CAFRMAN'S REVIEW GUIDE  
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Introduction
The Trickle Up Approach is Simple
    Eligibility
    Distribution
    Refund Computations
Conclusion

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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