Proposed Military Plan

Overview

Time for a Change - We need to update and reduce the redundancy of our military structure. Instead of the 4 services based on ground, sea, and air; we will transition to Tactical Ground Forces, Air and Sea Strike Forces, and Occupational Forces.

Use their Resources First - Anytime we enter and occupy a foreign land we will utilize in-country resources to help rebuild and stabilize their political and military environment.

Family Security - Non-commissioned military personnel will get a 10% raise in the form of family housing and food support.

Better Medical Care - The Veteran’s Hospital system has been a failure both practically and fiscally. This system will be dismantled and soldiers who have served in combat or have been wounded in the line of duty will receive complete healthcare coverage for life.

Non- Lethal Weaponry – More focus will be placed on blockading and confiscating resources and funding. More resources will be given to finding non-lethal incapacitating weapons. Threats of death only work on people who fear death.

Details

Problem

Our military structure has become outdated and no longer provides us with the most efficient or effective way to respond to foreign threats. At the same time, this inefficiency has created islands of power and black holes of wasteful and redundant spending. Finally, we haven’t done a good job caring for our returning soldiers.

How will we change the structure?

Instead of the 4 services based on ground, sea, and air; we will transition to 3 Services: Tactical Ground Forces, Air and Sea Strike Forces, and Occupational Forces.

• Tactical Ground Forces will have the purpose of fighting other military forces and carrying out special ops which require boots on the ground.
• Air and Sea Strike Forces will be responsible for anything that strikes at a distance, including cover support for the Tactical Ground Forces.
• Occupational Forces will be trained in control and policing transition and will include an expanded version of military police. It will also include management, engineering, marketing, and educational divisions.

How will this make our military for effective?

Currently, almost every event cuts across all of the different branches of the service. The power struggles and conflicts have not only cost the taxpayers huge amounts of money but it has also cost us victory and American lives. Although no structure will be perfect, it is imperative that we reduce the overlap and conflict by shifting from a terrain oriented departmentalization to an engagement oriented structure.

How will this save us money?

There is no question the significant overlap between services has created duplicity of armament efforts. This must stop. This new structure will allow weapons, vehicles, and communications to be purchased for, and by the people who will be using them. This will reduce the incompatibility of parts, skills, and protocols that exist now.

How did it get this way?

Big business and politics have gone hand-in-hand down the aisle. The Department of Defense must disengage from the slow proprietary design process that has been driven by System Integrators and has consistently failed our troops since WWII.

How much can we save?

We are estimating a cost reduction of 15%-20% based on new efficiencies but it is our proposal we funnel this money into increasing the benefits for our soldiers.

Enlisted men and women don’t make enough to support a family; is the money going to them?

Yes, there will be an immediate 10% raise in benefits in the form of housing and food benefits.

What about the rest of the money?

Some of the money will be going towards the Pay-It-Forward plan which will pay for their education. They will have the opportunity to work towards a College degree or a Certificate of Qualification via the Apprenticeship Program.

What about medical care for Veterans?

This is where the majority of the money will go. The Veteran’s Administration system has been a failure both practically and fiscally. The health portion of this system will be dismantled. Soldiers who have been in combat, or have been wounded in the line of duty, will receive complete healthcare coverage for life.

There won’t be anymore VA Hospitals?

That’s right; each soldier who qualifies will receive full health coverage. This means they won’t have to travel to a VA Hospitals hundreds of miles away from home. They will be able to receive care from local medical professionals.

Why do we have to maintain a military presence in so many countries?

The size of our military presence, in certain parts of the world, needs to be reviewed and justified. In the past 60 years, our ability to move troops great distances has gone from months to days. Old treaties need to be reevaluated in order to insure we are efficiently fulfilling our obligations.

Why do we have to be responsible for rebuilding countries that don’t even like us?

It is imperative that we help rebuild areas that have been war-torn. This has worked beautifully in both Japan and Germany where they have become economic strongholds and great allies.

What has gone wrong since then?

Since WWII, we have lost our vision on how to implement a recovery plan for countries we have defeated, or helped. This is why it is necessary to build an Occupational Forces service which will include management and training people.

Who is going to pay for this?

First, and foremost, we want to drive political and economic stability so there will be an investment required on our part. There will be no more hand-outs; their natural and human resources will be required to off-set our investment once stability has been achieved.

What new weapons programs do you support?

The greatest weapon ever used in war has been the ability to cut off money and resources. The ability to blockade resources and freeze finances has ended more hostility than any other weapon.

How do you control the money?

We plan on increasing our computer and networking divisions of the DoD and NSA to allow us to have the biggest gun in the cyber fight. We will monitor and restrict money flows to terrorist nations better than they can hide it.

How will you control resources?

We will use blockades, embargos, and trade-restrictions to insure terrorist nations can not use their natural or human resources to build military capability.

Couldn’t this create more confrontations?

Yes, but that’s a risk we should be willing to take. It is better to prevent a catastrophe then it is to search for vengeance after the fact.

How do you fight an opponent who embraces death?

That’s an excellent question. Many of our enemies embrace death so using lethal weapons as a deterrent is futile. We will need more non-lethal weapons focused on immobilizing people, electronics, and weapons. We have long been in search of the biggest bomb but the reality is bigger isn’t better. To support this we also need to create a Manhattan Project, or Bell Labs, for weapons that will cripple their ability to wage war and not cripple their people.

Proposed Social Security Plan

Overview

Right Tool for the Right Job - Social Security was originally designed to be an insurance policy against poverty in retirement. It has, for better or worse, evolved into the primary retirement income for most retirees. We must change the tool to better fit the job.

Transparency – Our government needs to be transparent. There is no Social Security bank account and the money we have been promised has been spent.

Mandatory Retirement Accounts - We must get the Federal Government out of the investment banking business by slowly eliminating the current system. This will be done by slowly converting people to Mandatory Retirement Accounts (MRA).

American’s Investing in America – MRA’s will primarily be invested in Municipal Bonds and U.S. Treasuries which will keep the risk very low, while supporting the liquidity of the US economy.

Options for Each Generation – There will be different options for every age bracket that will allow them the best opportunity to have a financially secure retirement.

Retirement Moves to 67 - The age for Social Security benefits to begin will be moved to 67. Too many people are still valuable to this country and economy for them to exit the workforce at such an early age.

Details

Problem:

Social Security has been nothing more than a way for politicians to suck more taxes out of the average worker. There is no Social Security bank account and the money we’ve been promised has been spent on other things. This system is currently living day to day on IOU’s, which can never be paid back. Also, the return on your money is lower than you could have received by just investing in U.S. Treasuries or Certificates of Deposit (CD’s).

How are we going to insure everyone who paid into Social Security will get their fair share?

Our only choice is to restructure the Social Security system. We need to phase out the government’s involvement as an investment bank, essentially taking in our deposits and loaning it to Congress. Instead, we need to phase in Mandatory Retirement Accounts which are personal and individual.

What if I’m already receiving Social Security, will that change?

No, you will receive payments just as you were promised. What will change is the age for receiving Social Security will be raised to 67.

Wait, I’m 60 years old and have my retirement planned around receiving a Social Security check at age 62?

We understand many people are close to retirement and have made financial decisions based on receiving Social Security payments at age 62. If you are 60 years old when this plan is enacted you will still be able to receive your payments at age 62 but you may be better off choosing to opt out of the program for a Mandatory Retirement Account (MRA).

Why would I want to opt out when I’m so close?

There are some very important advantages to opting out of the plan. First, you will receive a pro-rated pay-out on your Social Security Account which will be placed in your MRA in the form of Treasuries. Second, this money will grow allowing your retirement funds to last longer and be greater than they would in the Social Security system. Finally, unlike the Social Security system you own your MRA and it will pass tax free, on to your family in the event of your death.

What are the rules on the Mandatory Retirement Accounts?

Mandatory Retirement Accounts in many ways will resemble a Roth IRA. They will be funded with after-tax dollars but you will not be taxed on withdrawals. Your MRA must have at least ½ of the total amount in federal/municipal bonds or treasuries. The other ½ of the total amount can be invested in any major index ETF, 4 star or better mutual fund, CD, or Cash. You may begin to withdraw from your MRA on your 65th birthday. Each month you can withdraw an amount based on a prescribed calculation. This account will pass; tax free, on to your family in the event of your death.

Can I borrow from my MRA or make an early withdrawal?

No, under no circumstances will you be allowed to borrow from or borrow against your MRA account. You will not be able to withdrawal any of your MRA money until your 65th birthday.

Won’t it be risky to invest ½ of my MRA in mutual funds and ETF’s?

Risk is a personal choice. If you choose to invest in ETF’s or Mutual Funds instead of a CD, only 10% may be invested in any individual ETF or Fund. These also can not be ultra or multiplier funds which change at a rate 2 or 3 times the underlying index. This will protect people from being too aggressive while still providing much greater returns.

So, I’m either in or out?

No, every person who has paid into Social Security will have 3 options.

Option 1 is to stay with the current plan paying 16% of all after-tax earned income to the Social Security Trust. Each person will receive their payout but the age will be increased so the earliest payments will begin at age 67.

Option 2 will give you the opportunity to pay only 8% of all after-tax earned income and receive ½ payments starting at 67. Another 8% of your after-tax income must be direct deposited into a Mandatory Retirement Account (MRA). You will receive a prorated pay-out of past deposits in the form of Treasuries which will be deposited into your MRA. You may begin to withdraw from your MRA on your 65th birthday.

Option 3 allows you to opt out of the plan entirely. You will receive a prorated payout of past deposits in the form of 30 Year Treasury Bills deposited in your MRA. 16% of your after-tax earned income will be direct deposited into an MRA account. You may begin to withdraw from your MRA on your 65th birthday. You will be required to pay 3% of your after-tax earned income into the Social Security system until such time as the Social Security Trust is deemed over funded.

Why do I need to pay in 16% and not the approximately 7½% I pay in now?

This speaks to the lack of transparency in your pay checks. Currently, even though your employer pays the other 7½% it’s still your money. Your pre-tax wage should go up by 7½% on the day this proposal becomes law.

What if I’m already collecting Social Security?

If you are over 62 and are already collecting Social Security then you will stay in the system and you will receive your payments until your death.

What if I’m about to turn 62 and had my retirement already planned out?

If you do not want to wait until your 67th birthday, for Social Security, you would probably choose Option 3 and take your prorated payout in Treasuries. You will then be able to begin withdrawing from your MRA on your 65th birthday.

How much can I expect to receive if I choose Option 2 or 3?

Currently, Social Security has had an annual return of less than 3% on your money. We are estimating an annual return of 5% given the conservative nature of MRA’s. To give you a sense of the difference: If you were paid at the poverty level for the past 40 years and were part of Option 3, at 65 you would receive a check for $1100 every month until you were 105 years old.

How much can I take out of my MRA once I reach 65?

The amount you will be able to withdraw from your account will be calculated based on a 40 year life expectancy and an annual return of 5%.

Proposed Economic Plan

Overview

Reduce Spending and Reduce Taxes - The most effective way of improving the standard of living, for all citizens, is to have minimal taxation and minimal government involvement.

Simple Flat Tax - We must simplify the tax code by instituting a flat tax of 17½% of every dollar earned.

No more Loopholes! - There will be no deductions and no loopholes… anything given to an employee, executive, or owner as a form of compensation will be included in the compensation total…the rich will pay their fair share because we will eliminate avoidance.

No more Hidden Taxes - We will eliminate Corporate taxes…corporations don’t pay taxes they just pass them on so why should you pay twice.

Transparency Allows No Chance to Cheat – Although corporations will no longer pay a Federal Tax, they will be forced to provide a greater level of financial transparency. This will prevent cheating and also limit the opportunity of replicating the financial crisis we are experiencing today.
No More Death Tax - Inheritance is not earned money and should not be taxed.

Details

Problems:

Our federal economic strategy has been about a redistribution of wealth when it should have been about providing infrastructure and defense. People will provide for their own wealth given the chance. There is not enough transparency. Currently, there is too much spending on entitlement programs and not enough on programs to give people the opportunity to raise their own standard of living.

What can we do to shift away from entitlement and move towards raising the overall standard of living?

The first thing to keep in mind is, over the past 40 years, we have substantially raised the bar, on the standard of living, in America. Yes, people still go to bed hungry, but as a percentage of the overall legal population, there are far fewer people living below the survival level than ever before. We arrived at this point through hard work, technology innovation, and productivity gains; not handouts and freebies. Based on our research the quickest way to get back on track and move forward would be to lower the cost of living and leave more dollars in the pockets of the American worker.

Isn’t that what tax rebates and stimulus checks are all about?

The problem with a rebate is the government is only giving us back money we have already paid in. The reality is the rebates end up being significantly less than advertised. This is a crazy process which in the long run reduces the GDP by almost 2%. Economists estimate compliance with the Federal Income Tax System increases the cost of goods and services by as much as 20%. That’s right, our tax system literally makes everything 20% more expensive. One of the quickest ways to reduce our cost of living would be to simplify the tax system. Also, by simplifying the tax system there would be no need for rebates or tax returns.

How do we go about simplifying the tax process?

The first thing we must do is rewrite the tax code. The simplest form of taxation is a flat tax. After the first $30,000, 17½% of every dollar you earn will be collected from your employer on your behalf.

Why don’t we pay on the first $15,000?

There is no sense in taxing people below the poverty level. On average it takes a person $15,000 to survive. It makes no sense to tax this money only to provide services or give it back in assistance.

What about deductions?

There will be no deductions. The key will be that everyone will pay their fare share this way. There will be no loopholes…no way to cheat the system.

What about my mortgage deduction?

The mortgage deduction was part of the fallacy that caused the housing bubble. All you are getting is a small refund on the mortgage interest you have already paid. We would rather not take the money out of your pocket in the first place. This is all about transparency and the ability to know how much you are being taxed…no more hidden taxes or false promises.

Does that mean the Death Tax stays in place?

On the contrary, inheritance is not earned income so it will not be taxed.

What about Investment Income and Capital Gains?

Those are considered earned income and will be taxed at the 17½% rate. We consider the activity of investing to be no different than any other work effort. Instead of using your sweat you are using your resources. The one exception will be money taken out of a Mandatory Retirement Account. This money was taxed going in so there is no tax when it is withdrawn after the age of 67.

But without deductions won’t my tax bill be higher?

In most cases no, the middle class tax payer will see a reduction in taxes. All of the people who have been playing by the rules will be rewarded by this change. The people who will see an increase are those who have been taking advantage of loopholes to cheat and an inefficient system.

What is going to stop companies from giving Executives lots of fringe benefits to avoid taxes?

It’s not going to happen under this system. Everything you are paid is taxed including healthcare payments, stock/options, bonuses, and gifts. Anything given to an employee, executive, or owner needs to be included in the compensation total.

How are you going to catch offenders?

Because the tax code will be simplified, and there are no checks to send back, there will be a lot of extra IRS employees. These people will have the opportunity to retrain for the purpose of making certain everyone pays their fair share and to insure corporate accounting transparency.

What is the penalty if a company or a person gets caught cheating?

People won’t be able to cheat any longer. The 17½% is cast in stone. If a company is found not accounting for some form of compensation they will be fined the equivalent of 34% of the amount and the employee will still owe 17½%. If you fail to pay these fines then assets will be confiscated and sold to pay the debt.

Can we really afford to run the country on this amount of money?

This level of taxation will provide us with enough revenue to maintain Discretionary budget items, like Defense and Homeland Security, at their current levels. The goal is to get spending under control so, in the future, we can reduce the rate. That’s why we are proposing that we reorganize the structure of the DoD. We also could find significant savings from eliminating resources and benefits to illegal aliens. Finally, this system is so efficient it allows us to reduce the corporate tax rate to 0%.

Why would we eliminate corporate tax?

Corporate taxes are just another way of taxing you. Corporations don’t really pay taxes they just pass it on to their customers. The dirty little secret about corporate tax is that businesses pay up to $3.00 in compliance costs for every $1.00 of taxes they pay. This again is pushed out to the consumer who ends up paying a higher premium on goods and services.

Can we reduce the deficit so we aren’t passing on debt to our children?

In 2008, over $243 Billion was spent on interest payments. Much of this went to other countries. How crazy is that? Instead, our proposal on Mandatory Retirement Accounts, and their use of Treasury’s, would drive the majority of any debt to be financed by American’s citizens who will now be investing in their own future.

How will all of this insure everyone has a chance to get ahead?

Anytime you create transparency for businesses, and consumers, it provides confidence in the economy. This confidence will allow for greater innovation and in turn greater opportunity. Every great innovation/productivity burst has created jobs that never existed before. There will be a significant increase in blue and white collar jobs and these jobs will be at a higher wage, with lower personal cost since employers and parents no longer have to fund child healthcare directly due to our proposal for a National Child Healthcare plan. More people than ever will have an opportunity to work and care for their families at a fair and honest wage.