the first time but this is exactly the same policy pursued by the Hoover

Administration precipitating the first great depression.

Instead, the Congress should follow simple economics and create demand through

targeted spending on infrastructure projects to create jobs and expand economic

activity. The Congress has one opportunity to get it right before sending us into

another death spiral similar to that faced in 1933. To make matters worse millions

of homeowners are faced with foreclosure. Without jobs, students are overwhelmed

with substantial debts from university. Finally, there are 49 million American

workers without health insurance and no prospect of getting it. All of these

elements are combining to provoke an economic tsunami potentially greater than

that faced in 1933.

The campaign to elect Mike Ballantine has developed an economic plan and societalplan to address all these concerns and more. We welcome your ideas, suggestions,

and criticisms. This plan is to represent the hopes and desires of the American

people bringing accountability to its leaders. It is a living document and must

reflect the challenges that we face as a nation.

The Economy

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The get the economy going, America needs to first remove the impediments to

growth, stimulate growth and then support growth long-term. A number of factors

enter in the equation, specifically, consumer debt, national debt, budget deficit, and

a lack of credit despite substantial cash deposits.

Consumer Debt

At present consumer debt is one of the burdens holding back the economy. With

house equities collapsing, consumers are unwilling to g further into debt. According

to the Federal Reserve, there was $2.45 trillion in outstanding consumer debt.

(http://www.federalreserve.gov/releases/g19/Current/). There is another $13.6

trillion of mortgage debt (http://www.federalreserve.gov/econresdata/releases/

mortoutstand/current.htm) and sub-prime mortgages make up about 13% of this

share (http://www.rayroy.tv/subprime-mortgage-problem-its-causes-and-

consequences-on-the-recent-mortgage-market). The final major component of

consumer debt is student loans which total about $875 billion

(http://www.kansan.com/news/2011/apr/26/total-student-loan-debt-track-surpass-1-trillion/). To reduce consumer debt and reenergize our economy, I am proposing

that we write down consumer debts to reflect the realities of the current market.

Until this debt overhand is removed from the consumer, it will continue to plague

the market place preventing consumers from purchasing. That is not to say that

debt forgiveness is fair or equitable only necessary to get the economy moving.

Currently the FED has certain assets it acquired during its Quantitative Easing

programs as well as its asset purchases from banks, Fannie and Freddie, and

student loans. I estimate this amount is somewhere between $5 and 6.5 trillion. I

propose that we move these assets into a Resolution Trust Corporation much like

we did in the 80s during the Savings and Loan crisis and identify those withmarketability and those that need written down. I propose we provide debt relief to

consumers during a 90 day period. Consumers will post on a special website at the

IRS all their debts that they wish to have considered for a write-down. Priority will

be given to student loans, sub-prime mortgages, home-owners followed by medical

bills. There will be an allocation of $5 trillion for this program and will be divided as

follows:

Debt Allocation % of total

Home Mortgages $12.5 trillion $3,075 trillion 61.5%

Subprime Mortgages $1.1 trillion $600 billion 12.0%

Consumer Debt $2.5 trillion $750 billion 15%

Student Loans $875 billion $575 billion 11.5%

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There are many reasons to object to this but in reality without some sort of

forgiveness program, our courts will continue to be clogged with bankruptcy filings

and new foreclosures will drive housing prices lower.

Jobs

Having relieved consumers of an unsustainable debt burden, the next thing blocking

recovery is jobs. Official unemployment has been hovering at 9.1%. When adding

in discouraged workers, that number moves up to 14%. Even if we remove some of

the debt from the unemployed, they cannot start buying again until they have a job.

With a total work force of 151 million workers, we need to create 20 million jobs

over 18 months to reduce unemployment to a more sustainable level of 3%. Keep

in mind that approximately 150,000 workers enter the work force each month.

Here is the breakdown on how we will create those jobs.

ProjectNumber of

workers Project LifePermanent

Workers

Five cities - construction 4,000,000 10 years 1,000,000Transport systems/Hi-speed Rail 2,000,000 10 years 500,000

Service/support ofconstruction 2,000,000 10 years 3,000,000

Small Business 1,800,000 10 years 1,800,000

Textile Factories 1,500,000 10 years 1,200,000

Software and IT 1,015,000 10 years 1,015,000Restaurant and FoodService 800,000 10 years 800,000

Electronics Factories 750,000 10 years 350,000

New Nuclear Reactors 600,000 10 years 200,000

Hospital and Health Care 600,000 10 years 600,000New Schools -construction 500,000 3 years 50,000

New Teachers 500,000 10 years 500,000DC Powerlinesconstruction 400,000 5 years 75,000

Moon Space Program 350,000 3 years 200,000

Architectural and planning 300,000 10 years 150,000

Electric Car Factory 300,000 10 years 120,000

Solar Mirror Farms 300,000 10 years 120,000Renewables 300,000 10 years 225,000

Pipeline construction 300,000 10 years 50,000

Hydroponics Farms 250,000 10 years 200,000

Community Police 250,000 10 years 250,000

2 - Oil refineries - Detroit 200,000 3 years 75,000

Oil refinery Gulf Coast 100,000 3 years 75,000

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2 - Steel Mills 150,000 3 years 75,000

Mars Space Program 150,000 8 years 150,000Plastics andPetrochemicals 100,000 3 years 50,000

Tree Planting 100,000 10 years 100,000

Rare Earth Minerals Mines 125,000 10 years 125,0001 - coal gasificationMidwest 75,000 3 years 35,0001 - coal gasificationKentucky 75,000 3 years 35,000

1 - Electric battery plant 75,000 3 years 35,0001 - shale oil processingmine 35,000 10 years 35,000

Totals 20,000,000 13

These numbers represent estimates and a more detailed analysis will be provided

for each project in the appendix of the plan. Companies participating in the growth

plan will be able to borrow at low interest rate or no interest rate for a period up to

five years depending on the project life. Principal payments will be deferred up to

five years as well. To participate in this program, all companies must be 50%

owned by their employees and the Federal government will take a 30% stake to

represent the taxpayers interest. The Federal government will then offer its stake

first to the company and then to the market once the loans have started to be

repaid if financially advantageous to do so.

We believe that by requiring companies to have employee participation in

ownership, they will take a stronger interest in the success of the organization,reduce conflicts between management and employees, and prevent the offshoring

or outsourcing of this work to make sure American companies and workers benefit

from this program. The Federal government will take an ownership interest much

like a venture capitalist to enable it to step in if the company fails to meet the

contracted requirements and enable the tax payer to recover additional earnings to

offset expected losses. This justifies the taxpayers continued support for the

program as well as the deferment on the principal payments.

The expectation is that this program will require $2 trillion its first year, the second

year, and another $1trillion in the third year. These funds will be raised in the

market through various bond issues at a market coupon rate. It is anticipated thatwe will need to offer 5 to 6% on the coupon. This type of program is not inflationary

because we are not issuing new currency. It could cause wage inflation by reducing

the number of unemployed below the normal unemployment level. If that happens

then construction on the 5 cities will be adjusted and construction in one or two

cities will be slowed down. The goal of this program is to bring the American

economy back to health, not create a roller coaster of booms and busts. An

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expected criticism is that this program will drive up the cost of money and crowd

out funding for private enterprise. These are valid points and must be addressed

separately.

Interest Rates and Bank Lending

As part of this program, the Federal Reserves mandate will change from

maximizing employment and minimizing inflation, two goals that are sometimes in

conflict, to the simple goal of maintaining inflation at zero. This is the only way to

stop the FED from continuing to fund asset bubbles. Currently, the FED is engaged

in a policy of quantitative easing which has nothing to do with its mandate. The

FED is attempting to reinflate the housing market, prop up the stock market, and

maintain interest rates at an artificially low level of zero. Almost no economist

agrees with the FEDs current policies. One might say Ben Bernanke is grasping at

straws to fix an economy, whereas to fix the economy, Congress must act.

It is expected that the FED will resist our move against their traditional

independence. However, the FED is not acting in the best interest of the economy

so we propose that the FED be nationalized and reestablished as the Central bank

of the United States. Once this is done, interest rates will be adjusted to target

zero% inflation. It is expected that interest rates will increase presenting a fiscal

crisis for the government as its interest obligations go up on new borrowings. We

predict that interest rates may go as high as 10% for short periods until the excess

money that the FED has created in the economy works its way through. Debt

service will cost between $300 billion and $600 billion and this money will need to

collected in higher taxes or spending cuts. This is the unfortunate reality of the

FEDs quantitative easing program over the past 3 years. The sooner we begin to

accept this reality, the lower the average interest rate will be. Continued delay willresult in a repeat of the 70s when interest rates climbed above 15% Our target for

interest rates is 2 to 3% providing savers with an incentive to save and invest in our

infrastructure program.

In addition to changes at the Federal Reserve, the reserve ratio at banks will be

adjusted as well. The reserve ratio will be raised from the current low of about 3%

to 50% to reduce speculative lending that does not create economic activity. The

margin rate for stocks will also be adjusted to 50%. This will allow the Central Bank

to regain control of the money supply. The infrastructure bank will provide the

initial lending necessary to get the economy moving obviating the need for bank

lending. At this point in time, banks are not lending to businesses only to market

speculators. Over the course of three years, reserve ratios will be adjusted by the

Central Bank to reflect the zero% inflation policy. It is anticipated that once housing

prices stabilize, new construction takes place, and workers begin spending their

money that economic circumstances will change sufficiently that banks will be more

willing to take risk and begin lending again.

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National Debt

The exact figure of our National Debt at the time of this plans implementation is

unknown. In August of 2011, it was approximately $14.3 trillion and additional

borrowings were authorized. For discussion purposes, we will assume that the debt

will be $16 trillion at the beginning of 2012. To minimize the conflict between theright and the left, no increase in the debt ceiling will be proposed. Instead, excess

assets held by the FED that were not used in the debt forgiveness program will be

used to offset short-term financings. This could have been done by the Obama

Administration and the entire circus surrounding the deficit battle avoided. At

present, the FED has approximately $2.5 trillion in Treasury Notes on its books as

well as its income stream from the interest on the notes. This money will be used to

fund any immediate needs faced by the government until a budget package can be

approved. With our promise to end troop deployments overseas, it is expected that

substantial savings could be realized within the first 6 months offsetting the

ongoing budget problem. Here is a chart showing the interest burden at different

average rates of interest in billions on the National Debt:

Total DebtInterest

RateTotal Payment

16,000

1%

160

16,0002%

320

16,0003%

480

16,0004%

640

16,0005%

800

16,0006%

960

16,0007%

1,120

16,0008%

1,280

16,0009%

1,440

16,000

10%

1,600

16,00011%

1,760

16,00012%

1,920

16,00013%

2,080

16,00014%

2,240

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16,000

15%

2,400

When one looks at this chart, one can begin to appreciate the true scale of our

problem. Congress knows that zero% interest rates are impossible to sustain. If

Interest rates were to rise to 10% it would absorb all the domestic spending and

military spending leaving nothing for the American people. Congress does not want

to cut social security to make it solvent, they need to cut social security to pay the

interest on their profligate spending. This is the real problem faced by Americans,

not the deficit or unemployment, if interest rates go up, it will be impossible to pay

the bill without shutting down the government. We will explore solutions to this

problem later in our analysis. The first thing we need to do is get control of our

currency and stop the red ink from taking us further into this black hole.

Health Care

Currently, America provides its health care through a patchwork of programs

including private insurance paid for by individuals or companies, government

funded programs such as Medicare and Medicaid, or simply out of pocket by

consumers unable to afford private health insurance but not eligible for government

assistance. Most children and most of our elderly are covered by some form of

insurance but there remains 49 million uninsured Americans. President Obama

attempted to reform our health insurance through existing providers, unfortunately

his program depends on requiring individuals to purchase health insurance through

private providers. Many feel this goes beyond the powers expressed in the

constitution and the Supreme Court will soon begin to investigate this issue and

determine the governments right to require the uninsured to purchase privateinsurance.

It is our position that what is known as Obamacare does not address the

fundamental flaws of our current health care system. Assuming that people are

required to purchase insurance, what happens if they are unemployed, unable to

work, or decide not to pay? Further, the main problem with health care today is

that it is too expensive and Obamacare does not address the cost side of the

problem, only the revenue side. That is why we propose Medicare for all (MFA)

MFA would address the current access issue and provide the same standard of

coverage for everyone. This is not meant to be an all encompassing program andindividuals are free to purchase supplemental coverage through private providers.

What it does is answer the question about what to do if people dont pay and it will

lower costs. MFA lowers costs by taking the profits out of health insurance and

simplifies hospital and doctors paperwork by consolidating everything to one

program, reducing costs across the system. Further, this can be a simple legislative

exercise of simply extending care to everyone without having to negotiate the types

of benefits, the expected standards, etc. That work has already been done. In fact,

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the only real debate will be why some Republicans feel we need to continue to

burden America with a grossly ineffective program that neither works nor provides

equal access to health care. The problem is how to pay for it.

National Sales Tax

Currently, Medicare and Medicaid are paid for through a mix of state and federal

taxes including employee payroll deductions. Then depending on where one works,

employers may pay nothing or 100% of the cost of health care. Employers have

used this carrot as a benefit to attract and keep employees. It has the perverse

effect of forcing employees to work in jobs they dont like just to get health care.

Further, if the employer lays someone off, that worker is faced with huge COBRA

payments just when finances have become more difficult to manage. This is stupid.

If someone came to you and asked you to design a payment scheme would anyone

actually dream of such an inefficient method or would one try to streamline it to

reduce costs.

One of the arguments by many tax payers is that they do not want to subsidize

people who do not do their fair share of work. They feel that these people are

getting a free ride and should accept the consequences of their decisions. There is

some truth to that notion but the practical implications of abandoning people simply

because they had a run of bad luck seems more 18th century than 21st century. We

propose an alternative financing mechanism that is truly fair to all. Everybody pays

and everybody benefits if we use a National Sales Tax. Everyone is a consumer and

everyone eventually needs health care.

We propose a tax of 15% on all purchases excluding fruit, vegetables, and dairy

products. When purchasing large-ticket items, the tax could be spread out over aset period and collected as part of a loan agreement. Without working through the

minutia of our economy, lets take a look at the big picture. The American economy

is roughly $15 trillion per year. Of that, $2.3 trillion is spent on health care. If our

MFA program captured the entire health care program, Americans would see a cost

reduction of about 5% or about $115 billion a year. Where most people come from,

$115 billion is a lot of money. To fund MFA, the National Sales Tax would need to

raise $2.2 trillion each year. 15% of $15 trillion is $2.25 trillion. No program is

perfect and the final numbers will need to be adjusted to reflect reality but in

general terms, this works.

One of the arguments will be that it will cause massive inflation as people now haveto dig deeper to cover the extra 15%. There is some truth to that. To counter the

inflationary impact, we propose to increase social security payments by 10% as well

as the earned income credit for the poor. As employers reduce prices or return

some of the savings to their employees, prices will fall or incomes will go up. It is a

one-time expense and once we move to the new spending level, it will be mostly

forgotten. Consumers can adjust their spending habits and prioritize their spending

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on goods they need. This program could be implemented in 90 days with almost no

major road-block except the negative impact on health insurance company stock

prices.

To help in the transition, the Federal government will absorb health insurance

companies processing centers to transition health records and related employees toeither positions in the Federal government or assist with retraining to other needed

employment positions in the economy. This will avoid mass layoffs and cushion the

impact of substantially reducing the health insurance industry.

When the original Medicare program was adopted, there was a lot of hand wringing.

Now we have a proven program with sufficient foundation that we can expand upon

and benefit from. Whereas, some people may have less coverage than they have

today, we will provide coverage for 49 million Americans. Those that want

additional coverage remain free to purchase any number of supplementary

Medicare products available to seniors now.

Getting these programs past Congress

Consumer debt forgiveness, creating 20 million jobs, and Medicare for all are part

and parcel of total package to put America on the road to prosperity. We would

present it as a package deal. Congress would be asked to authorize $5 trillion

funding from the assets of the Federal Reserve to be transferred to a Resolution

Trust Corp (RTC) that would be mandated to use these funds to reduce consumer

debt under the following formulas; 60% for home mortgages underwater, 12% for

resolving the sub-prime mess, 12% for student loans, and 16% for consumer

credit/medical bills. The RTC would be directed to rewrite home mortgages involved

in the program according to the payment policies of FHA, to write down the first$10,000 of every students student loan and up to 50% of the remaining balance,

and to give preference to unpaid medical bills in writing down consumer loans. This

program will last for a period of 6 months with participants having 90 days to

submit claims and another 90 days to verify eligibility. Any remaining funds will be

used to reduce the National Debt. It is hoped that all obligations could be

restructured and resolved in one year.

The jobs program will be administered through a new American Infrastructure

Bank a branch of the Federal Reserve Bank. This bank/agency will be authorized

to borrow $2 trillion each year for the two years and $1 trillion the third year to fund

new infrastructure, new factories, and fund business start-ups according to therequirements that companies that are 50% or more owned by employees will

receive preferential rates and repayment terms and that the government will take a

30% interest in any company receiving financial support from the bank. The

interest rate subsidy will be offset by a new financial transaction tax of $.25 per

transaction on Wall St.

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The final part of the package will be the Medicare for All program and the National

Sales Tax. These programs are relatively simple and the details will be determined

by the agencies and programs themselves reducing the ability of Congress to either

weigh these bills down with lots of other programs or reject one without rejecting all

three. This package will be presented on the second day of office of this Presidency

after having gone 30 days online to allow the people to comment and vote on it.Not only will it have the weight of a mandate from winning the election, it will have

the strength of the nation behind it. This package will be presented without going

to committee directly to the floor of the House. Debate will be limited to insure a

vote within two weeks. The bill will then move to the Senate and will follow the

budgetary rule of 51% approval limiting the ability of a filibuster. If either party of

Congress refuses to pass the bill after the American people have given their

blessing, the President will call for a Nationwide strike, a boycott against

corporation backing individual Congressmen voting against and a million people in

every capital of the nation. There is nothing more important than getting our

economy moving again. The refusal of Congress to take action is tantamount to

Congress trying to reverse the results of the election. Whereas, this President is

willing to compromise and explore alternatives, the President believes that America

no longer has the time to wait on fundamental action in these three areas.

Structural Budget Problems

There are a number of structural problems in our current budget. Some of these

are legacy problems whereas others result from the economic downturn. The

current funding problem for Social Security relates directly to the reducing payroll

taxes caused by too many unemployed and efforts to boost the economy through

tax holidays. We believe this programs funding issues will resolve themselves after

we create 20 million new jobs providing us with time to address this problem in

2016.

The Federal Budget is comprised of the following groups of expenditures:

In Billions Obama'sAmerica

Inc.

Budget Budget

Budget Outlays 2012 2012

Mandated Programs

Social Security 762 762

Medicare 504 2200

Medicaid 274 0

TARP 10 10

Other Mandatory Programs 532 532

Subtotal 2082 3504

Net Interest 340 660

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Discretionary Programs

Security/Defense 850 300

Non-security 490 440

Interest Subsidy for Jobs Bank 125

Education 0 100NASA 0 100

Renewables (Batteries, Trees,etc) 0 75

Subtotal 1340 1140

Total Outlays 3762 5304

Receipts/Revenues

National Sales Tax (15%) 1700

Individual Income Taxes 1271 1200

- New jobs 52

- Millionaire Tax 100

- Reverse Bush Tax Cut 225

Corporate Income Taxes 333 535

Social Security Payroll Taxes 720 820

Medicare Payroll Taxes 208 0

Unemployment Insurance 66 66

Other retirement 9 9

- Financial Transaction tax 150

Excise taxes 83 89- Tariffs (China, Oil Imports) 236

Estate and gift taxes 21 21

Customs Duties 33 33

Federal Reserve Earnings 67 50

Other earnings 18 18

Subtotal 2829 5304

Deficit/Surplus 933 0

The Obama budget shows a deficit of $933 billion for fiscal year 2012. We believe

that is both unrealistic, impossible to finance, and will result in the further

depreciation of our currency. Our path to fiscal probity requires spending cuts as

well as tax increases. We believe that when people compare our proposed budget

to the unsustainable budget of the Obama administration, they will support the

changes we propose.

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Changes in the tax code

The movement from Medicare paid by employee taxes to one paid through a

national sales tax moves has the biggest impact on the budget by decreasing

revenues from employee and employer contributions. The second major tax change

is a movement to a more progressive tax rate based on no tax due on the first$50,000 of personal earnings. In the process, we would eliminate all itemized

deductions and personal exemptions. For every additional $1,000 earned, a wage

earner would pay an additional tax of .1% increasing progressively every $1,000.

The adoption of this tax policy automatically will cancel the Bush tax cuts. Here is a

sample chart to show the tax effect on wage earners.

Wage Tax RateTotal Effective

Income TaxIncomeTax

50,000 0.00%

- 0.0%51,000 0.10%

51.00 0.1%

52,000 0.20%

104.00 0.2%

53,000 0.30%

159.00 0.3%

54,000 0.40%

216.00 0.4%

55,000 0.50%

275.00 0.5%

56,000 0.60%

336.00 0.6%57,000 0.70%

399.00 0.7%

58,000 0.80%

464.00 0.8%

59,000 0.90%

531.00 0.9%

60,000 1.00%

600.00 1.0%

70,000 2.00%

1,400.00 2.0%

80,000 3.00%

2

,400.00 3.0%90,000 4.00%

3,600.00 4.0%

100,000 5.00%

5,000.00 5.0%

150,000 10.00%

15,000.00 10.0%

2 15.00% 30, 15.0%

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00,000 000.002

50,000 20.00%50,

000.00 20.0%3

00,000 25.00%75,

000.00 25.0%3

50,000 30.00%105,

000.00 30.0%4

00,000 35.00%140,

000.00 35.0%4

50,000 40.00%180,

000.00 40.0%

500,000 45.00%

225,000.00 45.0%

1,000,000 50.00%

500,000.00 50.0%

1,000,001 95.00%

500,000.95 50.0%

Do develop a more accurate representation, an analysis must be performed at

different income levels. The objective of this tax policy is to encourage investment

and discourage taking income. Those earning income above $1,000,000 will be

taxed at 95%. This figure could be adjusted to achieve the budgetary goal of

increasing tax receipts by $100 billion per year from this group. The primary tax

policy will be adjusted to yield $1.2 trillion in receipts to meet our targeted budget

number and minimize the average impact on most Americans. The biggest change

is the removal of mortgage interest deduction. This will be offset by the consumer

debt relief program. The end of the state and local tax deduction is offset by

removing the requirement for states to contribute to Medicare and Medicaid.Without health insurance, there is no longer a need to itemize medical expenses.

To support investment, short-term capital gains will be taxed as ordinary income.

Long term capital gains will be taxed according to a sliding scale based on the

length of the holding and the personal tax rate of the tax filer. Here is a sample of

the tax chart:

Year Tax Rate

1 30.00%2 25.00%3 20.00%4 15.00%

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5 10.00%6 8.00%7 6.00%

8 4.00%9 2.00%10 0.00%

For savings and time deposits, there would be no income tax.

The objectives of our tax policy is to promote investment in the US economy, not

reward investors for investing overseas. Further, we want to end ridiculous CEOpay that does not reflect their true contribution to the business of the corporation.

Another major change is corporate tax policy. Corporations earning less than

$300,000 will be taxed according to the personal income tax code or at the

discretion of the owners according to the current S-Corp rules. Corporations

earning more than $300,000 will be taxed at two rates on all earnings.

Corporations that are at least 50% owned by employees will pay a flat tax on all

earnings of 25%. Corporations that are not at least 50% owned will pay a flat tax of

50% on all earnings. This will avoid the potential for a corporation to pay less tax

than the employees that work there. Special tax credits and accelerated

depreciation schedules that distort economic activity will be eliminated. Interestexpense deductions will be limited to 50% of EBIT to encourage companies to build

more equity in the business and rely less on debt to conduct their business. Start-

up companies will receive a five-year waiver on interest expense rules. The

objective of this policy is to increase corporate taxes by $200 billion each year and

will be adjusted based on GAO projections.

Projected Savings

We believe that America must have a strong defense. The change between

President Obamas defense budget and our defense budget is the ending of

overseas deployments. We will recall 90% of our men in uniform and close 90% ofour overseas facilities in 90 days. The remaining troops will be responsible for

returning equipment and property owned by the US taxpayer. We will identify 50

bases that will remain open to support humanitarian relief and peace keeping

activities. These bases will be staffed by no more than 10,000 troops worldwide.

It is our belief that US presence overseas creates more conflicts than it solves.

Further, with $16 trillion in debt that must be paid, we can no longer afford a

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military strategy that calls for fighting two regional conflicts at a time. We will

adopt a strategy that calls for no fighting overseas unless one of our allies comes

under direct military assault. We will not anticipate hostilities thereby causing them

to occur. Our defense budget and homeland security budget will be pegged at 2%

of GDP inline with other major nations. Currently, China spends an estimated $120

billion each year and Russia spends an estimated $70 billion a year. Our spendingwill still be 150% higher than our two closest rivals. Military spending over the past

decade is directly responsible for the high National Debt that we currently face. In

fact, had we followed a more realistic policy during the past decade, our National

Debt would be half of what it is today and we would not be faced with National

Bankruptcy. The cold war ended 30 years ago and now it is time to acknowledge

that fact.

Bases of operations to be closed within 90 days include all bases in Iraq,

Afghanistan, the Persian Gulf, South Korea, Japan, Colombia, former Soviet states,

Germany, Italy, the UK, and Guantanamo Bay. Other bases will be prioritized based

on time, personnel and material availability. Without a true threat facing this

nation, maintaining an overseas base network is superfluous, expensive, and a

waste of national treasure.

To soften the blow to the defense industry, it is our intention to increase funding to

support an aggressive space industry. Money previously allocated for purchase of

arms and munitions will be redeployed to our Moon and Mars programs. We

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anticipate redirecting $100 billion in this fashion. We will reduce the number of

uniformed troops by mothballing at least 6 carrier groups, reducing the Army to its

special operations units and one combined arms division. We will cut the Air-Force

by 30% but there will be no cuts for the Marines. Our special forces units and

Marines are necessary to fight an enemy employing unconventional warfare. Our

budget will concentrate on this type of military environment as opposed to theprevious large land scale wars of Iraq or expected wars against the former Soviet

Union.

America will maintain a policy of non-intervention in the internal affairs of other

countries. We will only engage in deployments for humanitarian or peace-keeping

operations. There will be no wars to prevent wars or non-kinetic military adventures

under this administration. We need to rebuild our relationship in the international

arena and this is the first step.

To further build relations overseas, America will unilaterally reduce its nuclear

warhead inventory to 500 warheads and transfer the plutonium to the spaceprogram. We will negotiate with Russia and other countries on further reductions

with a goal to reduce the potential that these weapons could ever be used. We will

suspend all arms exports and ask our partners to do the same to reduce the

potential for conflict worldwide. Unless America leads, no one will follow. By

putting our money where our mouth is, we believe the rest of the world will follow

us and usher in a new age of peace.

Education

Neighborhood schools

National Standards

Minority Teachers

Funding for inner-city schools

Block grants

College financial aid

Space

Moon program

Mars program

Solar panels in space

Moon mining for Helium-3

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Renewables

Construction of Solar Mirror Farms

Geothermal Projects

Electric Cars

Lithium Batteries

Wind/wave projects

Solar panels

Biodiesel from algae

Biodiesel from biomass

Energy

Construction of DC power grid

Construction of 20 nuclear reactors

Development of Thorium as a nuclear fuel source

Coal-gasification

Investment in technologies to make tar sand exploitation cleaner

Investment in technologies to make shale-oil exploitation cleaner

Ending fracking

Investing in technologies to remove CO2 from exhaust

Fuel-cells

Agriculture/Environment

End subsidies for Corn Ethanol production

Allow the import of sugar based ethanol as a substitute

Plant 250 million trees a year

Develop hydroponic gardens and vertical gardens in all major cities adjacent

to power plants

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Promote organic farming and end the attempt by regulators to put small

farmers out of business

Create new water treatment processes

Require farmers to use more drip-irrigation in their fields to reduce water

demands on western aquifers.

Homeland Security

Broken up and divided into different departments

End the TSA and require airports to provide own security

Department Consolidation

Re-empower the Commerce department to manage 20 year planning

Bring Departments of labor, transport, energy, agriculture, and EP under it

Department of Justice

Create a panel to investigate war crimes by former leaders

Create a panel to challenge laws that discriminate

Decriminalize drugs

Reclassify Marijuana as equivalent to tobacco

Issue pardons to all imprisoned non-violent drug offenders

o Promote treatment and counseling

Create a new national civil union law

Department of State

Change work permit laws for Mexico and Canada

o Any Mexican or Canadian that has an employer sponsor will be issued

a one-year work permit, renewable annually, $250.

Allow all Mexican and Canadian passport holders an automatic 6 month visa

Increase the number of H1B visas to 500,000, give priority to students

graduating from US colleges/universities.

Foreign Policy

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o Israel/Palestine

o Arab Spring nations

o African wars

o Relations with Russia joint Moon/Mars program

o China tariffs, human rights

o India reducing nuclear weapons

o Pakistan policy reset

o Brazil increase trade

o Cuba normalize relations

o Venezuela normalize relations

o Japan sell a carrier group or two?

o ASEAN promote clean energy development

Constitutional Convention

Vice-President to promote a convention to amend the constitution and make

it a 21st century document

Term-limits

Line-Item Veto

Publicly financed elections

Increase the number of Representatives

Define a person

Repeal the 17th amendment

Documents

America, Inc - A business plan for our future - 1st draft