Thursday, June 9, 2011

Collateralized Currency Certificate

Collateralized Currency Certificate

When the fall in value of the Federal Reserve Note ( US Dollar) occurs a new system of currency will need to be established to replace the devalued dollar.

An approach to this need for currency to allow all commerce in our cities, states and country to do a kind of reboot and reestablishment our US economy could be established and distributed by a state owned and controlled system of banks.

Some have spoken of using precious metals to back our currency and is a valid approach, but the massive problem is these metals are not affordable or likely not even available so an alternative will have to be found and established.

The concept of accessing the already owned value of both real property and titled property to back a new currency could be a viable approach to the need for currency.

Every state, city , county and of course the Federal Government presently own property that would be valued in the trillions and do present a true value. An approach could include a new system of state owned banks to be established and capitalized by assigning the already known value to the various owned real properties, such as roads, bridges, buildings and other titled properties like autos and other titled items.

Each state would take `the value of existing rolls, for real property as well as registrations for other titled properties and assign that value as a asset and reserve for these various state banks, with branches in all counties within the various states. Also all state payroll, retirement and other cash accounts would be deposited in these banks, with the same following by the various county, city and school boards and all taxes collected within their county, city and other government entity.

The new currency would be called Collateralized Currency Certificates and be equal in amount to these established values of already owned government properties. The banks can in turn loan to local governments for new projects with very low or even no interest loans. A new project can be valued at the after completion value and new certificates could be issued and used as currency to pay for the development.

Every government entity would be given an account in these banks reflecting the value of their owned properties as well as deposits for all taxes or fees collected by their entity. Every citizen and property owner would be given an account with account balances equal to the already owned property on the existing tax and registration rolls.

The Federal Reserve System could be nationalized and after repurchasing all out standing debt bonds be closed down and be replaced with the new state owned and operated banks with the new currency replacing the value less Federal Reserve Note.

Wednesday, April 13, 2011

A Fairer Tax for All

Just a thought about the big budget problem and a suggestion to help some and certainly make this more fair. Most folks do not realize we have a special tax bracket for those of us that have so much money they no longer have to earn money by working. Instead of earned -income they have something called capital gains, a special tax rate that does not ever go above 15 percent, and they are also special because they never have to pay any FICA taxes either. Most folks can pay as much as 32 percent in income taxes and then they pay FICA taxes or with holding for Medicare and Social Security.

A couple of years ago a very wealth man named Warren Buffett was reported as haven discovered his secretary paid more (higher or greater part of her income) than he did, he said, ” He was paying at the rate of 17 percent”, ( he must have had some salary income that caused his rate to go up the two percent) and his secretary was paying over 40 percent of hers.

My proposal would have something called a means test applied to the income and if a person has more than 50 percent of their income as capital gains they would be taxed as everyone else on any thing over 50 percent as earned income. If you are a working class person getting less 50 percent of your income from capital gains you would not be taxed any different than now. This way the folks that do not actually work ( no earned income) would still be taxed more fairly and some of the badly needed money to pay off all the wars since Vietnam might be able to be paid for. Wall Street needs to pay their fair share of taxes also, this is not asking for the rich to be over taxed, but just pay like every one else. If you go to the dog track and win, your winnings are taxed as any other income, so why not tax some of the earnings of the winnings on Wall Street?