Avoiding the Next Economic Depression: Not a Stimulus, a Revolution
Posted: Friday, January 23, 2009
by Jonathan Brown
V 4 Victory Tax
Our economy is now unarguably in a recession; the bail out for the banks, and now a proposed second stimulus package are clear evidence of how we are in need of some extreme help. Instead of enlarging the debt, which all of this assistance has done and will continue to do, Jonathan Brown has a solution that will permanently solve our problems: the V-Tax.
The V-Tax starts with understanding the economy as it really is; the economy is not only the GDP, to which most will point when regarding it. The key to Brown's plan is this fact: 80% of our economy is "Wall Street", 15% is business to business or industrial and only 5% is the GDP, or "Main Street." While Main Street is the smallest contributor, it pays 90% of taxes. The rest is from business to business. Wall Street pays $0 in taxes. That's right; zero taxes are collected from Wall Street.
Brown asks the obvious question: "why?" If Wall Street paid 1/5 of 1% or 1 penny out of every 5 dollars from its transactions, we could raise 1.2 trillion dollars in one year's time. That's almost ten times the amount of the second stimulus package.
What is included in this Wall Street definition? Basically, the exchange of stocks, bonds, currency, and the banking system; they are the 80% of our economy operating tax free.
A concern you might have when considering taxing Wall Street is the effect it may have on interest rates. Brown estimates a maximum rise of 1% as a reaction to the V-Tax. The positives far outweigh the possibility of this relatively miniscule increase.
Remember, the V-Tax can provide a stimulus package almost 10 times larger than what is proposed right now.
If we passed the V-Tax, taxing the velocity (movement of money) in Wall Street would eliminate the need for income tax for working Americans earning less than $50,000 a year. Those earning above this would still pay taxes, but on a much smaller scale than now.
Social Security could also be funded through the V-Tax. This would alleviate your paying and your employer's matching your payments into Social Security. Business in America would save money, while also enjoying the increased spending that would result from the V-Tax. If the average American did not have to pay federal taxes, Brown estimates half of the money would be invested and the other spent. It would revitalize the economy using our money saved, not more money borrowed by the government.
Why hasn't someone else brought this up? The reality of how our economy breaks down and where our taxes are coming from is generally misunderstood. Brown has put fifteen years of research into economics before solidifying his ideas.
To help illustrate the economy with Brown's favorite example: if you picture a building with a hundred floors making up our economic system, the first five floors would be Main Street, or the GDP, the next 15 floors would be the business to business or whole sale market; the remaining 80 floors are Wall Street.
The V-Tax is like taking a small drop out of a bucket. Wall Street is many buckets (80% of all of America's buckets) moving around, sharing water, and to date, untaxed. If we adopt the V-Tax, the benefits felt on Main Street would trickle up to Wall Street, benefiting everyone, healing the economy for good.
Brown has written a book to get this plan for economic salvation to the powers that be. Originally meant to for publication, like Brown's first book, which had an untimely release of a week before nine eleven, his current work is available via download from his website: www.v4victorytax.com. Brown has made it available this way in an effort to get the word out to as many people and as quickly as he possibly can.
The V-Tax is the answer to our failing economy, and it doesn't require enlarging the already massive national-debt. It would eliminate income tax for 50% of working Americans, and fund Social Security. The V-Tax sounding too good to be true is an obstacle Brown has to overcome.
Jonathon Brown is the underdog protagonist trying to save the day in this action/suspense turned horror movie that is our economy. Only it's not a movie; it's real, and he can't do it on his own.
Download Brown's book to see his revolutionary answer for yourself, and then tell someone else. If the awareness spreads, maybe the right person will give it the consideration it deserves.
The happy ending needs a massive grassroots movement. It starts with you. Go to www.v4victorytax.com; help spark the revolution.
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