The True State of The Union 2012

The True State of the Union 2012
The True State of the Union
By Benjamin A Keough

Table of Contents Preface Chapter 1 The Smart Tax The National Investment Tax The National Sales Tax The National Employment Tax The Currency Exchange Tax The Fair Tariff Law The Social Security Reconstruction Act Medicare/Medicaid Reconstruction Act Page 9 Page 13 Page 16 Page 17 Page 18 Page 21 Page 22 Page 27 Page 5
Unemployment Workmans Compensation Page 29 Chapter 2 Energy Reform Hybrid Vehicles Synthetic Fuels Solar and Wind Farms Nuclear Energy Page 32 Page 34 Page 35 Page 36 Page 38

Chapter 3 Education Reform Basic Structure of School Organization of Staff Equipping the Classroom Funding Education Standardized Testing Restructuring the Political Structure Chapter 4 Government Reforms Direct Voting Creating a Third Legislative Branch Campaign Finance Laws Increasing State Rights Protecting Individual Rights Favored Nation Military Economic Page 60 Page 63 Page 66 Page 68 Page 71 Page 74 Page 78 Page 79 Page 83 Page 40 Page 43 Page 45 Page 49 Page 51 Page 54 Page 57

Limiting the power of the Party System Ending Gerrymandering Restructuring Welfare Term Limits Simplification of Laws Chapter 5 Conclusion Index Page 96 Page 100 Page 84 Page 86 Page 88 Page 92 Page 94
"The way to have safe government is not to trust it all to the one, but to divide it among the many, distributing to everyone exactly the functions in which he is competent....To let the National Government be entrusted with the defense of the nation, and its foreign and federal relations..... The State Governments with the Civil Rights, Laws, Police and administration of what concerns the State generally. The Counties with the local concerns and each ward direct the interests within itself. It is by dividing and subdividing these Republics from the great national one down through all its subordinations until it ends in the administration of everyman's farm by himself, by placing under everyone what his own eye may superintend, that all will be done for the best." Thomas Jefferson
Preface The United States has survived for 236 years. During this time we have faced many hardships. To date we have proven the experiment of freedom, but all is not well in the city on the hill. The hope of the world, known as the land of opportunity, is losing its luster. Rising national debt is an endemic problem, and our politicians have no answers. We face immigration problems,
massive trade imbalance, and an educational crisis. This is not a time for business as usual. We need massive, sweeping change, but our politicians are not up for the task. The economic crisis is not over; jobs created today are not assured. Our tax system cannot generate the revenue needed to support our needs. The United States needs a new set of leaders equivalent to Washington, Adams, Jefferson, and Madison. We need to declare our economic freedom. It is time to create new paradigms, to enter a new era of democracy. The United States today sits where the European powers sat at the turn of the 20th century. India and China are poised to overtake the U.S. in economic power. We face foreign and domestic crisis and our government offers no solutions. Our economy may seem to be on the rise, but how long can we prosper when our outlays outweighs our inlays. More and more

Americans are living in poverty despite ever growing socialist
ideals. We must combat these problems actively, while we still have the power to direct our future. This country does not need reforms, we need a peaceful revolution. Our expectations of the government should increase. We should require greater fiscal and foreign policies from our leaders. We need to return to the self-sufficient United States of the late 19th century, the superpower or the mid-20th century, while maintaining the technological edge we developed in the late 90s. We need to revamp our education system, and simplify our legal system. The ideas offered in this book are original, but they are based on sound principles. I will broach the subject of Taxation, Energy Reform, Education Reform, and basic governmental reform. This book is not an exhaustive report on the process of

reform; it is a brief philosophical explanation of what I feel is required to place the United States back on track.

Chapter 1
A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicity. Thomas Jefferson, First Inaugural Address.
Tax Reform The question of a government is not will there be taxes, but who will we tax, and how shall we tax them. Governments need vast amounts of revenue to pay for national defense, education, and social welfare. Though taxes are essential it is also important to note how the tax affects the economy. Though we call our current form of tax system a progressive tax, it is truly a very regressive tax. Our current tax code generates less revenue during recessions, when more revenue is required, and places too high a burden on the successful. Taxing income is also ineffective, because it reduces the amount of revenue invested directly into

the economy by the consumer. This essentially cuts the roots
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from the economic system. Though Tax reform is a major issue this election, no truly progressive (in the since that it stimulates the economy) system has been proposed. What is required for a tax plan to be truly progressive? Many economists argue that a progressive tax charges high income individuals a higher percentage of tax, reducing the weight of taxes owed by the poor. While it is true that the poor need all their income, it is unfair to offer them more services, while requiring less responsibility for the service. Giving a man a fish rarely solves the underlying problem, but refusing to feed the man is also unthinkable. We must find the balance between our personal and our social responsibility. We must teach the man to fish. A good tax plan stimulates and stabilizes an economy. It should also be applicable to all individuals and businesses. The

best tax plan would be blind to profit or income, but would
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promote the free circulation of income. Income or profit tax is nothing more than highway-robbery and any institution that enforces such a tax is criminal. It is wrong to require a person to surrender hard earned money, then to give that revenue to a less productive citizen. It is also wrong to not aid a fellow man in need. How then do I solve these conflicting duties? My solution is in the form of The Smart Tax. The Smart Tax is unlike any tax system used in the world. It is a tax plan, coupled with a general budget plan. While congress would still set general budgets, they would set budgets within the constraints of the Smart Taxs built in budget provisions. The Smart tax incorporates a five tier tax system with Social Security and Medicare/Medicaid reform. It also provides a specialized program for reducing the cost of state and Federal employees while maintaining their wages and general wage

increases. The five tiers of the Smart Tax are: The National
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Investment Tax, The National Sales Tax, The National Employment Tax, The Currency Exchange Tax, and the Fair Tariff Law.
"We must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty or profusion and servitude. If we run into such debts as that we must be taxed in our meat in our drink, in our necessities and comforts, in our labors and in our amusements, for our callings and our creeds...our people... must come to labor sixteen hours in the twenty-four, give earnings of fifteen of these to the government for their debts and daily expenses; and the sixteenth being insufficient to afford us bread, we must live.. We have not time to think, no means of calling the miss-managers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow suffers. Our landholders, too...retaining indeed the title and stewardship of estates called theirs, but held really in trust for the treasury, must...be contented with penury, obscurity and exile.. Private fortunes are destroyed by public as well as by private extravagance. This is the tendency of all human governments. A departure from principle becomes a precedent for a second; that second for a third; and so on, till the bulk of society is reduced to mere automatons of misery, to have no sensibilities left but for sinning and suffering... And the fore horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression." Thomas Jefferson

Section A the National Investment Tax
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The Smart Tax makes every American an investor. Thus, when I tax the investor I tax everyone. The maximum investment tax is 1% of the investment. This tax is assessed on any investment with periods longer than 6 months. As investment frequency increases the tax rate decreases. Why would the rate decrease? A decreasing tax rate encourages investors to invest more often. The more often stocks and bonds are traded, the faster money circulates through the economy. If I invest $1,000.00 in stock A, I pay a $10.00 sales tax. If stock A cost $5.00, I could buy 200 shares. This $10.00 would hardly discourage investing. I turn around and sale these 200 shares a month later for $1,100.00. I have made $90.00. I then reinvest this $1,100.00 in stock B, paying an $11.00 tax. In one month I have paid $21.00 in tax, and

invested $2,100.00. I never at any given time had more than $1,100.00. I believe that this sort of investing should be
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encouraged. Under the smart tax the moment I reinvested the $1,100.00, my tax rate would change from 1% to .8%. I would receive a rebate of $2.00 from my stock A purchase, and only be charged $8.80 for my purchase of stock B. I would save $4.20 in taxes for reinvesting my initial capita. I am thus rewarding the investor for making profit. The National Investment Tax has the potential to generate trillions in revenue. Every day trillions of dollars flows through the stock market. Most of this volume is generated by investors known as day traders. Most day traders operate on a profit of .8% per trade. For every $1,000.00 invested they make $8.00. Day traders earn their profit not in single trades, but by repeating the process multiple times a day. In an 8 hr. day, a single day trader could make as many as 480 trades with the same money.

This would equal a potential profit of $3,840.00 per $1,000.00 invested. Though the potential gains of day trading are huge,
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384%, the risks of loss are also high. Day traders rely on a high volume of turnovers. At times they must sale at a loss, so that they can reinvest in a stock that is currently rising. A 1% tax on all investment would stop all day trading. Since I do not wish to inhibit any form of trade, I created a tiered system. The Investment tax would range from .04- 1.00%. This chart can be viewed at thetaxdebate.weebly.com, it will also be included in the index at the back of the book.
"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation." John Adams

Section B The National Sales Tax The Fair Tax is a relatively popular alternative to the
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current system. The problem with the fair tax is a requirement of a 23% base sales tax. The National Sales Tax only requires a 0-3% national sales tax. Food and fuel are exempt from all tax, while products like alcohol and tobacco would be taxed at 3%. This tax would be added to state and local sales tax. The National Sales Tax is basically an investment tax on the quality of life. Since food and fuel are essential to all, they are not taxed. Housing receives a minimal tax and luxuries receive greater taxes. A wealthy person would pay more sales tax than an impoverished person because the wealthy person spends more revenue on luxuries than necessities.

The National Sales tax would be paid by all Americans, illegal aliens, and tourist. It is a non-intrusive tax but would
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generate around $140 billion. I suggest that all this revenue be earmarked for public education. This would provide nearly of the revenue spent on education in the US, reducing the strain of education on the state and local governments. A chart detailing products and sales tax rates is included in the index, or can be viewed at thetaxdebate.weebly.com. If the smart tax is adopted, the national GDP will increase due to the consumer having access to more revenue, and the fact that government spending would increase due to an increase in revenue.

I cannot undertake to lay my finger on that article of the Constitution which
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granted a right to Congress of expending, on objects of benevolence, the money of their constituents. James Madison
Section C The National Employment Tax The National Employment Tax is essentially an investment tax on employment. In 2008 $12 trillion was spent on wages in the United States. A tax of 1% would generate around $120 billion in revenue. This revenue would be best earmarked to fight unemployment. The National Employment Tax would replace workmans compensation insurance and unemployment insurance. It would combine with the 2% universal employment fund that is part of the 10% universal fund provided by all US businesses. In all $360 billion a year would be reserved in the budget to fight unemployment in the U.S.
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The tendency of taxation is to create a class of persons who do not labor, to take from those who do labor the produce of that labor, and to give it to those who do not labor William Cobbett
Section D The Currency Exchange Tax The Currency Exchange Tax is a tax on the exchange of currency. I propose a .15% tax on every transaction involving the purchase of a dollar and a .25% tax on any transaction involving the sale of a dollar. In economics currency serves three roles: a store of value, a measure of value, and a medium of exchange. Currency like any other commodity answers to the law of supply and demand. While this tax should not affect the demand of the dollar too much, it does favor the investment in the dollar over the sale of the dollar. This tax would encourage any nation investing in the
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dollar to hold the dollar. Thus foreign capital invested in the U.S. would be more likely to remain in the U.S. The tax is also designed to benefit from the huge trade deficit the U.S. has with other countries. The United States would directly recover $5 billion dollars a year from the trade imbalance. Though this law would not stop illegal immigration we would recover .25% of all money sent from the U.S. to Central and South American countries. This would be combined with the sales tax charged to illegal immigrants living within the U.S. Based on the sheer volume of currency trades involving the dollar, this tax would generate $300-$700 billion a year. I would suggest that this revenue be used to improve the infrastructure of the U.S.
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"It is a singular advantage of taxes on articles of consumption that they contain in their own nature a security against excess. They prescribe their own limit, which cannot be exceeded without defeating the end purposed -- that is, an extension of the revenue." --Alexander Hamilton
Section E The Fair Tariff Law While the Currency Exchange Tax indirectly attacks the U.S. trade deficit, The Fair Tariff Law attacks the issue directly. I fully support global trade, but recognize the need of a nation to protect itself from unequal competition. The revenue generated from this tax should go directly into providing low interest loans

to domestic business involved in production and service industries.
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The Fair Tariff Law is a formula based law developed to promote fair trade. This formula is based on the ratio of a countrys per capita to our domestic per capita and the ratio of our imports from the nation to our exports to the nation. The formula is Domestic Per Capita/ Foreign per Capita * domestic imports/domestic exports + 2%. Most of Europe would have a tariff of less than 5%, while Chinese products would have around a 30% tariff. Based on current figures this provision would provide around $140 billion in low interest business loans and grants.
"We can never insure one-hundred percent of the population against one-hundred percent of the hazards and vicissitudes of life. But we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age. This law, too, represents a cornerstone
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in a structure which is being built, but is by no means complete.... It is...laws that will take care of human needs and at the same time provide for the United States an economic structure of vastly greater soundness."
-- Franklin D. Roosevelt, August 14, 1935
Section F The Social Security Reconstruction Act Social Security is a growing concern. It is no secret that the system is in trouble, but there remains no consensus on the bill to solve this issue. I have developed a compromise that not only balances the system, but extends benefits. The solutions I offer consist of three separate parts: private individual accounts, Federal Retirement Savings Bonds, and universal retirement emergency funds. This plan blends private and public retirement into a seamless solution that will benefit all Americans.
"Social Security...is not a dole or a device for giving everybody something for nothing. True Social Security must consist of rights which are earned rights -- guaranteed by the law of the land."

-- Harry S. Truman, August 13, 1945
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Part A It is every Americans responsibility to provide for their own retirement. Part A of the Social Security Reconstruction Act requires all Americans to save 5% of their annual income in an Individual Retirement Fund. This fund is fully private, but may not be accessed until the owner of the account reaches the age of 58. The funds in this account could be in secure bonds, or cds, with only 10% of the funds available for risky investments. This provision would require $600 billion a year to be placed in private retirement funds generating at least $6 billion in tax revenue.
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"The Social Security program plays an important part in providing for families, children, and older persons in times of stress. But it cannot remain static. Changes in our population, in our working habits, and in our standard of living require constant revision."
-- John F. Kennedy, June 30, 1961
Section B Section B creates a new bond, The Federal Retirement Savings Bond. This 35 year bond has a fixed 7.5% Apr. Each bond has a $50 sale value. The bonds, when matured, would be worth $628.44. $600 billion dollars a year, based on 2008 figures, or 5% of the employment cost in the U.S. would be placed in these funds. These funds would be given by employers to match the Individual Retirement Funds saved by the employees. These funds, however, would not be available as investment funds. The bonds, once purchased, would be divided in half.

$300 billion would be divided equally among all U.S.
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citizens over the age of 20. The other $300 Billion would be held in the Universal Retirement Emergency Fund.
"I have today signed [legislation which]. . . constitutes a major breakthrough for older Americans, for it says at least that inflationproof Social Security benefits are theirs as a matter of right...."
-- Richard M. Nixon, July 1, 1972
Section C Section C provides the Universal Retirement Emergency fund. This fund is a supplemental fund that insures that retired Americans live above the poverty level. Initially the majority of this fund would insure that the baby boomers and Americans currently retired receive full SSI benefits until death.

"The Social Security program... represents our commitment as a society to the belief that workers should not live in dread that a disability, death, or old age could leave them or their families destitute."
-- Jimmy E. Carter, December 20, 1977
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Conclusion of SSI Reconstruction Act (SSRA) Every American over the age of 20 would receive around 40 bonds a year, approximately $2,000 worth of bonds. The matured value of these bonds would equal approximately $25,000.00. Since a limited number of these bonds would be created a year, these bonds would become a form of currency. Banks and other financial institutions would compete over holding these bonds as future collateral. Only retired Americans could cash in these bonds before they mature. This would give retirees between $2,000 and $25,000.00, most likely $4,000 a year in income. Additionally 75% of the Federal Emergency Retirement

fund would be available giving retirees access to an additional
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$4,500- $50,000, most likely $9,000.00 in annual revenue. This is a total of around $13,000 a year, more than the current rate paid by SSI.
"We will...endeavor to administer the disability [program] efficiently and effectively and . . . to help rehabilitate the disabled so that they may return to useful employment... I am hopeful that this new law . . . will advance the economic security of the American people."
-- Dwight D. Eisenhower, August 1, 1956
Section G The Medicare/Medicaid Reconstruction Act Like the Social Security Reconstruction Act, The Medicare/Medicaid Reconstruction Act is a combination of private and public accounts. The private accounts would be funded by 3% of every individuals salary being placed in interest bearing Medical Savings accounts. Businesses would place 3% of
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their annual employment budget into a Universal medical savings account. 50% of this money, roughly $180 billion, would be divided evenly among every American, giving each American a budget of roughly $540 a year for medical expenses. A single mother with three children making minimal wage would save roughly $435 a year in her personal account, but would receive $2,160 a year from the universal fund. She would also have access to half of the $180 billion reserved in the Emergency Universal Medical Fund. Retirees would receive around $2,300 in their fund a year. The money in this fund could be used to purchase medical insurance, or to pay directly for medicine or medical aid. Each individual could choose how to allocate this budget. Roughly $90 billion a year would be held in reserve for additional aid.
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"Repeal that [welfare] law, and you will soon see a change in their manners. ... Six days shalt thou labor, though one of the old commandments long treated as out of date, will again be looked upon as a respectable precept; industry will increase, and with it plenty among the lower people; their circumstances will mend, and more will be done for their happiness by inuring them to provide for themselves, than could be done by dividing all your estates among them." --Benjamin Franklin
Section H Unemployment Workmans compensation This program is supported by private as well as universal funds. 2% of an individuals salary is reserved in a savings account that can only be accessed if the individual has been out of work for at least two weeks. As in the previous two sections the universal compensation is split between an emergency fund and private accounts. The Employment Investment Tax would be added to the Employers contributions.
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"But with respect to future debt; would it not be wise and just for that nation to declare in the constitution they are forming that neither the legislature, nor the nation itself can validly contract more debt, than they may pay within their own age, or within the term of 19 years." --Thomas Jefferson
The Smart Tax Conclusion The Smart Tax stimulates the economy in several ways. $1.8 trillion a year would go into specialized individual savings plans, with $600 billion held in emergency savings funds. Individuals pay no income tax and control 100% of their annual income with 90% of their income being dispensable. The budgets of SSI and Medicare are balanced. Retirees receive greater benefits. Earmarked funds provide guaranteed base budgets, while the General Fund provided by the National Investment Tax will likely generate upwards of $3 trillion. The economy will grow, banks will lend more money due to the fact that 20% of the value of all wages is held in savings.
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The Federal Retirement Savings bond will provide a new form of currency. The $600 billion a year invested in this bond will subsidize the cost of teaching, reducing the strain of education on the local and state budgets, reducing local taxes and further stimulating the economy. With 90% of a persons income expendable, the gross domestic product will increase, stimulating foreign investment. A budget surplus will allow us to pay off our national debt. Congress loses the power to offer special interest groups tax cuts and is limited to how they budget tax revenue.
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"(T)he foundation of our national policy will be laid in the pure and immutable principles of private morality; ...the propitious smiles of Heaven can never be expected on a nation that disregards the eternal rules of order and right which Heaven itself has ordained..." George Washington, First Inaugural, April 30 1789
Chapter 2 Energy Reform The U.S. has the ability to become energy independent. Too much of our foreign policy has to do with securing oil, which we should not need. Eventually, within 10 years, I believe that we could remove the U.S. dependence on fossil fuels, but before we remove our dependence on fossil fuels, we must first more fully tap the abundant supply of natural fossil fuels that we control. My energy plan consists of several elements; moving all transportation to hybrid vehicles, creating synthetic fuels, creating more solar and wind farms, and exploring safer, more effective
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ways to use nuclear energy. I will discuss each of these elements separately.
Conservation is a state of harmony between men and land. Aldo Leopold
Hybrid Vehicles Hybrid vehicles take many forms. A hybrid vehicle uses more than one source of fuel. The best hybrid vehicles use a primarily electric vehicle with a generator fueled by gasoline, or other form of fuel. These cars not only produce less emissions, they also reduce our consumption of fossil fuels. Nearly 25% of all fuel used in the U.S. is for personal transportation. The goal of my energy plan is to rapidly replace all current vehicles with alternative fueled, hybrid vehicles. Around 240 million personal vehicles are currently owned within the U.S. The goal is to replace these vehicles with hybrid equivalents in a matter of 10 years.
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While this would require an average of 24 million vehicles a year, it would be impossible to hit this quota the first year. I would suggest starting with 5 million cars the first year and increasing the volume by five million a year. This would allow for 275 million units to be sold in the 10 year plan. Over the course of 10 years this plan would dump $11 trillion dollars into the U.S. economy.
Harmony with land is like harmony with a friend; you cannot cherish his right hand and chop off his left. Aldo Leopold
Synthetic Fuels It is not enough to switch to hybrid vehicles. The U.S. still uses liquid fuels for the production of electricity. As long as the U.S. depends of foreign oil, we cannot fully control our international politics. The technology to create synthetic fuels from biomass has existed since 1913 and has been mass produced as early as World War II Germany. The U.S. produces enough crude oil to meet 10-15% of our needs. Switching to Hybrid
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vehicles could reduce the amount of fuel we need by another 815%. We must bring our synthetic production to a 100% of our current needs. This would move the U.S. from an energy importer to an energy exporter. The technologies for coal to oil exist with the price of building a factory that would produce 80,000 barrels a day at around $6 billion. The U.S. would need 200 of such plants to meet its current energy demands. The total cost of such a project would equal $1.2 trillion. The same technology used to transform coal to oil can also transform biological waste into oil. Human and Animal waste could be harnessed and used to fuel our economy. This would provide a renewable source of synthetic fuel.
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We learned that economic growth and environmental protection can and should go hand in hand. Christopher Dodd
Solar and Wind Farms Just as synthetic fuels provide a source of renewable fuel, solar and wind farms also could account for 10-25% of our energy needs. Wind power would galvanize the U.S. steel industry. I suggest $100 billion dollars a year of 0.25% interest loan be made available for the construction of wind farms in the U.S. I suggest an equal fund be created for the installation of solar farms in the U.S. This $200 billion dollars would be available to individuals or businesses. It would be distributed to banks. Banks would receive a 2% closing fee on the approval of a loan and would receive half of the interest payment. Distributing funds directly to banks would save the government resources and would provide
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the banking industry with over $4 billion in additional revenue a year.

Nuclear power will help provide the electricity that our growing economy needs without increasing emissions. This is truly an environmentally responsible source of energy. Michael Burgess
Nuclear Power Per kilowatt hour there is no match for the cost efficiency of nuclear power. Nuclear power also produces much less waste and air pollutants than conventional power sources. For nearly sixty years we have used nuclear engines in our warships with excellent safety records. It is illogical to not use this resource. I am not recommending that Nuclear stations be built in the center of our cities or in our farmlands. But a few extra plants in the desert regions of the Southwest and off shore plants along coastal regions would be relatively safe.

New nuclear technology actually allows reactors to be
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built that are not radio-active when they are turned off and it is impossible to weaponize. Such reactors were designed for drone aircraft. I believe it is important to explore all energy options. Domestic energy is the greatest element of nation security and autonomy.
"It should be your care, therefore, and mine, to elevate the minds of our children and exalt their courage; to accelerate and animate their industry and activity; to excite in them a habitual contempt of meanness, abhorrence of injustice and inhumanity, and an ambition to excel in every capacity, faculty, and virtue. If we suffer their minds to grovel and creep in infancy, they will grovel all their lives." --John Adams

Chapter 3 Educational Reform
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I Believe that education should be reconstructed from the ground up. First and foremost, I believe the role of politics should be minimized in education. Education should be a community event, with each element of the local community evident. Local businesses, cultural groups, and even religions should be allowed to fund elective classes and programs. While I agree with the Separation of Church and State, I believe that we should allow parents to choose to allow their children to study their religious heritage. Many private schools are formed for this reason alone. If the state does not fund these classes, they are not interfering, but more qualified teachers could be hired, and funded by special interest groups. These teachers and classes would also fund one hour of mandatory education per hour of specialized education they offer. This influx of revenue could allow for instruction in

more languages, more sciences, maths, or technology classes.
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Since private schools must fund education in all subjects, I believe that many schools could be absorbed into this new system. Parents would be given more choice in the electives of their children, and schools would be able to offer more specialized instruction. I also believe that allowing students to show and experience their cultural and religious heritage in school is important. Teachers have no right to force their beliefs on students, but students and parents have the right to freely speak of and share their religion. School should be religious neutral, not absent of religion. I also believe in offering an environment that teaches students academics and production. I believe having organic gardens within the school would provide an excellent source of education as well as a source of nutrition. As students grow older I believe the amount of productive services they could offer the community could increase. Schools should not compete with local industry, but they should be allowed to aid industries
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while learning specific subjects. By high school half of a students studies, should be work studies. Continuing education is important. I believe that from as early as middle school students should start exploring career paths and taking specialized courses through community colleges. Community Colleges should be fully integrated into community schools, with their students working closely with primary and secondary students. Local Community Colleges should also be the seat of local school boards. This sharing of resources would allow for greater educational opportunities for all students, reduce the overall cost of education, and introduce students to advanced curriculum faster.
"Facts are stubborn things; and whatever may be our wishes, our inclination, or the dictates of our passions, they cannot alter the state of facts and evidence." --John Adams

Basic Structure of School Schools should be organized along the following lines:
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1. Pre-k-2nd- This period of school should be focused more on the Joy of learning. Classes at this level should be designed in work groups. The majority of education at this level should be kinetic hands on, with first and second grade focusing on Kinetic as well as standard academics. 2. 3-5th grade- A dramatic shift to testing would begin at this stage, where in k-2 testing was more informal, most grades being measured in levels of satisfactory, we would see a blend of percentage and satisfactory. Groups would be comprised of students with varied learning intelligences and

skills in different disciplines. Most group work should include cross discipline collaboration. 3. 6-8th grade- Middle School is a time of physical,
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mental, and psychological change. Education at this level should be more introspective. Students should be allowed to express themselves in various ways. The core classes should focus on how the knowledge in them directly affects the child. This student centric education is needed at this time. At this time general career education should begin. Students should be given more physical classes to help dissipate emotional, physical, and psychological stress. 4. 9th -12th grade- These years should focus on teaching the students skills to release them into the adult world as either college students or
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workers. Two distinct forms of curriculum should be available; work study- and academic study.
"Children should be educated and instructed in the principles of freedom." --John Adams
Organization of the Staff I believe that much of a schools budget is wasted due to a mismanagement of resources. Much of this waste is in the form of non-educators within the system. Our school systems think like governments instead of industry. The Basic structure of the schools along with the cost per student for each level of responsibility and the duties of each level of employee are listed below.
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1. Principal- Acts as CEO of the School. Arbitrates for the school in the community with parents, and partners. Member of the school board. Earns $100,000 a year. ($500 per student) 2. Vice Principal of Academics- Approves final curriculums for all departments, Supervises academic heads, organizes academic competitions among schools. $85,000 ($425.00) per student. 3. Vice Principal of Health oversees schools mental and physical health programs. Supervises the schools psychologist, nurse, and Athletic department. $85,000 ($425.00) 4. School Councilor- serves as confidant and advisor to students on emotional and personal issues. Oversees Department Head $70,000 ($350.00)

5. (6) Department Heads; Math, Science, Social
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Sciences, Health/PE, Linguistics, Specials- these teachers teach one advanced class per day, preside over curricular development or adoption, coordinate cross-disciplinary material with other heads, serve as specialized academic councilors to students. $70,000 ($350.00). 6. Lead Teachers- Oversees 2 primary teachers, teaches 3-5 classes a day. Teachers work with small groups of 12-15 students drawn from the larger primary classes. $60,000.00 ($706) 7. Primary theory teacher- Teaches the theories or philosophy behind concepts. Teaches groups of 30-35 in groups of five. Theories include cultural views on pertinent subjects. $55,000.00 ($1,572.00)

This basic structure gives the student three separate teachers per subject, approaches the subject from multiple vantage points, and provides large group and individual instruction. The total cost per student For
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educational instruction would be around ($6,428.00). This is about 55% of the current average cost of education per child in the U.S. This plan provides teachers with around 30% higher salaries. The organization of this classroom also allows for teacher absence with minimal classroom disruption.
"A general dissolution of principles and manners will more

surely overthrow the liberties of America than the whole force of the common enemy. While the people are virtuous they cannot be subdued; but when once they lose their virtue then will be ready to surrender their liberties to the first external or internal invader." --Samuel Adams

Equipping the Classroom I believe in creating a modern classroom. Each group table would have its own computer, and each
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classroom of the lead teachers would have a computer. This would translate to 8 computers in the theory and lab classrooms and 17 computers in the lead classrooms, and 17 computers in each department heads study. The Athletic department labs would not have computers. Each classroom would have a server with ghost settings. The Computers in a classroom would boot new, every hour. This would reduce the chance of corruption of system files. The subject text book or work book would be kept in the classroom, reducing the need of a text book per student. With the falling price of computers, switching to this system would be cheaper than buying a book per child. A PDF text book would be housed in the class server. These
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electronic books could be accessed on-line. Though each class would have its own server, each department would have its primary server, and the school would have twin master servers. All servers would be virtual machines, enabling computers to be updated or replaced with ease. This system offers redundancies, reducing the potential for critical failures. It also gives parents access to all curricular resources so that they may better assist their children. There are many advantages to using this system. Electronic libraries are cheaper to build and to maintain. Children would still have text, but they would be easier to maintain, with all text being available online, and all lesson plans being online, parents would have complete access to the classroom, aiding them on reinforcing their childrens education. An electronic environment would also give students more resources to build on.

The cost of this technology would be about
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$300.00 per student, with text books equaling about the same. This would equal around $600.00 per student for educational resources.
"The known propensity of a democracy is to licentiousness which the ambitious call, and ignorant believe to be liberty." -- Fisher Ames
Funding Education The current cost of education in the U.S. is around $550 billion a year. This is equivalent to nearly $12,000 per student. At the moment my educational cost is at
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nearly $7,200.00 per student, this is without factoring in the cost of buildings and building maintenance. School buildings facilities should double as community centers. Weight rooms, gyms, and tracks should be available to the public, when not being used by the school. The Idea behind this concept allows a school to build more sports buildings; ice skating rinks, gymnastic centers, and swimming pools, expanding the schools athletic programs. Members of the community could use these facilities at little admission cost. These community centers would provide safe places for youth to congregate, enrich the athletic curriculum of the school, and provide an independent source of revenue for the building and maintenance fund. The Schools secretary and janitorial staff would be paid from this fund.
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Government Funding would come from local, state, and federal governments. The Smart Tax would provide over a $140 billion in Federal Revenue to education. Federal Revenue would cover the Core Technology, Math, Science, History, and English classes. Industry would be encouraged to invest in these schools with the schools providing valuable resources to key Industries; schools could provide large scale testing for software, could host advertising campaigns for marketing, could provide tier 1 technical support for many companies, and The Schools Cafeterias and Shops could provide products for the local markets. Automotive shops in the school could partner with local shops to offer reduced cost oil changes to the elderly. Such programs could also give high school students monetary incentives to stay in school.

While I agree with the Federal, State, and Local governments staying out of religion, and would never suggest that government funds be used for religious programs. I do support allowing funding for special interest groups to be used to enhance the amount and
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variety of elective classes available to our students. I also find this a fair compromise between the government and the citizens who pay tax dollars into a system that blatantly censures their views.
"What is liberty without...virtue? It is...madness, without restraint. Men are qualified for liberty in exact proportion to their disposition to put moral chains upon their own appetites." --Edmund Burke
Standardized Testing and Performance Based Pay While I am not a huge fan of standardized testing, I understand its merit. I would suggest a change
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implementation of the testing. I believe that regular, low stress testing is more valuable than a single, high-stress test. Testing should also take into account oral and writing skills. This form of testing would give much greater depth to the modern practice of testing. The Department heads of each school should be responsible for coordinating the testing of individual students on quarterly bases. Individual student progress would determine the effectiveness of the teachers. The average results of departmental progress would be used to edit curriculum in specific needs bases. The movement within performance based pay in Education has merit, but performance cannot be based on averages. When judging the effectiveness of a teacher or a teaching staff, it is important to look at the students progress or regress in a subject. It is also important to
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note a students progress or regress in other subjects, to ascertain rather the decline in student progress is due to a misunderstanding of another associated subject. It is also necessary to look at national, cultural, and global trends for students in the particular age group in a specific subject. This could speak of a psychological change in a student, which curricular designers should compensate for. I believe that it is essential to assess the abilities of our teachers and to weed out the few teachers who are a drain on the system. This cannot be done by looking at global numbers. Only by assessing the current level of growth of each individual student, may we determine rather a teacher is effective.
BENJAMIN FRANKLIN "They that can give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety."
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Reconstructing the Political Structure of Americas Schools Though it is impossible to keep politics outside of education, it is necessary to restrict the amount of damage political movements can have on the educational systems. The federal government should play a much smaller role in education. School boards should be removed as political entities. I suggest that the principals of each school in a county form the School Board. One principal is voted as the superintendent. The superintendents sole power would be to break a tie vote. School budgets should be determined by formula, based on the number of students in a school. I would also suggest that special programs be shared amongst the various schools. This shared revenue could create community programs that otherwise could not have been created. The Superintendent of each county or parish, if in Louisiana, should be a member of the state board of

education, with the superintendent of the state being elected from among the board. This system should be carried to the
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federal level. This system has several advantages; it reduces the administrational cost of schools, by simply adding a small salary increase to board members of each level, it creates equal representation of each school district in each level of school governance, and it maintains education, not politics as the driving force of the Department of education. Federal Intervention into state and local schools should be negligible. Local and State governments should determine the level of inclusion, the types of cultural programs, and rather or not religious subjects or clubs can exist on campus. These programs should be allowed, but could not be considered mandatory. The extent of Federal policy in education should be in monitoring the progress of each district and in assuring that
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education received in one district is accepted in all districts within the country.
"It yet remains a problem to be solved in human affairs, whether any free government can be permanent, where the public worship of God, and the support of religion, constitute no part of the policy or duty of the state in any assignable shape. The future experience of Christendom, and chiefly of the American states, must settle this problem, as yet new in the history of the world, abundant, as it has been, in experiments in the theory of government." --Joseph Story

Chapter 4 Governmental Reforms
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Like many conservatives I prefer a smaller government. This said, I am not for immediate downsizing of the Federal Government. I believe the best way to shrink the government is to grow the national economy. This section of the book is devoted to explaining how I wish to improve upon what our forefathers created. I believe a more representative form of government should be created. I wish to improve checks and balances and form a distinct barrier between the government and private industry. My governmental reforms consist of: 1. Instituting direct voting to block filibustering 2. Creating a third legislative branch 3. Changing Campaign Finance Laws 4. Increasing state rights
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5. Removing the government from infringing upon the rights of individuals right to choose. 6. Changing the way in which Favored Nation Status is granted 7. Changing the way in which the US handles Foreign policy 8. Limiting the power of the party system 9. Ending the practice of Gerrymandering 10. Restructuring Social Welfare Systems 11. Term limits on all federal offices 12. Simplifying Laws so that they are short enough to be read in a matter of hours. Each of these revisions is necessary to preserving the democracy we so cherish. The 20th century showed us several flaws in the democratic form of government. Each of the changes I suggest answers a major flaw in the basic structure of a democracy.

If Congress can employ money indefinitely to the general
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welfare, and are the sole and supreme judges of the general welfare, they may take the care of religion into their own hands; they may appoint teachers in every State, county and parish and pay them out of their public treasury; they may take into their own hands the education of children, establishing in like manner schools throughout the Union; they may assume the provision of the poor; they may undertake the regulation of all roads other than post-roads; in short, everything, from the highest object of state legislation down to the most minute object of police, would be thrown under the power of Congress. ... Were the power of Congress to be established in the latitude contended for, it would subvert the very foundations, and transmute the very nature of the limited Government established by the people of America." --James Madison

Direct Voting
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The U.S. is a representative democracy, but what happens when our representatives do not represent us? At times it is not enough to wait until the next election. By then the damage is already done. The people should have the ability to vote on legislative bills. I am not suggesting that congress be dissolved, but I believe 30% of every bill should be determined by direct vote. When the U.S. was founded such a form of voting was impossible, but the technology exists today to not only make it possible, but to make it convenient. This would not give the people overwhelming power, but would provide an opportunity for voters to overturn dangerous legislation and would serve as a litmus test for how well congress represents the people. If congress disagrees with the people too often, the people will replace them. Currently elected officials can use polls to justify their votes.

This system would allow the government and the people a chance to read the public sentiment and the sentiment of
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congress, compare them, and form a grading scale for their political candidates. Direct voting could also stop a filibuster. Implementing direct voting would be simple. Every voter has a voter number, a district, and a social security number. Voting could be handled electronically and verified by several direct and indirect methods. Voting could be accomplished from the home or office. The exact code of verifying voter authenticity would be decided by a group of security experts. The data collected from direct voting would be invaluable. It would allow researchers to know exactly how strong the population feels about a situation, the demographic spread of those for or against a proposal, and would serve as a score-card for each representative and senator.
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Direct voting is not a cure for all our ills. Some matters of government should not be a public decision, but should be left to experts. Other maters require both an expert and a moral vote. We will discuss this issue later. For now it will suffice to say that I believe that each voter should have specific areas that they are qualified to vote on.
"It may perhaps be said that the power of preventing bad laws includes that of preventing good ones; and may be used to the one purpose as well as to the other. But this objection will have little weight with those who can properly estimate the mischiefs of that inconstancy and mutability in the laws, which form the greatest blemish in the character and genius of our governments." --Alexander Hamilton, Federalist No. 73

Creating a Third Legislative Branch The modern world is infinitely more complex than our
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forefathers imagined. In the late 18th century it was possible to be a master of all knowledge. The 21st century has hundreds of fields that were not even dreamed of in the 18 th century. Currently each Congressman/woman employs his/her own experts. These experts are normally politically allied with their employers. This is an unsound method of creating legislation. I propose a third branch of legislature comprised of nothing but experts from various fields; Finance, Sales, Industry, IT, National Security, Religion, Culture, Workers, Education, Medical, Human Rights, Science, law, and Emergency Workers. This panel would be nominated by members of their trade and would be selected by region; each region would consist of five states. The exact state that
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experts are chosen from would rotate, with the same state getting an expert representative every 12 years. This system not only represents specific groups, it represents regions as well. Experts would be elected by qualified voters in the region. A qualified voter would be any eligible voter, who holds a degree in the field, works in the field, or can pass a general knowledge test on the field in question. These experts would represent the community of professionals. Not only would these individuals represent their specific fields in congress, I believe that all bills should originate in this panel. The Senate should focus on foreign Policy, and The house on budget. Though every bill would be voted on by the people, The Panel, the house, and the Senate, a single bill must only pass 3 of the four sectors to be signed by the president. This system
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would increase the checks and balances of the government while adding greater specific representation to the government.
Remember democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide. John Adams, letter to John Taylor, April 15, 1814
Campaign Finance Laws Campaign financing is an important element in a democratic society. A candidate is indebted to the individuals or groups that finance them. I suggest three forms of campaign financing; the General Election Fund, Special Interest Groups, and Private Individual funds. Individuals, not parties run for office, and individuals elect the candidates, but

it is the financing of a campaign that ultimately decides an election. Elections, like products, are successful due to marketing. Marketing is funded my money. In order to created elections that more ably reflect the needs and desires of the people we must reorganize how campaigns are run and how they are financed. Stages of a campaign should be as follows. 1. Garner Popular Support ( raise 11% of the total allowed individual contribution for area) 2. Collect matching funds from General Funds 3. Seek support of special interest groups The stages of this system are reversed from how
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campaigns are generally run. Receiving the support of any party is the last stage of campaigning, not the first. Individual contributions cannot exceed $250 dollars. I suggest two ways of raising this revenue. The $250 dollars can be raised by direct

contributions, or by local businesses agreeing to $250 per registered voter who signs the candidates charter. Once a candidate reaches 11% of the vote they receive a matching campaign contribution from the General Election Fund. The Candidate now starts to court special interest groups for their
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support and access to their networks. Each Special Interest group can only endorse a single candidate. A political party is considered a special interest group. Thus a sitting president or any other elected official cannot instantly run on a partys ballot. An entrenched candidate must go to the first Caucus as an independent candidate. While this is not a perfect system, I believe that it would create a more diverse political arena. With no candidate having a guaranteed backing, it is more feasible to challenge any opponent.
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The pyramid of government-and a republican government may well receive that beautiful and solid form-should be raised to a dignified altitude: but its foundations must, of consequence, be broad, and strong, and deep. The authority, the interests, and the affections of the people at large are the only foundation, on which a superstructure proposed to be at once durable and magnificent, can be rationally erected. James Wilson, Legislative Department, 1804
Increasing State Rights I believe the power of local and state governments have been grossly eroded. The power structure in a Democracy should be from the bottom up. The Federal Government has two major goals; to represent and protect US interest in the global community, and to protect individual rights from being infringed upon by other citizens or institutions. States should have the rights to allow their citizens any freedoms that do not infringe upon the rights of other citizens without federal intervention. Seatbelts, speed limits, alcohol, Tabaco, gambling, marijuana, prostitution, and marriage are not the domain of the Federal Government. States should have the rights to close their boarders
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to immigration without the consent of the Federal Government. A state has the responsibility of protecting its own economy. Certain functions should be reserved for the federal government; ensuring the education of all American citizens, ensuring the maintenance of the national transportation network, communication network, and power grid, protecting the US from foreign invasion, protecting the domestic economy from undue global competition, and creating treaties with foreign powers. Anything not listed here should be covered by state, not federal law. On all domestic issues the Federal Governments role should be setting benchmarks. Infrastructure is best designed globally, but implemented locally. While the government should provide revenue to the states, this revenue should not be withheld from the state unless they fail to comply with Federal Standards. The US government could withhold discretionary
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funds from a state for sub-standard road, but could not withhold funds because the state failed to pass a traffic law. Local Governments need to make the majority of laws. By allowing local government more autonomy, federal and state governments can reduce budgets, and citizens have the potential to be happier. Domestic populations will migrate to areas that are more conducive to their lifestyles. States should also reserve the right to refuse certain federal taxes. If they refuse paying a specific tax, they should compensate the government with equivalent revenue. States should also hold the right to mine their own land without government interference. The U.S. government should only hold mineral rights on land that they own. The Environmental protection agency should be limited to monitoring actual pollution created. I do not oppose setting standards for how to
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drill, but prohibiting the use of natural resources should not be permitted.
"... God forbid we should ever be twenty years without such a rebellion. The people cannot be all, and always, well informed. The part which is wrong will be discontented, in proportion to the importance of the facts they misconceive. If they remain quiet under such misconceptions, it is lethargy, the forerunner of death to the public liberty.... And what country can preserve its liberties, if its rulers are not warned from time to time, that this people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to the facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time, with the blood of patriots and tyrants. It is its natural manure." Thomas Jefferson Papers, 334 (C.J. Boyd, Ed., 1950
Protecting Individual Rights It is not the position of the Federal Government to mandate the actions, decisions, or practices of individuals. The government should actively inhibit any group or faction that seeks to impose its morality upon another group. Individuals should have the right to choose what they eat, their sexual behavior
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(with other consenting adults), if they smoke or drink, and rather or not they use substances that are harmful to themselves. The individuals freedom ends when it infringes upon another individuals rights. I will take a moment to explain my stance on this issue. Society has proven that certain behaviors cannot be prevented. We have also proven that it is easier to control legal behavior than it is to control illegal behavior. While theft and murder happen universally and are universally illegal, these crimes should not be illegal on moral grounds, but rather on the grounds that these crimes infringe upon the rights of others. Murder infringes on the right to life, theft on the right of property, rape on the right of choice. The constitution states Congress shall make no law regarding religion or the free practice thereof. Since morality an element of religion, it stands to reason that Congress cannot enforce a moral standard. All laws of Congress

must protect an individual from Federal, State, or local
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infringement of personal rights. This is the first reason I support the legalization of gambling, prostitution, homosexuality, and drugs. Legalizing actions allows for greater controls on a substance. Taxes can generate revenue for rehabilitation and education. The use of cigarettes has declined in recent years due to increased taxation, education, and limiting of where Tabaco can be used. While I disagree with the extent to some of these laws, I also prefer such laws to clear bans. Our 236 year experiment has shown that it can be dangerous for personal freedoms to be tampered with. Prohibition lead to a strengthening of the Mafia, the Mormons faced state sanctioned religious prosecution. These events are historic fact. We need not apologize for them, we must simply learn from the dangers of the majority forcing their will on the
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minority. The state or nation has no right to curtail the private actions of individuals or businesses. The only function of the governments remains to defend individuals from infringement upon their rights by individuals, businesses, or governments. Local governments should only be allowed to infringe upon the rights of citizens when a social contract is signed. Communities could reserve the right to control who buys and sells property within the community and what products can be bought and sold within the community. This is the extent to which I believe governments can curtail private decision, by the consent of each citizen, not the majority.
"But if we are to be told by a foreign power what we shall do, and what we shall not do, we have Independence yet to seek, and have contended hitherto for very little." --George Washington

Foreign Policy: Favored Nation The favored nations policy within the U.S. should be
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changed. Favored nations should turn into a spectrum from least favored- most favored status. This status should not be left to the President and Senate alone, but should be settled by a panel that compares how well a countrys foreign policy, government style, human rights, environmental, and economic policy aligns with those of the U.S. Nations should receive a 0-5 rating with 0 being in a state of economic boycott and 1-2 being a state of increased tariffs. A 3-4 would receive the tariff calculated by the Fair Tariff law and a 5 would receive half tariffs. No country would be tariff free. No matter how allied a nation is, the citizens of the U.S. come before any considerations of the economy of the other country. While I agree that the President is the chief diplomat, and that the Senate has the right to ratify treaties, I do not believe
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that the president or the Senate has the right to bargain with the U.S. economy. At most I believe that the president and Senate should be able to adjust the current standing tariff by 10% of its current rate. This compromise allows the President some executive decision on tariffs, and allows the President some negotiating power. A President could also use this law as a means to sway governments towards parallel agendas.
"Arbitrary power is most easily established on the ruins of liberty abused to licentiousness." --George Washington
Foreign Policy: Military I believe the U.S. should deescalate its military role in global politics. This is not a move towards isolationism. The U.S. cannot afford to become Isolationist. Deescalating our military action would be moving from an aggressive stance, to a more defensive stance. While I believe that our forces should maintain

bases in other nations, I do not believe it should be for free. It
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costs massive revenue to maintain a military. I believe the U.S. should only maintain foreign bases if the host nation pays for our services. We call ourselves the global police, but receive no compensation for that role. The role of these bases would not be aggressive. The U.S. should only offer one striker brigade; the bases would have a private airfield to receive supplies, and would have access to air support. The concept of this strategy is not to have an overpowering presence in the country, but rather to offer stability to local forces. Any nation or force moving against the nation we represent would face the full might of the U.S. The U.S. would also offer to lease or sell hardware to host nations. This system would not only allow the U.S. military to be more self-sufficient; it could increase the U.S. projection of force. If the U.S. had fifty nations paying us for our services, other

nations would have to consider the location of those forces before ignoring U.S. ultimatums. Our customers would not be
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purchasing a brigade; they would be renting the might of the U.S. military. While each customer would have one brigade on the ground, they would be protected by virtually all the firepower of the U.S. This system would be beneficial to all involved. The U.S. would receive more funding to enhance our military program, and a less intrusive position in global politics. The customer would be defended by the most modern, military on the planet, at a fee much below what it would cost them to build such a military. The nations would also gain indirect access to the U.S. satellite network, and our intelligence services. These services would be supporting our men, and our soldiers would be supporting our host network.
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With the addition of a non-aggression clause, to contracts, we could reduce the chance of global war, by pulling out of a nation if they precipitate a war. This clause would also reduce the chance of the U.S. becoming directly involved in a foreign war. Like any other contract, a nation must either pay up-front for the service or pay a monthly rate, if the host fails to pay for services, the U.S. could pull out at any time. I would further expand this policy to require any country with which we have more than a $60 billion trade imbalance must pay for a brigade; the brigade point then becomes a customs point, manned by civilian customs officers and guarded by a brigade.
"Harmony, liberal intercourse with all Nations, are recommended by policy, humanity and interest. But even our Commercial policy should hold an equal and impartial hand: neither seeking nor granting exclusive favors or preferences; consulting the natural course of things; diffusing and
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diversifying by gentle means the streams of Commerce, but forcing nothing; establishing with Powers so disposed; in order to give trade a stable course." --George Washington
Foreign Policy: Economic Economic policy covers more than foreign trade. It can also include the way in which the United States provides economic assistance to other countries. I believe that economic assistance should be in the forms of loans and incentives to U.S. enterprises to invest in the country. These investments would be for ten or twenty years with an additional 5 year transitional period. This policy matches my domestic social welfare program. Our economic policy could also complement our military strategy. As stability is established in a region, U.S. businesses can invest in regions that previously were too unstable to invest in.
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I never submitted the whole system of my opinions to the creed of any party of men whatever, in religion, in philosophy, in politics, or in anything else, where I was capable of thinking for myself. Such an addiction is the last degradation of a free and moral agent. If I could not go to heaven but with a party, I would not go there at all. Thomas Jefferson to Francis Hopkinson, 1789 The common and continual mischiefs of the spirit of party are sufficient to make it the interest and duty of a wise people to discourage and restrain it. It serves always to distract the public councils and enfeeble the public administration. It agitates the community with ill-founded jealousies and false alarms, kindles the animosity of one part against another, and foments occasionally riot and insurrection. George Washington, 1796

Limiting the Power of the Party System
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The twentieth century displayed many flaws in democratic systems. One major flaw in democracy is the ability of the majority to silence the minority. Many democracies in the 20th century voted democracy out. This was due largely to poor economies and a majority taking control of the legislative branch. In the U.S. we have the problem with laws constantly being made in one administration, ended in the next, and re-written three terms later. This waste is due to a two party system. Our system of government was formed to make it difficult to make and unmake laws. I believe a 25-30% cap should be placed on any partys political seats in any legislative branch. A system limiting the power of parties in this way insures that all bills must have multi-party backing. Limiting the power of parties also creates more room for new voices to be heard. It increases the variety of platforms

candidates would run under, and opens the way for truly
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specialized parties. By narrowing party bases, citizens can vote on candidates that more ably represent them in congress.
"We cannot afford to differ on the question of honesty if we expect our republic permanently to endure. Honesty is not so much a credit as an absolute prerequisite to efficient service to the public. Unless a man is honest, we have no right to keep him in public life; it matters not how brilliant his capacity." --Theodore Roosevelt
Ending Gerrymandering Gerrymandering is the process of forming electoral districts, based on affiliation rather than geographical lines. While this system has some merit, allowing likeminded people to vote together, it also creates imaginary zones, making it more difficult for new parties to effectively challenge the old parties. Representative districts should be drawn with geographic as well as population symmetry. Electoral districts should stick as

closely to preexisting county and other geographic lines as
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possible. This would allow for more centralized campaigns, that cost less due to travel, It would also provide more intimate ties to the local community and the positive and negative factors of the entire community. The object of politics should not be to divide people along ideological, cultural, or socioeconomic grounds; the object of politics should be to bring a community together to discuss these different elements and how to better cope with these differences. Gerrymandering is ultimately the wrong way to handle politics. Political lines should be developed, not for the purpose of dividing people, but on the premise of creating smaller groups that can communicate more effectively. By placing all people who live in suburbs in one category, inner city in another, and Wall Street in another you factionalize congress. Factions

naturally form, the object is not to strengthen factions, but to overcome them.
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"Repeal that [welfare] law, and you will soon see a change in their manners. ... Six days shalt thou labor, though one of the old commandments long treated as out of date, will again be looked upon as a respectable precept; industry will increase, and with it plenty among the lower people; their circumstances will mend, and more will be done for their happiness by inuring them to provide for themselves, than could be done by dividing all your estates among them." --Benjamin Franklin
Restructuring the Current Welfare System Every human has duties to themselves as well as duties to the society in which they live. Finding the balance between these two conflicting agendas is often difficult. Is it the job of the government to assure that its citizens eat, have proper medical care, housing, and education?

I believe that it is to the benefit of all society for
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education, housing, medical, and food to be affordable. I do not, however, believe that all of these sectors should be controlled by the government. I also do not believe that able bodied citizens should be able to stay at home and collect government funds. I do believe that we need to help individuals better themselves. The best way to help a person is not giving them what they need; it is teaching them how to build wealth themselves. While not all people in a society can be wealthy, it is possible to increase the standard of living for all Americans. The focus of welfare should be intern programs, where people get paid apprentice salaries, but would work towards a certificate or a degree, childcare would be given for the parents which need the service, and would fall under the umbrella of the system. Like the education system, this system would create another source on inexpensive labor for businesses. These
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workers would be eligible for reduced rate foods, and reduced housing that meets the needs of the family. HUD housing should be redesigned to serve as a savings program as well as a housing program. The housing should be owned and operated by the schools that offer the service. This redistributes the revenue of housing back into the service providers. This cycle of money, reinforces the local economy while providing at needy families with a means to progress above their current condition. While the welfare program would compete a little with the current market, this competition would be minimal, these workers would also be placing money into personal retirement, which directly funds the economy. Any profit made by this system would be redistributed to the local businesses that may have lost some revenue due to the program; this would primarily go to real estate and grocery stores.
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Unemployment and under-employment would be work programs similar, but not the same as employment agencies. When displaced, a citizen would receive a job working in infrastructure development; the construction company would pay half the wages of the employee and the government the other half. This condition could only last 6 months. After six months the company could decide rather to keep these employees and resume full payment, or put them back in the pool. The company could not simply let the individual go; they would have to provide documentation stating why the person could not be maintained on salary. Infrastructure development could be any of a number of industries; landscaping, construction, power plants, custodial positions in government and private sectors, tourism, child care and medical. The government would also work with the individual and regional offices to help families relocate.
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This system is designed to keep individuals from staying at home and drawing government checks, it provides needy families with qualified child care, personal educational opportunities, a job that they can perform, and adequate housing. By reducing the amount of unemployment, crimes should also be reduced. Much crime is thought to be produced by poverty, taking money from the rich, does not reduce poverty, but a system that trains all to generate wealth will reduce poverty.
A fondness for power is implanted, in most men, and it is natural to abuse it, when acquired. Alexander Hamilton, the Farmer Refuted, February 23, 1775
Term Limits on all Federal Offices Term limits are essential to creating new ideas and changing old habits. There are two separate ways of handling

term limits; limit consecutive terms, or like the president limit
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total terms. I prefer the presidential style term limits. I believe that every federal political office should be limited to 2 terms. A person could hold the same position for only two terms; this would not prevent them from running for other government positions. The object of this law is to remove or reduce the business as usually mentality. Requiring offices to go to other individuals reduces the chance of stagnating politics and creates an environment where new ideas and practices can replace older practices. Many Americans are tired of business as usual but lack the time to enforce change. Term limits place the need to represent your constituents, not just your donors, if the candidate wishes to run for other offices.
Good constitutions are formed upon a comparison of the liberty of the individual with the strength of government: If the tone of either be too high, the other will be weakened too much. It is the happiest possible mode of conciliating these objects, to institute one branch peculiarly
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endowed with sensibility, another with knowledge and firmness. Through the opposition and mutual control of these bodies, the government will reach, in its regular operations, the perfect balance between liberty and power. Alexander Hamilton, speech to the New York Ratifying Convention, June 25, 1788
Simplification of Laws The current system of making laws or writing bills is inefficient. The average citizen does not have the time to read the bills that congress passes and most of our congressmen cannot even read the full bill. No law or code should exceed the length of the constitution. All laws should be concise and cover a specific crime. National laws should never mandate personal choice, and states should choose the exact way to enforce the law. All laws should be equally applicable to every citizen. Along with the law should be a paragraph that describes the purpose of the law, and a paragraph that defines the basic philosophy of the law. These paragraphs would be helpful in judicial review.
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Laws should not be complex entities with contradictory clauses. Neither should they be vague statements. Even congressional budgeting laws should be brief. It should be up to each department to use their funding. The House should simply reserve the rights to audit the spending of funds. Simplified laws would also allow the American public to know exactly what laws and funding our House approves. This would allow us to form more educated opinions on the effectiveness of our representative and where their loyalties really lie. A law should also be written separately from a bill that funds the law. This simplifies the bill and allows the funding bill to be a simple business proposal.
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Chapter 5 Conclusion The changes suggested in this book are not the rantings of a mad man. I admit that many of the suggestions in this book are novel. I would like to take a few moments to recap the major suggestions of this book and provide a preview of what each change would accomplish. A change in the tax code is essential for the United States to maintain its dominance. We face a true economic crisis. The U.S. spends around $3.4 trillion a year while it only receives about $2.1 trillion. Cutting spending by $1.3 trillion would cripple the U.S. economy. Raising taxes to cover this deficit would cripple the

economy; lowering taxes to stimulate the economy would
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increase the deficit. The Democrats and Republicans are racing to see who can kill the United States the fastest. They do not do this intentionally. Most politicians do act on what they feel is right for the country, but they have lost touch with reality. We need a new paradigm in taxation. The Smart Tax offers everything we need. The tax is unfelt, generates more revenue, places $2.4 trillion a year in specialized savings, protects the American economy, stimulates the American economy and costs less revenue to maintain than the current system. Also historical data shows that the volume of traded stock soars as the economy heads into a recession. This translates to more revenue is generated when it is most needed. Many times a 2% drop in the value of a stock is accompanied by a 300-500% increase to the volume of stocks traded. Our current system draws less revenue when a recession hits. The tax plan is the most essential idea in this book. If no other idea is accepted but even one element of
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the Smart tax is accepted, the prosperity of the American people will greatly increase. Energy reform would not only further stimulate the economy; it would also increase national security and give the U.S. more autonomy in global affairs. As long as OPEC has a strangle-hold on the domestic economy, the U.S. cannot be fully autonomous in its foreign decisions. Education is also a matter of national security. Our educational system must lead the world or we as a nation will inevitably bow to a foreign power. Education is the greatest economic stimulus a nation can have. It is essential that education is tied with the economy and the economy with it. The better our primary and secondary schools are, the more advanced our higher education can become. Though the current political climate in the U.S. sickens me, I would be content to allow all these other ideas to flourish. I
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would like to see wiser, more rational ideas come out of Congress. As a historian I understand the weaknesses of a Democracy and all of the reforms I seek strengthens the checks and balances of the system and adds modern dynamics to a precious but outdated document.
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Index
The Smart Tax Comparative Overview
Current Tax System 60,000 pages long Federal Income Tax average 8.8% Average State and local tax 12.4% Average SSI 5.4% Average Medicare 1.5% Average total tax 28.1% of income Average Corporate profit tax 11% Disposable Corporate Profit 89% True Disposable Income 71.9%
The Smart Tax
11 Pages long Federal Investment Tax .04-1% Currency Exchange Tax .15.25% Employment Tax 1% Sales Tax 1%Federal, 1.5% State, 2% local tariff = Domestic per capita/ foreign per capita * imports/exports + 2% SSI 5% personal savings, 5% employer universal fund. Medicare/Medicaid: 3% Revenue Generated personal savings, 3% employer 1. Federal Income Tax $1.12 match Trillion Unemployment/ workman's 2. State and local Taxes compensation 2% personal $1.44 Trillion savings/ 2% employer 3. SSI $654 Billion universal match 4. Medicare/Medicaid $191 Personal Disposable income Billion 100%; 10% reserved 5. Unemployment Corporate tax = 1.11 times

(corporate) $38 Billion Corporate Tax $293 Billion excise taxes (national) $62 Billion estate taxes $23 Billion tariffs $22 Billion
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6. 7. 8. 9.
Total Federal Revenue $2.5 Trillion Total Federal Outlays $3.7 Trillion deficit spending $1.2 Trillion
employment Revenue Generated 1. $1.43 Trillion Stock Trades 2. $934 billion Currency exchange (15% Federal, 85% state and local) 3. $120 Billion employment Tax 4. $119 billion tariff 5. $600 billion personal retirement; $600 billion universal retirement 6. $360 billion personal medical; $360 billion universal medical 7. $240 Billion personal emergency funds; $240 Billion universal emergency funds. 8. $143 Billion Federal sales tax; $429 billion state and local tax. 9. $ 12 billion from 1% investment taxes on personal accounts. Total Federal Revenue $3.16 Trillion Total Outlays $3.7 Trillion Total State and Local $1.2 Trillion
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Tiered Refund Time Interval After 6 months 5-6 months 4-5 months 3-4 months 2-3 months 1-2 months 1 month 2 weeks 1 week 3-5 days 2 days 1 day 7 hrs. 6 hrs. 4 hrs. 2 hrs. Tax Amount 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.15% 0.12% 0.10% 0.09% 0.08% 0.07% 0.06% Refund 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.85% 0.88% 0.90% 0.91% 0.92% 0.93% 0.94%

1 hrs. 30 min. 0.05% 0.04%
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0.95% 0.96%
The National Sales Tax Tier Industry Unprepared food Fuel Electricity Telephone/internet Cable TV Housing Luxuries/ home entertainment Alcohol/Tobacco Federal 0.00% 0.00% 1.00% 1.00% 1.50% 1.00% 2.00% 3.00% State 0.00% 0.00% 1 -1.5% 1-1.5% 1.50% 1-2% 1-1.5% 2-3% 3-4.5% Local 0.00% 0.00% 1- 2% 1-2% 1.50% 1-3% 1-2% 2-4% 3-6%
Necessary Home Goods 1.00%
The Tariff Global trade is a necessity both for economic and security reasons. Though necessary, international trade creates several real
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complications. How can we produce a product of the same quality as a foreign manufacturer when our labor costs four times what the foreign labor costs? Historically local economies were protected by tariffs, and such practices are still used. The problem with our current tariff system is it is done on an industrial area, not a political area. We have tariffs on corn, not on Chinese goods. Also much time and effort is spent on debating and arguing tariffs, time that could be spent on other issues. The Fair Tariff Law would set a tariff on all products from a country by using a formula designed to create fair trade. Tariffs are derived from the following formula: Imports/exports * National Per Capita/ foreign per capita + 2%. The greater the trade imbalance and the greater the disparity in per capita, the greater the tariff is. It is now expedient to examine this formula based on a few of our trading partners; we will examine China, Japan, Korea, Germany, England, and Egypt. The information used to compute these tariffs if pulled from census.gov and nationsonline.org

China is one of our largest trading partners. In 2010, they
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purchased $91.8 billion dollars worth of US goods and we purchased $364.9 billion dollars worth of Chinese goods. The Chinese per capita is $6,193 our national per capita is $41,557. We derive the Chinese tariff by placing these numbers into the formula: 364.9/91.8 * 41,557/6,193 + 2% = 28.67%. Japan manufactures several products demanded in the US. The US imports $120 billion worth of Japanese products and exports $60 billion. The Japanese per capita is also much closer to the per capita of the United States. These factors work to give Japan a favorable tariff of: 120/60 * 41,557/31384 + 2%= 4.65%. South Korea would have a Tariff equal to 49/39 * 41557/22543 + 2 = 4.32%. Germany's tariff would equal: 83/47 * 41557/30150 +2 = 4.43%. England would suffer a tariff equal to: 49/48* 41557/30303 + 2 = 3.4%. Lastly Egypt would enjoy a tariff of: 2/7 *41557/4282 + 2% = 4.77%. Notice how the trade surplus with Egypt offsets their grossly disproportionate per capita, also note that with the exception of China no nation has more than 5% tariff.
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The revenue derived from this tariff, assuming trade did not shift, would be $106 billion, China; $5.5 billion, Japan; $2.1 billion, South Korea; $3.68 billion, Germany; $1.67 billion, England; and $95 million, Egypt. These 6 trading partners would have generated $119 billion dollar for national revenue in 2010. Social Security Reconstruction Act
year Individual Contribution/ Corporate rate match 3.5% Contribution/ rate 7.5% 1 5 10 20 30 40 45 $2,077.00 $11,527.00 $25,218.00 $60,792.00 $110,973.00 $181,757.00 $227,398.00 $1,038.50 $6,484.00 $15,793.00 $48,344.00 $115,433.00 $253,706.00 $370,712.00
Universal Retirement contribution/ Poverty Retirement Fund $577.00/ 150 Billion $4,431.00 $9,964.00 $29,311.00 $69,187.00 $151,373.00 $220,918.00
Total Individual account
$3,843.00 $22,442.00 $50,975.00 $128,447.00 $295,593.00 $586,836.00 $819,028.00

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