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We have seen what happened to many American families when year-after-year they had income of say only $40,000 and borrowed $20,000, so as to spend $60,000 each year. After just 5 years the families were each in debt well over $100,000. In one way or another, the banks bought their debt, allowing the families to continue their poor financial management habits; but it was not long before families could not maintain, the banks foreclosed, and the families lost their homes and filed for bankruptcy.

It will not be long before the United States of America will face something similar… a form of foreclosure and bankruptcy, as China forecloses on the debt America owes China. In other words, US citizens (you and me) are in debt to China (the bank), and China may someday have no choice but to take our “house” (the entire country.)

What will the USA be like when China takes possession of our country? Showing a high level of moral integrity, will American leaders do the right thing and simply “give up the keys” and turn over control of our “house”, the country? Or, will U.S. leaders choose instead to fight China in a war to avoid America’s responsibility, and ultimately destroy the “house” (our country)? Sounds like what many homeowners did before the bank took possession of their houses.

Can we avoid the loss of our country to China? Yes! We Can!

By cutting every local, State, and Federal budget by 50%, and fixing the annual budgets at that level for at least ten years; then simultaneously, beginning a 30-year fully-amortizing monthly payment to China so as to eliminate the debt. Also, at the same time, by raising the Federal personal income tax rate to 50% of gross income over $25.000 for each and every adult U.S. resident, retired or actively working. For non-living entities, the 50% tax rate would be applied to their net operating incomes. The Federal government would then provide population-based revenue-sharing to each State, offset by what the Feds provides directly to each local government. All State and local income taxes would then be eliminated. Finally, Federal revenue surpluses would, likewise, be allocated to the States.

What about tax write-offs? Other than non-living entity operational expenses, there would be none. In fact, what good is a tax write-off when you have no income? Under this plan, every government expenditure gets cut in half; but the Federal government, through the States and local governments, could create more jobs and a little fairer personal income distribution throughout the nation.

By the end of each 10 year period, a census and other economic studies would be performed by the Federal government and effective adjustments made to the plan accordingly.

Submitted by a member of the “Coffee & Tea Club”