America is suffering from a triple whammy of problems. A sluggish economy that is likely to go on forever, at least 11 milllion illegal immigrants, and a National Debt greater than our annual GDP and certainly growing much faster.
Historically I used to propose (tongue in cheek) we simply fill up a fleet of 747’s with hundred dollar bills and in a CIA type operation, land in china with the announcement we are here to pay our debt! There would have been some inflation sure, but we would get to start over. Well to say we passed the point of no return on that brilliant idea would be an understatement!
More recently it was suggested that OBAMA simply mint a few trillion dollar platinum coins directly to avoid interest to the Federal Reserve. If you aren’t aware we owe the Federal Reserve at least 3 trillion for which we pay interest as well. I liked this one too.
There are a growing number of people clamoring for the elimination of the FED. Ron Paul being the most notable.
Any idea must pass a progressive test meaning it treats the poor as fair or fairer than the rich.
So here is what I propose:
The U.S. government immediately grant to every man woman and child a $10,000 loan, interest free and no payments for life.
Immediately institute a 17% VAT or consumption tax just like EUROPE! With the interest free loan the poor can easily consume and pay this.
At death $30,000 is deducted from your estate if it is available.otherwise the balance of the loan is forgiven. If you elect not to take the loan your estate will not be charged.In addition, every new immigrant who completes NORMAL immigration procedures including speaking english, ( no amnesty or acceleration) for the next 7 years will also be eligible for these loans.
Sure Total cost is up to 3.2$Trillion, but that is just 20% of the current national debt and relatively immaterial to our TOTAL liabilities of 80 Trillion.
Obviously this would be a huge economic stimulus. People could pretty much choose to buy whatever they wanted. 17% VAT on a 15 trillion dollar economy would add at least $2.0 Trillion in tax receipts so the government would immediately start having large budget surpluses to pay down the debt.
Yeah there might be some inflation, and the rich and old would complain loudly over consumption and death taxes. But it would fund unbelievable entrepreneurial ideas! Investments distributed across America. Maybe restore Community Banking to the benefit of depositors!
Using Government accounting methods we could recognize a $9. trillion dollar reduction to our current debt as the death taxes that were owed to us.
WE could put an end to this fiscal nightmare and get on with being creative, and building cool stuff.
Let’s go FORWARD!