Creating Wealth

 

The USA Plan contributes to national and personal wealth by providing a means for the average American worker to keep and save the money he or she earns while investing said savings into the capital markets. The resulting expansion of the capital markets allows for more innovation and job creation thereby creating wealth for both the individual and the nation as a whole.

For the worker the resulting accumulation of personal savings contributes to a retirement nest egg much larger than the original investment. Most importantly, the worker will be able to leave to their heirs’ a nest egg enabling them to invest in themselves in the form of better education and healthcare.

When a company hires an individual it is mostly based on that individual’s knowledge, skill and competency. The goal for the company is to hire individual’s that can transform raw talent and materials into a tangible asset with a market value greater than the combined raw materials in order to make a profit. The company’s profit is then divided up between the company’s operational needs, labor costs, expansion, debt reduction, marketing and taxes.

As a member of the labor force you will receive cash likely in the form of a paycheck that is commensurate with your value to the company and amount of time worked. Your compensation is then divided up between your fixed expenses such as housing, transportation, food, recreation and savings.

It is because of your labor that your home appreciates in value, your spending helps keep business’ economically healthy and your savings, in the form of investments, not only appreciates but kicks off a dividend that when reinvested compounds to values in greater multiples of the original investment.

It is with your labor that you contribute to wealth creation both individually and for the nation as a whole.

Recently ordinary Americans have been treated to a barrage of billionaires.  Jeff Bezos of Amazon, Bill Gates of Microsoft and approximately 1800 other billionaires are routinely publicized in the media for their wealth.  Their wealth was created out of thin air by their knowledge, resources and envisioning a demand.

On the other side of the wealth scale are fifty (50%) percent of Americans who live paycheck to paycheck and have little or no wealth in the form of savings, property, stocks, bonds, interest and time. It is disparity in wealth that the Prosperity Commission wishes to remedy by introducing the USA Plan.

The goal of the USA Plan is to empower the work force with the ability to accumulate wealth far greater than ever before.  For several reasons, we chose common stocks as the asset each worker should own. To get the cash they need to live a very comfortable retirement, they do nothing. The USA Plan will redirect your payroll taxes week by week into your own Universal Savings Account creating far greater wealth than what the Social Security Administration promises at the same time reducing the National debt load encumbered onto future generations

The result of this structural change to America’s economy will accelerate the wealth of this nation from $122 trillion in debt to a Quadrillion dollar economy in forty years.

For the taxpayer living paycheck to paycheck we hope the USA Plan gives him the hope he needs to live an industrious and fulfilling life.

Economic growth comes from entrepreneurs risking their own money not from politicians risking your money.

 

ORIGINAL VERSION

Recently ordinary Americans have been treated to a barrage of billionaires.  Jeff Bezos of Amazon, Bill Gates of Microsoft and approximately 1800 other billionaires are routinely publicized in the media for their wealth.  Their wealth was created out of thin air by their knowledge, resources and envisioning a demand.

 

On the other side of the wealth scale are fifty (50%) percent of Americans who live paycheck to paycheck and have little or no wealth in the form of savings, property, stocks, bonds, interest and time. It is disparity in wealth that the Prosperity Commission wishes to remedy by introducing the USA Plan.

 

 

The goal of the USA Plan is to give Americans the capability to pay for what they want.  For several reasons, we chose common stocks as the asset each American should own. To get the cash they need, they merely call up and sell the appropriate amount of stock they own.   Now the trick is where do they get the stock. They have no money.

This is where the 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 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 addition to annual investment capital should go a long way to eliminating downturns and market crashes.

Like billionaires every taxpayer will avoid tax on the $7.4 million gain in the value of their stock. The appreciation in the value of stock is not taxed. When sold a minimum tax is imposed currently. Hopefully, that tax will be repealed soon.  As for the taxpayer living paycheck to paycheck we hope the USA Plan gives him the hope he needs to live an industrious and fulfilling life.