We have a complex set of objectives here, including redistribution from the financial sector and the bureaucracy to the middle; de-financializing life for the majority middle and restoring their prosperity; changing how the money supply is increased to facilitate that restoration; and eliminating complexity in the tax system so that there are fewer frictions in the economy, and fewer incentives for the government to interfere in the economy. Given that rather shortly almost all taxes will go to fund redistributive benefits, in a perfect world we would have only income taxes or sales taxes and the entire economy would be frictionless otherwise. It hasn’t been possible to do so technologically. Now it is. Furthermore, the participation of the treasury and the insurer of last resort in strategic investments now captured by the financial sector at the expense of the people, will provide the government with incentive to produce returns to fund initiatives, not increase taxes, ending the threat that the endless job justification and self-promotion within the State or any organization- poses to the People.

1 – The entire tax system shall be vacated, and replaced with a flat and invariable tax of 18%, and a flat sales tax, variable and revised annually, with all prices to include that sales tax. This is the most frictionless tax system possible, but it is regressive to the bottom. However, we shall subsidize the bottom, at the time and point of purchase, using each citizen’s treasury account debit cards. This is the most frictionless method of using the simplicity of administration, simplicity of flat taxation with the simplicity of progressive redistribution that’s technologically available. For clarity this includes eliminating all other taxes, including those on payroll, redistributions, social security, dividends, capital gains, inheritances and transfers within the direct family line.

(Note: This technological work will be done by IBM and only IBM, exclusively within the USA, exclusively on IBM equipment and exclusively by natural-born US Citizens, and physical data services redundant and distributed in the central region of the country, regardless of cost. All strategic dependencies in the supply chain shall be repatriated to the USA regardless of cost. (Yes, we are fully aware of the consequences of demand and we fully intend those consequences.) All roles, rules, and regulations are vacated, and the simplest most effective, most reliable, technological solutions shall be implemented and all organizations shall adapt to the solution regardless of impact – not the other way around. There will be no more catastrophic technological failures, to repeat the IRS and Obamacare catastrophes. )

2 – Forgive all back taxes, all debt over back taxes. Restore juridical defense in tax defense, at the district level, close IRS court and terminate its employees and prohibit their government employment for conspiracy against the people. Terminate all IRS collection personnel. Limit IRS to investigatory work and submission of cases to the court. Fold IRS into Justice.

3 – Given that physical laborers in the Trades and only in the Trades (craftsmen) accumulate physical and cellular damage, are subject to greater risk and infirmary, and have unpredictable and shorter work lives, all income taxes on independent tradesmen including long haul drivers shall be eliminated up to two and a half times the median income. Our primary concern is altering the social and economic status of the craftsmen class, which physically transforms physical materials into finished goods, by insuring their health, stress and retirement, and relieving them from the extraordinary burden of record-keeping, reporting and compliance. Conversely, abusing this privilege shall demand extraordinarily punishment and restitution.

4 – In order to lighten the debilitating burden on small and medium businesses, for all those organizations owner-funded (no external investors or access to financial markets), all payroll and receivables shall be floated by the treasury, for 180 days. The costs of the current system “costing thousands so we don’t lose a dime” causes extraordinary distortions and stresses in businesses, particularly to employees, when the durability of sustainable networks of specialization and trade have decreased from intergenerational to generational, to decades, to mere economic cycles within the past century. If we combine floating payroll and receivables, and elimination of payroll taxes with sales taxes immediately deducted on each transaction, then the problem of cash management for organizations simplifies dramatically. (We won’t go into further detail here).

3. In the event of bank failure, Treasury protects the borrower, not the lender. And the FDIC limit will be raised to 100 times the median income. The Obama era seizure of banks that exceeded their capital limits, selling their assets to another bank, then guaranteeing the loans, so that the bank’s interest was in bankrupting the debtor will not be repeated. If banks go under, the borrower is protected, and lenders and investors beware.

Solutions:

• The Economy : Taxation