Don Lloyd, Concept Author

The best way to finance government in the history of mankind!

Have you ever wondered what America would be like if Income Taxes were NOT the main source of revenue used to finance our State and Federal Government, or if Social Security could be provided without taxing wages?   What would your life be like if you were able to spend 100% of your income on your family and both you and your spouse could save for retirement?

It’s time to replace the antiquated practice of collecting taxes from income every year with one that is designed for the 21st century!  A tax plan that will take advantage of technology, the power of investing in American business and saving for retirement!
This concept “Life Without Income Taxes” would:

Provide money to:

  • Pay for health care.
  • Buy a home.
  • Send our children to college.
  • Give to charities.
  • Investment in business.
  • Buy U.S. Government Bonds and T-Bills.
  • Finance home loans.

It will:
1.   Lower Individual Income Taxes to Zero.
2.   Lower Employment Taxes to 2%.
3.   Lower State Income Taxes to Zero.
4.   Lower Corporation Taxes to Zero.
5.   Lower Estate and Excise Taxes to Zero.
6.   Give retirees more money each month than Social Security.
7.   Allow “stay at home” moms to have a retirement account.
8.   Raise the minimum wage.
9.   Lower the trade deficit.
10.   Simplify the IRS tax code.
11.   Lower the cost of goods and services.

This is how it works:

1.  Individuals would save 5% of their income each year in their own Individual Retirement Account. ( Roth type IRA)

2.  At retirement, the assets in your account will be converted to income producing instruments that will pay interest only payments each month. The principal is never spent and is left in the account until death.

3.  After death (of both husband and wife) the assets in the account are converted to cash and paid to the State by the couple’s estate.

After 40 years, with all Americans participating, this concept could generate more income to the U.S. Treasury than the present Individual Income Tax system. The “Tax” would not be collected until the death of both husband and wife, leaving both retirement accounts for the use of the surviving spouse.

How would this concept be phased in and what effect would it have on revenue going to the U.S. Treasury?

1.  Individuals would pay into their self-directed account allocated to the State in which they live. There could be multiple States’ in a person’s retirement account. The assets in each State account, after the death of both husband and wife, would be used to lower State Income Tax rates to ZERO.   A percentage based on the population of the State would be paid to the U. S. Treasury and would lower income, employment and corporate tax rates to ZERO.  After these taxes are replaced by the retirement savings accounts, only constitutionally enumerated programs will be funded by the States.  Money left in the State accounts could go to fund medicaid/medicare health care insurance for the State or reduce property taxes.

2.  Young people would be allowed to opt out of the retirement part of Social Security (disability would still be provided) and 2.5% of their employment tax would go to their self directed retirement account.

3.  Employers would be encouraged to contribute $1,000 to each employee’s spouses’ IRA each year in exchange for a two for one tax credit. This would have the effect of lowering business/corporate tax rate to 15% which will stimulate the economy, create jobs, and lower the cost of goods and services.

4.  As the unused retirement savings accounts replace taxes on income; Income tax rates would be reduced .25% to start and would increase to .5% in the later years of the 40 year phase-in period

5.  Employment Taxes would be the last tax to be reduced because of the “One Life Time” lag of replacing social security retirement benefits with Individual Retirement Accounts.

6.  Existing Individual Retirement Accounts could be converted to this concept if desired.

7.  Social Security retirement benefits would be pro-rated by ratio of years payments were made into the Social Security system vs. payments into retirement accounts with a guarantee that combined retirement income will be no less than Social Security retirement.
8.  Because all individuals will have a retirement account, married retirees will have the benefit of two retirement incomes. (Estimated income for a couple would be greater than $10,000 per month)  This income will be generated by retirees converting some of their “working years” investments from the stock market to mortgage backed securities which will finance the homes of young people.  This monthly income will give the economy a big boost and will allow retirees to pay for increasing medical bills caused by old age or a $100,000 hip replacement could be paid for in one year.  The income will NOT be taken away when one spouse dies.  It will continue until the death of BOTH husband and wife. If this money is not needed for medical bills, just think of all of the good things that can be done with the money;  going out to dinner, taking vacations, giving to charities, helping our children/grandchildren.

Individual AMericans For Real Economic Equality

What type of program is this?

It is a family program.

  • With 20%-40% more money to spend every year, families in the year 2050+ will be stronger, more united and able to provide for themselves.

It is an education program.

  • Saving for college will be easier with more spendable income.

It is a Health Care program.

  • Families will have more money to pay for health insurance. Retirees will be able to pay for catastrophic and/or long-term care insurance.

It is a program for women.

  • Married women will be more secure because they will be saving for retirement even if they do not work.
  • If they want to work, lower business costs will mean more jobs for women.

It is a minimum wage program.

  • Reducing the Employment Tax burden on corporations and business will allow them to pay a higher minimum wage.

It is an investment program.

  • Because individuals will be buying no-load mutual funds, there will be more money available for business.

It is an anti terrorism program.

  • More money going to the U.S. Treasury means the government will have more money to help protect America from those that are trying to destroy our way of life.

It is a program that will lower the cost of living.

  • Lower business cost means lower prices to the consumer.

It is a program that will help business.

  • If people do not have to pay Income Taxes or Employment Taxes they will have more money to spend on consumer items. Employer “matching” will give employees more IRA savings and Employers/Corporations have less taxes to pay resulting in more profit.

It is a tax increase program without a tax increase.

  • The actual tax (if you want to call it a tax) is only 5% each year, and is not collected during a person’s lifetime. Therefore over time, the confiscation of your income every month will end and in its place will be a tax that you will never see. (Wow!! What a concept!)

It is a balance of trade program.

  • Lowering the cost of business by reducing taxes on profits will allow U.S. business to sell goods and services to other nations at a lower price. Lower cost means higher demand for U.S. goods. We will then start to export more than we import, which will help the balance of payments and help our economy.

It is a program that will help Politicians get elected.

  • After people read and understand the benefits of this concept there will be a vast movement to raise money for Politicians that will support this idea. If you are interested in helpint to promote this concept, please e-mail me! Let’s see what “We The People” can do!


Individual Americans For Real Economic Equality

Living life on your dollar. . . . . Not your neighbor’s

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One Response

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