Alternative Solutions and Tools For the Treasury and the Fed to solve current US Financial Crisis

BY EMAIL and FAX to POTUS and POTUS-Elect for their Monday November 10th 2008 meeting.

THE CANDU MEMORANDUM - FINANCIAL CRISIS SOLUTIONS - UPDATED NOVEMBER 9, 2008 WITH Federal Reserve Bank Insurance Tool and HOME BUILDERS ADDITION-AVOID ECONOMIC PANIC

Urgent President Bush (and President -Elect Obama),Congress, Treasury Secretary Paulson and Fed Chairman Bermanke need to read THIS CANDU MEMO ALTERNATIVE SOLUTION FOR MAIN STREET AND WALL STREET - SPECIFIC CHANGE PROGRAMS TO PROVIDE THE TOOLS TO SOLVE THE FINANCIAL CREDIT CRISIS, TO STABILIZE AND IMPROVE THE HOUSING MARKET VALUES AND THE RESIDENTIAL MORTGAGE FINANCING CRISIS USING THE THEORY OF TAX-ENOMICS. - THIS IS A TIME IS OF THE ESSENCE MATTER AND MUST BE DEALT WITH FORTHWITH.

Every time the Federal Reserve Bank dumps money in to or bails out a bank or investment company it is creating financial fear and panic, because the banks and investment companies have no incentive to start relending and also are keeping the cash for a rainy day.

IMMEDIATE SOLUTION:All the Fed has to do is provide an insurance vehicle for banks to lend each other and for banks to provide commercial loans and credit linesand other required loans (student loans and autos for example). The borrower pays the premium to the Fed. Insurance instills confidence not fear. Using this type of financial lending insurance tool, can be applied globally. The detailed programs are set forth below.

As FDR and Barack have said "ALL WE HAVE TO FEAR IS FEAR ITSELF".

These are Bipartisan alternative FINANCIAL CRISIS solutions that will cut the bailout program by 50 to 75% with more defined and comprehensive results - and will restore consumer confidence in the financial and economic markets.

Special new tool for Treasury Secretary Paulson and Chairman Bermanke- To lubricate the plaque filled financial arteries the Federal Reserve Bank (the "Fed") can sell insurance to banks for a "Fed" guarantee of bank short-term loans between banks - similar to FDIC or FHA guarantees. The insurance, paid for by the borrower,is charged by the Fed Reserve Bank (one method would be a 1/4 point (.25%) for a 25% principal guarantee, 1/2 point (.50%) for a 50 % principal guarantee, 3/4 point (.75%) for a 75% guarantee, and 1.0 Point for a 100% guarantee).

The banks would be able buy similar guarantees on their unsecured and secured business credit lines they give businesses where the businesses will pay a Fed Insurance premium for the guarantee. Based upon the credit a business can be qualified for the appropriate guarantee for the business credit line or loan. This could also be used for auto loans, equipment purchases and student loans, and other financial tools.

By using an FDIC /FHA type insurance premium guarantee program as the basic model (Both finanically proven successful) this will immediately expand the confidence level in the financial markets, because the insurance premium guarantee program will use minimum funds from the FED, and provide maximum available credit availability. A capital reserve ratio of 10 to 1 may be a possible model.
There has to be strict guidelines and adequate oversight for this program to work.

In order to gain more liquidity in the financial credit and residential mortgage market and to provide the proper tax and economic incentives to stimulate home purchases and help stabilize the residential market values, I propose certain changes using the Theory of Tax-Enomics that will be beneficial to the both the borrower, the lender or assignees of securitized mortgage pools and to qualified home builders.

1. The FHA Residential Lender Investment Program: Economic Incentives to decrease the supply of REOs (real estate owned foreclosed homes held by mortgage Lenders)

• The "FHA Residential Lender Investment Program" (FHA-RLIP): should include the limited purchases from the lenders of a percentage of REOs (one type of the toxic assets owned by the banks) using a REX Agreement type program. Specifically, the program would work as follows:

1. The FHA-RLIP will be authorized to purchase a 50% interest in an REO for $.20 on the $1.00 of the purchase price (reduced by the lender's charges for any legal fees, disbursements, sale fees, and late fees on the mortgage balance) paid by the lender at the foreclosure sale.
   
   
2. The Lender will continue to administer and sell the REO. When the REO is sold, if the sale price will not repay the full 50% FHA-RLIP investment interest in the property, the balance of this 50% interest in the REO not recovered from this REO sale, will carry a REX type Agreement (a junior mortgage lien for a 50% interest in the future increase in FMV of the property over the REO sale price for a 10 year period subsequent to the sale of the REO). At the end of the 10 year period, if the REO property is not resold during the period, the lien will be extinguished.



3. The FHA-RLIP will only be authorized to purchase a limited number of REOs from any one lender over the next two years. The lender upon notification from the FHA-RLIP will submit to the FHA-RLIP a an initial list of REOs with the purchase price info and the present FMV info supported by a licensed FHA bank appraisal using 6 comparable sales.



4. The FHA-RLIP by committee will select for the program from the list a number of these REOs not to exceed 50% in current FMV of the total REOs submitted.



5. The FHA-RLIP will also provide a 75% FHA guarantee to existing home builders building loans (the principal balance on August 1, 2008), for those qualified builder company borrowers that have not been delinquent on any payments to the lenders prior to August 1, 2008. New building loans can qualify for a 50% FHA loan guarantee, providing they have no prior defaulted loans (prior to Auguste 1, 2008). Maximum building loan guarantee for any one home shall be limited to $300,000.
6. Add a tax free capital gain exclusion for the sale of investor residential family properties of $250,000 for the next two years. This will stimulate the purchase of foreclosed investor (rental) residential properties.

This program will provide the lenders with a vehicle to expedite the sale of REOs, which will give some immediate liquidity to the lenders or the assignee holders of foreclosed mortgages in securitized pools. It will also provide a stimulus, stabalization and liquidity to the home building market and the residential rental home market.

2. Using the Theory of Tax-Enomics, provide tax and economic incentives as consideration to Borrowers, Lenders and Assignees of Securitized Mortgage Pools ("Assignees")to restructure and modify existing mortgages on owner-occupied homes in foreclosure or in mortgage default of 2 or more payments as indicated below. The purpose being to make it economically feasible and desirable for the borrowers to enter into the modification agreement and remain in their homes.

Multi family homes up to 4 family would be eligible for this program and the others listed above and below, on a percentage basis of the owner-occupied portion to the rental portion of the residence.

1. If the current appraised value of the owner-occupied residential home has been reduced below the principal balance of the existing mortgages on the property, the lenders or assignees must agree to modify and reduce the principal mortgage balances to an amount not to exceed 80% of the current appraised value. This new mortgage principal balance would be guaranteed by the FHA. Maximum reduced mortgage principal can not exceed $975,000.



2. Only the reduction amount of the mortgage principal (all late fees of any type will be eliminated in the computation) will be sold to the new Resolution Mortgage Investment Trust Fund (RMITF) for 25 cents on the $1.00, which will receive a junior lien against the property under a "REX TYPE AGREEMENT" - a 50% interest in the FUTURE INCREASE IN VALUE OF THE PROPERTY WHEN SOLD or terminated. This junior lien will require no monthly payments and will only mature upon sale or termination. Alternatively, the Lender can keep the junior mortgage lien (REX type agreement) under the same terms as an investment.



3. This lender or assignees will be granted permission for maximum modification administrative fee of $1,000 to be rolled into the new mortgage principal as long as this fee does not increase the new mortgage principal balance above the 80% of the current appraised value.



4. The mortgage terms must be converted to a maximum 40 year fixed rate term mortgage not to exceed 1% above the current prime rate at the time of the agreement.



5. The mortgage would have at least one full month of being interest free to the borrowers and not require any payment until the first of the month, following the first full month following the signed agreement. The lenders will not receive short-term interest under this agreement.

The tax incentives to enter into such agreement for the lenders, or any assignees, would be several part.

1. The entire remaining principal balance (maximum of 80%of the current appraised value) held by the lender or any assignees would be converted to a tax free bond for its new remaining term. This means the income on these mortgage bonds would be tax free to the recipient.
   
2. For each dollar of principal balance of the mortgage loan in foreclosure or in mortgage default reduced by the lender or the assignees, said lender or assignees will be allowed to convert to tax free income on the principal balance of other mortgage bonds held equal to triple the amount of principal reduction.
3. If the lender options to take the junior mortgage lien under the same terms as the RMITF, it will receive a 10 year tax credit of 100% of any capital gain tax received on sale of the property.

The Owner-Occupied mortgage borrower would receive tax and economic incentives, in addition to those listed above, to enter into the mortgage modification agreement, subject to certain limitations.

1. The lender will be required to delete all derogatory credit info from the borrower's mortgage file and notify all three credit reporting agencies accordingly.
   


2. The qualifying borrower(s) who enter into the modification agreement will receive a $20,000 nonrefundable tax credit spread over a ten year period of the agreement. $4,500 in the first year of the agreement, $2,000 in 2Nd thru 5Th years ($8,000), and $1,500 for 6Th thru 10Th years ($7,500). Homeowners have more financial needs in the early years after defaulting on their mortgage.



3. The credits would be nonrefundable. Unused credits could be carried forward thru the 10th year. Any unused credits after the 10th year would expire.



4. If the owner occupied residence is sold during the 10 year period, the remaining unused credits will be permanently extinguished. The incentive is that home owners should stay in their homes during the 10 year incentive period.



5. The used tax credits will carry a deferred tax impact in the reduction on a 2 for 1 basis of up to $40,000 of the taxable gain exclusion, Each $1.00 of credit used will reduce the taxable gain exclusion by $2.00.



6. The reduction in the taxable gain exclusion could be deferred by an investment in a new owner occupied home, if it equals at least 50% of the original home purchase price, including improvements. Homeowners, who need to downsize, should not be penalized for doing so.

3. Increase in tax incentives to stimulate home purchases:
Using the Theory of Tax-Enomics, I propose the following changes in the tax law.

1. A $20,000 Residential Home Purchase Investment tax credit for the purchase of a new owner-occupied residential primary home that would be spread over a 10 year period.


2. Multi family homes up to 4 family would be eligible for this program and the others listed below, on a percentage basis of the owner-occupied portion to the rental portion of the residence.


3. $6,500 in the year of purchase, $1,000 in 2Nd thru 4Th year ($4,000), $2,000 in the fifth year, and $1,500 for years 6Th thru 10Th ($7,500). Homeowners have more financial needs in the early years after the purchase. The incentives have been made to encourage the homeowner to stay in their homes for at least 10 years.



4. The credit would be nonrefundable, but unused credits could be carried forward thru the 10Th year. Any unused credits after the 10Th year would expire.



5. If the owner occupied residence is sold during the 10 year period, the remaining unused credits will be permanently extinguished. The incentive is that home owners should stay in their homes during the 10 year incentive period.



6. The used tax credits will carry a deferred tax impact in the reduction of up to $40,000 of the taxable gain exclusion, on a 2 for 1 basis. Each $1.00 of credit used will reduce the taxable gain exclusion by $2.00.



7. The reduction in the taxable gain exclusion could be deferred by an investment in a new owner occupied home, if it equals at least 50% of the original home purchase price, including improvements. Homeowners, who need to downsize, should not be penalized for doing so.


8. Home Builders will be eligible for a $1,000 Federal payroll tax expense credit for each new home completed (must have a valid Certificate of Occupancy) after the first 60 days from enactment of the legislation. This payroll tax expense credit program will be instituted for a period of one year after the 60 day period.

4. FREE THE RETIREMENT ACCOUNTS - KEOS, IRAS and Corporate Pension Plans.

Under certain 401K plan and Corporate Retirement Plans, a participant is allowed to borrow funds from these accounts , subject to strict limitations, without a tax impact. However this is a loan that requires repayment and the interest is not deductible.The present tax law makes the withdrawal in most cases as economically unfeasible.

In order to make it easier for prospective homeowner-borrowers- to use funds in their retirement accounts for the purchase of a residential home (owner-occupied), I propose using the Theory of Tax-Enomics for changes in the tax laws as follows:

1. If the tax law were changed to allow a withdrawal for a home purchase without current tax impact, the withdrawal becomes an economically feasible and advantageous transaction for the prospective homeowner-borrowers. It allows the borrower to have more equity in his new owner-occupied home, which may represent a significant asset at retirement age. This equates to reduction in retirement asset account from which the funds were taken.



2. The only tax impact would be if the owner occupied home, when sold in the future, would have a reduced taxable gain exclusion.



3. If the taxpayer uses the proceeds within a set-time frame to purchase another primary owner-occupied residence, the reduction in taxable gain exclusion, at the option of the taxpayer can be transferred to the new residence - in whole or in part.



4. The interest on eligible retirement account loans for home purchases should be deductible as qualifying mortgage loan interest, providing it is repaid like a mortgage over a term not to exceed the 65 years less the borrower's age. IRAs should be included in accounts eligible for these permissible "mortgage loans."



5. An allowed administrative fee, not to exceed 1/2% of the interest charged on the loan, which interest income when repaid will go directly back into the participant's retirement account.



6. Modify Qualifying Income for Residential Mortgage Financing to include the nontaxable for mortgage underwriting purposes the nontaxable income earned on retirement tax deferred accounts (which income is not reported on the borrower's tax returns). is a nontaxable income that many borrowers have, that should be used in their qualifying debt to income ratio, that presently to my knowledge is never considered. This income should be reduced by 2.55% (the 10% tax penalty for early withdrawal less the 7.45% payroll taxes that it is not subject to). If the borrower does not have sufficient income to pay his mortgage at any point this additional income is available to the borrower to subsidize his taxable income.

Note: The above programs, in the long-run, will be self-financing with deferred tax impact. Tax Incentives - Tax Credits or exemption from tax are only granted where the participants are doing services for the economy or assisting the economy by stimulating and restoring consumer confidence in the housing market values and residential mortgage financing. In each case the parties must participate financially to get the tax and economic incentives.

We will be forwarding seperately other UPDATED CANDU MEMOS for solutions to many of our nation's crisis problems. All of these solutions have been previously sent by fax and email.

I am trying to serve my country with the tools that I have. Please give me the respect to provide a personal response, even if you disagree with my solutions (but please tell me why if you can).

MRCANDU10 (Cousin of MR.GET-IT DONE)

The Theory of Tax-Enomics-Presidential Economic Solutions

For The President, the President-Elect, the Transition Team, the Congress, the Secretarys of the Treasury (Present and to be) , and the Federal Reserve Chairman -UPDATED and REVISED 11/22/08





The Theory of Tax-Enomics is the use of Federal, State and local tax laws to produce positive economic and social change










IMMEDIATE FINANCIAL CRISIS - RECESSION STOPPING SOLUTIONS FOR THE PRESIDENT , THE PRESIDENT-ELECT AND CONGRESS BY AN ECONOMIC STIMULUS PACKAGE WITH Specific programs WITH SELF-FINANCING SOURCES OF FUNDING TO:

1. REVERSE THE INCREASE IN UNEMPLOYMENT BY STOPPING THE LOSS OF JOBS IN THE US DUE TO THE CURRENT FINANCIAL CRISIS AND INCREASE IN ACCELERATED DEFLATION - SPECIFICALLY IN THE AUTO INDUSTRY AND IN THE HOUSING INDUSTRY.

2. PUT MONEY IMMEDIATELY IN AMERICAN TAXPAYER CONSUMER POCKETS FOR PROPER SPENDING WITH A SHORT-TERM- IMMEDIATE ECONOMIC STIMULUS PROGRAM.

3.

3. FOLLOWED BY A 2YEAR LONG-TERM STIMULUS PROGRAM.

1. THE THREE MONTH FREEZE PROGRAM ON A 50% REDUCTION OF ALL Federal PAYROLL TAXES (Social Security and Medicare Tax Withheld from employees and paid as an expenses by employers) ON ALL WAGES AND SALARIES for existing employees and a SIX MONTH FREEZE under the same program for newly hired employees.

2. INCREASE FOR THE NEXT THREE MONTHS ALL STATE UNEMPLOYMENT INSURANCE BENEFITS.

• Every person, presently on Unemployment or who goes on unemployment during the three month period, will receive 110% of the allowed benefits during this three month period.

IT DOES NOT REQUIRE THE GOVERNMENT TO ISSUE ANY NEW CHECKS.

• The employers would take the deduction for both the withholding given to the employees and their expenses portion on their quarterly Fm 941.
• The taxpayers who are presently on unemployment insurance benefits will receive the 10% increase directly in their existing checks. Any new taxpayers going on unemployment during this three month period would also receive 110% benefits for the remainder of the three month period. Whatever additional benefits paid out by the states, they would bill the federal government for the additional benefits paid by the states.

HOWEVER, EVERY WORKING AND NEWLY HIRED WORKING TAXPAYER WILL SEE IMMEDIATE BENEFIT. By using supply-side economics there will be no loss of tax revenue as explained below in THE THEORY of Tax-Enomics.

This program is designed to put IMMEDIATELY MONEY IN THE ECONOMY AND THE AMERICAN TAXPAYER- CONSUMER WITHIN 30 DAYS OF PASSAGE BY CONGRESS. It will GIVE IMMEDIATE benefit to both the individual American Taxpayer Consumer and the American Business Taxpayer.

This program could plug the hole in the dyke until other SPECIFIC programs can be put in place.

The loss in tax revenue will be offset by the increase in taxpayer base as explained below in this blog on The Theory of Tax-Enomics.

FOR THE LONG-TERM ECONOMIC STIMULUS - TO TAKE EFFECT WITHIN 6 MONTHS:

THE PRESENT PROPOSED NEW TAX STIMULUS TAX REBATE PROGRAM may help the economy on a limited basis, but it will not solve the inherent economic problems that must be faced, and may not substantially stimulate domestic consumption to create domestic jobs. It will help some people on a temporary basis, who need money to make ends meet, but it is not enough.

However, Congress, the President and the President-Elect need the practice of working together in a bi-partisan manner.

The mortgage part of the previous package (increase in Fanny Mae and Freddie Mac mortgage limits to $729,000) is excellent because it will provide some additional liquidity in the mortgage and housing market, if the banks will return to making loans..

The corporate part of the previous stimulus package was excellent. HOWEVER, it should be revised in a new stimulus program to favor DOMESTICALLY produced equipment and R&D, BY PROVIDING, BESIDES THE DEDUCTION, ADDITIONAL INCOME TAX CREDITS FOR CERTIFIED DOMESTICALLY PRODUCED BUSINESS EQUIPMENT .

THE FOLLOWING PROPOSED PROGRAMS ARE SPECIFICALLY DESIGNED TO STIMULATE THE ECONOMY WITH DOMESTIC JOBS AND DOMESTIC CONSUMPTION - THEY ARE ALSO DESIGNED TO GIVE THE MIDDLE TO LOWER INCOME TAXPAYER CONSUMERS MORE DISPOSABLE INCOME SO THEY CAN PAY THEIR BILLS AND KEEP THEIR HOMES.

• THE AMERICAN -US AUTO CONSUMER INVESTMENT TAX CREDIT PROGRAM
• 
  THE AMERICAN - US HOME OWNER INVESTMENT TAX CREDIT PROGRAM
  
  THE RETIREMENT ACCOUNT HOME FREEDOM PROGRAM
  
  THE FORECLOSURE AVOIDANCE ASSISTANCE PROGRAM
  
  THE CREDIT CARD FINANCE CHARGE FREEZE PROGRAM
  
  THE GREEN JOBS With "MADE IN USA" CERTIFIED MATERIALS TO INCREASE CONSUMER GOODS CONSUMPTION PROGRAM
  

TO SEE HOW THESE PROGRAMS WILL WORK I AM PROVIDING FIRST AN

Explanation of The Theory of Tax-Enomics:

The first key principle of the Theory is the recognition that for GOVERNMENTS TO INCREASE TAX REVENUES,

1. it is not necessary to always increase TAX RATES

and the THEORY OF TAX-ENOMICS USES THE PRINCIPALS OF SUPPLY-SIDE ECONOMICS IN ITS APPLICATION BY USE OF A VERY SIMPLE FORMULA.

There are FOUR ELEMENTS of a TAX-ENOMICS FORMULA to produce an increase in tax revenues for any particular tax.

• (A) The number of TAXPAYERS SUBJECT TO THE TAX.
• (B) The total amount of TAX REVENUE PER TAXPAYER THAT WILL BE TAXED. (This is the primary element for positive economic effect)
• (C) The TAX RATE TO BE APPLIED TO THE TAX REVENUE.
• (D) The TIME PERIOD that the TAX RATE IS APPLIED TO THE TAX REVENUE PER TAXPAYER.

THE FORMULA IS very simply (A) X (B) X (C) X (D) = TOTAL TAX REVENUE PRODUCED BY A PARTICULAR TAX.

• By application of the above simple formula for any particular tax, it is easy to see that
• A. AN INCREASE IN ANY ONE OF THE ELEMENTS CAN PRODUCE AN INCREASE IN TAX REVENUE.
• B. IT IS POSSIBLE TO DECREASE THE TAX RATE IF WE CAN INCREASE SUFFICIENTLY THE AMOUNT OF TAX REVENUE PER TAXPAYER OR IF WE CAN SUFFICIENTLY INCREASE THE NUMBER OF TAXPAYERS.

2. The second key principal of the THEORY OF TAX-ENOMICS is:

• (A) An increase in the NUMBER OF TAXPAYERS and/or the AMOUNT OF TAX REVENUE PER TAXPAYER may actually be induced by DECREASING THE TAX RATE and or providing tax incentives within the economy that generate both an increase in total industry and consumer spending. The key here is for a Tax Stimulus program to work properly, that the decrease in tax paid by the taxpayer consumer or the business taxpayer consumer should be directly related to how these taxpayers spend their money in the purchase of consumer and business products, and expansion of the economy.

FOR EXAMPLE:

1. The NUMBER OF TAXPAYERS could be increased by removing them from the rolls of the unemployed. If new jobs are created by tax incentives (reductions in tax rates and/or abatements in total for a particular tax), the new taxpayers will generate new possible tax revenue would be available for application of the taxes, which they were not doing before.

2. With every new job that is created, a new taxpayer (or a taxpayer who has left another job and could have become unemployed for a period of time) joins the tax rolls and brings with him new tax revenues which he will spend in the economy, which increase GNP(GROSS NATIONAL PRODUCT).

3. For every job that leaves the US economy and goes overseas, without that person losing the job, maintaining his level of income, his consumer spending is reduced because his personal budget has been reduced.

4. If we can increase the amount of spendable earned and or passive income received by a taxpayer, we could lower the TAX RATE per taxpayer because the AMOUNT OF TAX REVENUE PER TAX PAYER IS INCREASED BY THE TAXPAYER'S INCREASE IN HIS PERSONAL REVENUE AVAILABLE TO THE TAXPAYER TO PAY FOR THE TAXPAYER'S NECESSITIES AND ON THE TAXPAYER'S SPENDING FOR CONSUMER PRODUCTS WHICH HELPS THE LOCAL ECONOMY AND CREATES THE DEMAND FOR NEW JOBS.

THE AMERICAN CONSUMER - is the key to our economy.

The driving force for our economy has always been the American Consumer and the American Tax Payer.

• When there is a lack of confidence by the American Consumer our economy and all of it's inter-related parts slow down and give the appearance that we are heading for a recession or worse.

• When the American Consumer feels confidence in his future, he increases his financial consumption of goods and services.

• When the American Consumer increases his financial consumption of goods and services, our economy expands with an increase in demand for consumer goods and services, particularly if these goods are certified as domestically produced ("MADE IN THE USA"). As other foreign governments do, the US Government and State Governments need to subsidize by preferential tax incentives goods and services that are domestically produced. This will level the international playing field.

• This increase in demand for goods and services then drives our domestic industrial and manufacturing sector to expand production, with an increase in gross national product of all of its related services and product supporting companies.

Conversely when the American Consumer and the American Domestic Businesses lose their confidence in our economy, all demand shrinks, and there is a contraction and reduction in the production of all domestic goods and services. Some people would call this "Supply Side Economics".

Additionally, when the labor to produce the goods and services consumed domestically is obtained a cheaper cost overseas, then we have both a loss of tax revenue and domestic consumption revenue, which results in a loss of domestic jobs from decreased domestic employment.

• If government wants to use this Supply Side Economics principle to increase consumption by the American Consumer, to avoid a recession and bring the economy to fuller domestic employment, it must provide the American Consumer with the proper incentives that will cause him to have the financial ability to increase his domestic consumption and to generate domestic US employment. Consumer confidence rises when domestic US employment rises and the consumer has more DISPOSABLE income.

This is where The Theory of Tax-Enomics can provide government with the tools to effect these positive economic changes.

History is a great source for finding the tools for positive economic change. The economic effects of historical tax incentives used previously is definitely invaluable in developing new tax incentives to produce positive economic and social change.

• The following are two specific examples of NEW positive economic Tax incentives programs that the federal government could offer to effect positive economic domestic change, and thus positive social change resulting there from:

EXAMPLE NO. 1: The American - US Auto Consumer Investment Tax Credit Program

Historically, we should look back to 1968 and we would see the dramatic effect on auto sales and the auto industry when there was relief from the federal excise tax that had previously been placed on automobiles sold.

• Specifically the American - US Auto Consumer Investment Tax Credit is a 10% Federal Cash Tax Credit ($2,000 maximum) that a consumer receives for purchasing a "domestic qualifying"

  US Manufactured or A US Assembled Foreign manufactured hybrid or electric automobile (all labor for these vehicles must be US workers for the vehicles to qualify and at least 50% of the material to produce the vehicle must be certified as "MADE IN THE USA')

  costing the Consumer at the retail price level (with all extras and with a 5 year manufacturer's warranty) $20,000 or less. The Cash Tax Credit for the consumer buyer is exempt from AMT, and can be carried forward if not used up in the year of purchase.

• The US auto companies that manufacture or assemble the qualifying vehicles will receive TWO TAX CREDITS:

1. A 5% (of the Retail Sales Price of the qualifying vehicles as defined above) Federal Cash Tax Credit ($1,000 maximum per qualifying vehicle) that can be applied to the payment of federal payroll taxes (the expense portion limited to direct labor used in the manufacturing, and/or assembly of the qualifying vehicles) per vehicle produced AND SOLD at retail.
2. A 5% MADE IN THE USA DOMESTICALLY PRODUCED MATERIAL TAX CREDIT. The credit would be computed on 5% for the cost of all domestically produced steel and other raw materials and products (MADE IN THE USA) purchased AND USED IN A QUALIFYING VEHICLE. The maximum credit could not exceed a $1000 per qualifying vehicle and would be a refundable income tax credit for the auto manufacturers.

The qualifying vehicles would be required to have to have certain normal features of a comparable sedan or SUV that is not a hybrid or electric vehicle.

• The auto dealers that sell these vehicles would also be eligible for a 2.5%% (of the Retail Sales Price as defined above) Federal Cash Tax Credit ($500 maximum per qualifying vehicle) applicable towards the payment of federal payroll taxes (the expense portion limited to the expense portion of non-owner sales and service personnel).

• The Banks or Auto Finance Companies that provide financing for these qualifying vehicles at interest rates sold not to exceed for the consumer 4% per Annum over a maximum loan period of 5 years will receive a tax exempt status (and from AMT) for the interest earned on this auto financing. The Banks and Auto Finance Companies will be able to offer Tax Exempt bonds to generate the funds for the financing. They will also be able to purchase government insurance from the Federal Reserve (similar to FHA and FDIC insurance on loans) on qualifying auto loans.

• The states where these qualifying vehicles are sold will be asked to participate in the program by reducing the sales tax rate on the qualifying vehicles sold to a maximum of 2% of the retail sales price ($400 maximum per qualifying vehicle).

Now at first appearances this might appear as a tax give a-way program. However, in reality, by providing all of the above tax incentives (formulated using the Theory of Tax-Enomics) to the American US Consumer and the Auto Industry and related sales and financing parts, it would be a tax revenue raiser , a boon to the US Economy, a positive increase for the US Balance of Trade in the auto industry, a positive impact on Energy Conservation and the Environment as described by the following benefits:

1. New Jobs and a significant rise in employment would be created in the auto industry WITHIN THE US , which would now expand consumer consumption by these new employees - a real economic expansion. When workers who were laid off in this industry or others seeking employment, are hired, they will be earning money that will be spent in local economies. This will generate other jobs (supply side economics), which will generate other consumer consumption. There will be an increase in tax revenue without raising tax rates, because the local gross national product domestically will be increased from an increase in taxable revenue generated locally by the above. Another bonus will be is that there will be favorable increase in our balance of trade for the US Auto industry.
2. The impact on the environment from the increase in the use of these autos, that are not gasoline driven, will be substantial. In the operation of their new autos the savings will be substantial to the consumer purchasers of these NON Gasoline driven Autos in their not being subject to price gauging of foreign oil producers (This will definitely put me on the DO NOT CALL list for Venezuela, Saudi Arabia and Iran).
3. Even the States that lower the sales tax for these vehicles, will generate new tax revenue, because they will be the states where these vehicles will be sold, and the savings to the purchasers and the auto dealers, will be spent, with new jobs created and new taxable revenue generated by an increase in consumer consumption of taxable sales other than the qualifying autos. Additionally, the increased quantity of qualifying vehicles sold, even at the reduced sales tax rates, will probably offset the reduction of taxable revenue from the lower sales tax rate on these qualifying vehicles.

Therefore by providing specificly targeted domestic tax incentives under the Theory of Tax-Enomics, the Federal and the State Governments will have

• an increase in tax revenue with reduced taxation per taxpayer. The taxpayer had more disposable income for domestic consumption.
• In conjunction therewith, these domestic tax incentives will produce a favorable increase in domestic employment ( an increase in domestic jobs) in the auto industry and its related parts, with a corresponding favorable effect on the balance of trade in the US auto industry and the oil industry (less foreign made gasoline purchases). This will help level the playing field for the US Auto Manufacturers, that have had to compete with foreign companies subsidized by their governments, or using cheap labor to compete with.
• Additionally, there will be a positive effect on energy conservation and the environment.

THUS MORE POWER FOR THE BUCK SPENT!

EXAMPLE NO. 2: The American - US Home Buyer's Consumer Investment Tax Credit Program with a Foreclosure Assistance Program.

History again has an excellent example if we look at

1. the current tax credits started in 2005 available for new energy efficient homes for contractors, for new energy efficient equipment purchases for existing homes, and commercial properties.
2. a previous federal tax credit (maximum of $2,000) that was given over 25 years ago (but not available today) to home purchasers. The credit at that time was given to stimulate new residential home purchases. It was well received by home buyers at that time and was a major stimulus to home purchasers at that time.

As with the domestic auto industry, the American Consumer Home Buyer, is a major driving force in our economy. The purchase of a family home for your residence is a major part of the American dream, and is probably the major investment during a life time, that a family home-owner will make. The family home-owner is both a user and an investor.

• Real Estate has always been a major investment vehicle for the American Consumer, because the family home buyer is both a user and an investor in the transaction to purchase a home. The family home purchased for personal residential use, has also been a major source of retirement funds for many seniors who have sold them and downsized to smaller residences or rental units, so they will have funds for their retirement.

At present we have a total lack of confidence by potential family home-buyers and sellers in the future value of the home as an investment. In addition we have a complete financial contraction in residential mortgage financing. This has caused a major decrease in home values during the past year creating many upside down mortgages. The residential real estate market may have been overpriced by the prior ease of obtain residential mortgage financing. In addition, certain mortgage products were developed by the lenders, that induced many home buyers to over extend themselves in the purchase of their homes.

• However, we are now faced with a consumer confidence in home purchases. Every time a home buyer looks to buy a home, there is a fear that their investment my be worth less a year or two from now.

• They expect the prices will come down, even though there was an ample supply of low rate fixed mortgages available to "qualified" home buyers. It has placed a major downturn in our economy, particularly in the residential real estate industry (Construction of New Homes) and related supporting industries (home repairs and improvement industry).

• Consequently, with the Sub-Prime Mortgage Market having major devastation - a total melt-down, related mortgage lenders and investors are facing a severe credit crisis throughout the entire residential mortgage finance industry.

• Devastated mortgage banks (that over indulged) have been forced out of business or into bankruptcy.

• Many residential home-owners, particularly those that used sub-prime mortgages to purchase their homes and investment homes, have been defaulted and foreclosed and many others are facing imminent foreclosure.

• Additionally, under present tax laws, if home-owner sells his primary residence he can not deduct the loss on its sale, if the home is sold for a price less than its original cost plus improvements.

• Further, if the homeowner borrower is forced to do a "short sale" (bank agrees to the sale of the property and agrees to"forgive" the borrower(s) the deficiency from the short sale in the payoff of the mortgage. However, under present tax this "forgiveness of debt" is a taxable event and can have severe tax consequences to the home owner(s) involved in the "short sales."

• Foreclosures, depress the market value of surrounding homes and materially effect home owner consumer confidence. The far reaching effects of this crisis, many economists have said may cause a more severe recession if not dealt with.

• Many government officials and politicians have stated that we want direct assistance to credit worthy home mortgage borrowers, so that they will not lose their family homes (the President recently stated that he would like to develop a plan for lenders to help "credit worthy" borrowers from foreclosure).

Well we have stated the current problems (and there certainly are many interrelated problems here). Now lets look at different solutions and specific comprehensive plans to reverse this problem. Please note that there is a separate CANDU MEMO blog on insurance by the Federal Reserve Bank, which should be also used in conjunction with programs outlined below.

A. THE RETIREMENT ACCOUNT HOME FREEDOM PROGRAM

• Free the IRAs, Pension Plans, Keogh Plans to assist home buyers and borrowers to purchase homes and avoid foreclosures. Specifically, we need to change the tax laws to do the following (using the tools from the Theory of Tax-Enomics) as follows:

Present tax law applies a severe penalty on withdrawal of funds from an IRA or a Keogh plan, before IRS specified retirement ages. Additionally, the withdrawal is taxable income to the taxpayer.

SOLUTION:

• Allow withdrawal of funds from an IRA-SEP, Pension Plan, 401K Plan, or Keogh Plan on a tax free basis in amount equal up to 1/2 of the present tax law exemptions for family primary home residence sales (up to $250,00 for the purchase by joint owners of a family residence and $125,000 of an individual owner of a family residence).

• A Purchase of a family home(new or replacement). The amount withdrawn will become a down payment that will be recorded as a junior mortgage lien against the property (without the payment of any state mortgage tax). Special rules could be set up that would allow parents of a new family home-owner purchaser to also withdraw funds from their retirement accounts on the same tax provisions.

The mortgage lien will thus become an asset held in the retirement account (IRA-SEP, Pension Plan, or KEOGH). It will be a lien only, not requiring any payment of interest or principal, EXCEPT upon sale of the home. It will only become taxable, without any early distribution penalty, WHEN THE HOME IS SOLD AND NOT REPLACED IF UNDER THE AGE OF 60, but it can be sheltered tax wise AS PART OF the existing tax free gain exemption now allowed under federal tax law ($500,000 for joint returns and $250,000 for individuals). The taxable lien would become a reduction in the cost basis of the home sold.

Upon sale, a form will be required to be filed with the IRS disclosing the transaction of sale for the release of the mortgage lien as the IRS will also be named in the mortgage lien.

• By filing the information form (similar to or part of the 1099B that is also required to be filed upon a sale of a family residence), the IRS and the borrower's retirement account lien will automatically be released without the payment of any funds to the IRS.

• The taxpayer would be allowed to avoid any tax on the transaction or a part thereof, if he does a "rollover" of his retirement account mortgage lien back into the existing retirement account or an IRA Rollover account. He could also avoid the tax if at least 50% of the sale proceeds are invested in a new family residence. Taxpayers should not be discouraged from down-sizing, when near retirement or empty nested.

In the case where parents have withdrawn funds, the children upon sale without reinvestment in a new home, to avoid tax could put the money into a "rollover" IRA retirement account belonging to them, or if setup that way, in a "rollover" IRA retirement account of the parents. If they reinvest funds in a new home, they would be allowed to transfer the mortgage lien to the new home without tax consequence.

• The asset mortgage lien when withdrawn from the retirement - Rollover IRA account reduces the tax free capital gain exemptions for the property sold in the amount of the liens withdrawn by reducing the cost basis of the home sold in computing any taxable gain from the sale.

This program will not be a loss in tax revenue because ultimately the income becomes taxable when it can be afforded by the taxpayer, as the retirement account programs were intended to do.

B. FORECLOSURE AVOIDANCE ASSISTANCE PROGRAM

• In order to avoid foreclosure of a family residence, the borrowers or their parents, would be allowed a tax free withdrawal of funds from an IRA-SEP account, a 401K, a Corporate Pension account, or a Keogh account, to reduce an existing mortgage on the property to a maximum of 50% of existing federal tax law exemptions for family primary residence sales (described above). This withdrawal would become a combined junior mortgage lien in favor of the borrower(s) or their parents respective retirement account. The same rules described above would be used under this plan.

• A second plan to avoid foreclosure ,in conjunction with raising FANNY and FREDDIE MAC LOAN LIMITS TO $725,000.00 on family primary owner occupied residences ,would be that the borrower(s) would become eligible for A FIXED RATE LOAN not to exceed 1.0 % below the current prime rate.

• The lenders would be eligible for an FHA guarantee (with FHA premium insurance on the guarantee portion) on 25% of their original mortgage, IF they give the borrower(s) a "Rate-Term" refi at a fixed rate not to exceed 1.0% below the current prime rate.

• The borrowers, would NOT have to prove their income or qualify by credit or appraised home value.

• Under this plan, the lender (to qualify for this 25% FHA Loan guarantee), would have to agree that

1. All delinquent payments at the original payment amount under the original loan agreement and its inception interest rate (without any late charges or fees which the lenders would have to agree to waive), would be added to the back end of the indebtedness without additional interest cost, but the total revised mortgage can not exceed the original mortgage amount for which they have a mortgage lien.
2. Additionally to keep the payments from rising the existing loan term would be extended to a term of 35 (or up to a maximum of 40) years to lower the payments.The new loan payments, including the FHA Insurance premium payments can not exceed the original loan payment amounts.
3. The lender would be required to notify all three credit bureaus to remove all derogatory credit with respect to the mortgage account.
4. To expedite the process, the lender would be allowed to charge a maximum fee of $1,000.00. However, this fee must be rolled into the new loan and be added to the back of the loan, and can cause the new loan amount to exceed the original loan amount.

In order to induce the lenders to use this program, the lenders would be entitled to change the existing mortgage bond into a 50% tax free bond (not subject to AMT). This would mean that the holder of this mortgage would receive interest income on this revised mortgage bond on a 50% tax free basis (not subject to AMT).

This plan might sound complicated, but it could be made to work. The reason is that for the lenders and the borrowers, by avoiding foreclosures they will have a substantial savings in cost and they keep the family in the home. . This program would be very workable for the borrower(s) who are easily caught up in a quagmire. It might be complicated for the lenders, but it would be a simple workable solution for the family home owner borrower(s).

• They would be getting a fresh start and they would be able to
  stay in their family homes.
• The lenders would have an stable asset in their
  balance sheet, and not a non-productive REO (bank Real Estate Owned), which is a fallow asset in their balance sheet, which is sold after foreclosure at a substantial loss.
• These revised mortgage bonds would become an attractive
  mortgage investment because of the 25% FHA Guarantee and the 50% Tax Free basis for the interest income earned on these mortgage bonds.

THE CREDIT CARD FINANCE CHARGE FREEZE PROGRAM

REDUCE IMMEDIATELY ALL CREDIT CARD FINANCE CHARGES TO A MAXIMUM OF 9.9% FOR 5 YEARS- STOP THE REAL PREDATORY LENDERS - THE CREDIT CARD COMPANIES AND THE BANKS THAT
CHARGE ON UNSECURED LOANS INTEREST RATES OF 30% TO OVER A 1000% THRU HIDDEN CHARGES.THEY LOBBY CONGRESS CONTINUALLY FOR PROTECTION AND RECEIVE A LEGAL LICENSE TO RAPE FINANCIALLY MIDDLE TO LOW INCOME FAMILIES - THE PEOPLE WHO CAN LEAST AFFORD TO PAY.

• Perhaps the President, the President-Elect and Congress should discuss this in more depth. The banks, who have had substantial losses from the Sub-Prime Mortgage crisis, are INCREASING ATM FEES, BANK FEES, CREDIT CARD LATE FEES, to make up for their recent losses. Again the people who can least afford to pay will suffer from this legalized loan sharking by these "predatory lenders".
  

THE GREEN JOBS TO INCREASE CONSUMER GOODS CONSUMPTION PROGRAM

America is in desperate need of an infrastructure construction program for our envirionment and our economy. We need these jobs filled here with US workers to rebuild our infrastructure and safeguard our economy. New jobs means new available consumer dollars earned to spent in the economy.

ALL GREEN JOBS PROGRAMS SHOULD STIPULATE THAT, IF AVAILABLE IN THE US, AT Least 75% Of ALL MATERIAL (EXAMPLES CONCRETE, STEEL , PLASTICS ETC) USED IN THESE JOBS MUST BE MATERIAL THAT IS MADE IN THE USA (THE MATERIAL WOULD HAVE TO HAVE A CERTIFICATION THAT IT IS "MADE IN THE USA"). This is important, because even if the material costs more that if purchased overseas, it generates US Domestic jobs. The additional cost is offset by new tax revenue from an expanded US Taxpayer base, without having to raise tax rates.

This is a no-brainer. Whatever we spend will come back ten fold in savings and new tax revenue from an expanded tax base without having to raise tax rates.

There are related Programs using Tax-Enomics for Social Security, Energy Conservation, and the environment which are presented in a separate blog at this blog site.

The above programs will be updated and expanded in the future at this blog with particular ideas and additional program recommendations using The Theory of Tax-ENOMICS.

Like General MacArthur said "I SHALL RETURN", or if you like it better Like The TERMINATOR said "I'll BE BACK"

MRCANDU10 (Cousin of MR. Get It Done)

We are trying to steer the ship to you Mr. President -Elect

QUESTIONS That need to be asked the President-Elect Obama and have never been answered

THE CANDU MEMO PRESIDENT-ELECT QUESTIONNAIRE UPDATED NOVEMBER 9, 2008
14 QUESTIONS That need to be asked the President-Elect Obama and that have never been answered

If the media would read my blog www.thecandumemo.blogspot.com, they would have some great questions to ask the President-Elect Obama in their next TV interview or program for A REAL CHANGE.

Since they have not read the blog see the questions below that have never been asked and need to be answered.

The questions and the correct answers to all of these questions are in my blog which has been emailed, faxed, web mailed and carrier pigeoned to the President and the President-Elect (and all of the Presidential candidates), Congress and the media numerous times.

Some of the answers are so simple that it is scary. The answers are not part of the present Democratic, Republican, Liberal or Conservative programs.


AFTER SENDING ALL OF THE CANDIDATES AN EMAIL SUGGESTION TO READ THE DALE CARNEGIE 'S BOOK "HOW TO WIN FRIENDS AND INFLUENCE PEOPLE", ALL OF THE CANDIDATES DEFINITELY STARTED USING THAT APPROACH. However President-Elect Obama has more successfully used the Dale Carnegie approach and made history. Let us see if the President and the President-Elect can be statesmen, and not politicians, if they can also read and recognize a good idea to solve this nation's problems.

Politicians' Motto: Remember "ASK ME NO QUESTIONS AND I WILL TELL YOU NO LIES." Statesmen' motto should be "Put politics aside and serve my country first in the best way I know how".

NOW I SUGGEST THAT THE PRESIDENT-ELECT NEEDS TO LEAD WITH SPECIFIC SURGICAL AND INTEGRATED "SOLUTIONS" AS MANY OF THESE PROBLEMS THAT OUR NATION FACES ARE DRASTICALLY INTER-RELATED.

An historic opportunity will be missed if these questions are not asked the President-Elect Obama on the next TV Presidential interview program.

As FDR and Barack have said "ALL WE HAVE TO FEAR IS FEAR ITSELF". WHY IS THE MEDIA AFRAID TO ASK THESE QUESTIONS?


The questions and the correct answers to all of these questions are in my blog which has been emailed, faxed, web mailed and carrier pigeoned to the President, the President-Elect (and all of the Presidential candidates ), Congress and the media numerous times. Some of the answers are so simple that it is scary.

The answers are not part of the present Democratic, Republican, Liberal or Conservative programs. They are part of THE WE THE PEOPLE'S PLATFORM from all of the states that are now RED, WHITE and BLUE. They have been MIA - missing in action in the Presidential campaigns and media coverage.

THE QUESTIONS that need to be asked: :
1. What is the world's most powerful weapon (more powerful than a B2 bomber loaded with nuclear weapons), how would you use it in Iraq as a political solution (NOW DESPERATELY NEEDED TO WIN IN IRAQ) before an Iraqi-US Crisis when our forces agreement in Iraq expires at year's end?

• General Petraeus, Defense Secretary Gates, and Adm. Mike Mullen, chairman of the Joint Chiefs of Staff should also be asked this question as they too have been previously sent the answers.
• This weapon system attacks the Achilles Heel of Al Quada and other terrorists, It can win the war on terror in Iraq and bring our troops home with honor and with term limits, without cutting and running. Both candidates have personally experienced the power of this weapon system. However, they have never personally read about it or responded to the emails and web mails sent to them about using this military weapons system that is MIA in Iraq.
  

2. If you know the answer, Has this weapon system been used in the US successfully recently?

3. Would you vote for a 1040 check off box on the tax form 1040 for a WE THE PEOPLE SUPPORT THE TROOPS FUND for $5 of the taxpayer's taxes - just like the Presidential Campaign check off Box? If $5 is too high (and would hurt the Congressional Universal Pork Programs and the Presidential Campaign Finance Program) would they vote for a $1 check off box program?

4. As President would you ask some of the countries, such as South Korea, Japan, and Germany, if we could borrow 25,000 of their troops in each respective country to replace 75,000 of our troops in Iraq and Afghanistan (who we financially support in their country at our expense)?

5. If not, would they each (country) send 25,000 of their combat troops to Iraq and Afghanistan to ease our burden so that we could send home 75,000 of our National Guard troops to serve at home guarding and sealing our national borders?

6. Is it possible using the principles in the THEORY of Tax-Enomics, to lower tax rates and increase tax revenues, and if so tell us the principles and equation used in this theory?

7. What is the hidden AMT Tax that works in the reverse (The lowest income taxpayer pays the higher rate of tax), where a taxpayer who earns $1,000,000 pays this tax at the rate of .006045% and the taxpayer who earns $10,000 pays the TEN TIMES higher rate of 6.20000%?

8. Is it possible , using the Theory of Tax-Enomics, that this hidden "AMT" tax structure be revised to increase tax revenues and to lower payroll taxes enough, that we could use a Health Basic Care Tax to finance part of a Universal Health Basic Care Program, similar to Medicare without increasing the total payroll taxes presently being assessed against all taxpayers earning less than $100,000 per year?

• It may not even be too complex for our students of legislative taxation - The candidates, the White House, the Congress and the media.

9. How could we integrate, solve and control (for the benefit of the US Consumer of gasoline to avoid foreign oil import gas price gouging) our problem of dependence on foreign oil imports with an integrated program solution to stop the future insolvency of the Social Security fund?

• Can you describe this program in basic detail?

10. What will be our primary source of energy in the years 3000 and 4000, when all of the fossil fuels will have been consumed, and bio fuels will either be limited or non-existent because the world's population will have increased at least hundred fold and will need everything grown to feed itself? Also there will be no where safe on earth to deposit any nuclear waste.

• Which alternative energy can be the most cost effective to use because of its unlimited supply for ever?

11. What plan using the Theory of Tax-Enomics can make our country energy sufficient domestically, and at the same time increase tax revenues using lower tax rates, while granting domestic tax credits to US Taxpayers?

• How using the Theory of Tax-Enomics can the is plan be basically self financing, reverse our current economic and infra-structure crisises, with the creation of jobs stamped "MADE IN THE USA"?
• Would they vote for a Solar Panel WPA program to put solar panels manufactured in the US (with materials and jobs stamped MADE IN THE USA) on 2,000,000 federal, state and local government office buildings?
• Would they vote to expand this SOLAR PANEL WPA program to put SOLAR PANELS on 20,000,000 homes in the US?
  

12. Would they vote for dramatically increased R&D to solve the need for maximum efficiency for a cost effective system for storing and collecting Solar Energy, such as placing them on the roofs of all passenger and freight trains, or by using magnification of Sunlight?

13. Which programs, using the principles of THE THEORY of Tax-Enomcs, having a major change in the tax laws, could have a substantial effect on stabilizing the present home market value crisis and provide a specific program to solve the home mortgage foreclosure crisis?

14. Which programs, using the principles of THE THEORY of Tax-Enomcs - at both the Federal and State Levels, could dramatically revive the US Auto Industry, with alternative energy power sources,"GREEN JOBS" stamped "MADE IN THE USA", and competitively prices for vehicles sold?


There are more questions, but if the President-Elect gets all the right answers to ALL of these questions, he will definitely will serve our country first and get the keys to a 4 year renewable lease of the White House.
The Media program that uses these ideas and questions in their program will certainly raise their ratings.

Guaranteed those that have not read the blog, will fail to get the right answers.

Other food for thought for all from an excerpt from my blog:

I leave you with one other thought from

“WE THE PEOPLE”.

Politicians, Governments, Presidents, Prime Ministers, Secretaries of State and Defense, Foreign Ministers, Defense Ministers, Parliaments, Congress and Generals make and declare War.

However, it is always WE THE PEOPLE (and rarely, but not never, any of the above) who with our national treasure - the volunteer youths of our country who have to fight and die in the wars.

True statesmen after considering all the consequences from the loss of our national treasure who will only use war as a last method of dealing with radical, totalitarian governments and their dictators that support terrorism.

Just as the pen is mightier than the sword, the "VOTE WEAPON" is more powerful than our mightiest military weapon. It is the missing political and military solution needed today. It is time to unleash its power to win decisively THE WAR ON TERROR worldwide.

MRCANDU10 (Cousin of MR.GET-IT DONE)