Real Tax Reform

Everybody is crying now. No one can seem to figure out a way to fund the government that does not eventually destroy the nation. We are close to that time right now and it worries me greatly. I don't want to see the innocent majority subjected to any further pain. Sadly, pain would be unnecessary if only I could find the right sequence of words to get the innocent majority to see a better way to do things.

Perhaps with a new Congress if I could find the right words to show how we could do things better, we could get real reforms that could turn America around on a dime. I'll give it another try to explain how we can make things better for everyone.

First, lets admit the problem that every person on the planet will complain about and wish to rectify - that being not having enough wealth. Is there a person who could not use more wealth, even to give away to charity if you feel you have too much now already?

So the problem is we all could use more wealth but what is wealth? Defined broadly, wealth is absolutely anything that is used in a market which humans either need or want to live a modern, civilized life. Therefore, neither a potato nor a chunk of gold is wealth until a person digs either one up then brings it into the marketplace.

Now that we understand wealth is created by human labor mixed with the land the next problem is the original one. How to fund society and government in such a way that the society is not destroyed by the funding process itself. Most of that funding now is extracted as it has always been from the human labor part of the wealth creation process. The land has for the most part been left untaxed. Oh sure we pay Real Estate tax but if you have a closer look almost all of the tax is on the building and not the land location value. A building is made with human labor so again this is a tax on labor.

Taxing labor, sales, imports, exports, buildings, personal property ownership, etc. is really stupid not only because taxing these vital human needs reduces their availability. These destructive taxes cause unintended economic distortions. How so?

Take income taxes for example. Most people are financially tied to the area where they live. Raise taxes on income and they are forced to pay it because they can't afford to move. So income taxes began in 1913 as a "temporary" 2% tax only levied on the rich. Now that the rate is 30% to 50% or so the workers demand and receive more salary because they couldn't afford to live otherwise. Unfortunately, the wealthy multinationals could afford to move jobs to lower taxed and regulated countries. The end result has been millions of American jobs income-taxed overseas. The unintended consequence of the income tax has been the loss of the once great American manufacturing miracle.

It didn't have to be this way and it does have to stay that way. With a new Congress, perhaps one without the traitorous maggot Steny Hoyer, real tax and monetary reform could occur. Here is the steps that should be taken on the first day of the new Congress:

1. Federal Reserve Debt Holiday - All debt owed to the Federal Reserve Board by individual Americans, groups, corporations and governments is declared null and void. All assets controlled by the Federal Reserve Board will be seized by the Treasury which shall again begin issuing gold and silver money. A complete audit of the Federal Reserve Board shall be conducted by the Congress and any and all criminal activity dealt with accordingly. Only the reserve portion of any and all debt shall need to be repaid while the larger marginal portion of any and all debt shall be forgiven. This will cause loan payments and principle to drop by about 90%. This huge surge of available capital is exactly the tonic for our economy. Many Americans cannot afford $2,000 or $3,000 per month for a mortgage but most could pay $200 or $300 which is how much payments would drop if the Federal Reserve Board were closed.

2. Simultaneously, eliminate the income tax and switch to the land location value tax. Overnight, American labor would become competitive again because the cost to pay them would drop dramatically with no income tax or paperwork costs or employer costs. Not only that, with the burden placed on land value and not on buildings, those underused, boarded up, hoarded parcels of urban land now being held by rich speculators for future profit would have to be brought into productive use. It will simply be too expensive to pay that land location tax then just do nothing with these city properties. So the owners would have to put the land into productive use or sell it to someone who would do so. Virtually overnight, literally millions of properties would need buildings constructed or at the very least renovated or updated or expanded. Right now millions of tradesmen sit idle with no jobs thanks to the income tax and they are getting angrier. This one simple tax reform would remove the biggest flaw in our economy and free up the hands of labor to create wealth. That wealth will come in the form of an urban revitalization from the construction boom. There would not be enough workers to fill all of the jobs and we might have to bring in talented foreign labor to bridge the gap or face shortages of laborers. A shortage of workers has always driven up wages and benefits as employers compete against one another for employees.

There are other benefits to this reform. The land location fee is based on the value of the land as assessed by the demand to purchase it. Land and vertical space in the urban city areas is the most valuable land and would be taxed the most. The farther out from the city centers the lower the land location value and therefore the lower the tax. The farms are far enough out that they pay zero land tax. So food production costs would drop dramatically while farmer profits would soar. The push to build into the wilderness would no longer be economical with the urban properties being taxed into productive use. That's great for the environment. The tax would be collected by the local governments and a portion would be sent to the state governments and a portion to the federal government. The tax cannot be evaded and the collection costs would drop exponentially compared to our current IRS bean counter model. Yes the IRS could be eliminated overnight forcing the agents and inspectors to get real jobs of which there would be plenty. Corporation around the world would want in on the action too. With no tax on income, capital gains, sales, etc., even though they would be paying lots for their land fee, they would keep their profits. More jobs, jobs, jobs.

Best of all the average individual and company would see their taxes stay the same or drop a bit. The only people who would see an increase are the Real Estate speculators hoarding urban land as well as slum lords. So cry for them if you like but with so many new jobs, crime would plummet because everybody would be too busy making money.

3. The final reform is to acknowledge that in the 21st Century information age, America cannot afford a military empire. We are in a quagmire in Afghanistan and the longer this goes on the worse things will be. The trillion dollars spent overseas militarily is alienating the natives against us and would be money better spent right here in America. It does not make a difference if you think it is necessary to have a trillion dollar overseas empire for our security. There is zero security if we are all paupers living in the streets in order to build nations elsewhere.

Despite all of the babble from government and media about recovery, there are more people coming into the workforce everyday than there are jobs being created. The problem is so big that soon the legal system will be incapable to process all of the foreclosures and court cases. The system and society will collapse into chaos. To maintain control the current oligarchs, many of which are foreigners, are desperately trying to start a really big war. A world war will eliminate millions of pesky humans demanding government cheese. The war can be blamed for the coming austere life Americans will face. And finally, war will allow the American government to disappear people like me who have ideas that don't include the oligarchy owning our time, body and personal wealth.

The current rulers govern in hatred and deceit. The fact is they are so corrupt that they know if they ever lose the reigns of power they are in big trouble! So they will cling to power even if it means destroying us in the process. Don't be surprised if we have another 9/11 type false flag attack in the coming weeks. It's how these rats do things. If my words make sense by all means spread the word. You could read "Progress and Poverty" by Henry George as well. He is the genius behind this tax reform.