An Exercise in Upside Down Thinking

 Let's Tax Savings

(Savings is defined as money that does not flow and assets that do not aid in the flow of money.. Savings just sits there.)

---- Everyone should know by now that ALL TAXES ARE PAID BY THE PURCHASER -----
(For those of you that don't know this, I'll explain.. All items sold has a "cost of doing business" added to the purchase price. The cost of doing business includes corporate taxes.)

Money in a mattress does no one any good except for the "owner" who sleeps on it feeling secure.

Our current tax system taxes the flow of money.  Taxing the flow of money  slows down the economy.

Let's think about doing something completely different... Let's tax all money and assets that do not promote the FLOW of money.

I'm not suggesting going whole hog at this... there has to be some savings, but how much?
I suggest a percentage threshold, below which savings and idle assets are not taxed; above which is taxed.

Let's assume there is an optimum balance between the amount of money in "savings" and the amount of money that is flowing (being spent).  If the right ratio of savings versus spending was found, a dollar would remain a dollar: no inflation, no deflation. Everything owned, both savings and money promoting assets could be passed on to heirs without any devastating results.

The optimum process would grow both sides of the equation.  Savings would grow as the economy grows.

Of course, this plan has all the trappings of complicating itself like our current tax code. But the change would promote the economy instead of  hinder it.

I like Heramn Cain's Dynamic Analysis

Herman Cain Cannot Lie

I like Herman Cain's Process

I've worked in a lab and spent many hours trying to analyze, mathematically model, and optimize formulas for consumer products.  During my years of learning, I discovered dynamic analysis and learned that it was very effective in finding the best solution to "multivariate" problems.

When I heard Herman Cain mention that he is a mathematician and uses dynamic analysis, I knew

he was going to be a winner.  Math cannot lie.  Herman Cain knows this.

Enjoy this video I put together. It explains how dynamic analysis can fix our country.

AN IDEA ON HOW ALL OF US CAN GET RICH

 Background

Last night, I went to one of Herman Cain's rallies in TN. Before going, I went to his website, http://www.hermancain.com/999plan to see if there were any changes since last time.  YUP, there was.

I can now see his strategy (and it makes all the sense in the world) and it is brilliant.

In his speech last night, and he revealed another portion of his 9-9-9 plan and the logic behind it.

There is NO WAY the far leftists and "rightists" can stop his momentum.... he will always be one step ahead of them.

For security purposes, I cannot tell you what I perceived and I hope and pray he will be able to continue his campaign, because everyone, Radical Left, Radical Right, and everyone in between will learn from him that can promote their own goals.  He's leaking these concepts, one by one, and they are moving to a crescendo that will be well worth the wait for everyone.   I know his intentions are honorable.

Why am I so interested in Dr. Cain?  Because he leaked a phrase that no one picked up on.  His phrase told me that he is definitely on the right path.  His leaked phrase is undeniable, accurate, and cannot be spun, twisted, or misinterpreted.

Like Herman's life, I was brought up to know that if I wanted something, I had to work for it.  I had a job since 4th grade and did those jobs that nobody wanted.  I worked on a produce farm with migrant workers from age 12 - 18.  To augment my $0.35 to $1.10/hour wage during my farm "career", I also had a paper route at the same time.  I'll never forget the two weeks I worked to fill in for a  friend of mine in one of the worst jobs I could imagine: washing dishes in a bakery.  All the big greasy pots and pans, stacked two-three feet high all over the place had to be washed thoroughly with hot water and detergent and disinfected with a 180F water rinse.  (It was brutal, and after the four hot sweaty hours it took to do the job, I went home (on a bus) stinking like lard totally worn out.)  To me, this was "normal", i.e. no complaints because that was the way it was.

 In kindergarten, my mother walked me the mile to get there (winter, too).   In elementary school to 4th grade, I walked the mile to school.  After 4th grade, we moved to a newer home in a newer neighborhood which was about 8 miles away from elementary school, so we either rode our bikes, or took the city bus to get there. I walked 5 miles (one way) to  high school and back no matter what the weather was.  (Like -17F below zero with high winds.)

I didn't even think of complaining, because that was the way it was.

(Don't worry, my idea is coming, the above background is needed to understand it.)

Protests are everywhere right now.  On the screen I see a lot of people complaining about Wall Street, the "corrupt" Banks, people who are paid by communists, unions, and other special interest groups to try to get something from whomever they are bashing.

This behavior makes me cry.  Why? Because NO ONE TOLD THEM ABOUT THE WAY THINGS TRULY ARE AND HOW THEY WORK.  Not knowing the true FACTS on how our world runs causes stress and emotional outbursts.  NO ONE LIKES INSECURITY.  Lack of knowledge causes insecurity, worry, and illogical outbursts.

Know this.  NO ONE OWE'S YOU ANYTHING, not even your parents.  Life happens, some good, some bad and that's reality.  We can fix our lives in many ways, some honorable, some not. BUT WE CAN FIX IT - IF WE DECIDE IT IS UP TO US as individuals TO FIX OUR OWN LIVES.

(Getting closer to my idea.)

One thing about MONEY.  Money is a piece of paper that represents the value what an individual has done for someone or for society. The value of a dollar is the amount of effort (or possession) a person agreed to do (exchange) that is worth that unit of value.  (If someone gave you that dollar, that someone had to provide a dollar's amount of value to society.) 

A nation's wealth is not money, it is the result of effort. For instance, a nation's wealth includes roads, highways, homes, mansions, yachts, junkers, inventory, land, resources, and intellectual property.  A nation's wealth is the total of all the values it possesses.

So, now, let's get to our unemployed youth.  The beginning of the solution to our economic troubles.

(Remember, ECONOMY = FLOW of Values (money),  Pieces of paper stuffed in a mattress does NOT flow so it provides no benefit to the economy until it is put into motion (spent). (But, those pieces of paper are savings, a good thing for spending later when we can no longer provide value.)

We see youth protesting across this nation without a clue as to why they are protesting. Some will say they got cheated in their education and now flip burgers with a PHD in basket weaving with a BIG student loan debt hanging over their heads for the rest of their lives. (Like "green" degrees?)

Here's my IDEA....
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Let's give our youth the opportunity to build their own future. This will be especially doable in the ghetto where there a tons of abandoned buildings.

Let's set it up so our youth could own their own home/mansion if they built it themselves with free raw materials and a piece of land given to them. All they would have to do is decide what they'd like to live in and go for it.

Every land fill, every abandoned building has all the resources needed to build a mansion. If there are any electronics in them, they could even have gold plated faucets.  All they would need to do is dream their dream and be given the permission to do it. Each facet of building the mansion would be thought out if greed is implicated. (Junk Yards are also a great place for re-cycling resources. Nuts, bolts, electronic components anybody?)

Our youth are very creative and motivated to have something for their very own, to be unique, to stand out in the crowd, to have and be able to provide value.  Any project that fails will provide the experience to do better the next time around.
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You can take the idea above literally, or figuratively.  The idea is to allow our youth (and anyone else) to provide value for themselves (as well as others.).

For instance, (and some of these are lame... I know.)

• Teams of unwed mothers could provide babysitting services for each other while the rest of the team works to provide value for everyone in the team. Home decorating, recycling used clothing into drapes, shades, new clothing to sell,  dying old clothes to make them look new, making quilts to help keep the poorer of us to stay warm.  Ever think of using old clothes (rags) to make tie-dyed wallpaper, pillows, or pet beds? (Goodwill has tons of recycling ideas in their stores.)
• Education Loan Strapped Students can cut a deal with the government that would allow them to provide value to society such as... re-cycling old buildings, cleaning/painting government property, working in national parks, fighting wildfires, renovating national monuments, cleaning up the environment.
• Home care for the elderly.  Help our elderly and handicapped citizens to stay in their homes.  This would save the government (us) money by reducing the cost of housing our older folks in government sponsored facilities.

Even the gangs in Los Angeles  understand commitments and pacts.  Stories of their wounded warriors being cared for by their gang mates pop up in the news.  This idea can be expanded to teams of "value" producers. Let's say a team gets together to renovate an abandoned home with the understanding that once the renovation is done, they can either sell it or live in it.

Providing ownership changes the way items of value (such as homes and buildings.....) are treated.

I expect a lot of criticism... but today is not one of my "brightest light bulb" days.

Let these ideas fester for a while, I'm sure someone will come up with a real winner using this thought process.

I have no claim on intelligence,.  I realize this, and I'm too old to think otherwise.  (Second childhood is GREAT!)

Enjoy, laugh, consider.

Herman Cain's 9-9-9

I like Herman Cain with his 9-9-9 idea.  BUT.......
I do not understand why he has to have three tax sources.  It makes no sense to me.

Why? Because any cost of doing business is passed onto the buyer. (i.e. the price a buyer has to pay includes the cost of doing business.)  The buyer also pays the profit that those higher in the food chain get. (Whatever the market will bear.)

So, in reality, corporations don't pay taxes, merchants don't pay taxes, no one pays taxes except those who purchase things.

So, I want to one-up Cain's proposal.  Instead of 9-9-9, why don't we just accept the fact that it is only the buyer who pays all the money needed to run the government.

If Cain's calculation adds up to 27%, getting rid of two of the 9's would result in less than 27%... MORE SAVINGS.

Now, if we could get rid of the IRS and all the tax laws except a "Sales Tax", we all would save a lot of money and get rid of all the parasites that make us do non-productive work. (Like spend time and money trying to abide by tax law.)

Sorry tax accountants, tax lawyers, most of the IRS employees. You've got to go. Wouldn't it feel better to do productive work instead of non-productive work (parasite) work? It might be more fun catching cheaters: lobbyists and cronies that try to cheat others from being able to compete fairly.

Take away the temptation of trying to get favors from our government, and corruption would go away. Corruption would be less profitable than doing things honestly and ethically.

"Income tax would no longer be called "income tax" because the only function our federal government is supposed to do is protect our borders and our national security so that us citizens can do our thing. So, the "sales tax" imposed by the government would be called "Security Tax."

Now, all other functions like building roads, providing public services like public transportation, garbage collection, treating water... etc. would be handled by the States.  So the states would also impose a sales tax to pay for their necessary functional responsibilities.

Just think how cheap things would be after all the parasitic costs are eliminated!  More money in our pockets, more time to do what we want to do.  (I, personally, spend too much time trying to figure out taxes.)

If we just admitted the fact that buyers pay all taxes and provide the profits to the manufacturers, our life would be much simpler, less costly, and happier.