The Only Economic Strategy Of Systematically Reducing Taxes While Repaying National Debts

Many American voters vote only on taxes. The person who promises the lowest tax rate gets the vote automatically. This fiscally conservative voter usually supports Republican candidates and opposes Democratic candidates.

But what is interesting is that in the past 40 years, the Republican government, rather than the Democratic government, has significantly increased the national debt. It was the George Bush administration(based on Saddam Hussein’s false claim that he hid a large number of lethal weapons) that led us to the permanent wars in Iraq and Afghanistan. The war debt, coupled with the huge tax cuts for the rich, has greatly increased the national debt!

Now in the Trump era, it is another huge tax reduction measure for the billionaire class. At the same time, the management of covid-19 infectious disease is not perfect(and is still expanding), and the national debt has erupted again. People like us will pay off this debt with higher taxes sooner or later, instead of being good at 1% tax evasion.

However, there is an economic strategy that the system will repay the national debt while reducing taxes systematically. Its main supporter, Dr. Norman Kurland, president of the Center for Economic and Social Justice(CESJ.ORG), called this strategy “the home of the capital”. To illustrate this, let’s start with two facts.

Fact based system solution

First of all, the U.S. economy is growing by an average of $400 billion annually(yes, $4 trillion). Second, this is equivalent to about 12000 dollars per man, woman and child in the United States. But in general, the beneficiaries of these years’ growth are limited to those who are able to purchase stocks, bonds, real estate and technology development.

More specifically, what we are talking about is that less than 10% of Americans are able to take advantage of relatively predictable growth, and 90% lack the opportunity to participate. Therefore, the gap between the rich and the poor in the 21st century is larger and more toxic than at any time since the stock market crash in 1929 and the subsequent Great Depression.

Worse, this was the case before the current pandemic oriented economic crisis. In response to millions of workers’ loss of income and health care due to the virus, the federal government increased unemployment benefits for several months, and paid the so-called “stimulus check($1200)” to millions of people to stimulate demand and prevent the sinking of national ships.

Unable to pay, but required steps

By taking these unpleasant but necessary measures, the government has greatly increased its huge debt burden, which means that this is not a long-term solution, but a short-term solution. Of course, our hope is to artificially restore demand, which in turn creates jobs, so that people like us can return to their jobs, so that we can return to the state before the Verus attack.

The problem is that people like us are in a bad situation before the virus attacks. Even before the outbreak of the virus, more than half of Americans lived on wages. If they did not borrow money to pay, they would not be able to pay $500 for travel. This is much more serious than in the months before the outbreak. But the place where we stay is still not the place where our citizens want to go back. So, what can we do?

The idea of $4 trillion will not generate debt!

Now let’s review the average annual growth of the US economy of 4 trillion US dollars. Similarly, this means that all men, women and children in the United States receive $12000 a year. But the beneficiaries of this annual growth are people who can buy stocks, bonds, real estate and new technologies. This usually excludes us.

The question I want to ask now is how we can ensure that ordinary Americans systematically approach the ownership side of the economy, where most of their wealth is generated. How can ordinary people obtain a predictable growth of $4 trillion, thus creating a second investment income, and at the same time eliminate the fear and instability that many Americans experience in today’s incredibly unbalanced economy?

Consider the following possibilities

• If yes, through local banks

• Issuance of a fully insured capital credit of US $12000

• Distribute annually to all U.S. citizens(men, women, and children regardless of race, sex, religion, sexual orientation, or economic status)

• Interest rate 0% and

• In the future, it is allowed to repay loans through pre tax income/dividends rather than personal savings

• The fund can only be used to purchase shares of new and transferred capital assets. Is it expected that the asset will generate sufficient future profits, pay the purchase costs, and create predictable and stable residual income for the owner?

This strategy, known as the “home of capital”, will not cost American taxpayers anything. It will not generate government debt! It does not create consumer debt! Non governmental debt backed monetary purchases are backed by real, productive private sector assets(collateral).

And it will not expand. All the funds created will immediately obtain all the value of private sector assets(mortgages), and citizens will obtain insurance loans to purchase these assets. Citizens will actually buy newly issued, dividend paying and voting stocks, and these companies need new capital assets to grow.

But what will the capital homestead do

• In order to make all Americans have systematic access to the ownership of the American economy, most of our property takes place in the United States.

• Create a surplus income stream for all Americans through ownership rather than labor

• End poverty in the United States and fill the racial gap

• Stable family life,

• Minimize the mental illness called GREED that endangers American culture.

• In the long run, this will contribute to the democratization of free markets.

• Create millions of new taxpayers and reduce and reduce the tax burden of actual taxpayers

• Minimize the threat of AI in the US job market

• National budget balance;

• Repayment of our huge increase in national debt, etc.

Simple example

Here is a simple example of how the capital’s homestead will benefit the next generation of Americans. If implemented, by the age of 10, each child will be invested 120000 dollars(10 times 12000 dollars) and paid dividends. At the age of 18, more than 200000 dollars will be invested to generate dividends, which can easily pay for debt free college education and all the benefits it brings. A person’s victory!

At this time of political division and conflict, Capital Homesteading pays all Americans to work together at the same time, in the same direction and with the same goal! It transforms pure political speech(for example, we are all together) into realistic, result driven action!

It fights against wealth/greed concentrated in the system!

As time goes on, all American citizens will accumulate more shares, more surplus income, and benefit from their investment income. Only today’s rich people can make such a profit. Therefore, the demand for federally supported social safety net projects(i.e. social security, medical insurance, medical wages, food vouchers) will gradually disappear. More people will pay taxes. This in turn reduces the burden on those of us who are still paying taxes. With the gradual democratization of the American free market economy, it has systematically offset concentrated wealth/greed!

But this free market, non socialist solution has been completely ignored!!

If the Obama administration(or any predecessor) implemented capital homestead, today’s COVOD19/unemployment crisis is not a crisis. People like us can not only bear the cost of staying at home, but also have enough income to weather the moderate storm. But when the next election is less than 80 days old, Trump, Biden, Harris, Sanders, Warren, Booker, Cloverchard, Mayor Pitt and others completely ignore the capital residence. Why?

Detailed drawing of capital homestead

I admit that this review is a general portrait, and more details are urgently needed. Therefore, please visit CESJ for a full and detailed description of how to implement this strategy. ORG, look at what Dr. Norman Kurland called the Capital Housing Law. This is an original idea, which is out of date. This terrible COVID-19 crisis is a very good thing, because it can actually achieve results.

Appendix

Comparison between UBI and the capital homestead

The alimony check is actually a short-term form of national basic income(UBI). This idea has been supported by Andrew Yang, the former presidential candidate and serial founder, Mark Zuckerberg of Facebook, Elon Musk of Tesla, etc. The proposed annual issuance amount($1200 per year) is the same as the capital homestead, but this is the end of the similarity. Check for discrepancies.

1. The insurance capital credit issued by capital homesteaging can only be repaid through the pre tax future income to purchase wealth creating capital assets, so there will be no government debt and joint debt! UBI and stimulus checks create government debt, and people like us will eventually pay back with higher taxes, rather than being good at evading 1% of taxes.

2. Capital Homesteading has systematically created universal capital property rights opportunities and access to wealth capital assets. No UBI.

3. Capital Homesteading systematically provides funds for predictable and sustainable economic growth. No UBI.

4. Capital homestead enables individual citizens to obtain economic power and liberation systematically through capital ownership. No UBI.

5. The homestead system in the capital makes people economically independent from the government. No UBI.

6. The continuous expansion of citizens’ ownership of income generating capital in capital homestead has generated large-scale purchasing power for the system real estate. No UBI.

7. Capital Homesteading systematically created new owners of high-tech and green growth assets, but UBI did not.

8. Capital Homesteading paid for government expenses by systematically creating an increasing tax base, eliminated deficit spending, and finally repaid the current huge government debt without UBI.

9. The UBI/stimulation test is simple and direct, which is their strength.

10. Capital Homesteading needs a period of time(usually several years) to accumulate income, which is why UBI must be started immediately and gradually eliminated as time goes by to support the capital homestead.