Proposed Constitution

Question 1

NOTE

Answer

Article IV of this Constitution provides the basic necessities of life to all humans within the boundaries of the Republic of America. To pay for these guaranteed goods and services, more money must be created and introduced into the economy. Whenever more money is created, inflation increases exponentially because the Free Market and Capitalism are based on supply and demand. The more people demand, the higher prices that businesses charge for their goods and services. Because the government will be demanding goods and services to provide for the basic necessities of life for the people, demand will increase; and greedy Capitalists will take advantage of the demand unless they are prohibited from doing so by law. This provision gives Congress the power to control the prices charged for the goods and services that support life; but, at the same time, it prohibits them from meddling in the affairs of the greed-driven positive effects of a Free Market economic system. Having their basic needs provided for will give the people more money to spend in the Free Market, which in turn will create more jobs and greater income to the people. Thus, there will be a greater demand based on the Capitalistic structure established for business and profit. For this reason, Congress will have no power to establish price controls that will impede the desire of Capitalism to do what it does best: create competition and advance technological evolution. (See details of Article IV below.)

Question 2

NOTE

Answer

This allows Congress to call on the military to protect the interests and welfare of the people. It ensures that the decision to enter warfare of any kind against an enemy is not the decision of a dictator (the President will not have the authority to declare war). Because congressional action to declare war requires a consensus of unanimity, the possibility of entering an unnecessary and useless war is diminished. This also forces Congress to ensure that all wartime affairs maintain humane treatment of the perceived and/or real enemy.

Question 3

NOTE

Answer

“Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes,” strictly limits ALL taxation, thus eliminating payroll, social security, Medicare, state, local, sales, estate, capital gains, corporate, and ALL TAXES. Adding this provision to the new Constitution will prevent Congress, by law, from changing the tax laws or imposing any kind of new tax other than a consumption-based flat rate tax as determined by the stated mathematical equation above (explained in detail below). (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services NOT OTHERWISE PROVIDED FOR FREE BY THE GOVERNMENT UNDER CONSTITUTIONAL LAW. Although an algorithm of such magnitude might seem too restrictive and obtrusive to the free market system, when analyzed and considered in all of its detail, it is the ONLY way that the playing field of commerce and trade can benefit all people equally and support a stable supply-and-demand-based economy that also needs to fund a government. The determining factor of any tax code should always be how such tax benefits the people. And tax revenues should be limited to funding a government that serves all people equally. Current tax laws support corporations and the wealthy, because corporations and the wealthy pay the lobbyists who fight for these laws. This new provision treats ALL people equally, regardless of economic status, conforming to this Constitution’s Preamble: “TO establish justice for each person equally, regardless of age, race, country of origin, gender, economic status, religion, or sexual orientation; We will use the game of Monopoly® to explain the implications of this form of taxation, providing new currency, and how this Constitutional provision supports The Game of Life as played out in America, while creating an equal playing field for all. Using the scenario of playing Monopoly®, it becomes very clear how the poor remain poor, and their numbers increase daily, while the rich remain rich and control the economy, as well as control business law and the government. A few players eventually own all the land, the utilities, and transportation (railroads). Those who don’t own land are still required to pay rents, utilities, and to “take a ride on a railroad” if they want to remain in the game. Eventually, because the Banker only has a limited amount of currency, those who don’t own the limited resources and receive an income from rents won’t have enough money to continue playing the game and will eventually lose the game to bankruptcy. What is not part of Monopoly® are spaces where a player can land on a job. “CHANCE” and the “COMMUNITY CHEST” are the only sources of other income to the players who do not own land or the spaces that demand payment. However, a player can be affected economically both positively and negatively per chance and being helped by the community. If more jobs were created, the players would have a greater opportunity to stay in the game. But what about the limited amount of money provided by the Banker that eventually lands in the hands of the few wealthy players? When there’s no more money, how is anyone supposed to continue to play the game? And when you open the game to new players (birth, immigration, trade agreements with other countries, etc.), what are these new players going to use to play the game? The answer: print more money so that the new players can play. But even so, no matter how much money you print, and no matter how many new players sit down and begin playing, the money will always end up in the hands of the rich who own all the spaces where some kind of payment is required. In essence, this new Constitution provides additional spaces and changes the rules for some spaces so that the other players have the opportunity to play the game longer, in fact, indefinitely, if they so choose. There’s only so much land to be owned, utilities to be owned and profited from, and railroads to ride. The playing board’s space is limited. But the ability of more and more players to play the game and be provided with the money to do so is limited only to the rules applied to the game. Therefore, the rules themselves must be changed. All of the spaces were bought up before the new players had a chance to enter the game. To play, they have no choice but to roll the dice and see where they will land and to which rich person they will pay money. The number that comes up from chance in rolling the dice is the problem. The players are forced to roll and pay whatever the owner of the space requires. The rents depend on how much money the space owner put into the space’s development (how many houses or hotels). The only way to keep people playing the game, and maybe have the opportunity to enjoy the game, is to change the rules. THERE IS NO OTHER WAY! But the first thing to consider is: why is a person forced to play? Why can’t a person simply sit around and watch? One of the reasons is because Monopoly® (i.e., Capitalism) is the only game in town, and if you want money and the opportunity to own land and play, even the money necessary to live, there’s only one way to do it: play the game according to the rules. But what if you don’t want to play the game? If you exist, you shouldn’t be forced to play the game. And if the game provides the only means for existence, then the rules of the game MUST be changed to, first, benefit the players who want to play and who have benefited from playing the game, by having them support the non-players; and second, make the game worthwhile for everyone in the room. A huge motivating factor in playing the game is to be able to say that you were successful at it—that you won! Other non-players might be impressed more, if, by your playing the game, they also benefited from your play. Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game. The thing is, the onlookers are going to become bored if they are only watching, when, upon observing the game, they are continually strategizing in their own minds how to play the game and to win themselves. Furthermore, if everyone could win, the game would lose its challenge and incentive and no one would want to play. HOWEVER, there is some intrigue in watching the game being played by others and watching their strategies of play and what they do to win and gain the advantage over other players. For this reason, there are countless new entertainment reality shows that people sit around and watch, but in which they would never dream of participating. In this scenario, as mentioned, Monopoly® is the ONLY GAME IN TOWN! The players who have benefited from it are not likely to change the game and the rules that have so richly benefited them and their families. However, the countless people standing around watching the game are getting angrier and angrier, because they are not being allowed to play or are not benefiting from the game. These masses could easily disrupt the game, tip over the board, and kill the players. So, if the established players begin to realize this, these rich and powerful ones might think twice about changing the rules, affecting the way that the game is played, so that it would include benefits to the non-players. So it is, in reality, that the few players take some of the money they’ve accumulated in playing the game and surround the playing area with armies and navies and appoint popes and priests that control the people and allow them, alone, to continue playing. Because of advancements in modern technology, a few players have the power to control the masses and protect the game. The people cannot overrun the military that is paid to only be loyal to those few players. Moreover, violence isn’t the answer either, because violent revolutions only lead to still other violent revolutions. Civilized people do not solve problems through violence. They solve conflicts through diplomacy and peer pressure. As was stated above in hypothetically using Monopoly® as an example, “Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game.” The players play to be recognized as rich and popular. We don’t want to eliminate their ability to obtain self-worth by being rich and popular. But we do want to help them see how changing the rules of the game will quiet the masses and make them even more popular and liked as they successfully play the game in a way that benefits those who aren’t involved in playing the game, or who don’t want to be. This new Constitution establishes the new rules for the game that will accomplish what both the players and non-players expect out of being forced to be around each other in the same room where there’s only one game to be played. The new Constitution gives Congress the actual equation from which it will determine taxation and the issuance of new currency. ALL TAXES WILL BE REPLACED with the set flat-rate consumption tax. Except for the fixed consumption tax, there will no longer be any duties, fees, or taxes on imports and exports. Imports are what foreign entities sell to America to consume. Exports are what America sells to foreign entities to consume. Both have the tax applied equally without loopholes and without exception. If Japan imports a Toyota Camry into America, the price for which it charges the American car dealer will have to reflect the mandated consumption tax charged by America directly to Japan. (The consumption tax is paid by the consumer and collected by the seller at the time of sale.) The American car dealer is consuming a product in order to benefit from its consumption. ACME Toyota, Inc. depends on the consumption of the American consumer to fully benefit from ACME’s consumption of Japan’s products. Because the Camry is being used by third parties to enrich them (the American car dealer named ACME), without being the end user of the product (who actually benefits from the product), each beneficiary of the product’s manufacture should be taxed equally and proportionately. Japan will pass on the tax to ACME and ACME will forward that expense on to the consumer. This system doubles the tax income to America, which is extra revenue to the government that is providing the resources of life to the poor people who make the Camry (because they have a job and are earning a living wage) and to the person who drives the truck to deliver the car to ACME. ACME is not really doing any work, but is still benefiting greatly by making a profit from the end consumer. And because the Japanese company is producing a product that affects the earth’s resources to benefit itself, it should also be responsible for supporting the people who consume its products. Americans buy many, many, many more Japanese cars than do the Japanese people buy American cars; therefore, the flat-tax rate proportionally spreads out the tax responsibility to the Japanese economy as it also affects the American economy. If Japan bought a Ford Escort, because it was much better than a Camry, Japan would pay the consumption tax on that purchase (it would be consuming the product). Ford wouldn’t have to pay an export tax on the price for which Ford sold the Escort to Japan. However, FORD WOULD BE MANDATED BY LAW TO PAY THE CONSUMPTION TAX ON EVERY PART AND PIECE OF MATERIAL THAT FORD BOUGHT (consumed) TO MAKE THE ESCORT. The extra cost of goods (because Ford is no longer exempt from sales tax for being a “reseller”) might affect Ford’s profits for awhile, UNLESS FORD STARTED MAKING A BETTER CAR THAN THE JAPANESE (and thus selling more Escorts because of higher consumer demand). Now here’s the wonderful benefit of a single, flat-rate, consumption-based tax to American companies: There is no corporate tax of any kind! The taxes are instead paid by the application of the tax percentage on every part that FORD consumes in manufacturing the Escort. The export duty and fees are paid by the importing foreign entity (Japan, in this case). The American consumer of the Escort also has to pay the consumption tax. But there is a way that FORD can sell more cars (besides the fact that the American Escort has to be a better product than the Japanese Camry). Ford can include the consumption tax in the final price of the Escort sold to the American consumer and the consumer will believe that the Escort is being sold TAX FREE! This is called proper sales and marketing in a Free Market economy. If FORD decides that American workers are too expensive, and FORD wants to put a manufacturing plant somewhere outside of America, then the FORD Corporation will have to pay the foreign import tax to that country. In addition, it will then be required to include the consumption tax in its price when the Escort is brought to America and sold to an American consumer (either directly or through a dealership). (This is comparable to Japan paying the consumption tax in the previous example, when it sold a Toyota Camry to an American consumer.) Therefore, if FORD wants to keep the Escort’s price lower, it should manufacture the Escort in America to avoid having to include double taxes (up to 40%: foreign import 20% and domestic consumption 20%) into the final sale price. This incentivizes American companies to keep jobs in America. Nothing is sold unless there’s a consumer who demands it. A free market, Supply and Demand Economy, has always been the best way to produce the most innovative and high-quality goods and services. But what about the not-so-good goods and services? Wal-Mart imports a not-so-good quality product for $1, which, after the proposed tax, becomes $1.20. If the American consumer wants Wal-Mart’s product, the consumer will be forced to pay $1.40, plus whatever profit margin Wal-Mart wants to gain. The imported item is taxed twice, bringing in more revenue to take care of the basic needs of the American people (many who work for Wal-Mart and whose needs are not currently being met). This will affect the Wal-Mart profit margin according to supply and demand. Because if Wal-Mart wants to make a profit, it must stock products that the people want to consume. The higher the price of the product, the less likely the people will consume it en masse. HOWEVER, having their life needs provided for them by law, the people won’t be forced to buy from Wal-Mart. If Wal-Mart wants to sell good, nutritious food that is better than other stores, then this is where it makes its money, because selling these law-mandated products, there IS NO CONSUMPTION-BASED TAX APPLIED! (As a reminder, this is because the law-mandated basic necessities are given FREE to the people of the Republic.) This motivates Wal-Mart to increase the quality of its products; especially those that people need to consume to live. If Wal-Mart doesn't provide an apple that is as good as the apple that a competitor provides, Wal-Mart will lose the business. THIS WILL AFFECT THE FARMERS AND ORGANIC, HEALTH-BASED GROWERS! Ma and Pa Stores can now compete with Wal-Mart by providing a better apple than Wal-Mart, the people having the means provided to them by law to choose where they purchase the nutritious apple. Ma and Pa ARE GUARANTEED SALES IF THEIR PRODUCTS TASTE BETTER TO THE CONSUMER! And Ma and Pa, in providing the nutritious apple DO NOT HAVE TO PAY ONE CENT IN TAXES, and can pocket the money they make and go to Wal-Mart and buy the things that they don’t need. It’s only when they buy from Wal-Mart … the things that they don’t need … that Ma and Pa are forced by law to pay taxes. Supply and demand runs the economy and benefits government tax revenue, improving the economy and thereby exponentially reducing the consumption tax rate. The people should not be taxed more than their individual economic situation allows. Whereas the GDP is the determining factor of an economy, it being the sum of all private consumption (consumer spending), government spending, corporate spending, and the averaged export/import amounts, it determines the overall strength of the people’s ability to pay taxes and still support their economy. All personal and business taxes are replaced by a flat tax on private consumption, corporate spending, and the average of export/import duties (exports-imports). This tax percentage is based on the following tax algorithm and represented by the graph below: (GDP = Gross Domestic Product and GS=Government Spending) (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services not provided by the government under constitutional law. The New Currency needed would be the difference between the tax rate needed to satisfy GS and the set 20% tax allowable by law. For example:

With the new mandates on government spending in education, healthcare, and social welfare, government spending (GS) will increase each year until the economy improves. Take into consideration that from the influx of money into the economy and the non-existent tax obligation of corporate earnings from those companies that provide the means of education, healthcare, and welfare, etc. under government contracts, the GDP will rise substantially and exponentially. And as the GDP increases due to the influx of money and government contracts, etc., the tax rate goes down accordingly. America’s influence and world power are based on its consumerism. The power of the American consumer to regulate international supply and demand quotas and trade, obligates and controls all other nations under its umbrella of consumerism in pursuit of the American dream. With liberal immigration policies, more people will come to America. The more people who participate in the economy, the more money that will be needed to support that economy. The more money people have, the more they spend. The more they spend, the more the GDP increases. The more opportunity to make money, the less and less the people will depend on the basic governmentprovided goods and services, wanting more than just the basics, thereby decreasing GS exponentially. As people work harder to acquire everything outside of their basic needs that are provided by law, the GNP (Gross National Product) increases as they buy the entertainment and luxuries that they want, the nicer homes that they want, and the food that they want, all taxed at the flat-rate consumption tax. This will bring more money into the government’s coffers that will need less and less money as the economy improves. A side note: world progression towards a more tranquil civilization will increase when other nations realize that their citizens want what America offers, motivating foreign governments to improve the lot of their people so that they will stay in their countries. In addition, as other countries produce the products that Americans want (because it is more beneficial to an American corporation to make a profit from law-mandated goods and services that Americans need), these foreign economies will improve.

Question 4

NOTE

Answer

This allows Congress to call on the military to protect the interests and welfare of the people. It ensures that the decision to enter warfare of any kind against an enemy is not the decision of a dictator (the President will not have the authority to declare war). Because congressional action to declare war requires a consensus of unanimity, the possibility of entering an unnecessary and useless war is diminished. This also forces Congress to ensure that all wartime affairs maintain humane treatment of the perceived and/or real enemy.

Question 5

NOTE

Answer

“Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes,” strictly limits ALL taxation, thus eliminating payroll, social security, Medicare, state, local, sales, estate, capital gains, corporate, and ALL TAXES. Adding this provision to the new Constitution will prevent Congress, by law, from changing the tax laws or imposing any kind of new tax other than a consumption-based flat rate tax as determined by the stated mathematical equation above (explained in detail below). (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services NOT OTHERWISE PROVIDED FOR FREE BY THE GOVERNMENT UNDER CONSTITUTIONAL LAW. Although an algorithm of such magnitude might seem too restrictive and obtrusive to the free market system, when analyzed and considered in all of its detail, it is the ONLY way that the playing field of commerce and trade can benefit all people equally and support a stable supply-and-demand-based economy that also needs to fund a government. The determining factor of any tax code should always be how such tax benefits the people. And tax revenues should be limited to funding a government that serves all people equally. Current tax laws support corporations and the wealthy, because corporations and the wealthy pay the lobbyists who fight for these laws. This new provision treats ALL people equally, regardless of economic status, conforming to this Constitution’s Preamble: “TO establish justice for each person equally, regardless of age, race, country of origin, gender, economic status, religion, or sexual orientation; We will use the game of Monopoly® to explain the implications of this form of taxation, providing new currency, and how this Constitutional provision supports The Game of Life as played out in America, while creating an equal playing field for all. Using the scenario of playing Monopoly®, it becomes very clear how the poor remain poor, and their numbers increase daily, while the rich remain rich and control the economy, as well as control business law and the government. A few players eventually own all the land, the utilities, and transportation (railroads). Those who don’t own land are still required to pay rents, utilities, and to “take a ride on a railroad” if they want to remain in the game. Eventually, because the Banker only has a limited amount of currency, those who don’t own the limited resources and receive an income from rents won’t have enough money to continue playing the game and will eventually lose the game to bankruptcy. What is not part of Monopoly® are spaces where a player can land on a job. “CHANCE” and the “COMMUNITY CHEST” are the only sources of other income to the players who do not own land or the spaces that demand payment. However, a player can be affected economically both positively and negatively per chance and being helped by the community. If more jobs were created, the players would have a greater opportunity to stay in the game. But what about the limited amount of money provided by the Banker that eventually lands in the hands of the few wealthy players? When there’s no more money, how is anyone supposed to continue to play the game? And when you open the game to new players (birth, immigration, trade agreements with other countries, etc.), what are these new players going to use to play the game? The answer: print more money so that the new players can play. But even so, no matter how much money you print, and no matter how many new players sit down and begin playing, the money will always end up in the hands of the rich who own all the spaces where some kind of payment is required. In essence, this new Constitution provides additional spaces and changes the rules for some spaces so that the other players have the opportunity to play the game longer, in fact, indefinitely, if they so choose. There’s only so much land to be owned, utilities to be owned and profited from, and railroads to ride. The playing board’s space is limited. But the ability of more and more players to play the game and be provided with the money to do so is limited only to the rules applied to the game. Therefore, the rules themselves must be changed. All of the spaces were bought up before the new players had a chance to enter the game. To play, they have no choice but to roll the dice and see where they will land and to which rich person they will pay money. The number that comes up from chance in rolling the dice is the problem. The players are forced to roll and pay whatever the owner of the space requires. The rents depend on how much money the space owner put into the space’s development (how many houses or hotels). The only way to keep people playing the game, and maybe have the opportunity to enjoy the game, is to change the rules. THERE IS NO OTHER WAY! But the first thing to consider is: why is a person forced to play? Why can’t a person simply sit around and watch? One of the reasons is because Monopoly® (i.e., Capitalism) is the only game in town, and if you want money and the opportunity to own land and play, even the money necessary to live, there’s only one way to do it: play the game according to the rules. But what if you don’t want to play the game? If you exist, you shouldn’t be forced to play the game. And if the game provides the only means for existence, then the rules of the game MUST be changed to, first, benefit the players who want to play and who have benefited from playing the game, by having them support the non-players; and second, make the game worthwhile for everyone in the room. A huge motivating factor in playing the game is to be able to say that you were successful at it—that you won! Other non-players might be impressed more, if, by your playing the game, they also benefited from your play. Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game. The thing is, the onlookers are going to become bored if they are only watching, when, upon observing the game, they are continually strategizing in their own minds how to play the game and to win themselves. Furthermore, if everyone could win, the game would lose its challenge and incentive and no one would want to play. HOWEVER, there is some intrigue in watching the game being played by others and watching their strategies of play and what they do to win and gain the advantage over other players. For this reason, there are countless new entertainment reality shows that people sit around and watch, but in which they would never dream of participating. In this scenario, as mentioned, Monopoly® is the ONLY GAME IN TOWN! The players who have benefited from it are not likely to change the game and the rules that have so richly benefited them and their families. However, the countless people standing around watching the game are getting angrier and angrier, because they are not being allowed to play or are not benefiting from the game. These masses could easily disrupt the game, tip over the board, and kill the players. So, if the established players begin to realize this, these rich and powerful ones might think twice about changing the rules, affecting the way that the game is played, so that it would include benefits to the non-players. So it is, in reality, that the few players take some of the money they’ve accumulated in playing the game and surround the playing area with armies and navies and appoint popes and priests that control the people and allow them, alone, to continue playing. Because of advancements in modern technology, a few players have the power to control the masses and protect the game. The people cannot overrun the military that is paid to only be loyal to those few players. Moreover, violence isn’t the answer either, because violent revolutions only lead to still other violent revolutions. Civilized people do not solve problems through violence. They solve conflicts through diplomacy and peer pressure. As was stated above in hypothetically using Monopoly® as an example, “Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game.” The players play to be recognized as rich and popular. We don’t want to eliminate their ability to obtain self-worth by being rich and popular. But we do want to help them see how changing the rules of the game will quiet the masses and make them even more popular and liked as they successfully play the game in a way that benefits those who aren’t involved in playing the game, or who don’t want to be. This new Constitution establishes the new rules for the game that will accomplish what both the players and non-players expect out of being forced to be around each other in the same room where there’s only one game to be played. The new Constitution gives Congress the actual equation from which it will determine taxation and the issuance of new currency. ALL TAXES WILL BE REPLACED with the set flat-rate consumption tax. Except for the fixed consumption tax, there will no longer be any duties, fees, or taxes on imports and exports. Imports are what foreign entities sell to America to consume. Exports are what America sells to foreign entities to consume. Both have the tax applied equally without loopholes and without exception. If Japan imports a Toyota Camry into America, the price for which it charges the American car dealer will have to reflect the mandated consumption tax charged by America directly to Japan. (The consumption tax is paid by the consumer and collected by the seller at the time of sale.) The American car dealer is consuming a product in order to benefit from its consumption. ACME Toyota, Inc. depends on the consumption of the American consumer to fully benefit from ACME’s consumption of Japan’s products. Because the Camry is being used by third parties to enrich them (the American car dealer named ACME), without being the end user of the product (who actually benefits from the product), each beneficiary of the product’s manufacture should be taxed equally and proportionately. Japan will pass on the tax to ACME and ACME will forward that expense on to the consumer. This system doubles the tax income to America, which is extra revenue to the government that is providing the resources of life to the poor people who make the Camry (because they have a job and are earning a living wage) and to the person who drives the truck to deliver the car to ACME. ACME is not really doing any work, but is still benefiting greatly by making a profit from the end consumer. And because the Japanese company is producing a product that affects the earth’s resources to benefit itself, it should also be responsible for supporting the people who consume its products. Americans buy many, many, many more Japanese cars than do the Japanese people buy American cars; therefore, the flat-tax rate proportionally spreads out the tax responsibility to the Japanese economy as it also affects the American economy. If Japan bought a Ford Escort, because it was much better than a Camry, Japan would pay the consumption tax on that purchase (it would be consuming the product). Ford wouldn’t have to pay an export tax on the price for which Ford sold the Escort to Japan. However, FORD WOULD BE MANDATED BY LAW TO PAY THE CONSUMPTION TAX ON EVERY PART AND PIECE OF MATERIAL THAT FORD BOUGHT (consumed) TO MAKE THE ESCORT. The extra cost of goods (because Ford is no longer exempt from sales tax for being a “reseller”) might affect Ford’s profits for awhile, UNLESS FORD STARTED MAKING A BETTER CAR THAN THE JAPANESE (and thus selling more Escorts because of higher consumer demand). Now here’s the wonderful benefit of a single, flat-rate, consumption-based tax to American companies: There is no corporate tax of any kind! The taxes are instead paid by the application of the tax percentage on every part that FORD consumes in manufacturing the Escort. The export duty and fees are paid by the importing foreign entity (Japan, in this case). The American consumer of the Escort also has to pay the consumption tax. But there is a way that FORD can sell more cars (besides the fact that the American Escort has to be a better product than the Japanese Camry). Ford can include the consumption tax in the final price of the Escort sold to the American consumer and the consumer will believe that the Escort is being sold TAX FREE! This is called proper sales and marketing in a Free Market economy. If FORD decides that American workers are too expensive, and FORD wants to put a manufacturing plant somewhere outside of America, then the FORD Corporation will have to pay the foreign import tax to that country. In addition, it will then be required to include the consumption tax in its price when the Escort is brought to America and sold to an American consumer (either directly or through a dealership). (This is comparable to Japan paying the consumption tax in the previous example, when it sold a Toyota Camry to an American consumer.) Therefore, if FORD wants to keep the Escort’s price lower, it should manufacture the Escort in America to avoid having to include double taxes (up to 40%: foreign import 20% and domestic consumption 20%) into the final sale price. This incentivizes American companies to keep jobs in America. Nothing is sold unless there’s a consumer who demands it. A free market, Supply and Demand Economy, has always been the best way to produce the most innovative and high-quality goods and services. But what about the not-so-good goods and services? Wal-Mart imports a not-so-good quality product for $1, which, after the proposed tax, becomes $1.20. If the American consumer wants Wal-Mart’s product, the consumer will be forced to pay $1.40, plus whatever profit margin Wal-Mart wants to gain. The imported item is taxed twice, bringing in more revenue to take care of the basic needs of the American people (many who work for Wal-Mart and whose needs are not currently being met). This will affect the Wal-Mart profit margin according to supply and demand. Because if Wal-Mart wants to make a profit, it must stock products that the people want to consume. The higher the price of the product, the less likely the people will consume it en masse. HOWEVER, having their life needs provided for them by law, the people won’t be forced to buy from Wal-Mart. If Wal-Mart wants to sell good, nutritious food that is better than other stores, then this is where it makes its money, because selling these law-mandated products, there IS NO CONSUMPTION-BASED TAX APPLIED! (As a reminder, this is because the law-mandated basic necessities are given FREE to the people of the Republic.) This motivates Wal-Mart to increase the quality of its products; especially those that people need to consume to live. If Wal-Mart doesn't provide an apple that is as good as the apple that a competitor provides, Wal-Mart will lose the business. THIS WILL AFFECT THE FARMERS AND ORGANIC, HEALTH-BASED GROWERS! Ma and Pa Stores can now compete with Wal-Mart by providing a better apple than Wal-Mart, the people having the means provided to them by law to choose where they purchase the nutritious apple. Ma and Pa ARE GUARANTEED SALES IF THEIR PRODUCTS TASTE BETTER TO THE CONSUMER! And Ma and Pa, in providing the nutritious apple DO NOT HAVE TO PAY ONE CENT IN TAXES, and can pocket the money they make and go to Wal-Mart and buy the things that they don’t need. It’s only when they buy from Wal-Mart … the things that they don’t need … that Ma and Pa are forced by law to pay taxes. Supply and demand runs the economy and benefits government tax revenue, improving the economy and thereby exponentially reducing the consumption tax rate. The people should not be taxed more than their individual economic situation allows. Whereas the GDP is the determining factor of an economy, it being the sum of all private consumption (consumer spending), government spending, corporate spending, and the averaged export/import amounts, it determines the overall strength of the people’s ability to pay taxes and still support their economy. All personal and business taxes are replaced by a flat tax on private consumption, corporate spending, and the average of export/import duties (exports-imports). This tax percentage is based on the following tax algorithm and represented by the graph below: (GDP = Gross Domestic Product and GS=Government Spending) (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services not provided by the government under constitutional law. The New Currency needed would be the difference between the tax rate needed to satisfy GS and the set 20% tax allowable by law. For example:

With the new mandates on government spending in education, healthcare, and social welfare, government spending (GS) will increase each year until the economy improves. Take into consideration that from the influx of money into the economy and the non-existent tax obligation of corporate earnings from those companies that provide the means of education, healthcare, and welfare, etc. under government contracts, the GDP will rise substantially and exponentially. And as the GDP increases due to the influx of money and government contracts, etc., the tax rate goes down accordingly. America’s influence and world power are based on its consumerism. The power of the American consumer to regulate international supply and demand quotas and trade, obligates and controls all other nations under its umbrella of consumerism in pursuit of the American dream. With liberal immigration policies, more people will come to America. The more people who participate in the economy, the more money that will be needed to support that economy. The more money people have, the more they spend. The more they spend, the more the GDP increases. The more opportunity to make money, the less and less the people will depend on the basic governmentprovided goods and services, wanting more than just the basics, thereby decreasing GS exponentially. As people work harder to acquire everything outside of their basic needs that are provided by law, the GNP (Gross National Product) increases as they buy the entertainment and luxuries that they want, the nicer homes that they want, and the food that they want, all taxed at the flat-rate consumption tax. This will bring more money into the government’s coffers that will need less and less money as the economy improves. A side note: world progression towards a more tranquil civilization will increase when other nations realize that their citizens want what America offers, motivating foreign governments to improve the lot of their people so that they will stay in their countries. In addition, as other countries produce the products that Americans want (because it is more beneficial to an American corporation to make a profit from law-mandated goods and services that Americans need), these foreign economies will improve.

Question 6

NOTE

Answer

There are few, if any, jobs for the people that provide a pension of any kind that is not funded by the employee (such as a 401k) if the employee only works for four years. Conversely, Social Security is a pension provided to the people of America in their old age that they were compelled to pay into throughout their working years. This provision will make sure that Congress supports the Social Security program and ensures that its monthly compensation to the people is fair, and also what Congress will be forced to depend upon in their old age, based on their contributions to Social Security during their working years, including the years they served in Congress. Because of the way that 401k programs (and other similar programs) are financed through investments in companies, this provision prohibits Congress from contributing to any pension program while serving the people so that Congress will not be influenced by any particular market investment that might increase their personal investment portfolio in an employee-funded pension.

Question 7

NOTE

Answer

This allows Congress to call on the military to protect the interests and welfare of the people. It ensures that the decision to enter warfare of any kind against an enemy is not the decision of a dictator (the President will not have the authority to declare war). Because congressional action to declare war requires a consensus of unanimity, the possibility of entering an unnecessary and useless war is diminished. This also forces Congress to ensure that all wartime affairs maintain humane treatment of the perceived and/or real enemy.

Question 8

NOTE

Answer

Impeachment does not mean removal from office. Impeachment is an official process used to reprimand or accuse a government official of wrongdoing. Congress must have the right and power to monitor and check itself. But it should not be given the power to remove a legally elected Representative from office. This right and power should always remain with the people. To keep one Representative from disagreeing and wanting to accuse another because of a personal vendetta, or one party attacking another, a unanimous vote of impeachment is required.

Question 9

NOTE

Answer

This provision forces Congress to work hard at what they do, just like any normal full-time employee is required to work when compensated for any particular job. This provision will also motivate Congress to establish employment laws to which they personally will be subjected. There are too many perks provided to Congress when it comes to their absence during the time that they are supposed to be working for the benefit of the people. Although Section 6 of this Article allows Congress to monitor itself, the people need to include Constitutional guidelines that act like an Employee Policy Manual to keep their “employees” in line and focused on the job at hand.

Question 10

NOTE

Answer

This provision creates a more service-minded attitude for those who are supposed to be serving the people. Although it would seem fair that the people’s Representatives only be paid the average wage that the people make, being compensated at two times the average income will give some incentive to people who would otherwise not serve in politics because of their desire to make a lot of money. Unfortunately, money will always play a motivating factor in how people serve. Whereas service implies a sacrifice that someone makes, wherein one gives something of themselves to aid another, America does not do well with unpaid service. There would not be a military if the rank and file were not compensated properly. One does not serve one’s country. One is paid by one’s country to do a job. This deeply American and natural human attribute requires a motivating factor commensurate with the demands of the intended job. One would think that wealthy Americans, who could afford it, would serve their country for a few years. Regardless of being motivated by money, the people need representatives in government. Today, there are many very educated people who do not even earn the average American wage (they are below it). These people need to step up and run for office, motivated by the fact that for at least four years, or eight if reelected, they will be compensated consistent with their past desire to make more money when they made the decision to go to college and receive a degree in the first place.

Question 11

NOTE

Answer

This provision solidly places control over money in the hands of the people. The establishment of a cashless society will greatly affect crime and terrorism and the way that these organizations are funded. Furthermore, economic sanctions against countries and nations that violate human rights can be more effectively and easily administered. America’s impact on the world’s economy, because it is by far the highest consumer of the world’s goods and services, justifies the American people’s right to have a powerful voice in how money is regulated throughout the world. The advent of technology associated with debit and credit cards has influenced and perpetuated electronic transactions that are monitored and accounted for by law. No one who is obeying the law would have a problem giving up cash. The fear is that Americans will lose privacy if they do not have the ability to purchase goods and service without anyone else knowing what goods and service they desire. The key to this is the establishment of laws that are good and fair and that allow people the ability to purchase any goods and service that are desired without punishment. Other provisions of this Constitution protect individual privacy. The government today already has the ability to monitor all bank and credit accounts. It is true that the government cannot properly monitor cash transactions made outside of bank oversight. But again, the use of cash is usually desired when one is breaking the law. Fair and equitable laws that protect the privacy of the individual need to exist so that the government can monitor all money movement and become more effective at monitoring criminal activity. There is no law, for one of many examples, that prohibits an adult from paying for the goods and services of pornography. Yet, that one might not want everyone else to know that he or she is paying for pornography. The information obtained electronically by the government about the purchase is a protected, Constitutional right, because no violation of law has occurred. However, prostitution is illegal. (Whether this is fair or not is not being debated here. Furthermore, how many women would want to be a prostitute if all of their basic needs were met for free?) No act of prostitution is ever paid for with an electronic transaction. The people can control money more efficiently for their own protection and sake if there were no cash-based transactions.

Question 12

NOTE

Answer

This provision creates a more service-minded attitude for those who are supposed to be serving the people. Although it would seem fair that the people’s Representatives only be paid the average wage that the people make, being compensated at two times the average income will give some incentive to people who would otherwise not serve in politics because of their desire to make a lot of money. Unfortunately, money will always play a motivating factor in how people serve. Whereas service implies a sacrifice that someone makes, wherein one gives something of themselves to aid another, America does not do well with unpaid service. There would not be a military if the rank and file were not compensated properly. One does not serve one’s country. One is paid by one’s country to do a job. This deeply American and natural human attribute requires a motivating factor commensurate with the demands of the intended job. One would think that wealthy Americans, who could afford it, would serve their country for a few years. Regardless of being motivated by money, the people need representatives in government. Today, there are many very educated people who do not even earn the average American wage (they are below it). These people need to step up and run for office, motivated by the fact that for at least four years, or eight if reelected, they will be compensated consistent with their past desire to make more money when they made the decision to go to college and receive a degree in the first place.

Question 13

NOTE

Answer

This provision solidly places control over money in the hands of the people. The establishment of a cashless society will greatly affect crime and terrorism and the way that these organizations are funded. Furthermore, economic sanctions against countries and nations that violate human rights can be more effectively and easily administered. America’s impact on the world’s economy, because it is by far the highest consumer of the world’s goods and services, justifies the American people’s right to have a powerful voice in how money is regulated throughout the world. The advent of technology associated with debit and credit cards has influenced and perpetuated electronic transactions that are monitored and accounted for by law. No one who is obeying the law would have a problem giving up cash. The fear is that Americans will lose privacy if they do not have the ability to purchase goods and service without anyone else knowing what goods and service they desire. The key to this is the establishment of laws that are good and fair and that allow people the ability to purchase any goods and service that are desired without punishment. Other provisions of this Constitution protect individual privacy. The government today already has the ability to monitor all bank and credit accounts. It is true that the government cannot properly monitor cash transactions made outside of bank oversight. But again, the use of cash is usually desired when one is breaking the law. Fair and equitable laws that protect the privacy of the individual need to exist so that the government can monitor all money movement and become more effective at monitoring criminal activity. There is no law, for one of many examples, that prohibits an adult from paying for the goods and services of pornography. Yet, that one might not want everyone else to know that he or she is paying for pornography. The information obtained electronically by the government about the purchase is a protected, Constitutional right, because no violation of law has occurred. However, prostitution is illegal. (Whether this is fair or not is not being debated here. Furthermore, how many women would want to be a prostitute if all of their basic needs were met for free?) No act of prostitution is ever paid for with an electronic transaction. The people can control money more efficiently for their own protection and sake if there were no cash-based transactions.

Question 14

NOTE

Answer

This provision creates a more service-minded attitude for those who are supposed to be serving the people. Although it would seem fair that the people’s Representatives only be paid the average wage that the people make, being compensated at two times the average income will give some incentive to people who would otherwise not serve in politics because of their desire to make a lot of money. Unfortunately, money will always play a motivating factor in how people serve. Whereas service implies a sacrifice that someone makes, wherein one gives something of themselves to aid another, America does not do well with unpaid service. There would not be a military if the rank and file were not compensated properly. One does not serve one’s country. One is paid by one’s country to do a job. This deeply American and natural human attribute requires a motivating factor commensurate with the demands of the intended job. One would think that wealthy Americans, who could afford it, would serve their country for a few years. Regardless of being motivated by money, the people need representatives in government. Today, there are many very educated people who do not even earn the average American wage (they are below it). These people need to step up and run for office, motivated by the fact that for at least four years, or eight if reelected, they will be compensated consistent with their past desire to make more money when they made the decision to go to college and receive a degree in the first place.

Question 15

NOTE

Answer

There are few, if any, jobs for the people that provide a pension of any kind that is not funded by the employee (such as a 401k) if the employee only works for four years. Conversely, Social Security is a pension provided to the people of America in their old age that they were compelled to pay into throughout their working years. This provision will make sure that Congress supports the Social Security program and ensures that its monthly compensation to the people is fair, and also what Congress will be forced to depend upon in their old age, based on their contributions to Social Security during their working years, including the years they served in Congress. Because of the way that 401k programs (and other similar programs) are financed through investments in companies, this provision prohibits Congress from contributing to any pension program while serving the people so that Congress will not be influenced by any particular market investment that might increase their personal investment portfolio in an employee-funded pension.

Question 16

NOTE

Answer

The people are going to determine how they are taxed. Unfortunately, the people, and most politicians, do not understand economic factors that create and manage the money that controls a society and supports a government. Politicians use fear over the people in their attempts to be elected and reelected to office. Fear is the result of ignorance. Politicians use the National Debt, for example, to breed fear, when they cannot explain how the National Debt works, how it is paid, and why it exists. It was ascribed to Franklin D. Roosevelt that “…the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts ….” Common sense explains that misunderstanding from ignorance breeds fear and corrupts peace and security. Fear always comes from ignorance. When a politician can stimulate fear in people, it creates a herd instinct, usually of anger, against something that the people do not understand. Money and taxation are the greatest fear of the people. Therefore, the people must establish laws based on true realities of how money is used in our economy. Furthermore, taxes should not be used to breed fear or in any other way disrupt the lives of the people. Taxes must exist to serve the people’s needs, and not so that the people are taxed to serve the needs of government. For this reason, the people must first, understand money and how it is used, and then (through their elected Representatives) establish laws that protect them from money and the control that others have over it. The people must take full control of money. The first step in doing this is to mandate, through the Constitution, how the people are taxed. This is explained in detail in Section 9 below. This provision prohibits Congress from introducing any other form of taxation.

Question 17

NOTE

Answer

This provision keeps the power of creating laws in the hands of the people and protects the people from a despotic or autocratic government. No President will have absolute power over the wishes and the opinions of the people through their elected Representatives. This provision also controls the Judicial Branch in its power and authority to determine the constitutionality of a law that Congress has unanimously agreed upon, which, in effect, is the voice of the people.

Question 18

NOTE

Answer

“Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes,” strictly limits ALL taxation, thus eliminating payroll, social security, Medicare, state, local, sales, estate, capital gains, corporate, and ALL TAXES. Adding this provision to the new Constitution will prevent Congress, by law, from changing the tax laws or imposing any kind of new tax other than a consumption-based flat rate tax as determined by the stated mathematical equation above (explained in detail below). (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services NOT OTHERWISE PROVIDED FOR FREE BY THE GOVERNMENT UNDER CONSTITUTIONAL LAW. Although an algorithm of such magnitude might seem too restrictive and obtrusive to the free market system, when analyzed and considered in all of its detail, it is the ONLY way that the playing field of commerce and trade can benefit all people equally and support a stable supply-and-demand-based economy that also needs to fund a government. The determining factor of any tax code should always be how such tax benefits the people. And tax revenues should be limited to funding a government that serves all people equally. Current tax laws support corporations and the wealthy, because corporations and the wealthy pay the lobbyists who fight for these laws. This new provision treats ALL people equally, regardless of economic status, conforming to this Constitution’s Preamble: “TO establish justice for each person equally, regardless of age, race, country of origin, gender, economic status, religion, or sexual orientation; We will use the game of Monopoly® to explain the implications of this form of taxation, providing new currency, and how this Constitutional provision supports The Game of Life as played out in America, while creating an equal playing field for all. Using the scenario of playing Monopoly®, it becomes very clear how the poor remain poor, and their numbers increase daily, while the rich remain rich and control the economy, as well as control business law and the government. A few players eventually own all the land, the utilities, and transportation (railroads). Those who don’t own land are still required to pay rents, utilities, and to “take a ride on a railroad” if they want to remain in the game. Eventually, because the Banker only has a limited amount of currency, those who don’t own the limited resources and receive an income from rents won’t have enough money to continue playing the game and will eventually lose the game to bankruptcy. What is not part of Monopoly® are spaces where a player can land on a job. “CHANCE” and the “COMMUNITY CHEST” are the only sources of other income to the players who do not own land or the spaces that demand payment. However, a player can be affected economically both positively and negatively per chance and being helped by the community. If more jobs were created, the players would have a greater opportunity to stay in the game. But what about the limited amount of money provided by the Banker that eventually lands in the hands of the few wealthy players? When there’s no more money, how is anyone supposed to continue to play the game? And when you open the game to new players (birth, immigration, trade agreements with other countries, etc.), what are these new players going to use to play the game? The answer: print more money so that the new players can play. But even so, no matter how much money you print, and no matter how many new players sit down and begin playing, the money will always end up in the hands of the rich who own all the spaces where some kind of payment is required. In essence, this new Constitution provides additional spaces and changes the rules for some spaces so that the other players have the opportunity to play the game longer, in fact, indefinitely, if they so choose. There’s only so much land to be owned, utilities to be owned and profited from, and railroads to ride. The playing board’s space is limited. But the ability of more and more players to play the game and be provided with the money to do so is limited only to the rules applied to the game. Therefore, the rules themselves must be changed. All of the spaces were bought up before the new players had a chance to enter the game. To play, they have no choice but to roll the dice and see where they will land and to which rich person they will pay money. The number that comes up from chance in rolling the dice is the problem. The players are forced to roll and pay whatever the owner of the space requires. The rents depend on how much money the space owner put into the space’s development (how many houses or hotels). The only way to keep people playing the game, and maybe have the opportunity to enjoy the game, is to change the rules. THERE IS NO OTHER WAY! But the first thing to consider is: why is a person forced to play? Why can’t a person simply sit around and watch? One of the reasons is because Monopoly® (i.e., Capitalism) is the only game in town, and if you want money and the opportunity to own land and play, even the money necessary to live, there’s only one way to do it: play the game according to the rules. But what if you don’t want to play the game? If you exist, you shouldn’t be forced to play the game. And if the game provides the only means for existence, then the rules of the game MUST be changed to, first, benefit the players who want to play and who have benefited from playing the game, by having them support the non-players; and second, make the game worthwhile for everyone in the room. A huge motivating factor in playing the game is to be able to say that you were successful at it—that you won! Other non-players might be impressed more, if, by your playing the game, they also benefited from your play. Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game. The thing is, the onlookers are going to become bored if they are only watching, when, upon observing the game, they are continually strategizing in their own minds how to play the game and to win themselves. Furthermore, if everyone could win, the game would lose its challenge and incentive and no one would want to play. HOWEVER, there is some intrigue in watching the game being played by others and watching their strategies of play and what they do to win and gain the advantage over other players. For this reason, there are countless new entertainment reality shows that people sit around and watch, but in which they would never dream of participating. In this scenario, as mentioned, Monopoly® is the ONLY GAME IN TOWN! The players who have benefited from it are not likely to change the game and the rules that have so richly benefited them and their families. However, the countless people standing around watching the game are getting angrier and angrier, because they are not being allowed to play or are not benefiting from the game. These masses could easily disrupt the game, tip over the board, and kill the players. So, if the established players begin to realize this, these rich and powerful ones might think twice about changing the rules, affecting the way that the game is played, so that it would include benefits to the non-players. So it is, in reality, that the few players take some of the money they’ve accumulated in playing the game and surround the playing area with armies and navies and appoint popes and priests that control the people and allow them, alone, to continue playing. Because of advancements in modern technology, a few players have the power to control the masses and protect the game. The people cannot overrun the military that is paid to only be loyal to those few players. Moreover, violence isn’t the answer either, because violent revolutions only lead to still other violent revolutions. Civilized people do not solve problems through violence. They solve conflicts through diplomacy and peer pressure. As was stated above in hypothetically using Monopoly® as an example, “Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game.” The players play to be recognized as rich and popular. We don’t want to eliminate their ability to obtain self-worth by being rich and popular. But we do want to help them see how changing the rules of the game will quiet the masses and make them even more popular and liked as they successfully play the game in a way that benefits those who aren’t involved in playing the game, or who don’t want to be. This new Constitution establishes the new rules for the game that will accomplish what both the players and non-players expect out of being forced to be around each other in the same room where there’s only one game to be played. The new Constitution gives Congress the actual equation from which it will determine taxation and the issuance of new currency. ALL TAXES WILL BE REPLACED with the set flat-rate consumption tax. Except for the fixed consumption tax, there will no longer be any duties, fees, or taxes on imports and exports. Imports are what foreign entities sell to America to consume. Exports are what America sells to foreign entities to consume. Both have the tax applied equally without loopholes and without exception. If Japan imports a Toyota Camry into America, the price for which it charges the American car dealer will have to reflect the mandated consumption tax charged by America directly to Japan. (The consumption tax is paid by the consumer and collected by the seller at the time of sale.) The American car dealer is consuming a product in order to benefit from its consumption. ACME Toyota, Inc. depends on the consumption of the American consumer to fully benefit from ACME’s consumption of Japan’s products. Because the Camry is being used by third parties to enrich them (the American car dealer named ACME), without being the end user of the product (who actually benefits from the product), each beneficiary of the product’s manufacture should be taxed equally and proportionately. Japan will pass on the tax to ACME and ACME will forward that expense on to the consumer. This system doubles the tax income to America, which is extra revenue to the government that is providing the resources of life to the poor people who make the Camry (because they have a job and are earning a living wage) and to the person who drives the truck to deliver the car to ACME. ACME is not really doing any work, but is still benefiting greatly by making a profit from the end consumer. And because the Japanese company is producing a product that affects the earth’s resources to benefit itself, it should also be responsible for supporting the people who consume its products. Americans buy many, many, many more Japanese cars than do the Japanese people buy American cars; therefore, the flat-tax rate proportionally spreads out the tax responsibility to the Japanese economy as it also affects the American economy. If Japan bought a Ford Escort, because it was much better than a Camry, Japan would pay the consumption tax on that purchase (it would be consuming the product). Ford wouldn’t have to pay an export tax on the price for which Ford sold the Escort to Japan. However, FORD WOULD BE MANDATED BY LAW TO PAY THE CONSUMPTION TAX ON EVERY PART AND PIECE OF MATERIAL THAT FORD BOUGHT (consumed) TO MAKE THE ESCORT. The extra cost of goods (because Ford is no longer exempt from sales tax for being a “reseller”) might affect Ford’s profits for awhile, UNLESS FORD STARTED MAKING A BETTER CAR THAN THE JAPANESE (and thus selling more Escorts because of higher consumer demand). Now here’s the wonderful benefit of a single, flat-rate, consumption-based tax to American companies: There is no corporate tax of any kind! The taxes are instead paid by the application of the tax percentage on every part that FORD consumes in manufacturing the Escort. The export duty and fees are paid by the importing foreign entity (Japan, in this case). The American consumer of the Escort also has to pay the consumption tax. But there is a way that FORD can sell more cars (besides the fact that the American Escort has to be a better product than the Japanese Camry). Ford can include the consumption tax in the final price of the Escort sold to the American consumer and the consumer will believe that the Escort is being sold TAX FREE! This is called proper sales and marketing in a Free Market economy. If FORD decides that American workers are too expensive, and FORD wants to put a manufacturing plant somewhere outside of America, then the FORD Corporation will have to pay the foreign import tax to that country. In addition, it will then be required to include the consumption tax in its price when the Escort is brought to America and sold to an American consumer (either directly or through a dealership). (This is comparable to Japan paying the consumption tax in the previous example, when it sold a Toyota Camry to an American consumer.) Therefore, if FORD wants to keep the Escort’s price lower, it should manufacture the Escort in America to avoid having to include double taxes (up to 40%: foreign import 20% and domestic consumption 20%) into the final sale price. This incentivizes American companies to keep jobs in America. Nothing is sold unless there’s a consumer who demands it. A free market, Supply and Demand Economy, has always been the best way to produce the most innovative and high-quality goods and services. But what about the not-so-good goods and services? Wal-Mart imports a not-so-good quality product for $1, which, after the proposed tax, becomes $1.20. If the American consumer wants Wal-Mart’s product, the consumer will be forced to pay $1.40, plus whatever profit margin Wal-Mart wants to gain. The imported item is taxed twice, bringing in more revenue to take care of the basic needs of the American people (many who work for Wal-Mart and whose needs are not currently being met). This will affect the Wal-Mart profit margin according to supply and demand. Because if Wal-Mart wants to make a profit, it must stock products that the people want to consume. The higher the price of the product, the less likely the people will consume it en masse. HOWEVER, having their life needs provided for them by law, the people won’t be forced to buy from Wal-Mart. If Wal-Mart wants to sell good, nutritious food that is better than other stores, then this is where it makes its money, because selling these law-mandated products, there IS NO CONSUMPTION-BASED TAX APPLIED! (As a reminder, this is because the law-mandated basic necessities are given FREE to the people of the Republic.) This motivates Wal-Mart to increase the quality of its products; especially those that people need to consume to live. If Wal-Mart doesn't provide an apple that is as good as the apple that a competitor provides, Wal-Mart will lose the business. THIS WILL AFFECT THE FARMERS AND ORGANIC, HEALTH-BASED GROWERS! Ma and Pa Stores can now compete with Wal-Mart by providing a better apple than Wal-Mart, the people having the means provided to them by law to choose where they purchase the nutritious apple. Ma and Pa ARE GUARANTEED SALES IF THEIR PRODUCTS TASTE BETTER TO THE CONSUMER! And Ma and Pa, in providing the nutritious apple DO NOT HAVE TO PAY ONE CENT IN TAXES, and can pocket the money they make and go to Wal-Mart and buy the things that they don’t need. It’s only when they buy from Wal-Mart … the things that they don’t need … that Ma and Pa are forced by law to pay taxes. Supply and demand runs the economy and benefits government tax revenue, improving the economy and thereby exponentially reducing the consumption tax rate. The people should not be taxed more than their individual economic situation allows. Whereas the GDP is the determining factor of an economy, it being the sum of all private consumption (consumer spending), government spending, corporate spending, and the averaged export/import amounts, it determines the overall strength of the people’s ability to pay taxes and still support their economy. All personal and business taxes are replaced by a flat tax on private consumption, corporate spending, and the average of export/import duties (exports-imports). This tax percentage is based on the following tax algorithm and represented by the graph below: (GDP = Gross Domestic Product and GS=Government Spending) (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services not provided by the government under constitutional law. The New Currency needed would be the difference between the tax rate needed to satisfy GS and the set 20% tax allowable by law. For example:

With the new mandates on government spending in education, healthcare, and social welfare, government spending (GS) will increase each year until the economy improves. Take into consideration that from the influx of money into the economy and the non-existent tax obligation of corporate earnings from those companies that provide the means of education, healthcare, and welfare, etc. under government contracts, the GDP will rise substantially and exponentially. And as the GDP increases due to the influx of money and government contracts, etc., the tax rate goes down accordingly. America’s influence and world power are based on its consumerism. The power of the American consumer to regulate international supply and demand quotas and trade, obligates and controls all other nations under its umbrella of consumerism in pursuit of the American dream. With liberal immigration policies, more people will come to America. The more people who participate in the economy, the more money that will be needed to support that economy. The more money people have, the more they spend. The more they spend, the more the GDP increases. The more opportunity to make money, the less and less the people will depend on the basic governmentprovided goods and services, wanting more than just the basics, thereby decreasing GS exponentially. As people work harder to acquire everything outside of their basic needs that are provided by law, the GNP (Gross National Product) increases as they buy the entertainment and luxuries that they want, the nicer homes that they want, and the food that they want, all taxed at the flat-rate consumption tax. This will bring more money into the government’s coffers that will need less and less money as the economy improves. A side note: world progression towards a more tranquil civilization will increase when other nations realize that their citizens want what America offers, motivating foreign governments to improve the lot of their people so that they will stay in their countries. In addition, as other countries produce the products that Americans want (because it is more beneficial to an American corporation to make a profit from law-mandated goods and services that Americans need), these foreign economies will improve.

Question 19

NOTE

Answer

This provision creates a more service-minded attitude for those who are supposed to be serving the people. Although it would seem fair that the people’s Representatives only be paid the average wage that the people make, being compensated at two times the average income will give some incentive to people who would otherwise not serve in politics because of their desire to make a lot of money. Unfortunately, money will always play a motivating factor in how people serve. Whereas service implies a sacrifice that someone makes, wherein one gives something of themselves to aid another, America does not do well with unpaid service. There would not be a military if the rank and file were not compensated properly. One does not serve one’s country. One is paid by one’s country to do a job. This deeply American and natural human attribute requires a motivating factor commensurate with the demands of the intended job. One would think that wealthy Americans, who could afford it, would serve their country for a few years. Regardless of being motivated by money, the people need representatives in government. Today, there are many very educated people who do not even earn the average American wage (they are below it). These people need to step up and run for office, motivated by the fact that for at least four years, or eight if reelected, they will be compensated consistent with their past desire to make more money when they made the decision to go to college and receive a degree in the first place.

Question 20

NOTE

Answer

“Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes,” strictly limits ALL taxation, thus eliminating payroll, social security, Medicare, state, local, sales, estate, capital gains, corporate, and ALL TAXES. Adding this provision to the new Constitution will prevent Congress, by law, from changing the tax laws or imposing any kind of new tax other than a consumption-based flat rate tax as determined by the stated mathematical equation above (explained in detail below). (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services NOT OTHERWISE PROVIDED FOR FREE BY THE GOVERNMENT UNDER CONSTITUTIONAL LAW. Although an algorithm of such magnitude might seem too restrictive and obtrusive to the free market system, when analyzed and considered in all of its detail, it is the ONLY way that the playing field of commerce and trade can benefit all people equally and support a stable supply-and-demand-based economy that also needs to fund a government. The determining factor of any tax code should always be how such tax benefits the people. And tax revenues should be limited to funding a government that serves all people equally. Current tax laws support corporations and the wealthy, because corporations and the wealthy pay the lobbyists who fight for these laws. This new provision treats ALL people equally, regardless of economic status, conforming to this Constitution’s Preamble: “TO establish justice for each person equally, regardless of age, race, country of origin, gender, economic status, religion, or sexual orientation; We will use the game of Monopoly® to explain the implications of this form of taxation, providing new currency, and how this Constitutional provision supports The Game of Life as played out in America, while creating an equal playing field for all. Using the scenario of playing Monopoly®, it becomes very clear how the poor remain poor, and their numbers increase daily, while the rich remain rich and control the economy, as well as control business law and the government. A few players eventually own all the land, the utilities, and transportation (railroads). Those who don’t own land are still required to pay rents, utilities, and to “take a ride on a railroad” if they want to remain in the game. Eventually, because the Banker only has a limited amount of currency, those who don’t own the limited resources and receive an income from rents won’t have enough money to continue playing the game and will eventually lose the game to bankruptcy. What is not part of Monopoly® are spaces where a player can land on a job. “CHANCE” and the “COMMUNITY CHEST” are the only sources of other income to the players who do not own land or the spaces that demand payment. However, a player can be affected economically both positively and negatively per chance and being helped by the community. If more jobs were created, the players would have a greater opportunity to stay in the game. But what about the limited amount of money provided by the Banker that eventually lands in the hands of the few wealthy players? When there’s no more money, how is anyone supposed to continue to play the game? And when you open the game to new players (birth, immigration, trade agreements with other countries, etc.), what are these new players going to use to play the game? The answer: print more money so that the new players can play. But even so, no matter how much money you print, and no matter how many new players sit down and begin playing, the money will always end up in the hands of the rich who own all the spaces where some kind of payment is required. In essence, this new Constitution provides additional spaces and changes the rules for some spaces so that the other players have the opportunity to play the game longer, in fact, indefinitely, if they so choose. There’s only so much land to be owned, utilities to be owned and profited from, and railroads to ride. The playing board’s space is limited. But the ability of more and more players to play the game and be provided with the money to do so is limited only to the rules applied to the game. Therefore, the rules themselves must be changed. All of the spaces were bought up before the new players had a chance to enter the game. To play, they have no choice but to roll the dice and see where they will land and to which rich person they will pay money. The number that comes up from chance in rolling the dice is the problem. The players are forced to roll and pay whatever the owner of the space requires. The rents depend on how much money the space owner put into the space’s development (how many houses or hotels). The only way to keep people playing the game, and maybe have the opportunity to enjoy the game, is to change the rules. THERE IS NO OTHER WAY! But the first thing to consider is: why is a person forced to play? Why can’t a person simply sit around and watch? One of the reasons is because Monopoly® (i.e., Capitalism) is the only game in town, and if you want money and the opportunity to own land and play, even the money necessary to live, there’s only one way to do it: play the game according to the rules. But what if you don’t want to play the game? If you exist, you shouldn’t be forced to play the game. And if the game provides the only means for existence, then the rules of the game MUST be changed to, first, benefit the players who want to play and who have benefited from playing the game, by having them support the non-players; and second, make the game worthwhile for everyone in the room. A huge motivating factor in playing the game is to be able to say that you were successful at it—that you won! Other non-players might be impressed more, if, by your playing the game, they also benefited from your play. Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game. The thing is, the onlookers are going to become bored if they are only watching, when, upon observing the game, they are continually strategizing in their own minds how to play the game and to win themselves. Furthermore, if everyone could win, the game would lose its challenge and incentive and no one would want to play. HOWEVER, there is some intrigue in watching the game being played by others and watching their strategies of play and what they do to win and gain the advantage over other players. For this reason, there are countless new entertainment reality shows that people sit around and watch, but in which they would never dream of participating. In this scenario, as mentioned, Monopoly® is the ONLY GAME IN TOWN! The players who have benefited from it are not likely to change the game and the rules that have so richly benefited them and their families. However, the countless people standing around watching the game are getting angrier and angrier, because they are not being allowed to play or are not benefiting from the game. These masses could easily disrupt the game, tip over the board, and kill the players. So, if the established players begin to realize this, these rich and powerful ones might think twice about changing the rules, affecting the way that the game is played, so that it would include benefits to the non-players. So it is, in reality, that the few players take some of the money they’ve accumulated in playing the game and surround the playing area with armies and navies and appoint popes and priests that control the people and allow them, alone, to continue playing. Because of advancements in modern technology, a few players have the power to control the masses and protect the game. The people cannot overrun the military that is paid to only be loyal to those few players. Moreover, violence isn’t the answer either, because violent revolutions only lead to still other violent revolutions. Civilized people do not solve problems through violence. They solve conflicts through diplomacy and peer pressure. As was stated above in hypothetically using Monopoly® as an example, “Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game.” The players play to be recognized as rich and popular. We don’t want to eliminate their ability to obtain self-worth by being rich and popular. But we do want to help them see how changing the rules of the game will quiet the masses and make them even more popular and liked as they successfully play the game in a way that benefits those who aren’t involved in playing the game, or who don’t want to be. This new Constitution establishes the new rules for the game that will accomplish what both the players and non-players expect out of being forced to be around each other in the same room where there’s only one game to be played. The new Constitution gives Congress the actual equation from which it will determine taxation and the issuance of new currency. ALL TAXES WILL BE REPLACED with the set flat-rate consumption tax. Except for the fixed consumption tax, there will no longer be any duties, fees, or taxes on imports and exports. Imports are what foreign entities sell to America to consume. Exports are what America sells to foreign entities to consume. Both have the tax applied equally without loopholes and without exception. If Japan imports a Toyota Camry into America, the price for which it charges the American car dealer will have to reflect the mandated consumption tax charged by America directly to Japan. (The consumption tax is paid by the consumer and collected by the seller at the time of sale.) The American car dealer is consuming a product in order to benefit from its consumption. ACME Toyota, Inc. depends on the consumption of the American consumer to fully benefit from ACME’s consumption of Japan’s products. Because the Camry is being used by third parties to enrich them (the American car dealer named ACME), without being the end user of the product (who actually benefits from the product), each beneficiary of the product’s manufacture should be taxed equally and proportionately. Japan will pass on the tax to ACME and ACME will forward that expense on to the consumer. This system doubles the tax income to America, which is extra revenue to the government that is providing the resources of life to the poor people who make the Camry (because they have a job and are earning a living wage) and to the person who drives the truck to deliver the car to ACME. ACME is not really doing any work, but is still benefiting greatly by making a profit from the end consumer. And because the Japanese company is producing a product that affects the earth’s resources to benefit itself, it should also be responsible for supporting the people who consume its products. Americans buy many, many, many more Japanese cars than do the Japanese people buy American cars; therefore, the flat-tax rate proportionally spreads out the tax responsibility to the Japanese economy as it also affects the American economy. If Japan bought a Ford Escort, because it was much better than a Camry, Japan would pay the consumption tax on that purchase (it would be consuming the product). Ford wouldn’t have to pay an export tax on the price for which Ford sold the Escort to Japan. However, FORD WOULD BE MANDATED BY LAW TO PAY THE CONSUMPTION TAX ON EVERY PART AND PIECE OF MATERIAL THAT FORD BOUGHT (consumed) TO MAKE THE ESCORT. The extra cost of goods (because Ford is no longer exempt from sales tax for being a “reseller”) might affect Ford’s profits for awhile, UNLESS FORD STARTED MAKING A BETTER CAR THAN THE JAPANESE (and thus selling more Escorts because of higher consumer demand). Now here’s the wonderful benefit of a single, flat-rate, consumption-based tax to American companies: There is no corporate tax of any kind! The taxes are instead paid by the application of the tax percentage on every part that FORD consumes in manufacturing the Escort. The export duty and fees are paid by the importing foreign entity (Japan, in this case). The American consumer of the Escort also has to pay the consumption tax. But there is a way that FORD can sell more cars (besides the fact that the American Escort has to be a better product than the Japanese Camry). Ford can include the consumption tax in the final price of the Escort sold to the American consumer and the consumer will believe that the Escort is being sold TAX FREE! This is called proper sales and marketing in a Free Market economy. If FORD decides that American workers are too expensive, and FORD wants to put a manufacturing plant somewhere outside of America, then the FORD Corporation will have to pay the foreign import tax to that country. In addition, it will then be required to include the consumption tax in its price when the Escort is brought to America and sold to an American consumer (either directly or through a dealership). (This is comparable to Japan paying the consumption tax in the previous example, when it sold a Toyota Camry to an American consumer.) Therefore, if FORD wants to keep the Escort’s price lower, it should manufacture the Escort in America to avoid having to include double taxes (up to 40%: foreign import 20% and domestic consumption 20%) into the final sale price. This incentivizes American companies to keep jobs in America. Nothing is sold unless there’s a consumer who demands it. A free market, Supply and Demand Economy, has always been the best way to produce the most innovative and high-quality goods and services. But what about the not-so-good goods and services? Wal-Mart imports a not-so-good quality product for $1, which, after the proposed tax, becomes $1.20. If the American consumer wants Wal-Mart’s product, the consumer will be forced to pay $1.40, plus whatever profit margin Wal-Mart wants to gain. The imported item is taxed twice, bringing in more revenue to take care of the basic needs of the American people (many who work for Wal-Mart and whose needs are not currently being met). This will affect the Wal-Mart profit margin according to supply and demand. Because if Wal-Mart wants to make a profit, it must stock products that the people want to consume. The higher the price of the product, the less likely the people will consume it en masse. HOWEVER, having their life needs provided for them by law, the people won’t be forced to buy from Wal-Mart. If Wal-Mart wants to sell good, nutritious food that is better than other stores, then this is where it makes its money, because selling these law-mandated products, there IS NO CONSUMPTION-BASED TAX APPLIED! (As a reminder, this is because the law-mandated basic necessities are given FREE to the people of the Republic.) This motivates Wal-Mart to increase the quality of its products; especially those that people need to consume to live. If Wal-Mart doesn't provide an apple that is as good as the apple that a competitor provides, Wal-Mart will lose the business. THIS WILL AFFECT THE FARMERS AND ORGANIC, HEALTH-BASED GROWERS! Ma and Pa Stores can now compete with Wal-Mart by providing a better apple than Wal-Mart, the people having the means provided to them by law to choose where they purchase the nutritious apple. Ma and Pa ARE GUARANTEED SALES IF THEIR PRODUCTS TASTE BETTER TO THE CONSUMER! And Ma and Pa, in providing the nutritious apple DO NOT HAVE TO PAY ONE CENT IN TAXES, and can pocket the money they make and go to Wal-Mart and buy the things that they don’t need. It’s only when they buy from Wal-Mart … the things that they don’t need … that Ma and Pa are forced by law to pay taxes. Supply and demand runs the economy and benefits government tax revenue, improving the economy and thereby exponentially reducing the consumption tax rate. The people should not be taxed more than their individual economic situation allows. Whereas the GDP is the determining factor of an economy, it being the sum of all private consumption (consumer spending), government spending, corporate spending, and the averaged export/import amounts, it determines the overall strength of the people’s ability to pay taxes and still support their economy. All personal and business taxes are replaced by a flat tax on private consumption, corporate spending, and the average of export/import duties (exports-imports). This tax percentage is based on the following tax algorithm and represented by the graph below: (GDP = Gross Domestic Product and GS=Government Spending) (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services not provided by the government under constitutional law. The New Currency needed would be the difference between the tax rate needed to satisfy GS and the set 20% tax allowable by law. For example:

With the new mandates on government spending in education, healthcare, and social welfare, government spending (GS) will increase each year until the economy improves. Take into consideration that from the influx of money into the economy and the non-existent tax obligation of corporate earnings from those companies that provide the means of education, healthcare, and welfare, etc. under government contracts, the GDP will rise substantially and exponentially. And as the GDP increases due to the influx of money and government contracts, etc., the tax rate goes down accordingly. America’s influence and world power are based on its consumerism. The power of the American consumer to regulate international supply and demand quotas and trade, obligates and controls all other nations under its umbrella of consumerism in pursuit of the American dream. With liberal immigration policies, more people will come to America. The more people who participate in the economy, the more money that will be needed to support that economy. The more money people have, the more they spend. The more they spend, the more the GDP increases. The more opportunity to make money, the less and less the people will depend on the basic governmentprovided goods and services, wanting more than just the basics, thereby decreasing GS exponentially. As people work harder to acquire everything outside of their basic needs that are provided by law, the GNP (Gross National Product) increases as they buy the entertainment and luxuries that they want, the nicer homes that they want, and the food that they want, all taxed at the flat-rate consumption tax. This will bring more money into the government’s coffers that will need less and less money as the economy improves. A side note: world progression towards a more tranquil civilization will increase when other nations realize that their citizens want what America offers, motivating foreign governments to improve the lot of their people so that they will stay in their countries. In addition, as other countries produce the products that Americans want (because it is more beneficial to an American corporation to make a profit from law-mandated goods and services that Americans need), these foreign economies will improve.

Question 21

NOTE

Answer

There are few, if any, jobs for the people that provide a pension of any kind that is not funded by the employee (such as a 401k) if the employee only works for four years. Conversely, Social Security is a pension provided to the people of America in their old age that they were compelled to pay into throughout their working years. This provision will make sure that Congress supports the Social Security program and ensures that its monthly compensation to the people is fair, and also what Congress will be forced to depend upon in their old age, based on their contributions to Social Security during their working years, including the years they served in Congress. Because of the way that 401k programs (and other similar programs) are financed through investments in companies, this provision prohibits Congress from contributing to any pension program while serving the people so that Congress will not be influenced by any particular market investment that might increase their personal investment portfolio in an employee-funded pension.

Question 22

NOTE

Answer

This provision creates a more service-minded attitude for those who are supposed to be serving the people. Although it would seem fair that the people’s Representatives only be paid the average wage that the people make, being compensated at two times the average income will give some incentive to people who would otherwise not serve in politics because of their desire to make a lot of money. Unfortunately, money will always play a motivating factor in how people serve. Whereas service implies a sacrifice that someone makes, wherein one gives something of themselves to aid another, America does not do well with unpaid service. There would not be a military if the rank and file were not compensated properly. One does not serve one’s country. One is paid by one’s country to do a job. This deeply American and natural human attribute requires a motivating factor commensurate with the demands of the intended job. One would think that wealthy Americans, who could afford it, would serve their country for a few years. Regardless of being motivated by money, the people need representatives in government. Today, there are many very educated people who do not even earn the average American wage (they are below it). These people need to step up and run for office, motivated by the fact that for at least four years, or eight if reelected, they will be compensated consistent with their past desire to make more money when they made the decision to go to college and receive a degree in the first place.

Question 23

NOTE

Answer

The people are going to determine how they are taxed. Unfortunately, the people, and most politicians, do not understand economic factors that create and manage the money that controls a society and supports a government. Politicians use fear over the people in their attempts to be elected and reelected to office. Fear is the result of ignorance. Politicians use the National Debt, for example, to breed fear, when they cannot explain how the National Debt works, how it is paid, and why it exists. It was ascribed to Franklin D. Roosevelt that “…the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts ….” Common sense explains that misunderstanding from ignorance breeds fear and corrupts peace and security. Fear always comes from ignorance. When a politician can stimulate fear in people, it creates a herd instinct, usually of anger, against something that the people do not understand. Money and taxation are the greatest fear of the people. Therefore, the people must establish laws based on true realities of how money is used in our economy. Furthermore, taxes should not be used to breed fear or in any other way disrupt the lives of the people. Taxes must exist to serve the people’s needs, and not so that the people are taxed to serve the needs of government. For this reason, the people must first, understand money and how it is used, and then (through their elected Representatives) establish laws that protect them from money and the control that others have over it. The people must take full control of money. The first step in doing this is to mandate, through the Constitution, how the people are taxed. This is explained in detail in Section 9 below. This provision prohibits Congress from introducing any other form of taxation.

Question 24

NOTE

Answer

The people are going to determine how they are taxed. Unfortunately, the people, and most politicians, do not understand economic factors that create and manage the money that controls a society and supports a government. Politicians use fear over the people in their attempts to be elected and reelected to office. Fear is the result of ignorance. Politicians use the National Debt, for example, to breed fear, when they cannot explain how the National Debt works, how it is paid, and why it exists. It was ascribed to Franklin D. Roosevelt that “…the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts ….” Common sense explains that misunderstanding from ignorance breeds fear and corrupts peace and security. Fear always comes from ignorance. When a politician can stimulate fear in people, it creates a herd instinct, usually of anger, against something that the people do not understand. Money and taxation are the greatest fear of the people. Therefore, the people must establish laws based on true realities of how money is used in our economy. Furthermore, taxes should not be used to breed fear or in any other way disrupt the lives of the people. Taxes must exist to serve the people’s needs, and not so that the people are taxed to serve the needs of government. For this reason, the people must first, understand money and how it is used, and then (through their elected Representatives) establish laws that protect them from money and the control that others have over it. The people must take full control of money. The first step in doing this is to mandate, through the Constitution, how the people are taxed. This is explained in detail in Section 9 below. This provision prohibits Congress from introducing any other form of taxation.

Question 25

NOTE

Answer

This provision allows the people to have more control over how law enforcement deals with them. Article IV (Inalienable Human Rights), Section 4 of this new Constitution, details the desires of the people in relation to domestic law enforcement agencies. Whereas Article IV, Section 4, gives a blueprint of what the people expect, this provision gives Congress its authority and responsibility to act. The people do not need different law enforcement agencies with different agendas, protocols, egos, and jurisdiction. One Federal Law Enforcement Agency will work more efficiently. Because States lose their sovereign status and their ability to make and enforce a particular State’s own laws, Federal Law under this Constitution will become the law of the land for all Americans. Currently, various local, state, and federal agencies compete with each other and often do not cooperate, each trying to “one up” the other and show their worth. Burdened with bureaucracy, current law enforcement agencies struggle and often forget that they exist only to protect and serve the people. Eliminating the animosity and pride of the various law enforcement agencies will enhance law enforcement and will serve the people and not the pride and loyalty that agents and officers often feel for their local chapters.

Question 26

NOTE

Answer

This provision creates a more service-minded attitude for those who are supposed to be serving the people. Although it would seem fair that the people’s Representatives only be paid the average wage that the people make, being compensated at two times the average income will give some incentive to people who would otherwise not serve in politics because of their desire to make a lot of money. Unfortunately, money will always play a motivating factor in how people serve. Whereas service implies a sacrifice that someone makes, wherein one gives something of themselves to aid another, America does not do well with unpaid service. There would not be a military if the rank and file were not compensated properly. One does not serve one’s country. One is paid by one’s country to do a job. This deeply American and natural human attribute requires a motivating factor commensurate with the demands of the intended job. One would think that wealthy Americans, who could afford it, would serve their country for a few years. Regardless of being motivated by money, the people need representatives in government. Today, there are many very educated people who do not even earn the average American wage (they are below it). These people need to step up and run for office, motivated by the fact that for at least four years, or eight if reelected, they will be compensated consistent with their past desire to make more money when they made the decision to go to college and receive a degree in the first place.

Question 27

NOTE

Answer

“Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes,” strictly limits ALL taxation, thus eliminating payroll, social security, Medicare, state, local, sales, estate, capital gains, corporate, and ALL TAXES. Adding this provision to the new Constitution will prevent Congress, by law, from changing the tax laws or imposing any kind of new tax other than a consumption-based flat rate tax as determined by the stated mathematical equation above (explained in detail below). (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services NOT OTHERWISE PROVIDED FOR FREE BY THE GOVERNMENT UNDER CONSTITUTIONAL LAW. Although an algorithm of such magnitude might seem too restrictive and obtrusive to the free market system, when analyzed and considered in all of its detail, it is the ONLY way that the playing field of commerce and trade can benefit all people equally and support a stable supply-and-demand-based economy that also needs to fund a government. The determining factor of any tax code should always be how such tax benefits the people. And tax revenues should be limited to funding a government that serves all people equally. Current tax laws support corporations and the wealthy, because corporations and the wealthy pay the lobbyists who fight for these laws. This new provision treats ALL people equally, regardless of economic status, conforming to this Constitution’s Preamble: “TO establish justice for each person equally, regardless of age, race, country of origin, gender, economic status, religion, or sexual orientation; We will use the game of Monopoly® to explain the implications of this form of taxation, providing new currency, and how this Constitutional provision supports The Game of Life as played out in America, while creating an equal playing field for all. Using the scenario of playing Monopoly®, it becomes very clear how the poor remain poor, and their numbers increase daily, while the rich remain rich and control the economy, as well as control business law and the government. A few players eventually own all the land, the utilities, and transportation (railroads). Those who don’t own land are still required to pay rents, utilities, and to “take a ride on a railroad” if they want to remain in the game. Eventually, because the Banker only has a limited amount of currency, those who don’t own the limited resources and receive an income from rents won’t have enough money to continue playing the game and will eventually lose the game to bankruptcy. What is not part of Monopoly® are spaces where a player can land on a job. “CHANCE” and the “COMMUNITY CHEST” are the only sources of other income to the players who do not own land or the spaces that demand payment. However, a player can be affected economically both positively and negatively per chance and being helped by the community. If more jobs were created, the players would have a greater opportunity to stay in the game. But what about the limited amount of money provided by the Banker that eventually lands in the hands of the few wealthy players? When there’s no more money, how is anyone supposed to continue to play the game? And when you open the game to new players (birth, immigration, trade agreements with other countries, etc.), what are these new players going to use to play the game? The answer: print more money so that the new players can play. But even so, no matter how much money you print, and no matter how many new players sit down and begin playing, the money will always end up in the hands of the rich who own all the spaces where some kind of payment is required. In essence, this new Constitution provides additional spaces and changes the rules for some spaces so that the other players have the opportunity to play the game longer, in fact, indefinitely, if they so choose. There’s only so much land to be owned, utilities to be owned and profited from, and railroads to ride. The playing board’s space is limited. But the ability of more and more players to play the game and be provided with the money to do so is limited only to the rules applied to the game. Therefore, the rules themselves must be changed. All of the spaces were bought up before the new players had a chance to enter the game. To play, they have no choice but to roll the dice and see where they will land and to which rich person they will pay money. The number that comes up from chance in rolling the dice is the problem. The players are forced to roll and pay whatever the owner of the space requires. The rents depend on how much money the space owner put into the space’s development (how many houses or hotels). The only way to keep people playing the game, and maybe have the opportunity to enjoy the game, is to change the rules. THERE IS NO OTHER WAY! But the first thing to consider is: why is a person forced to play? Why can’t a person simply sit around and watch? One of the reasons is because Monopoly® (i.e., Capitalism) is the only game in town, and if you want money and the opportunity to own land and play, even the money necessary to live, there’s only one way to do it: play the game according to the rules. But what if you don’t want to play the game? If you exist, you shouldn’t be forced to play the game. And if the game provides the only means for existence, then the rules of the game MUST be changed to, first, benefit the players who want to play and who have benefited from playing the game, by having them support the non-players; and second, make the game worthwhile for everyone in the room. A huge motivating factor in playing the game is to be able to say that you were successful at it—that you won! Other non-players might be impressed more, if, by your playing the game, they also benefited from your play. Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game. The thing is, the onlookers are going to become bored if they are only watching, when, upon observing the game, they are continually strategizing in their own minds how to play the game and to win themselves. Furthermore, if everyone could win, the game would lose its challenge and incentive and no one would want to play. HOWEVER, there is some intrigue in watching the game being played by others and watching their strategies of play and what they do to win and gain the advantage over other players. For this reason, there are countless new entertainment reality shows that people sit around and watch, but in which they would never dream of participating. In this scenario, as mentioned, Monopoly® is the ONLY GAME IN TOWN! The players who have benefited from it are not likely to change the game and the rules that have so richly benefited them and their families. However, the countless people standing around watching the game are getting angrier and angrier, because they are not being allowed to play or are not benefiting from the game. These masses could easily disrupt the game, tip over the board, and kill the players. So, if the established players begin to realize this, these rich and powerful ones might think twice about changing the rules, affecting the way that the game is played, so that it would include benefits to the non-players. So it is, in reality, that the few players take some of the money they’ve accumulated in playing the game and surround the playing area with armies and navies and appoint popes and priests that control the people and allow them, alone, to continue playing. Because of advancements in modern technology, a few players have the power to control the masses and protect the game. The people cannot overrun the military that is paid to only be loyal to those few players. Moreover, violence isn’t the answer either, because violent revolutions only lead to still other violent revolutions. Civilized people do not solve problems through violence. They solve conflicts through diplomacy and peer pressure. As was stated above in hypothetically using Monopoly® as an example, “Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game.” The players play to be recognized as rich and popular. We don’t want to eliminate their ability to obtain self-worth by being rich and popular. But we do want to help them see how changing the rules of the game will quiet the masses and make them even more popular and liked as they successfully play the game in a way that benefits those who aren’t involved in playing the game, or who don’t want to be. This new Constitution establishes the new rules for the game that will accomplish what both the players and non-players expect out of being forced to be around each other in the same room where there’s only one game to be played. The new Constitution gives Congress the actual equation from which it will determine taxation and the issuance of new currency. ALL TAXES WILL BE REPLACED with the set flat-rate consumption tax. Except for the fixed consumption tax, there will no longer be any duties, fees, or taxes on imports and exports. Imports are what foreign entities sell to America to consume. Exports are what America sells to foreign entities to consume. Both have the tax applied equally without loopholes and without exception. If Japan imports a Toyota Camry into America, the price for which it charges the American car dealer will have to reflect the mandated consumption tax charged by America directly to Japan. (The consumption tax is paid by the consumer and collected by the seller at the time of sale.) The American car dealer is consuming a product in order to benefit from its consumption. ACME Toyota, Inc. depends on the consumption of the American consumer to fully benefit from ACME’s consumption of Japan’s products. Because the Camry is being used by third parties to enrich them (the American car dealer named ACME), without being the end user of the product (who actually benefits from the product), each beneficiary of the product’s manufacture should be taxed equally and proportionately. Japan will pass on the tax to ACME and ACME will forward that expense on to the consumer. This system doubles the tax income to America, which is extra revenue to the government that is providing the resources of life to the poor people who make the Camry (because they have a job and are earning a living wage) and to the person who drives the truck to deliver the car to ACME. ACME is not really doing any work, but is still benefiting greatly by making a profit from the end consumer. And because the Japanese company is producing a product that affects the earth’s resources to benefit itself, it should also be responsible for supporting the people who consume its products. Americans buy many, many, many more Japanese cars than do the Japanese people buy American cars; therefore, the flat-tax rate proportionally spreads out the tax responsibility to the Japanese economy as it also affects the American economy. If Japan bought a Ford Escort, because it was much better than a Camry, Japan would pay the consumption tax on that purchase (it would be consuming the product). Ford wouldn’t have to pay an export tax on the price for which Ford sold the Escort to Japan. However, FORD WOULD BE MANDATED BY LAW TO PAY THE CONSUMPTION TAX ON EVERY PART AND PIECE OF MATERIAL THAT FORD BOUGHT (consumed) TO MAKE THE ESCORT. The extra cost of goods (because Ford is no longer exempt from sales tax for being a “reseller”) might affect Ford’s profits for awhile, UNLESS FORD STARTED MAKING A BETTER CAR THAN THE JAPANESE (and thus selling more Escorts because of higher consumer demand). Now here’s the wonderful benefit of a single, flat-rate, consumption-based tax to American companies: There is no corporate tax of any kind! The taxes are instead paid by the application of the tax percentage on every part that FORD consumes in manufacturing the Escort. The export duty and fees are paid by the importing foreign entity (Japan, in this case). The American consumer of the Escort also has to pay the consumption tax. But there is a way that FORD can sell more cars (besides the fact that the American Escort has to be a better product than the Japanese Camry). Ford can include the consumption tax in the final price of the Escort sold to the American consumer and the consumer will believe that the Escort is being sold TAX FREE! This is called proper sales and marketing in a Free Market economy. If FORD decides that American workers are too expensive, and FORD wants to put a manufacturing plant somewhere outside of America, then the FORD Corporation will have to pay the foreign import tax to that country. In addition, it will then be required to include the consumption tax in its price when the Escort is brought to America and sold to an American consumer (either directly or through a dealership). (This is comparable to Japan paying the consumption tax in the previous example, when it sold a Toyota Camry to an American consumer.) Therefore, if FORD wants to keep the Escort’s price lower, it should manufacture the Escort in America to avoid having to include double taxes (up to 40%: foreign import 20% and domestic consumption 20%) into the final sale price. This incentivizes American companies to keep jobs in America. Nothing is sold unless there’s a consumer who demands it. A free market, Supply and Demand Economy, has always been the best way to produce the most innovative and high-quality goods and services. But what about the not-so-good goods and services? Wal-Mart imports a not-so-good quality product for $1, which, after the proposed tax, becomes $1.20. If the American consumer wants Wal-Mart’s product, the consumer will be forced to pay $1.40, plus whatever profit margin Wal-Mart wants to gain. The imported item is taxed twice, bringing in more revenue to take care of the basic needs of the American people (many who work for Wal-Mart and whose needs are not currently being met). This will affect the Wal-Mart profit margin according to supply and demand. Because if Wal-Mart wants to make a profit, it must stock products that the people want to consume. The higher the price of the product, the less likely the people will consume it en masse. HOWEVER, having their life needs provided for them by law, the people won’t be forced to buy from Wal-Mart. If Wal-Mart wants to sell good, nutritious food that is better than other stores, then this is where it makes its money, because selling these law-mandated products, there IS NO CONSUMPTION-BASED TAX APPLIED! (As a reminder, this is because the law-mandated basic necessities are given FREE to the people of the Republic.) This motivates Wal-Mart to increase the quality of its products; especially those that people need to consume to live. If Wal-Mart doesn't provide an apple that is as good as the apple that a competitor provides, Wal-Mart will lose the business. THIS WILL AFFECT THE FARMERS AND ORGANIC, HEALTH-BASED GROWERS! Ma and Pa Stores can now compete with Wal-Mart by providing a better apple than Wal-Mart, the people having the means provided to them by law to choose where they purchase the nutritious apple. Ma and Pa ARE GUARANTEED SALES IF THEIR PRODUCTS TASTE BETTER TO THE CONSUMER! And Ma and Pa, in providing the nutritious apple DO NOT HAVE TO PAY ONE CENT IN TAXES, and can pocket the money they make and go to Wal-Mart and buy the things that they don’t need. It’s only when they buy from Wal-Mart … the things that they don’t need … that Ma and Pa are forced by law to pay taxes. Supply and demand runs the economy and benefits government tax revenue, improving the economy and thereby exponentially reducing the consumption tax rate. The people should not be taxed more than their individual economic situation allows. Whereas the GDP is the determining factor of an economy, it being the sum of all private consumption (consumer spending), government spending, corporate spending, and the averaged export/import amounts, it determines the overall strength of the people’s ability to pay taxes and still support their economy. All personal and business taxes are replaced by a flat tax on private consumption, corporate spending, and the average of export/import duties (exports-imports). This tax percentage is based on the following tax algorithm and represented by the graph below: (GDP = Gross Domestic Product and GS=Government Spending) (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services not provided by the government under constitutional law. The New Currency needed would be the difference between the tax rate needed to satisfy GS and the set 20% tax allowable by law. For example:

With the new mandates on government spending in education, healthcare, and social welfare, government spending (GS) will increase each year until the economy improves. Take into consideration that from the influx of money into the economy and the non-existent tax obligation of corporate earnings from those companies that provide the means of education, healthcare, and welfare, etc. under government contracts, the GDP will rise substantially and exponentially. And as the GDP increases due to the influx of money and government contracts, etc., the tax rate goes down accordingly. America’s influence and world power are based on its consumerism. The power of the American consumer to regulate international supply and demand quotas and trade, obligates and controls all other nations under its umbrella of consumerism in pursuit of the American dream. With liberal immigration policies, more people will come to America. The more people who participate in the economy, the more money that will be needed to support that economy. The more money people have, the more they spend. The more they spend, the more the GDP increases. The more opportunity to make money, the less and less the people will depend on the basic governmentprovided goods and services, wanting more than just the basics, thereby decreasing GS exponentially. As people work harder to acquire everything outside of their basic needs that are provided by law, the GNP (Gross National Product) increases as they buy the entertainment and luxuries that they want, the nicer homes that they want, and the food that they want, all taxed at the flat-rate consumption tax. This will bring more money into the government’s coffers that will need less and less money as the economy improves. A side note: world progression towards a more tranquil civilization will increase when other nations realize that their citizens want what America offers, motivating foreign governments to improve the lot of their people so that they will stay in their countries. In addition, as other countries produce the products that Americans want (because it is more beneficial to an American corporation to make a profit from law-mandated goods and services that Americans need), these foreign economies will improve.

Question 28

NOTE

Answer

“Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes,” strictly limits ALL taxation, thus eliminating payroll, social security, Medicare, state, local, sales, estate, capital gains, corporate, and ALL TAXES. Adding this provision to the new Constitution will prevent Congress, by law, from changing the tax laws or imposing any kind of new tax other than a consumption-based flat rate tax as determined by the stated mathematical equation above (explained in detail below). (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services NOT OTHERWISE PROVIDED FOR FREE BY THE GOVERNMENT UNDER CONSTITUTIONAL LAW. Although an algorithm of such magnitude might seem too restrictive and obtrusive to the free market system, when analyzed and considered in all of its detail, it is the ONLY way that the playing field of commerce and trade can benefit all people equally and support a stable supply-and-demand-based economy that also needs to fund a government. The determining factor of any tax code should always be how such tax benefits the people. And tax revenues should be limited to funding a government that serves all people equally. Current tax laws support corporations and the wealthy, because corporations and the wealthy pay the lobbyists who fight for these laws. This new provision treats ALL people equally, regardless of economic status, conforming to this Constitution’s Preamble: “TO establish justice for each person equally, regardless of age, race, country of origin, gender, economic status, religion, or sexual orientation; We will use the game of Monopoly® to explain the implications of this form of taxation, providing new currency, and how this Constitutional provision supports The Game of Life as played out in America, while creating an equal playing field for all. Using the scenario of playing Monopoly®, it becomes very clear how the poor remain poor, and their numbers increase daily, while the rich remain rich and control the economy, as well as control business law and the government. A few players eventually own all the land, the utilities, and transportation (railroads). Those who don’t own land are still required to pay rents, utilities, and to “take a ride on a railroad” if they want to remain in the game. Eventually, because the Banker only has a limited amount of currency, those who don’t own the limited resources and receive an income from rents won’t have enough money to continue playing the game and will eventually lose the game to bankruptcy. What is not part of Monopoly® are spaces where a player can land on a job. “CHANCE” and the “COMMUNITY CHEST” are the only sources of other income to the players who do not own land or the spaces that demand payment. However, a player can be affected economically both positively and negatively per chance and being helped by the community. If more jobs were created, the players would have a greater opportunity to stay in the game. But what about the limited amount of money provided by the Banker that eventually lands in the hands of the few wealthy players? When there’s no more money, how is anyone supposed to continue to play the game? And when you open the game to new players (birth, immigration, trade agreements with other countries, etc.), what are these new players going to use to play the game? The answer: print more money so that the new players can play. But even so, no matter how much money you print, and no matter how many new players sit down and begin playing, the money will always end up in the hands of the rich who own all the spaces where some kind of payment is required. In essence, this new Constitution provides additional spaces and changes the rules for some spaces so that the other players have the opportunity to play the game longer, in fact, indefinitely, if they so choose. There’s only so much land to be owned, utilities to be owned and profited from, and railroads to ride. The playing board’s space is limited. But the ability of more and more players to play the game and be provided with the money to do so is limited only to the rules applied to the game. Therefore, the rules themselves must be changed. All of the spaces were bought up before the new players had a chance to enter the game. To play, they have no choice but to roll the dice and see where they will land and to which rich person they will pay money. The number that comes up from chance in rolling the dice is the problem. The players are forced to roll and pay whatever the owner of the space requires. The rents depend on how much money the space owner put into the space’s development (how many houses or hotels). The only way to keep people playing the game, and maybe have the opportunity to enjoy the game, is to change the rules. THERE IS NO OTHER WAY! But the first thing to consider is: why is a person forced to play? Why can’t a person simply sit around and watch? One of the reasons is because Monopoly® (i.e., Capitalism) is the only game in town, and if you want money and the opportunity to own land and play, even the money necessary to live, there’s only one way to do it: play the game according to the rules. But what if you don’t want to play the game? If you exist, you shouldn’t be forced to play the game. And if the game provides the only means for existence, then the rules of the game MUST be changed to, first, benefit the players who want to play and who have benefited from playing the game, by having them support the non-players; and second, make the game worthwhile for everyone in the room. A huge motivating factor in playing the game is to be able to say that you were successful at it—that you won! Other non-players might be impressed more, if, by your playing the game, they also benefited from your play. Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game. The thing is, the onlookers are going to become bored if they are only watching, when, upon observing the game, they are continually strategizing in their own minds how to play the game and to win themselves. Furthermore, if everyone could win, the game would lose its challenge and incentive and no one would want to play. HOWEVER, there is some intrigue in watching the game being played by others and watching their strategies of play and what they do to win and gain the advantage over other players. For this reason, there are countless new entertainment reality shows that people sit around and watch, but in which they would never dream of participating. In this scenario, as mentioned, Monopoly® is the ONLY GAME IN TOWN! The players who have benefited from it are not likely to change the game and the rules that have so richly benefited them and their families. However, the countless people standing around watching the game are getting angrier and angrier, because they are not being allowed to play or are not benefiting from the game. These masses could easily disrupt the game, tip over the board, and kill the players. So, if the established players begin to realize this, these rich and powerful ones might think twice about changing the rules, affecting the way that the game is played, so that it would include benefits to the non-players. So it is, in reality, that the few players take some of the money they’ve accumulated in playing the game and surround the playing area with armies and navies and appoint popes and priests that control the people and allow them, alone, to continue playing. Because of advancements in modern technology, a few players have the power to control the masses and protect the game. The people cannot overrun the military that is paid to only be loyal to those few players. Moreover, violence isn’t the answer either, because violent revolutions only lead to still other violent revolutions. Civilized people do not solve problems through violence. They solve conflicts through diplomacy and peer pressure. As was stated above in hypothetically using Monopoly® as an example, “Just think how popular and well liked those would be who helped the non-players by providing them with snacks and a comfortable chair from which to sit back and observe the game.” The players play to be recognized as rich and popular. We don’t want to eliminate their ability to obtain self-worth by being rich and popular. But we do want to help them see how changing the rules of the game will quiet the masses and make them even more popular and liked as they successfully play the game in a way that benefits those who aren’t involved in playing the game, or who don’t want to be. This new Constitution establishes the new rules for the game that will accomplish what both the players and non-players expect out of being forced to be around each other in the same room where there’s only one game to be played. The new Constitution gives Congress the actual equation from which it will determine taxation and the issuance of new currency. ALL TAXES WILL BE REPLACED with the set flat-rate consumption tax. Except for the fixed consumption tax, there will no longer be any duties, fees, or taxes on imports and exports. Imports are what foreign entities sell to America to consume. Exports are what America sells to foreign entities to consume. Both have the tax applied equally without loopholes and without exception. If Japan imports a Toyota Camry into America, the price for which it charges the American car dealer will have to reflect the mandated consumption tax charged by America directly to Japan. (The consumption tax is paid by the consumer and collected by the seller at the time of sale.) The American car dealer is consuming a product in order to benefit from its consumption. ACME Toyota, Inc. depends on the consumption of the American consumer to fully benefit from ACME’s consumption of Japan’s products. Because the Camry is being used by third parties to enrich them (the American car dealer named ACME), without being the end user of the product (who actually benefits from the product), each beneficiary of the product’s manufacture should be taxed equally and proportionately. Japan will pass on the tax to ACME and ACME will forward that expense on to the consumer. This system doubles the tax income to America, which is extra revenue to the government that is providing the resources of life to the poor people who make the Camry (because they have a job and are earning a living wage) and to the person who drives the truck to deliver the car to ACME. ACME is not really doing any work, but is still benefiting greatly by making a profit from the end consumer. And because the Japanese company is producing a product that affects the earth’s resources to benefit itself, it should also be responsible for supporting the people who consume its products. Americans buy many, many, many more Japanese cars than do the Japanese people buy American cars; therefore, the flat-tax rate proportionally spreads out the tax responsibility to the Japanese economy as it also affects the American economy. If Japan bought a Ford Escort, because it was much better than a Camry, Japan would pay the consumption tax on that purchase (it would be consuming the product). Ford wouldn’t have to pay an export tax on the price for which Ford sold the Escort to Japan. However, FORD WOULD BE MANDATED BY LAW TO PAY THE CONSUMPTION TAX ON EVERY PART AND PIECE OF MATERIAL THAT FORD BOUGHT (consumed) TO MAKE THE ESCORT. The extra cost of goods (because Ford is no longer exempt from sales tax for being a “reseller”) might affect Ford’s profits for awhile, UNLESS FORD STARTED MAKING A BETTER CAR THAN THE JAPANESE (and thus selling more Escorts because of higher consumer demand). Now here’s the wonderful benefit of a single, flat-rate, consumption-based tax to American companies: There is no corporate tax of any kind! The taxes are instead paid by the application of the tax percentage on every part that FORD consumes in manufacturing the Escort. The export duty and fees are paid by the importing foreign entity (Japan, in this case). The American consumer of the Escort also has to pay the consumption tax. But there is a way that FORD can sell more cars (besides the fact that the American Escort has to be a better product than the Japanese Camry). Ford can include the consumption tax in the final price of the Escort sold to the American consumer and the consumer will believe that the Escort is being sold TAX FREE! This is called proper sales and marketing in a Free Market economy. If FORD decides that American workers are too expensive, and FORD wants to put a manufacturing plant somewhere outside of America, then the FORD Corporation will have to pay the foreign import tax to that country. In addition, it will then be required to include the consumption tax in its price when the Escort is brought to America and sold to an American consumer (either directly or through a dealership). (This is comparable to Japan paying the consumption tax in the previous example, when it sold a Toyota Camry to an American consumer.) Therefore, if FORD wants to keep the Escort’s price lower, it should manufacture the Escort in America to avoid having to include double taxes (up to 40%: foreign import 20% and domestic consumption 20%) into the final sale price. This incentivizes American companies to keep jobs in America. Nothing is sold unless there’s a consumer who demands it. A free market, Supply and Demand Economy, has always been the best way to produce the most innovative and high-quality goods and services. But what about the not-so-good goods and services? Wal-Mart imports a not-so-good quality product for $1, which, after the proposed tax, becomes $1.20. If the American consumer wants Wal-Mart’s product, the consumer will be forced to pay $1.40, plus whatever profit margin Wal-Mart wants to gain. The imported item is taxed twice, bringing in more revenue to take care of the basic needs of the American people (many who work for Wal-Mart and whose needs are not currently being met). This will affect the Wal-Mart profit margin according to supply and demand. Because if Wal-Mart wants to make a profit, it must stock products that the people want to consume. The higher the price of the product, the less likely the people will consume it en masse. HOWEVER, having their life needs provided for them by law, the people won’t be forced to buy from Wal-Mart. If Wal-Mart wants to sell good, nutritious food that is better than other stores, then this is where it makes its money, because selling these law-mandated products, there IS NO CONSUMPTION-BASED TAX APPLIED! (As a reminder, this is because the law-mandated basic necessities are given FREE to the people of the Republic.) This motivates Wal-Mart to increase the quality of its products; especially those that people need to consume to live. If Wal-Mart doesn't provide an apple that is as good as the apple that a competitor provides, Wal-Mart will lose the business. THIS WILL AFFECT THE FARMERS AND ORGANIC, HEALTH-BASED GROWERS! Ma and Pa Stores can now compete with Wal-Mart by providing a better apple than Wal-Mart, the people having the means provided to them by law to choose where they purchase the nutritious apple. Ma and Pa ARE GUARANTEED SALES IF THEIR PRODUCTS TASTE BETTER TO THE CONSUMER! And Ma and Pa, in providing the nutritious apple DO NOT HAVE TO PAY ONE CENT IN TAXES, and can pocket the money they make and go to Wal-Mart and buy the things that they don’t need. It’s only when they buy from Wal-Mart … the things that they don’t need … that Ma and Pa are forced by law to pay taxes. Supply and demand runs the economy and benefits government tax revenue, improving the economy and thereby exponentially reducing the consumption tax rate. The people should not be taxed more than their individual economic situation allows. Whereas the GDP is the determining factor of an economy, it being the sum of all private consumption (consumer spending), government spending, corporate spending, and the averaged export/import amounts, it determines the overall strength of the people’s ability to pay taxes and still support their economy. All personal and business taxes are replaced by a flat tax on private consumption, corporate spending, and the average of export/import duties (exports-imports). This tax percentage is based on the following tax algorithm and represented by the graph below: (GDP = Gross Domestic Product and GS=Government Spending) (GS*100) ÷ (GDP – GS) = flat tax rate charged on all goods and services not provided by the government under constitutional law. The New Currency needed would be the difference between the tax rate needed to satisfy GS and the set 20% tax allowable by law. For example:

With the new mandates on government spending in education, healthcare, and social welfare, government spending (GS) will increase each year until the economy improves. Take into consideration that from the influx of money into the economy and the non-existent tax obligation of corporate earnings from those companies that provide the means of education, healthcare, and welfare, etc. under government contracts, the GDP will rise substantially and exponentially. And as the GDP increases due to the influx of money and government contracts, etc., the tax rate goes down accordingly. America’s influence and world power are based on its consumerism. The power of the American consumer to regulate international supply and demand quotas and trade, obligates and controls all other nations under its umbrella of consumerism in pursuit of the American dream. With liberal immigration policies, more people will come to America. The more people who participate in the economy, the more money that will be needed to support that economy. The more money people have, the more they spend. The more they spend, the more the GDP increases. The more opportunity to make money, the less and less the people will depend on the basic governmentprovided goods and services, wanting more than just the basics, thereby decreasing GS exponentially. As people work harder to acquire everything outside of their basic needs that are provided by law, the GNP (Gross National Product) increases as they buy the entertainment and luxuries that they want, the nicer homes that they want, and the food that they want, all taxed at the flat-rate consumption tax. This will bring more money into the government’s coffers that will need less and less money as the economy improves. A side note: world progression towards a more tranquil civilization will increase when other nations realize that their citizens want what America offers, motivating foreign governments to improve the lot of their people so that they will stay in their countries. In addition, as other countries produce the products that Americans want (because it is more beneficial to an American corporation to make a profit from law-mandated goods and services that Americans need), these foreign economies will improve.

Proposed Constitution

Hope for the future

ARTICLE I: THE LEGISLATIVE BRANCH (Part 2)

SECTION 2: Congressional Districts

NOTE

NOTE

SECTION 3: The House

NOTE

NOTE

SECTION 4: The Senate

NOTE

NOTE

NOTE

NOTE

SECTION 5: Elections

NOTE

SECTION 6: Rules of Proceedings and Adjournment

NOTE

SECTION 7: Congressional Assembly and Compensation

NOTE

NOTE

NOTE

NOTE

NOTE

SECTION 8: – Revenue Bills, Legislative Process, Veto Power

NOTE

NOTE

SECTION 9: Powers of Congress

NOTE

NOTE

NOTE

NOTE

NOTE

NOTE

NOTE

NOTE

NOTE

NOTE

NOTE

Section 10: Limits on Congress