Creating Wealth


The United States of America is the greatest wealth creator on the planet. Every year it produces and consumes almost 25 percent of the goods and services produced and consumed in the entire world with only 4.5 percent of the world’s population. Yet many are unhappy and believe the economy favors the wealthy. Politicians that support that view have advocated for free medical care, universal guaranteed income, free college education and minimum wage increases. Serious pressure for such changes is mounting here in the 21st century.

Now is when a structural change to America’s economy so many have been waiting for takes place.  The USA Plan takes back from the Federal government the payroll taxes deducted from every American’s paycheck and places them in his or her personally -owned savings account (a Universal Savings Account – “USA account”).  Immediately below we prove that a $50,000 a year taxpayer will accumulate a $7.4 million nest egg on which to retire after investing those funds for 40 years in indexed common stock funds.

As taxpayers will be funding their own USA account, it will take time to accumulate their nest egg. However, America will be getting richer immediately.  Approximately $1.3 trillion will be invested in new business or expansions of existing businesses as taxpayers will invest that amount each year in the financial market. Such a reliable and consistent addition to annual risk capital should go a long way to eliminating downturns and market crashes. No longer will it be necessary to solely rely on the wealthy to supply such risk capital.

Like billionaires, every taxpayer will avoid tax on the $7 million gain in the value of their stock. The appreciation in the value of stock is not currently taxable. When sold, a minimum tax is imposed. Hopefully, that tax will eventually be repealed.  As for the taxpayer living paycheck to paycheck, we hope the USA Plan gives them the hope they need to live an industrious and fulfilling life.

Another distinct advantage of the USA Plan is an issue each young person should consider.  Student debt of almost $1.7 trillion dwarf’s total credit card debt of $1.1 trillion.   Under the Plan even a $7.50 a hour worker for 40 years retires with over $2 million.  A clever worker who could earn over $100,000 a year for 40 years could retire with over $99 million.  A young person doesn’t have to look for a college education to make that extra $1 million. We believe the USA Plan will significantly reduce the number of students going to college and thereby reduce the massive college loans as well.