Introduction
Trickle-Up Instead of
Trickle-Down
This approach to
refunding the potential surpluses is not the traditional supply-side
(trickle-down) approach, but what we call "trickle-up" approach. This is the
approach that provides the greatest economic impact.
In the
Trickle-Down theory or Supply-Side theory, the approach was to give the money
to 10% of the wealthiest Americans and they would invest and spend the money
that would increase employment and help the 90% of Americans.
Some say it
worked, others said a full bucket was given to the 10% and only a few drops
"trickled-down" to the 90%. Almost all tax reductions proposed provide more
benefits to the 10% than the 90%.
This trickle-up
approach is to provide the potential surpluses to all residents of the
particular government equally so that the 90% of the residents, that are
usually excluded, will be the initial beneficiaries as well as the 10%. This
approach will work because it is the 90% of the residents that drive the local
economy, not the 10%.
Not An Equitable But Equal Refund
It must be
understood that the recommended method of distributing refunds is not intended
to be an equitable distribution because there is no universal acceptable
definition of the term "equitable". This method is an equal distribution which
will provide the greatest individual and economical benefit for all the people
and governments will receive more revenue than with the present system of
holding and investing surpluses.
The
Trickle-up Approach is Simple:
1.
Eligibility
All U.S.
citizens and legal aliens that have disclosed and proved that [government] is
or has been their permanent resident sometime during the last ten (10) years
are eligible to receive refunds.
All eligible
individuals over the age of 18 can file a claim.
All families
with children under the age of 18 can file a family claim. The number of
claimants will be the total number of individuals in the family.
2. Type of Refund Distribution
The refunds
will only be provided to individuals or families and not to businesses,
governments, organizations, groups or other entities. This provision is based
on the theory that these entities do not pay taxes, fees, licenses, etc. People
who buy the goods or services from businesses pay the taxes, because taxes are
a cost included in the price businesses charge for goods or services. The
greatest economic benefit for the taxpayers and community are achieved if
individuals receive the refunds.
3. Refund
Computations
The claimant
(or family) will complete an approved form stipulating the number of months the
claimant had or has resided as an eligible individual in the government's
taxing jurisdiction. This form should be submitted to a designated agency.
Example would be to use it as a credit on an income tax form.
The maximum
number of months for each claimant is 120 or 10 years of residency. Each
claimant or family will be credited with the total number of months of
his/her/family residency.
The total of
all claimants (including family claimants) months will be divided into the
excesses to be refunded during the accounting period to arrive at the amount of
refund per month of residency.
The
per-month amount will be multiplied times each claimants number of months to
arrive at the total amount of each claimants refund.
As stated
above, potential surpluses in retirement funds are handled differently than
outlined for all taxpayers' potential surpluses.
Conclusion
Trickle-Up Provides Greatest Impact
The equal
distribution approach gives the initial benefit to everyone, with the lower
income groups receiving the most benefit on a percentage basis. But it is this
group with the lower middle class that provides the greatest economic impact.
When this explosion in economic activity starts, local business owners will not
only get their equal refund amount but the increase in sales will be
tremendous. Even the top 10% will receive benefits far exceeding the equal
portion provided to everyone. But it will take longer for them to receive these
benefits. The reduction in taxes will assist the top 10% more so than the 90%,
plus their company stock and bond and real estate holdings will soar once the
economy explodes.
The maximum economic benefits occur only with an equal
distribution approach.
Equitable
Refund Impossible to Create
If you try to
have or insist on having an "equitable" distribution, then you probably will
get nothing, because the rich, powerful, politicians and legal profession will
get it all. These individuals have a different meaning for the term
"equitable". To them it means they should receive the most and the rest of us
the least. An example, the Federal and State income tax systems. With
foundations, charities, special deductions, exemptions, conservation easements,
etc., the rich pay very little if any proportionally in taxes. Yet, they
consider that to be an equitable approach because they write the
rules.
In addition,
try to describe an equitable method with the various types of revenues the
government receives, i.e., various taxes, licenses, fees, assessments, etc. No
matter how you try, you will end up with a system that lawyers can challenge on
the fact that someone, under certain conditions did not receive his/her fair
share. The law suites would be endless, resulting in a large portion of the
surpluses ending up in the pockets of the legal profession, judges and
courts.
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