If you really believe in America, read this

The Ownership Society Institute (OSI) has been claiming that its Rise Up America (RUA) plan to reform the US Government, kick-start the economy, immediately eliminate over $100 trillion in unfunded US debt and deliver the American Dream of financial independence to every American is the route the political parties should be taking rather than the present slash and burn Republican plan to cut benefits, services and safety nets or the totally irrational spending spree the Democrats are planning to pursue right into Federal as well as state, county and city bankruptcy.

For those of you unfamiliar with the Rise Up America plan it is based on a simple tax shelter device used by the wealthy that has allowed the likes of Bill Gates and Warren Buffett to amass $50 billion fortunes without so much as paying one dime in income tax. The device is simple – the appreciation in the value of their stock is not taxed currently – or ever if they don’t sell shares and pay the 15% capital gains tax. RUA by privatizing the entire 15.3% of annual payroll tax and allowing it to be placed in an unreachable investment account and invested in the stock market for every taxpayer’s working life will enable every American to become a millionaire at retirement. See tables here. The appreciation in their stock over the years will enable them to escape the current taxation of their gains.

From the chart below one would have to be delusional or fatally partisan not to believe that this is the moment for the people to jump on the RUA bandwagon and institute the RUA plan at every level of government. The expectations for stock market returns after inflation will be over 11% which if it holds would mean the average American family ($50,000 annual income at today’s price levels) would generate a $14, 200,000 nest egg after his or her 40-year working life. Now this sounds too good to be true but that is what the calculator tells us. Remember in 2006 Warren Buffet made $833 million each and every month for the entire year as that was the result of his accumulating stock the appreciation on which he paid no tax. RUA merely adopts that shelter to make the poor rich and the rich ever so much richer.

Dick McDonald, General Manager
Ownership Society Institute
April 6, 2011