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Our Plan for

The Invention of Circulatory Spending

Deficit spending in America has to come to an end!
This is the new model that needs to replace such spending and bring the USA to a level of success never seen before in our history.
Origins of Circulatory Spending

That quote you see above sort of represent what is going on in our country. Because of this I have been on my computer for so long looking for a way to save America from itself before it is too late. I have spent countless hours a day looking over how the USA and other countries handle taxes, healthcare, welfare and retirement. I was in search for a reason as to why our economy seems to be doomed to have these booms and bust almost like clockwork. Why the need for charity and welfare keeps growing inspite of the enormous wealth that is in America. The richest 585 people in the United States own more wealth than the bottom 190 million, that imbalance is only increasing, not decreasing. Just seems like to me that by now that poverty in this country should have been eliminated by now so why not? There had to be a logical reason why this has never happen. It can't just be as simple as blaming Democrats or Republicans. Determined to find the root cause of the problem I came up with all types of ideas to fix everything from Medicare, taxes, Social Security and more. But no matter what plan I tried it lead me back to one conclusion. What was done from the start was all wrong.

It became obvious to me that the real problem with our country is that there are 5 major flaws that is holding our country back from being where it should be. The flaws are;

1. The employer and the employee are paying the same tax.
2. A retirement system that holds money for too long.
3. A Federal Reserve that is not nesessary.
4. Corporations not investing enough back into American jobs.
5. Health insurance is the wrong type of insurance.

Back when are country was first created no one was thinking about retirement or healthcare or even a global economy so taxes became a one way system that took money from people and businesses and you were forced to make do with what was left over. That lead to needless sacrificing of either you spend less and save more or spend more and save less. If we could just change that then most of the deficits we have in this country would be gone in a flash.

Most of the federal deficit is owed to ourself only because all forms of government spends money that the people should be spending. Our country also builds too many services that hold money for too long and gives to much money away leaving no money left to run the country or help the people with so it borrows to make up the difference. What was needed was a total overall of how and why we tax and where the money should be going to make it all work. And that lead me to create what I now call Circulatory Spending.

Circulatory Spending can be defined as a system of taxing that flows money to and from the people that work to stimulate spending, savings, and investing while creating the atmosphere for continued job grow and welfare reduction. Similar to the circulatory system in the human body where you have a heart muscle with veins and arteries that flow the blood throughout money will travel in nearly the same manner. The heart valve in the Circulatory Spending model will be a Universal Retirement Healthcare Bank (URHB) formally the Federal Reserve. The arteries in the system will be a new universal tax code for all employers who will pay extra money into an employee account set up in the URHB and the veins are the withdraws and monthly payments that the employee can make throughout their live. The URHB will also flow money to banks, investment firms, insurance companies and other businesses for borrowing and paying back with interest as well as additional contributions from taxes.

In a Circulatory Spending system no form of government will collect taxes on profit directly from an employer or corporation. Only the income from wages will pay taxes to the city, county, state and federal government from an income tax. The same time that taxes is deducted from paychecks money will be added into their personal URHB account by the employer thus effectively lowering taxes for both the employer and employee. Since the employer will only have taxes to pay to the URHB and the tax would never change business will be much simplier and cheaper to conduct since not only is a business paying it's taxes it is also given a retirement plan that carries zero unfunded liabilities and a healthcare plan without having to deal with health insurance companies and their rising cost and government regulations. The employee is seeing all or most of their tax obligations being erased and added to their personal account gaining interest. Lower wage workers will get back more than what they paid in taxes while much higher wage workers will see a significant drop in their over all taxes that will be erased completely over time.

The over all goal of the new system is to, on a continuous basis, trim down all branches of government so taxes that are collected can go more towards schools, infrastructure, police and fire and so forth. As we trim down the size of our governments over time states and cities can handle their own business without the need of earmark money or grants. Local governments could also reduce property taxes and fees dramatically that effect lower wage workers and families. Corporate welfare will be eliminated under the new system since profit is no longer being taxed by any government from businesses with employees. With this system in place there would no longer be a need for the following government programs or services;

1. The Federal Reserve
2. The Affordable Care Act
3. Health Insurance
4. Traditional Medicare as we know it.
5. Social Security as we know it.
6. Welfare and Food Stamps - City, State and Federal over time.
7. Unemployment insurance - State and Federal
8. Medicaid and Chip
9. Hud programs - City, State and Federal over time.
10. Reduce Federal Department of Education
11. Federal Vouchers
12. Veteran's Affairs Healthcare
13. All Pensions
14. Government subsidies
15. Grants
16. Earmarks
17. Federal Student loans
18. The IRS reduced
19. The FDIC will not be backed by the Federal Government
20. Supplemental Security Income(SSI)
21. Federal Department of Energy
22. Federal Employees Health Benefits Program
23. National Flood Insurance
24. Most tax returns.
25. More government programs over time.

That does not necessarily mean that all those people who work for these agencies will be fired. These people will be reasigned to work in other departments and within the new system sense accounts will need to be managed and a new tax will be collected and healthcare and welfare would changed there will be plenty of jobs available. What Circulatory Spending does is help us use the money we already have much more effeciently so that we will never need to borrow so much money ever again. Now let's get into the guts of how this will all work.