New Worth Tax why it is fair to all

New Worth Tax why it is fair to all.
Funding Government is necessary for a society. Historically Protection and Justice are the roles of Government. Funding those services has become the debate.

Our economy is the exchange of goods and services. Unlike a barter system of items or services for the item or services in direct exchange: money provides a medium for exchange. Money moving through the economy promotes the growth of an economy.

A term to be familiar with: Velocity of Money, defined as;

“Simply defined, the velocity of money is a measure of the economic activity of a nation. It looks at how many times a unit of currency ($1 in the case of the United States) flows through the economy and is used by the various members of a society.”

Wealth is the accumulation of Money. After it has passed through the economy. Net Worth is the result of adding up all assets owned and subtracting all tangible liabilities.

Income for tax purposes “the amount exchanged for goods and services net of all related costs”. This is not wealth. True Income, “what is left after all personal expenses are deducted.” It is also accumulation. This excess once invested in assets becomes wealth.

When income is the basis of taxation the focus shifts. Taxing income penalizes the strivers in society. Strivers drive expansion of knowledge and commerce. Consider, should government’s share of your efforts increase as your efforts are more successful.

Many States use a consumption tax model of sales tax. Effective on the local level to fund the government, it affects the community in an uneven way. Proportionate taxation affects the lower classes more than the upper-class. A greater percentage of the disposable income of lower classes is taken by the government.

Like the sales tax other taxing models; Vat Tax, Flat Tax or National Sales Tax take from the economy. Taxes that remove money from the economy to fund the government interrupt the velocity of money.
Interrupting the velocity of money for the local taxes has a lesser effect on the local economy. These taxes are usually paid to local government employees which reintroduce the money into the local economy.

These taxes used separately or in conjunction with an Income tax on a National Level removes from one local economy and redistributes it to another. This redistribution interferes with the growth and vitality of an economy.

Gaining the greatest benefits from the velocity of money requires it to remain working in the local economy.

The Net Worth Tax only removes money for the benefit of the government after it has accumulated as wealth. Once the money is converted to wealth it has exhausted its velocity in the economy.

Net Worth Tax is different from Income Tax. Net Worth Tax is on all assets regardless of the ownership. Income earned by a nonprofit is not subject to taxation, and the assets are many times not subject to local taxes.

By taxing all assets, which are an accumulation of wealth, net of all liabilities, strivers are not penalized for achieving.

Achievers create new business and services expanding the economy. Some Achievers will create more personal wealth; others will consume the fruits of their labors.

Beyond the funding of government, the Net Worth Tax best represents the fairness of a tax system. Knowing that fair is a relative comment. Those that have received the most economic benefits of our society will be supporting the Government.

Candidly the wealth of the society is created by the society through the efforts of the individual.

Social Justice, Income Tax, and New Worth Tax

Social Justice, Income Tax, and New Worth Tax

Social Justice; a phrase often misunderstood.

Creating a level playing field in a free economy is difficult. Justice to some is an idea to push an agenda. Justice should not just be an idea it is a goal. Defining that goal in simple, clear, understandable terms is the hard part.

Funding government needs a transfer of wealth from the producers to administrators and protectors. In Middle Ages in Europe, the King would assess a tax based on assets to the Nobles. The Nobles would, in turn, apply a tax on the freemen in their domains. Each of these taxes for Administration and Protection.

Taxing of assets supports services for the community. The property taxes for schools is a prime example.

When Income Tax was introduced, it was a tax on the wealthy. Needs of the Federal Government expanded with; population and services provided.

Wealthy people did not get wealthy by accident (except modern day lottery winners). Taxation rules once outlined; are dissected by lawyers and accountants. Immediately an effort to change the rules to protect wealth was underway. Lobbyist, Attorneys, and Accountants are put to work protecting the Wealth.

What about Justice? Shouldn’t those that benefit most from society pay for society? The answer is that is not Justice it is a rationalization. If those that benefit are to pay the taxes then all should contribute equally, don’t all share the same Administration and Protections?

Taxation is about funding Administration and Protection, not equality. Equality is a relative statement used to mislead. Everyone does not equally enjoy the benefits of society.

Equality of opportunity to enjoy the benefits of society is Justice. Society does have a responsibility to provide opportunity. Responsibility and opportunity are vague words.

How to adjust the Justice in society? Children are told not to count their chickens. And wait until the game is completed to count our money. The same is true in taxation.

Income is not wealth. Income is the exchange of goods and services in an economy. Wealth is the accumulation of Income. Wealth is income converted to an asset.

Taxing New Worth is the answer to leveling the playing field. Wealthy can use advisors to change the taxability of income. Change used to legally avoid Income Taxation.

If an asset increases in value there is an increase in wealth, but no taxable income. Reducing the cash flow from assets will result in no taxes; until sold. Reclassify this income, taxed at a lower rate.

Taxing Net Worth, there is no avoiding contributing to Society.

In the United States, there are roughly eighty trillion dollars of net worth, concentrated in a small part of the population. Government protects rights and assets.

A three-percent tax on Net Worth would fund the entire Federal Government.

The income not taxed; strivers would have equal opportunity to gain wealth.

The tax on Net Worth put a target on the Wealthy, not possible with the Income Tax. Our Social Contract needs us to hold Government in check. A tax on Wealth can easily turn into a confiscation of wealth.

Limits on spending and taxation must go with the Net Worth Tax. Our Social Contract demands a limited Government. The only way to limit government is to control the funding available to provide for Administration and Protection.

Gun Violence and the Media’s Value of A Human Life

Gun Violence and the Media’s Value of A Human Life

Media and politicians are pushing an agenda about Gun Violence.
What is the value of human life?
Is it measured by; political party, gender, sexual orientation, race, religion or creed.
Media reports on dramatic events of mass shootings have been used as a call to action for Gun Control. A call that is dishonest and not sincere. The call is to remove the protections of the 2nd amendment.
Focusing on the gun as the issue while avoiding the real problems politicians are inciting the Mob to remove Constitutional protections. Emotions are pushed by half-truths or failure to reveal or acknowledge relevant information.
The Bill of Rights is to protect the people from the tyranny of Government. When one of Our Rights can be removed or neutered then all can be removed or neutered.
Human Nature is the problem. Human Nature is about control. How many times have we seen the bad programs of government that do not work only to be expanded? The expansion based on the concept that it was not large enough to do the job.
Recent events at the Pulse nightclub in Orlando expose the value of life.
What happened, the Liberal Media and Politicians attacked the Constitution. This while the shooter was vetted by the Democrat Administration’s Department of Homeland Security. Approved to protect government buildings. Facts that are absent in the Liberal Media reports.
The amount of Media Coverage per death is the issue. Forty-nine were slaughtered on Sunday morning. A tragedy to be sure. Not reported is the Black on Black homicides in the inner cities of America.
Democrats made a show in Congress to attack the 2nd amendment.
But it is these Democrats that have not served the needs of the Inner Cities they represent. Chicago, the President’s home and who’s former Chief of Staff is mayor, had forty-two homicides on the weekend of the Orlando shooting. And it is getting worse with the Ferguson effect.
The current rate of homicide committed by blacks on blacks is 5,500 through the first six months of 2016. That is about thirty a day.
The forty-nine dead is news, the death of sixty on the same weekend of black on black is not.
Why is the black on black death so important? In the inner-city, governed by Democrats, has such violence that life is impacted. Without safety, business will not invest. Without safety, the schools will remain dismal.
If all lives are equal shouldn’t we be paying attention to the deaths in this community? This is not a political issue but is a Moral issue. Politicians who use these communities to advance liberal agendas while doing nothing to better the lives of the residents are Immoral.
Programs to help these areas have become programs to keep the residence trapped. America needs this section of the community to succeed. These are workers, and minds our Country needs to move forward.
Unrest only serves the dividers. Black Lives Matters’ goal is to reduce the police effectiveness in the community. Making the lives of the community worse. An unacceptable situation where the youth in the community can be converted to views detrimental to the best interests of the community.

Life or inconvenience

Life or inconvenience
What is it you believe in?
Have you ever just stopped your life to answer this question?
It is a simple question. What do you believe in?
Life is so fast that we tend to move from one event, joy or crises reacting to life.
Reacting to life as though it is out of control. Plans, upended by events never seem to come into focus.
Beliefs are the defense to chaos. From our early years, there is an assault on individual beliefs. Beliefs that are situational can be manipulated. Replacing Rational argument with emotional logic.
In the process, the individual is manipulated. Thinking a decision are based on logic when it was based on emotions.
Fairness is a term used in the emotional manipulations of issues. As though there is a state of Fairness. Is it fair for someone to be attractive while others are not? Or is it fair for people to be rich while others are poor?
Fairness is a term used to manipulate your decisions. But if you have examined and established your beliefs this will not affect your decision. The standard you have set for you and your beliefs will provide the foundation for your response.
Beliefs and Standards are required when discussing personal behavior and responsibility. What do you expect from you and what will you accept from others?
Used for ages, the Ten Commandments have been the basic societal belief of what is acceptable. If not the Commandments themselves, the ideas underlying them. These are Standards, which most will accept as a minimum Standard for being part of society.
Simply put one does not lie, steal, murder or make false statements about others. This is done while respecting elders and God. Simple but basic. It is up to the individual to uphold these if society is to work.
How do you view Personal Responsibility? Is it situational or is fundamental to whom you are as an individual?
To explore this examine your views on Right-to-Life or Right to Chose. Yes, it is a tough topic but one that is worth the time to ferret out an answer. When is a life a life? That is a legal question; it appears that life is only a life when it is legislated as one.
This does not fit the universal law of God, but that is what we have created. A woman who voluntarily ends a pregnancy is not guilty of a crime, but if someone else ends the life of the unborn that is murder. But aren’t they the same event?
When a woman decides to end the pregnancy is it because the new life is an inconvenience? No one truly knows but the woman, but could it have been because of lack of Responsibility.
What is lost in this is the manipulation of the Emotional Logic. There is a section of society that believes that no Standards are in their best interest. By removing the individuals basic beliefs, they are achieving the goal.
Take a moment and understand that Right to Chose has led to genocide on our Black Community.
In this time of unease examine the motives of those who want to create division. Their motives are only served when they remove your beliefs.
To resist, manipulation take an afternoon to consider what your beliefs are.

Union Teachers Are Overpaid

Union Teachers Are Overpaid

The role of the Teacher in society is a noble calling.

Emotional propaganda about the level of the compensation paid to these hardworking people pushes an agenda of Unionist.
But what is new about the Unionist trying to enrich the Union and its members. What is wrong with the Union’s approach is its continuous support for unqualified or worse members of the Union.
A quick study of history will expose the Unions as self-serving, with a disregard for the future of the business, industry or government.
Cities are burdened with pensions that were awarded because of political payoff to Union members for supporting candidates for a public office. The selfish approach to politics in as close to corruption without an indictment.
But the Teachers are the worst. Teachers are dumbing down the future of those that they have a fiduciary responsibility to. It is this breach of trust that makes the Unions villains.
The automobile Unions of the seventies asked for more pay while producing a product that was inferior to others in the marketplace. But the consumer had a choice of purchasing product supplied by other producers, which they did.
Railroads were burdened with keeping outdated positions on train crews to protect Union jobs. But what happened to the Railroads and those paying for the hauling fees. The Railroads were forced to choose between losing money or postponing repairs. The consumer paid for the Union jobs.
Our economy is based on an educated worker who can provide their services in the marketplace to create the goods and services of our economy. Goods and Services which our economy competes within the world economy.
Teachers are not delivering the education society is paying for to our future. Their cry for more pay for a subpar effort is not acceptable. But the Unions now control the politics of education and have dumbed down generations of children.
It is time teachers take responsibility for the quality of education provided. It is the Teachers who allow the Union to continue to protect bad teachers. This protection is robbing our Country of prosperity promised to each new generation.
Teachers know the bad teachers. They are accountable for the retention of the bad teachers. It is these bad teachers and bad administrator who are diverting education dollars from the goals of education.
Unions are fighting the Charter School and Voucher programs. Not because they provide a lesser product, but because they will expose the corruption of the Union system. And its protection of incompetent teachers.
Many different management theories have to be shelved because of Unions. Schools should be exploring ways to provide our future a better education. Being responsible for the child instead of blame-shifting to parents and administrators.
One of the failures of education is teaching personal responsibility. Personal responsibility is a foundational ingredient for a democratic republic.
What about the Idea of Cooperative Charter Schools? Where the teachers become the owners. They would be paid the same per child fee from the Government but would be in control of whom the teachers are.
A teacher could be removed by a no-confidence vote of their peers. Since the Parent would have veto power, by removing the child, and the teachers could remove any child who is not willing to behave and learn, education would be the focus.
A model to be compared the Nanny State Union Dominated Public Schools.
The Public Schools would have to adapt or face losing all of their students

Federal Reserve is Corporate Welfare for Big Banks

Federal Reserve is Corporate Welfare for Big Banks

The Federal Reserve and the Big Banks are Internationalists. The goal is to serve the shareholders of the Federal Reserve and the Big Banks.
The Federal Reserve is a Banking Franchise granted by the Federal Government owned by Banks. This may surprise you. Readers can look on YouTube for a good explanation of the banking system.
This Franchise was granted by a Crooked Vote in 1913. Documentation of the vote that can be researched easily.
During the Depression, it was reined in by the Glass-Segal Act. Simply the act said that commercial (retail) banks could not be Investment Banks. This removed speculation in the market by the retail bankers. It was speculation that created the 1929 crash.
The Internationalist Big Banks lobbied the Congress and White House during the Clinton Administration to repeal the Glass-Segal Act. The argument the Banks made was that it would allow the Big Banks to compete better in the International Markets.
The 2008 meltdown and bailout of Banks is directly related to repeal.
But what about the Congress? Republicans and Democrats have become Internationalists. They are pushing trade practices that are not in the best interest of America.
In the post Saving Social Security, the idea of shifting the Franchise to the Social Security System would serve seniors and the welfare of the workingmen and women.
By restructuring the Federal Reserve to focus on local community banks, the loans necessary for growing the Small Business community would be available. This would change our banking system from a Trickle Down to a Direct Injection model for banking will cause the Middle Class to grow. When the Middle Class grows, it will bring up the poor and create more rich.
But can we trust the Democrats and or the Republican to change this? They are feeding at the Internationalist tit.
As demonstrated by the Tea Party Movement, drawn inside one of the Internationalist Political parties to make the change. Promises were made, but no action was taken on those promises.
Change results in excessive regulation on Small Business. The Corruption Tax of excessive regulation is the result of Elitist Washington mentality.
The Foreign policy strategy of the last two administrations has been for the Internationalist. Simply our Energy policy and Foreign policy are to reward the Internationalist.
To explain this, look at the price of oil. When oil drops, all the bad actors of the middle east are hit hard. They do not have the funds to support international Jihad.
The lower oil policies have saved money for the middle class in the United States but have allowed our peaceful allies to have a spurt of growth in their economy’s.
But what is more important we are not losing or youth in a war without end.
The National Debt is twenty trillion dollars, one-quarter of that from the cost of the war.
Internationalist profit is too expensive for the United States. The trade that is supported by growing the middle class in our allies is contrary to the interest of the Internationalist profit.
What is the answer? One-way is to research the Constitution Party. They are committed to a government as laid out by the Founding Fathers.
But research is the call to action. Having an alternative to the two Internationalist Political parties will put pressure on all to live up to the Ideals of our Founding Fathers.

Trump’s Wall, the Corruption Tax and Mexico

Immigration is far too important to a topic to be debated in sound bites.

Often what is lost in the noise are the facts. As the debate turns to facts, a shift in opinion will take place. The Hispanic Community is a traditionalist community, rooted in family and community.

The conversation will shift to opportunities and results. Let me go on record and upset many people; the Hispanic Community is the Future of the United States.

Looking at the demographics and migration trends over the next hundred years they will play the same part in the growth of our Republic as the Irish and the Italians.

A practical conversation is necessary to address serious issues.

The ruling or elite class in Mexico have not dealt with the Corruption Tax. A Corruption Tax is the cost to society because of accepted government corruption.

An example of the impact on a community of the Corruption Tax is the shift of the Oil Industry from New Orleans to Houston. When the Gulf oil industry was expanding the elected officials in New Orleans wanted payments to assist the oil companies. Not willing to be extorted the oil companies began moving to Houston.

It is this Corruption Tax that holds back the growth in the Mexican economy.

Implementing NAFTA impacted the growing trade in the Mexican economy. Now 51% of urban dwellers in Mexico are classified as middle class, while only 25% of the rural population have achieved that status.

NAFTA, a progressive trade agreement should be continued if it is adjusted to reflect Monetary Manipulation.

The North American continent is the leader in world trade, but Mexico has been abused by the Elites, who have profited by the illicit drug trade. Border Enforcement will slaughter this cash cow. Should Border Enforcement achieve the desired goal, the Population of Mexico and all the Americas will see an economic uptick.

Killing innocents and corrupting leaders has added to the horrific impact of the drug trade.

By building the border wall and changing immigration laws to allow for a legal flow between the US and Mexico and the United States.

Also, it will force the Government of Mexico to improve the lives of it citizens. By having a release valve of unlawful immigration the Government of Mexico has no immediate need to address the problems of the people.

But what we in the United States are missing is that currently 80% of those crossing the borders are not Mexican but are from Central America. The is a source of money to the corrupt officials who allow this transit.

The illicit Marijuana production is being hit hard by the Legalized and quasi-legalized production. The U.S. grown marijuana is superior to the illegal products being smuggled in. With no corruption tax to be paid to corrupt officials and a reduced cost of transportation, it also provides a greater profit.
Once the U.S. and Mexico are on the same development and monetary strategy, we will see our joined economies grow.

As this is explained in the debate the choice for the Hispanic Community will be clear. The divisive politics as usual or a path to prosperity by inclusiveness and growth.

Understanding Growth, Domestic Product and Economic Growth

Understanding Growth, Domestic Product and Economic Growth

We rely on our Government to provide reliable information on the state of our Country’s financial condition. The primary measures of the health of our economy; Gross Domestic Product, Unemployment, Inflation, Population Growth and Economic growth.

Here are some quick ways to understand these numbers.
• Gross Domestic Product (GDP) is the goods and services produced by our economy.
• Unemployment is the percentage of the population representing those individuals that are not employed and seeking employment.
• Inflation is the increased cost of goods and services from one year to the next, based on the Consumer Confidence Board Standard.
• Population Growth percentage is the Increase in the Country’s population annual rate.
• Economic growth is the percentage increase in GDP from one year to the next.

An example of Inflation: if one bought $10,000 of goods and services in 2015, those goods and services would cost $10,270 with a 2.7% inflation rate.

An example of Economic Growth measured by Gross Domestic Product: if the total goods and services produced for 2015 were $10,000, with a 2% Economic Growth rate the total GDP for 2016 would be $10,200.

From these examples, it is clear that if the Inflation rate is greater that the Economic Growth Rate our economy has contracted by 0.7% in 2015 dollars.

Historical Calculation of the Unemployment Rate would have the number nearer to 10% than the published number.

To understand this claim, look at the historical labor participation rates compared to the current participation rate. Current unemployment numbers are calculated based on an assumption; if you have not found a Job is a set period of time you are no longer taking part in the labor market and therefore not counted as unemployed.

As with the Unemployment rate the other rates have been changed to create a false reality.

For the Inflation rate, refer you to The Consumer Confidence Board real inflation rate. The Government Inflation rate takes out data that it considers not relevant, but was included historically. When the two rates are compared, it is something like comparing apples and lemons.

Some of the items removed; Energy and Housing Costs.

A better way to evaluate the economy would be by using a formula that better represents reality. The published economic growth number, a percentage, of the percentage increase in the GDP, less the inflation rate and the percentage of population increase.

The GDP is a percentage of growth measured in Dollars of the Goods and Services of the Economy, as an example 2% (projected 2016 rate).

The real inflation rate projected by the Conferences Board of 2.7%. The other factor is the population growth, which is projected a 0.7%. If these numbers are correct, to discover the true growth rate of the economy in real terms is to subtract the inflation adjustment and the increase in the population from the GDP growth percentage (economic growth).

Inflated currency and an increase in the number of participants resets the growth rate to expansion growth; it is not economic growth. Any number less that the addition of these to statistics is not economic growth.

Which in this example is 2% GDP less 2.7% real inflation rate, less the expanded number of participants in the economy of 0.7%. This shows the true economy activity is a negative growth rate of 1.4%.

Contact Information

Contact Information

The Website is being redesigned. The goal is to make your experience on the site more enjoyable.
There will be new features and programs.
My E-Book 33 Cents a Day, the cost of good government, revised 2016 will be on the site late June.
But until the new design is done I offer those interested in contacting us my email address; I only ask that it not be abused.
Over the last two weeks, the site has had over 10,000 comments. I appreciate all the comments and the request to work together to meet the goals of the website.
Thank you,
P. Henry Davis

Saving Social Security as easy as one, two, three

Saving Social Security as easy as one, two, three

The news is about how to cut Social Security Benefits. This backward way to solve a problem created by those who are responsible for the problem.

Step one; Remove Social Security from the control of Congress and the Executive Branch.

Step Two; Create a Nation Retirement Trust and organize it as a member of the Federal Reserve system.

Step Three; Use one-half of the 2.6 Trillion Dollars in Special Revenue Bonds as Collateral for borrowing from the Federal Reserve at the .0025% Discount Rate.

The earnings on the investments of the borrowed funds will make enough money to keep Social Security solvent indefinitely.

Social Security is a self-funded employer and employee system. There are no Federal Taxes involved in the Retirement System.

The issue is the Federal government borrowed (illegally) the Trust Fund money to support the general fund. The Government does not and will not have the money to pay back the trust, calling for benefit cuts to hide this fact from the American People. Deficit spending has been funded on the back of the seniors by Politicians of both parties who now want to reduce benefits.

Removing Social Security to a formal Trust sets up a firewall. This is the same philosophy used in Company pension plans to protect the assets.

Having the Trust as a Bank is a “having your cake and eating it too” solution. It would be funded by the 2.8 Trillion Dollars in US Treasury Bonds, the most secure investment in the world. Whatever interest the government now pays it would pay to the trust.

Understanding how the Federal Reserve works in general; the Federal Reserve loans money to Member Banks at the Fed Funds rate, which is now .25% or one-quarter of one percent. They then in turn loan it to business and individuals at a higher rate, about a 5.5% spread, to stimulate the economy. But some of the Wall Street Banks are using the money to buy Stocks and Bonds. They do this when they do not find borrowers who are qualified for their loans.

The spread for the banks is; Fed Fund rate subtracted from the rate charged the borrower. The banks are acting as a middleman. The cost of operations is roughly 3% on each loan, so the banks receive a 50 percent profit on each loan using Fed Funds. If they invest the money, they see a 100% profit since there is no meaningful amount of administrative costs related to the investment.

Let us bring all this into focus. If the Trust borrows only half of the value of the 2.8 Trillion Treasury Bonds at the Fed Funds rate of .25%. Then investing it at the rate of return equal to what the Public Employee Retirement Systems historical rate of 8%. The Trust would create 100 Billion Dollars a year.

The Economy and society went from the financial boom of post-World War I of the 1920’s to the devastating depression of the 1930’s. Preventing that drastic of a social swing from happening again, President Franklin Roosevelt championed Social Security.

Employees and employer contributed equal amounts to establish a Social Assurance system to provide for their families’ future.

President Roosevelt did not want any money from the public treasury involved in the Social Security system. In the long history of Social Security, no funds other than those provided by the employee and the employers have been used for benefits. FDR wanted it that way so the politicians would keep their hands-off.