The USA currently has 50% of its $14.66 trillion GDP stolen—viz, the $7.33 trillion being that part of the economy constituted by land and natural resource rents. This $7.33 trillion is mainly stolen by the 1%, leaving the 99% dancing to the tune of immense wealth. Observe how an apparently well-meaning President Obama has been bought off by Wall Street; the US has clearly morphed from a democracy into a kleptocracy. Goldman Sachs appears to rule.
As the government captures only a small part of the people’s economic rent at present, it is forced to tax the earnings of people and normal businesses to the tune of $3.456 trillion. So this amount is also stolen from the 99%. Debt and despondency pervade.
However, were the US to capture the 50% of the economy which is the rent of land and natural resources, it could not only abolish all taxation, but, after the necessary running of government, could actually deliver a dividend of $3.874 trillion ($7.33 trillion – $3.456 trillion) to be shared equally between all of its citizens. i.e. $12,389 per head – for every man, woman and child.
This would allow the nation to grow again by eliminating the structural financial and fiscal burdens besetting it.
Wages would then flow directly from this increased production to its producers, instead of to rent-seeking parasites; no ‘wage fund’ is necessary!
Cowardice, partisanship and political dysfunction should not be permitted to stop this plan from being put into place—if US society is not to be completely destroyed.
IN SUMMARY, THE USA NEEDS TO:
- default on its national debt – as debt that can’t be repaid won’t be repaid
- nationalize the banks, writing off all private debt relating to land
- dismantle the IRS (in favour of a small body to preside over the new revenue base)
- institute site rents on land and natural resources for revenue, viz:-
1) shift the revenue base from taxes to the site value of all land only (i.e. exempt improvements)
2) charge the market rent for frequency ‘sites’ on the electromagnetic spectrum
3) apply a resource super profits tax on all mining (@50% on profits to acknowledge the American people’s joint ownership of its natural resources), and
4) charge market rents for airport slots, fishing and forestry licenses, etc.
This is the only plan that can work, but the USA is far from this solution, so batten down everyone!