THE CANDU MEMORANDUM

Dedicated to Senator Ted Kennedy - a 2009 Bipartisan Acceptable and Self Financing Basic Health Care Program

2009-08-27T10:03:00.000-07:00

I dedicate THE CANDU MEMORANDUM for a 2009 Bipartisan Acceptable and Self Financing Basic Health Care Program to Senator Edward M. Kennedy.

I want to be POTUS's White Knight if POTUS and Congress will listen and read The Candu Memorandum for a 2009 Bipartisan acceptable Self Financing BASIC UNIVERSAL HEALTH CARE PROGRAM.

Senator Kennedy during his lifetime through legislation sponsored and supported by him has made a major contribution for improving the health care of all Americans - US Citizens. As Senator Kennedy has said (to paraphrase) 70% of a loaf is better than no loaf when it comes to politics and health care.

POTUS Would you at least consider a new and different bipartisan acceptable approach to obtain a BASIC UNIVERSAL HEALTH CARE PROGRAM that will also help resolve our economic crisis, health care crisis, and Social Security Fund Crisis?

This program, which uses the THEORY OF TAX-Enomics ( of which I am the founder and foremost authority in the country), to accomplish this. It will also enable small business and the American Consumer to have more disposable dollars and lower labor costs and thus be a major force to turning around our economy.

We need to use the Theory of Tax-Enomics to solve our health care crisis, our financial crisis and to simultaneously stimulate the economy. The stimulus must be geared to give the taxpayer worker more disposable spendable income with better basic health care coverage at a reasonable cost, and it should be tied to the creation of private sector jobs and reducing US labor costs to make them more competitive globally. The key is the revision and immediate reduction of the graduated downward tax – (our HIDDEN ALTERNATIVE MINIMUM TAX) the Social Security Payroll tax, offset by removal of the cap on earnings it is subject to.
SPECIFICALLY:

Reduce the Social Security rate to 2.50% on the first $200,000 and then to 3.25% on excess over $200,000 with no top cap for employer and employee. Now we have room for a 1.45% Basic Health Care Tax with no cap for both employee and employer that will work like Medicare.
Companies will only need then to offer a medi-gap health insurance policy to their employees, if they want to or can, where patients can choose their own medical care, and which will simply the insurance reimbursement system.

This combined program would image what Congress and other federal employees have. However now they would have to pay like the rest of us for the Basic Health Care Tax from their earnings, but their employer - the Federal Government will purchase a Medigap policy to provide the additional benefits equal to their present coverage, just as private employers can offer the same to their employees.

Additionally, this basic health care tax would also be charged against Unemployment Insurance benefits (People still need basic health care even if unemployed). There would be a six month delay before the first payment of any benefits under the new basic health care program to allow the program to begin funding. Additionally, the program would emphasize benefits for prevention. For those that have no coverage because they are not employed or collecting unemployment insurance, they will be allowed to purchase at a minimum cost from the Basic Health Care System the same coverage.

The program initially will have somewhat lower benefits than medicare, but eventually would rise to the same level of benefits as Medicare, and it could be integrated with Medicare for cost effective administration of benefits.

Note: Medicare has approximately a 3% administrative cost, compared to the insurance industry's 23% cost of administration.

To offset any loss for the Social Security Fund (now and in the future) and to help fund the Medicare Fund (which will include the Basic Health Care Program), we would establish, under the Social Security Fund, the SSMIF (The Social Security and Medicare Investment Fund). Congress, by legislation, would do the following:
1. Transfer financial ownership of the Strategic Oil Reserve to the SSMIF.
2. Each year Congress would provide an appropriation to be added to the Strategic Oil Reserve equal to 5% of the Reserve at the current market price. The SSMIF would be empowered to use the appropriations in excess of the basic strategic reserve to purchase oil or oil futures, when the market price is low. At the same time when the market price rises too high (due to greed of APEC and oil speculators), the SSMIF will sell off any part of it new appropriation to help reduce the market price. The profit from these transactions will be deposited into the Social Security Fund and or the Medicare Fund to build them up. The principal from the transaction would be available for future reinvestment.
3. Congress, by legislation, will transfer financial ownership of the Financial Institutions and Automotive Industry equity acquired from the recent Taxpayer Bailouts to the SSMIF. When the respective financial institutions and automotive manufacturers repay their debts in the future with interest, the SSMIF will deposit the proceeds into the Social Security Fund and or the Medicare Fund to build them up.
4. The FHA should deposit with the SSMIF financial ownership of Reverse Mortgages equal to any appropriations received from Congressional legislation for funding these mortgages. These assets when collected in the future will be then be deposited by the SSMIF into the Social Security Fund and or Medicare Fund to build them up.
5. The FHA, Fannie Mae and Freddie Mac could establish a "REX" Type mortgage program for new home owners or to keep homeowners in their home in exchange for a share in future appreciation of the real estate that the lenders and the SSMIF will share. These mortgage assets could work similarly to Reverse Mortgages. Appropriations to fund these mortgage funding agencies for these programs would provide that the financial ownership of these assets would be transferred to the SSMIF. These assets when collected in the future will be then be deposited by the SSMIF into the Social Security Fund and or Medicare Fund to build them up.
6. All of the recommended procedures for streamlining the costs of administering medical care - such as a massive transformation to a digital format, perhaps with a secure encrypted database could be instrumental in reducing testing and diagnostic costs as better info for each patient would be integrated and more available as needed to improve patient care. All prescriptions when ordered would be checked against a national database for each patient for possible conflicts to avoid prescription and diagnostic mistakes. This may even be helpful in avoiding possible mal-practice law suites.
7. The Basic Health Care program could offer optionally purchased limited catastrophic illness coverage. This solves a lot of problems and can be self financing.
More power for the congressional taxpayer financial buck spent.
For any questions about this outline of a Basic Health Care Program and the above funding for Social Security Fund, Medicare Fund (Including the Basic Health Care Program), I am available for questions and or consultation.
PS: a side benefit would be that the President would have Presidential "Plate" partially cleared which would allow more family time and basketball time.
MRCANDU10 (Cousin of MR.Get-It Done)

New series, ROYAL PAINS, 2 min preview

2009-07-16T20:13:00.001-07:00

I am a fanatic fan of the show, however the program has serious flaw which should be corrected. No evidence of malpractice insurance for Hank Med. Violation of professional ethics that he does not disclose this to his patients. Cure have Boris and Ms Newburg pick up the tab.
MRCANDU10

A NON-MEDDLING SOLUTION FOR POTUS AND THE IRANIAN ELECTION CRISIS

2009-06-21T16:26:00.000-07:00

Here is how POTUS could specifically do more using the Dale Carnegie Approach (How to win friends and influence people) without being deemed "meddling" in Iranian Internal Affairs.

He should take it to the Situation Room.

I have tried to reach him by Webmail to no avail. This needs your courage and conviction to communicate it to POTUS.

Copy of a letter sent to

Dear POTUS, Chief of Staff Rahm Emanuel and Secretary of State Hillary Clinton.

Here is a suggestion for dealing with the Iranian Election crisis.

Why not send a diplomatic communication direct to the Supreme Leader, where in the form of a suggestion and a question - rather than as statement of meddling in internal politics as follows:

As a constructive suggestion I ask you why is it not in your wisdom, in your best interests, in the best interests of the Iranian people, and in your government's best interest that you as Supreme Leader call for a complete redo of the election with recognized monitors from all Iranian candidates?
If the election results reported by your government were correct that the existing President won with a 2 to 1 majority, what do you or he have to fear? This would prove that you are the wise Supreme Leader, who only has the best interests of your people at heart.
A new monitored election would confirm the results of the first election, end the violence, and bring the Iranian people together, and the Iranian people would be shouting long life to the Supreme Leader.
This suggestion and questions are made in good faith in support that you have the best interests of the Iranian people at the heart of your convictions.

If this "Suggestion" is sent as a diplomatic communication to the Supreme Leader of Iran, it would be difficult for him to say that you are "meddling" in Iranian internal affairs.

MRCANDU10 (Cousin of Mr Get It Done)

An international Solution for North Korean nuclear and Hostage Crisis, and Palestinian Israel Conflict

2009-06-21T15:18:00.000-07:00

Copy of letter sent by Webmail to

POTUS, Chief of Staff Rahm Emanuel, and Secretary of State Hillary Clinton.

I believe I have found an idea for freeing the two American Journalists Hostages in North Korea and the Israeli Soldier Chalit held by Hamas as Hostage.

At the same time the US can be afforded an opportunity to successfully change the status of problems faced in our international relations with Hostile governments.

We have a window of opportunity and the power to utilize the world's most powerful, but under utilized weapons system that has successfully defeated terrorists and insurgents every single time it has been used in Iraq. All of you have personally experienced the power of this weapons system. This weapon system is more powerful than a B2 bomber loaded with nuclear weapons.

It is how this weapon system is used may determine its success. The use of this weapons system to resolve the North Korean nuclear and hostage crisis, and the Israeli-Palestinian ageless conflict will take heroics, expertise, and diplomatic finesse.

It can be the missing key to resolving these conflicts. It will take a powerful and eloquent world leader who is willing to change world politics to successfully resolve these conflicts.

I hear President Kennedy's words -

"Ask not what your country can do for you, but what you can do for your country". Well POTUS I am trying, but will you listen?

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 bring justice and democracy to the people's of the world, and win decisively THE WAR ON TERROR worldwide.

MRCANDU10 (Cousin of MR.GET-IT DONE)

A new approach to the Israeli-Palestinian Conflict

2009-05-25T10:08:00.000-07:00

Dear POTUS
In light of your recent meeting with Prime Minister Benjamin Netanyahu and the recent Middle-East conflict in Gaza, there is a window opening for a new and different approach to resolve this Middle-East Conflict and to stop the rockets from being fired from Gaza and attacks by suicide-bombers. This recent article in Newsday by the Associated Press on May 19, 2009 is part of the key.

I propose using the world's most powerful, but most under utilized weapon system, that has decisively defeated terrorists and insurgents every time it has been used in Iraq. This weapon system is more powerful than a B2 bomber loaded with nuclear weapons. It is how this weapon system is used may determine its success. The use of this weapons system to resolve the Israeli-Palestinian ageless conflict will take heroics, expertise, and diplomatic finesse that you personally possess, as we are dealing with fierce enemies that have been digging two graves with every death. It can be the missing key to resolving this conflict. It will take a powerful and eloquent world leader who is willing to change world politics to successfully resolve this conflict. The timing is perfect based upon your recent initiatives.

I have written you President Obama, President Bush, Congress and the media previously about this weapon system that can decisively defeat terrorists and insurgents. You have said that if someone was sending rockets at your home where your daughters were living you would do everything possible to stop this terrorist act.

To all those that think that Israel has used a disproportionate or discriminate response to Hamas, I ask them one question:

If you lived in NY CIty or Westchester NY and Hamas was in power in Jersey City and was firing rockets indiscriminately into New York City or Westchester NY, would you be as restrained as the Israelis have been in your response, or would you want your Airforce to carpet bomb Jersey City until it had no more capacity to fire rockets ? It is interesting that the media when reporting casualties from this latest conflict in Gaza neglects to report on Israeli casualties incurred by Hamas from rockets fired and suicide bombers incursions into Israel since the year 2000. If you then compare the two sets of numbers you would find that Israel is answering disproportionately less than Hamas.
If Israel was using disproportionate responses now they would carpet bomb indiscriminately Gaza and there would be 400,000 plus Palestinian casualties. Nobody has ever fought a war like this with such effort to minimize collateral damage. Shame on the media. Even in World War II, the US bombing raids did not exercise as much restraint as the Israeli Air Force and IDF have done in this conflict.

I sincerely hope that you will listen to this new and unique approach to resolving the Israeli-Palestinian Conflict. You have personally experienced the full power of this weapon system. Maybe then my kid brother who lives two miles from the Lebanese border in Northern Israel will not have to worry about rockets falling within 200 yards of his house or thru the roof of his office. He served with the unit that went to Entebee, although he was on leave at the time of the mission.

POTUS - it now time for a real change in approach.

To hear this idea will only take less than 15 minutes, but could save an eternity.

MRCANDU10 (Cousin of MR.Get-It Done)

The 2009 CANDU MEMORANDUM TO PRESIDENT "BARRY" OBAMA

2009-02-10T06:11:00.000-08:00

By Fax: 202-456-2461 202-456-0192 202-622-6415
May 14, 2009 Updated
President Barack Obama
Attn: Chief of Staff Rahm Emanuel
CC, Secretary of the Treasury and
Economic Advisor Summers
White House
1600 Pennsylvania Avenue
Washington DC 20500

RE: Solutions –THE CANDU MEMORANDUM for specific and alternative short term and long term solutions to our Nation’s current banking, financial, economic, energy, environmental and credit crisises.

Dear President “Barry” Obama,

Now it is still game-time Mr President and we need your “A” game as we are entering heavy into the first quarter, we need to break out our offense while maintaining our defense. The offense is the economic stimulation for investment and recovery, and the defense is the reduction in wasteful government spending by smart investment with proper cost controls. Your “A” game will have to emulate the intelligence and IQ capacity of the 1973 NY Nicks (Bill Bradley, Dave Debusshere, Jerry Lucas). You have it and we really need to see your “A” game.

The economic, financial and credit problems facing our nation and with the buck and stopping on your desk, with every national and international problem, is a monumental task that needs a change in how government will do business to reverse the current economic and financial melt-down. The key words here are :JOBS, HOUSES, MORTGAGES, CREDIT. CONSUMER SPENDING, GOVERNMENT SPENDING, TAXATION, GLOBAL ECONOMY AND SAVINGS.

First and briefly let us define these interrelated problems that you are attempting to solve. As Suzie Orman stated very simply in this past week on one her programs, we have a cause and effect on several areas that are totally inter-related. We are having an economy that is in a total state of fear and lack of confidence, and is therefore contracting.

1. We have a job crisis – accelerated unemployment (geometrically) that is quickly reaching unacceptable levels. When companies such as Microsoft start having sizable job cuts, we know we are in trouble, as this is a company that has had more money in the bank than some countries do. The close down, bankruptcy and downsizing of many businesses (both large and small) that are feeling and fearing the current and future loss of sales and revenues–is now accelerating at a disproportionate rate. These businesses fear that we will lose a lot more sooner than later. They cannot visualize an upturn, and if and when it will incur, even with the proposed stimuli packages now being discussed by the executive and legislative branches. However, there is also a strong domestic need for cross training people for new careers and not just in manufacturing.

2. We have a residential home-owner valuation crisis that is now becoming nationwide and vastly depressing market values of houses. Every foreclosure immediately depresses the housing values within close proximity to the foreclosed house to point that even good solid credit homeowners, who are paying their mortgages timely, are now facing upside down mortgages where their fear is becoming reality as their homes (which maybe their retirement asset) may be worth considerably less than their mortgage balances. New mortgage applications for buying of homes in the same vicinity as the foreclosed properties, are being declined because the foreclosed homes become “comps” (comparable sales) for use in valuing a property for a new mortgage on a sale or refinance. Many prospective home buyers fear that what they buy today will be worth less a year from now, and any equity they invest in their down payment could easily, they fear in their minds be possibly lost in the near future. The residential real estate market, which rose too sharply in the past, is now facing an abnormal downturn from the cancerous growth in the rate of foreclosures thus reducing home values at an accelerated rate.

3. We have a credit crisis, because banks are afraid of lending in fear of new loans going bad, as a result of the accelerated economic downturn and the overload of toxic assets held in the respective banks. It seems the bigger the bank, the more precarious their financial state. They are hoarding their capital, in fear of going under, if there is a liquidity run on the bank. Thus auto loans, student loans, small business loans and credit lines (for even credit-worthy borrowers) are being denied at an increasing rate.

I firmly believe that many small local town banks are probably in much better financial shape than the big banking conglomerates. This is because if they portfolied the mortgages that they originated, they were far more conservative than their larger counterparts. Many of them did not heavily invest in or sell mortgages to “Securitized mortgage pools” or “Credit Swaps.” Many of these larger banks that have substantial toxic assets fear a possible nationalization of the larger banks.

4. We have a consumer spending crisis, because consumers, even those who are employed (besides the unemployed), are fearing possible job loss with the continuing melt down. The consumers are restricting their spending to bear essentials, as many fear a possible job loss, currently have lost a substantial portion of their equity in their assets due to market (stock market) loss in value of securities and/or loss in value of their primary asset - their home. Retirees are being drastically effected by this downturn in market values, as assets that they have worked for all their lives are being lost thru no fault of their own. They fear financial survival in an economy that has wiped out a substantial portion of the assets they retired on. With the vast expanse in the global economy, overseas producers of goods and services that our consumers and manufacturers have been purchasing due to their lower cost have been feeling the rapid decline of demand for their goods and services, and they fear a further loss.

5. We have a fear crisis, as everyone is being effected. Each aspect of items 1 to 4 are inter-related with global fears in the other global economies, particularly those that have heavily invested in US government securities, our large investment companies and banks, and specifically where the investment in many “Securitized pools of residential mortgages” and “credit swaps” that have become a major part of the “toxic assets” held by our banks and investment companies (including insurance giants such as AIG).

6. Our domestic primary manufacturing of autos and the related industries and supplier companies – steel etc. Are having substantial liquidity problems because of the sizable down turn in sales volume. Even foreign auto makers, who manufacture and assemble cars here in the states are feeling the pinch of reduced sales volume.

Now that I believe I have defined the basic fears that our nation and its political and economic leaders/advisers are experiencing, it is now the time to define some alternative solutions. This is where the Theory of Tax-Enomics can provide you with definitive alternative solutions that can quickly reverse the current melt-down.

As the buck stops with the President, he is going to have
to use his public and eloquent speaking ability to substantially reduce many of the fears our nation has as indicated in this memo random. However, if POTUS looks to history, he may see some of the alternative solutions more clearly.
Private industry, big and small businesses need a substantial consumptive demand for their goods and services to reverse the current economic contraction. They are the key and the engine to stimulate an expansion of our economy. Normally, the market rules of supply and demand in the past have been adequate stimulus to expand our economy.
The American taxpayer and consumer is laden with fears as previously indicated at present and justifiably so. If Taxpayer –consumer has no job, he loses his ability to get reasonable credit (what little there is) or fears losing his job he is not presently in, he is not likely to create any increase in demand of domestic goods and services, other than necessities of the highest priority. This is where the federal government needs to become a prime basic consumer of certain goods and services, particularly those that will have an immediate effect of stabilizing and expanding the economy.
The cost to the taxpayers’ will be substantially recouped from the rapid expansive effect of these targeted and definitive Tax-Enomic solutions.

TARGETED SOLUTION NO. 1
PARTIAL USE ($60 Billion) OF 2nd Half of TARP FUNDS FOR THE AUTO INDUSTRY –BUY – DO NOT LEND!!

Fact:

“U.S. sales for all automakers looks to be about 13.2 million in '08, off
18.5 percent from '07's 16.2 million sold, resulting in the lowest annual volume since 1992.
In December 2008 the Federal Government under the Bush Administration “loaned” or “invested” previously legislated Auto Energy funds to two of the big 3 Auto Industry Manufacturers. They set an outside date in the first quarter for the automakers to demonstrate their company’s financial viability. This kept them alive, but it was like putting a band-aid on gushing open wound.

Now is the time for the Federal Government to step in an unusual way to stabilize this industry and all its related supplier and sales distribution companies (auto parts suppliers and car dealers). This stabilization program will not only have a ripple effect on expansion of US jobs, it will target particularly areas of our country related to the auto manufacturing industry having substantial and excessive unemployment – states like Michigan, Ohio, Indiana, Pennsylvania and Illinois.

Instead of loaning or investing Federal Taxpayer dollars unsecured in the automakers, a new FVA (Federal Vehicle Authority) should be established under the Federal Reserve and TARP to purchase from the big 3 automakers and other automakers that have US assembly plants, 60 Billion dollars worth of “qualified” (“US Jobs Made”, or US assembled in the US) New Energy Efficient “Green” and hybrid autos.

At a $20,000 sale price per “qualified” vehicle this is equivalent to the 2008 decrease in volume in US sales over 2007 for all automakers of approximately 3 million vehicles as stated in the news article listed above.

The $60 billion dollars from TARP for the purchase of the “qualified” vehicles will be turned over to the FVA.
The “qualified” vehicles will receive a 50% exemption from the Federal excise tax on vehicles, where applied.
The automakers and auto assembly companies will receive a 5% non-refundable income tax credit (maximum of $1,000) per “qualified” vehicle sold under the program.
The FVA, under the Federal Reserve, will provide an FVA guarantee to lender-banks by insuring these new loans of the lenders, who will lend the automakers funding for the manufacturing and /or assembly of the “qualified” vehicles, which vehicles the FVA will maintain a secured lien as security for the financing. This will work in same manner that auto dealers get floor-planning financing. As a condition and incentive to the investing lenders, to keep the borrowing cost (financing rate) low and reasonable to obtain, the lenders would earn their finance income on a 50% tax free basis for automaker and assembly companies financing, on new auto consumer FVA guaranteed loans or floor-planning dealer-secured financing during the next three years providing that the financing interest rate does not exceed the three year treasury rate.
The vehicles to be “qualified” must have not less than 50% US made (US JOBS) parts – including any steel or tires. Any of the present plants that are producing “qualified” “green” or hybrid vehicles can be quickly expanded by increasing job shifts to accommodate the immediate increased need for auto workers to produce these “qualified” vehicles.
To reduce the production cost of these”qualified” vehicles, the FVA by legislation would grant for each vehicle produced and sold to FVA a $1,000 Federal payroll tax credit (offset to the FICA, MEDICARE, and FUTA Employer Payroll tax cost). Additionally for each new worker hired or rehired by the auto manufacturers, these new workers will have for 1 year a 50% reduction in their employer payroll tax cost. Each of these new “qualified” (hired or rehired) workers under this program will also have the same 1 year 50% reduction in their employee payroll tax cost, thus giving these workers more disposable income for consumer spending.

In addition each newly hired or rehired “qualified” employee, will be required to purchase a new green qualifying vehicle as part of their pay package. The $20,000 cost to each eligible employee will be paid out as part of their compensation package tax free over a 2 year period. This $20,000 vehicle compensation purchase will be free for both employer and employee of payroll taxes, and income tax free to the employee. The automakers unions will have to agree to this payroll concession. In exchange for receiving cumulative preferred company stock in the company employee pension funds as part of the employee pension benefits.

These FVA vehicles will first be distributed to replace on a one for one basis to Federal, State and local government agencies, which will substantially relieve these agencies of any appropriation requests for government vehicles. The agencies will turn over to the FVA for each vehicle received an existing used (gas guzzling non-qualified) vehicle presently owned by that agency or the proceeds of the sale of that vehicle. Alternatively the remainder but not less than 30% of the “qualified” vehicles will be placed with FVA for distribution to auto dealers for domestic consumer distribution throughout the country which will provide , if required, an FVA guarantee for floor planning of these vehicles with existing bank lenders. The FVA guarantee will be similar to an FHA or FDIC guarantee at a cost to the borrower of a small insurance premium FVIP (Federal Vehicle Insurance Premium). Also the auto dealers could provide for auto purchasers for an FVIP a FVA guarantee for new auto loans as set forth below. Each of the states and localities, as compensation for receiving these “qualified” vehicles will be requested to reduce the sales tax rate to a maximum of 2% on any consumer purchase of a “qualified” vehicle.

These vehicles to be considered as “qualified” will have the following minimum and maximum requirements.

1.The actual Sales Price of the “qualified” vehicle purchased by the FVA shall not exceed $20,000, except as stated below.

2.The “qualified” vehicles will be required at this price to have basic amenities and equipment (similar to vehicles sold presently) as follows:

Automatic transmission, power steering, power brakes, power windows and other standard amenities.
Minimum gas mileage of 30 MPG in local driving and or highway driving. For each additional increase of 5 MPG, the price of the vehicle can increase by $2,000.
The vehicles will be required to have a minimum of 5 year and or 60,000 mile standard factory vehicle warranty.
Tires, batteries, and other consumables shall carry a minimum of a 30,000 mile and/or 3 year factory warranty for normal use.
These vehicles to be considered “qualified” will have to meet the minimum equipment and safety standards currently required by US, State and local government agencies.

The effect of this targeted Tax-Enomic solution is to rapidly expand customer domestic sales by US domestic auto manufacturing and assembly, and all its related supplier and dealer companies. Over a three year period, the actual taxpayer cost may be minimal on a Federal and State basis. This is because under the Theory of Tax-Enomics, by rapidly expanding the tax base and the amount of total taxable revenue generated by economic expansion, tax credits and cuts in tax rates will be materially offset by additional tax revenue generated from the economic expansion. In addition, the financing is secured by the vehicles.

The other real benefit of the above program is that we will be making a substantial correction in our domestic consumption of gasoline purchased, which will somewhat relieve our domestic consumption and reliance on gasoline purchased abroad.

TARGETED SOLUTION NO. 2
PARTIAL USE ($60 Billion) OF 2nd Half of TARP FUNDS FOR THE FLA (The Federal Lending Authority)” to solve the current credit crisis.

There is any easy solution to this Credit problem that was stated in the New York Times on January 19th:
The Next Threat To The Financial System: Corporate Defaults (NYT)(CHTR)(LVLT)(SIRI)
The next big threat to bank may be corporate defaults on debt, much if it originally supplied by the banks themselves. The irony is that the problem could be solved by the banks, if they won't open their vaults and provide more capital to companies who are in the process of refinancing. But, they won't. At least not without being forced to do so by the government. Banks don't want to put their earnings in greater trouble by offering more risky loans on top of the ones they already have issued. As the recession deepens, they have no reasonable way to evaluate whether they will be paid back.

For debt which is rated junk, the reluctance of the banks is understandable, but the issue reaches far beyond firms with highly risky., The New York Times reports that "This year alone, more than $700 billion in corporate loans will come due, according to Standard & Poor’s. "

A number of large American companies are left without access to capital by the trend. These include The New York Times (NYT) itself, which has $400 million in debt due at the middle of this year. Other corporations from Sirius (SIRI) to cable giant Charter (CHTR) to large telecom firm Level 3 (LVLT) may be forced into Chapter 11 or liquidation because they cannot tap that would have been readily available two years ago.

When companies are able to borrow, they are paying interest rates of 10% or higher. Servicing that debt requires a large part of which means that the money borrowed may solve short-term problems but it robs money from operations as time passes. High debt service costs become a boat anchor in and of themselves.

The SOLUTION TO THIS PROBLEM IS EASY IF YOU SEE IT:
Use the Theory of TAX-Enomics as follows:

FROM THE CANDUMEMOS to President OBAMA and the CONGRESS
The Theory of Tax-Enomics-Presidential Economic Solutions

Government thru the Federal Reserve must establish a Federal Lending Authority and Federal Vehicle Authority that will function like the FDIC and the FHA. By guaranteeing bank loans, with a small insurance premium, businesses and individuals will be able to get the necessary credit that is needed in our economy. By using TARP funds in this manner we get a 10 fold benefit as this is how you lubricate the nation’s credit vines. Any of the preferred stock or warrants issued to the US Government should be put into the (SSIF) Social Security Investment Fund as a bonus.

The stimulus must be geared to give the taxpayer worker more disposable spendable income and it should be tied to the creation of private sector jobs. One key for an employer and employee incentive - the revision and immediate reduction of the graduated downward HIDDEN ALTERNATIVE MINIMUM TAX – the Social Security Payroll tax, offset by removal of the cap on earnings it is subject to.

Example:
Reduce the Social Security rate to 2.50% on the first $200,000 and then to 3.25% on excess over $200,000 with no top cap on taxable earnings for the employer and the employee. Now we have room for a 1.45% Basic Health Care Tax with no cap for both employee and employer that will work like Medicare. It will provide limited basic health care insurance to insured workers, as Companies will only need then to offer and fund a medi-gap policy to their employees if they want to or can financially.

This solves a lot of problems, INCLUDING BASIC HEALTH CARE COSTS, and will be self financing. It increases disposable personal income for the lower and middle-class wage earners. More disposable income for the taxpayer means more disposable income available for taxpayer savings, debt reduction, and domestic consumption of goods and services.
More power for the congressional financial buck spent. For full details on this program see my blog.

TARGETED SOLUTION NO. 3
PARTIAL USE ($150 Billion) OF 2nd Half of TARP FUNDS FOR THE FLA (The Federal Lending Authority)” to solve the current RESIDENTIAL HOUSING DEPRESSED MARKET VALUE AND MORTGAGE FORECLOSURE CRISIS

This crisis is a third leg to our overall financial crisis – which at its current rate is approaching a real depression. As stated before

We have a residential home-owner valuation crisis that is now becoming
nationwide and vastly depressing market values of houses. Every foreclosure
immediately depresses the housing values within close proximity to the
foreclosed house to point that even good solid credit homeowners who are paying their mortgages timely are now facing upside down mortgages, where their fear is becoming reality as their homes (which may be their retirement asset) may be worth considerably less than their current mortgage balances, and if we have no correction in the current direction of this crisis may cause further substantial drops in the market value of housing.

In Florida and California, we have instances where homes that were purchased in the past three years at prices like $500,000 and up may now have values in many cases as much as 40% less in sales price in a very ill-liquid market.

New mortgage applications for buying of homes in the same vicinity as the foreclosed properties, are being declined because the foreclosed homes become “comps” (comparable sales) for use in valuing a property for a new mortgage on a sale or refinance. Many prospective home buyers and residential home lenders fear that what these home buyers purchase today will be worth less a year from now, and any equity they invest in their down payment could easily, they fear in their minds be possibly lost in the near future. The residential real estate market, which rose too sharply in
the past, is now facing an abnormal downturn from the cancerous growth in the rate of foreclosures thus reducing home values at an accelerated rate.
This crisis is being further complicated because as prospective home buyers are being reduced by the current rapid evaporation of jobs.

It is important in seeking an economic and financial solution to this crisis that we define the “Toxic Assets”. The “Toxic Assets” basically include:

1. Potential “Toxic Mortgages” (potential defaulting mortgages –“Option Arms and Interest Only mortgages) which will have in the near future a substantial increased payment requirement and/or interest rate increase. These may cause a major loss to lenders and investors due to simultaneous potential decrease in home market values.

2. Existing “Toxic Mortgages” in default and/ or in foreclosure that are facing that same major loss due to simultaneous potential decrease in home market values.

3. “Toxic Assets” known as “REOs” - Real Estate owned foreclosed properties held by the banks-lenders that presently decreasing in value at an accelerated rate.

4. “Toxic Assets” known as “Mortgage Backed Securities” and “Credit Swaps and Derivatives”, which consist of“Securitized Pools” of various kinds of mortgages” that are currently difficult to evaluate on the “Mark to Market” rule. Complicating the evaluation of this type “Toxic Assets” is that they are held both nationally and globally, and they presently consist of mortgages not in default, as well as “Toxic Assets” described in Nos. 1 to 3 above.

There is a financial fact that has never really been discussed about the “toxic assets” now held by lenders and investors of the lenders. The Toxic assets in almost all cases do have both a current and future value, which has always been the case with real estate. The major problem in evaluating the “Toxic Assets” current and future value is the volatility in our current market values of residential housing.

Not withstanding, the future value, rather than the immediate future value of these assets does have a realistic probability for a normal to substantial increase providing

A. The current residential housing market values can be stabilized, and with reasonable reduction in the supply of housing vs demand.

B. The current illiquid mortgage markets-lack of available credit and lenders can be become fluid with increased availability.

Here is a fact that should be recognized:

If a mortgage is in default or even in the foreclosure process, while the owner is still in possession. This “Toxic Asset” does have a minimum value, which may be:

1. The amount of value equal to a mortgage amount that the owner can afford and is willing to continue pay to stay in the home, based upon his current income and financial needs, irrespective of the so-called "current market value”.

2. The amount of value equal to a mortgage amount that the owner can afford and is willing to pay to stay in the home based upon his current income and financial needs and where the “current market value is not “upside down” (the mortgage amount is less than its current market value in a quick or “short sale”).

3. The amount of value equal to a mortgage amount that the owner can afford and is willing to pay to stay in the home based upon his current income and financial needs and where the “current market value is “upside down” (the mortgage amount is less than its current market value in a quick or “short sale”). This last value becomes a real economic decision for the home-owner mortgage borrower, as it may better financially to terminate his home ownership of the property (due to the substantial difference in the present mortgage amount vs the lower current market value of the home).

Example – Home purchased for $750,000 with a mortgage of $500,000 and is now currently worth and saleable at $300,000.

One part of a solution that could have a material effect on the market value of new or resale homes purchased is that the initial equity in a new or resale home purchased could be insured thru the FLA (Federal Lending Authority) by paying with your mortgage an FHVIP (Federal Home Value Insurance Premium) - an insurance premium (Similar to FHA MIP)– paid monthly with your mortgage that insures the equity purchased). You pay the premium, but you are required to properly maintain the home, for you to be insured for your equity purchased.

A second part of a solution would be the use of a “REX” type loan agreement from the FLA. This is a loan to the homeowner, not requiring any monthly payments, in exchange for a 50% increase in the future equity of the property over the current market value. There are more details to this program, which was be run by private lenders, until AIG the investor got into trouble with other “credit” investments.

THE CANDU MEMO - A New Ideas to improve the housing and residential mortgage market

SPECIFIC CHANGE PROGRAMS FOR TO STABILIZE AND IMPROVE THE HOUSING MARKET VALUE CRISIS AND THE RESIDENTIAL MORTGAGE FINANCING CRISIS.

In today's residential mortgage financing market, it has become very difficult for many prospective home buyers to qualify their incomes and assets under today's mortgage underwriting rules. Additionally, the transaction has become (except using FHA financing), substantially economically unfeasible in today's harried home market valuation crisis, which is due to great extent to consumer lack of confidence.

In order to gain more liquidity in the residential mortgage market and to provide the proper tax and financial 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.

1. Qualifying Income for Residential Mortgage Financing

In establishing the underwriting rules a sufficient qualifying income for their respective debt to income ratio, certain non-taxable income should be considered to help borrowers qualify. The qualifying income ratios in it self is a complicated process for the lay person to understand.

What the question basically means to the residential mortgage lender underwriter (the person responsible for qualifying the mortgage applicant) is "does the homeowner borrower have sufficient income to qualify and carry the proposed mortgage?"

There is a non-taxable income that many borrowers have that should be used in this qualifying ratio that presently to my knowledge is never considered.

To wit - the non-taxable income earned on retirement tax deferred accounts, because this income is not reported on the borrower's tax returns.

Most taxpayers, who have retirement accounts, are aware of the tax rule that if they withdraw (not borrow that is allowed in limited amounts from non-IRA retirement accounts) monies from their retirement accounts - they, if below 59 1/2 age, are subject to a 10% tax penalty, in addition to the money being taxable as NON-Earned income.

Example if a taxpayer withdraws $10,000 from his IRA or 401 K plan, if he is younger than 59 1/2 he is subject to $1000 penalty and $10,000 is subject to income tax (but not the 7.45%) payroll tax.

If the borrower - prospective homeowner has a 401 K or an IRA that has an annualized income within the account of $12,000 he should be allowed to use this NON-Taxable Income in the underwriting process of income qualification. 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).

In many cases this may be inconsequential if the borrower has limited assets in retirement accounts. However, in many cases this additional qualifying income may then allow the borrower to qualify.

The reason it should be used to qualify is that if the borrower does have insufficient income to pay his mortgage at any point this additional income subject to the 10% withdrawal penalty (if under 59 1/2), is available to the borrower to subsidize his income.

2. FREE THE RETIREMENT ACCOUNTS - KEOS, IRAs and Corporate Pension Plans.

These tax deferred accounts presently tax plan withdrawals (with a 10% withdrawal penalty if under 59 1/2). Under certain 401 K 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 at present is not deductible.

In order to make it easier for prospective borrowers-homeowners 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:

A taxpayer (prospective borrower-owner occupied home owner) may withdraw funds from his retirement account for direct use in the purchase of a primary residence without any tax penalty, will not be subject as taxable income in the year of withdrawal, and said withdrawal will only have deferred tax implications.

The deferred tax implication will be that the amount of withdrawal will reduce any taxable gain exclusion on sale of primary residence home, under the present tax laws to the extent of the amount of the withdrawal.

Example:

In 2008 the taxpayer - prospective borrower withdraws (not borrows) from his retirement accounts $75,000 to use in the purchase of his purchase of a primary residence (owner-occupied).

Under present tax law, if the borrower is under 59 1/2 he will pay a $7,500 tax penalty and the $75,000 will become taxable as ordinary income in the year of withdrawal. This makes the withdrawal in most cases as economically unfeasible.

If the tax law were changed to allow the $75,000 to be withdrawn without current tax impact (no 10%tax withdrawal penalty and withdrawn income not subject to current tax impact), the withdrawal becomes an economically feasible and advantageous transaction for the prospective borrower-homeowner. It also 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.

The only tax impact would be if the owner occupied home, when sold in the future would have a reduced taxable gain exclusion
($500,000 - Joint Exclusion reduced by $75,000 to $425,000;
$250,000 for a Single Taxpayer Exclusion reduced by $75,000 withdrawal to $175,000).

Another change in the law would allow immediate family relatives to have the same currently tax free retirement account withdrawal for use in the purchase of the prospective borrower-homeowner residence. The deferred tax impact would not fall on the transferor (the relative withdrawing the funds), but on the future taxable gain of the homeowner (The beneficiary transferee) as set forth above.

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.

If a borrower borrows an allowed loan from a 401 K or Corporate retirement account for the purpose of a primary owner occupied residential home purchase, the interest on said loan 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." The institutions who administer these loans shall be entitled to an 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.

3. Increase in tax incentives to stimulate home purchases:

Many years ago, there was a $2,000 tax credit granted for a new home purchase. At that time with housing significantly lower than today's prices (even in this depressed value prices market for residential homes). This tax credit has not existed for many years. This tax credit was very successful at that time. The Senate and Congress are currently considering two different proposals for a $15,000 (not a borrowed credit requiring repayment) to a $7500 credit repaid over 5 years.

Using the Theory of Tax-Enomics, I propose the following different change in the tax law. A $20,000 Residential Home Purchase Investment tax credit for the purchase of a new residential primary home that is owner-occupied that would be spread over a 10 year period. It is also self-financing to the government.

NOTE: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.

$11,000 in the year of purchase, $1,000 in 2nd thru 10Th year ($9,000). Homeowners have more financial needs in the early years after the purchase. However, the incentives have been made to encourage the homeowner to stay in their homes for at least 10 years.
The credit would be non-refundable,except in the case of a short sale to avoid foreclosure during the ten year period, but unused credits could be carried forward thru the 10Th year.
Any unused credits after the 10Th year would expire.
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 period that they are receiving the incentives.
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 received and used will reduce the taxable gain exclusion by $2.00. This reduction in the taxable gain exclusion could be deferred again by an investment in a new owner occupied residence, if the investment equals at least 50% of the original residence purchase price, including improvements. Sometimes, home owners need to downsize and therefore should not be penalized for doing so.

4. Provide Tax and Financial Incentives to Lenders to reduce existing mortgages on owner-occupied homes in foreclosure or in mortgage default.

Purpose is to provide certain tax and financial incentives to allow lenders the economic ability to restructure these loans. Additionally, the modification agreement would have the proper incentives 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.

Using the Theory of Tax-Enomics, Lenders or Assignees holding existing mortgages on owner-occupied homes in foreclosure or in mortgage default of 2 or more payments would be eligible to receive certain tax incentives in consideration of a mortgage modification and restructure agreement as indicated below.

If the current appraised value of the owner-occupied residential home has been reduced below the principal balance of the mortgages on the property, the lenders must agree to modify and reduce the principal mortgage balances to an amount not to exceed 80% of the current appraised value. 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.

The mortgage terms must be converted to a minimum 30 year fixed rate mortgage not to exceed the lower of the ten year bond rate or 1% above the current prime rate or at the time of the agreement.

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. This would now be powerful economic incentives to the homeowner to remain in the home under the agreement.

The tax and financial incentives to enter into such agreement for the lenders, or any assignees in a Securitized pool of mortgage backed securities, would be several part. There is no free lunch here.

The entire remaining principal balance (maximum of 80%of the current appraised value) held by the lender or any assignees in a Securitized pool of mortgage backed securities, would be converted to a tax free bond for its remaining term. This means the income on these mortgage bonds would be tax free to the recipient.

For each dollar of principal balance of the mortgage loan in foreclosure or in mortgage default reduced by the lender or the assignees of the securities pool of mortgage back securities, 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.

For Example:

If the lender or assignees enters into a qualifying mortgage modification
agreement whereby the lender or assignees reduces a mortgage principal balance of a mortgage on an owner occupied residential home in foreclosure or mortgage default by $25,000 on a $225,000 principal balance of said mortgage, the interest income earned on the remaining $200,000 will be deemed tax free for the remaining mortgage term, or until the mortgage is paid off.
In addition the lender and or assignees will be allowed to convert $75,000 (3 X the reduced principal balance) of principal of other mortgages held to a tax free bond (income would be non-taxable).

Using the Theory of Tax-Enomics the Owner-Occupied Residential home owner mortgage borrower would receive tax and economic incentives to enter into the mortgage modification agreement, subject to certain limitations.

The Owner-Occupied Residential home owner mortgage borrower would receive the economic incentives listed above.

Additionally, the lender will be required to delete all derogatory credit info from the borrower's file and notify all three credit reporting agencies to delete the credit derogatory with respect to the borrower's mortgage accounts.

The qualifying borrower(s) who enter into the modification agreement will receive a $20,000 non-refundable tax credit spread over a ten year period of the agreement.

1. $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.

2. The credit would be non-refundable, but unused credits could be carried forward thru the 10Th year.

3. 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.

5. 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 received and used will reduce the taxable gain exclusion by $2.00. This reduction in the taxable gain exclusion could be deferred by an investment in a new owner occupied residence, if the investment equals at least 50% of the original residence purchase price, including improvements.

Note: Under the Theory of Tax-Enomics, the key to the above programs is that in long run they are self-financing. Tax Incentives - Tax Credits or exemption from tax are only granted in exchange for services being provided that will stabilize and enhance the economy. They 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 either the Lender or Assignees and the Primary Owner-Occupied Residential.

As a last resort and stop-gap measure to keep homeowners in their homes, defaulting or in foreclosure proceeds home-owners would be offered a LEASE-REPURCHASE AGREEMENT from the lender and TARP as follows:

1. A monthly rental payment by the tenant equal to 60% of the existing mortgage payment (exclusive of taxes and insurance) on a net lease basis would be afforded to the home owner. This lease would contain a 10 year repurchase option to the homeowner-now lessee, where for each month that he makes the agreed monthly rental payment, he will receive a repurchase option credit equal to 80% of the monthly rental payment, which can be applied to an exercise of the lease purchase option. The 10 year option repurchase price shall be an amount equal to 80% of the present mortgage principal balance (with all late fees or other lender charges removed) with an accrual each year on a simple interest basis of 1% of principal balance to be added to the repurchase price. The repurchase credit is extinguished after a 10 year period. The tenant is responsible for payment of the taxes (the tax deduction will be allowed by the tenant), insurance, utilities, and maintenance payments under this new lease-purchase rental agreement. If he leaves the property (terminates the lease or defaults on the lease), the cumulative lease-repurchase option credit is extinguished.

2. In consideration of the home-owner entering into this LEASE-REPURCHASE AGREEMENT, the home-owner (now tenant) will get the same tax credits as in the modification of mortgage set forth previously. In addition all credit derogatories against the tenant with regard to this mortgage shall be deleted from his credit profile by the lender from all three reporting agencies.

3. In consideration of the lender agreeing to this Lease Purchase Agreement, TARP will guarantee the 80% of the remaining principal mortgage balance for the 10 year period (or until exercise of the repurchase option by the “homeowner” Tenant). Any income earned by the lender from the repurchase option shall be 80% tax free. TARP will then purchase 20% of the “PRINICIPAL” (free of Lender Fees etc) balance from the lender. This will allow a value to assigned to this “TOXIC ASSET”.

Homeowner/Borrower must participate financially to get the incentives. The stimulation in the housing market for purchase of new homes. and the above Foreclosure Avoidance programs should substantially stabilize the residential housing market values and financial credit crisis.
The stabilization and increase in liquidity of the residential mortgage financing market by the above alternative Foreclosure Avoidance programs, and reducing and solving a substantial part of the foreclosure problem will have a very positive and stabilizing effect on the housing market valuations.

4. Government jobs programs that include retraining individuals in private industry so they can cross train to new jobs, while receiving a living wage during retraining.

Examples from my blog:
A Solar and Wind Energy WPA program (the SWEPA –The Solar-Wind Energy Work Program Authority) – A government agency that will actively:

A. Install Wind Turbines on interstate highways by use of private contractors who will be given contracts to place Wind Turbines on interstate highways middle island dividers.
B. Provide Government Trained Employees to these private contractors. The SWEPA will set up training centers for new prospective employees who will be paid a salary over and above their unemployment insurance benefits if they take and complete the training program.

The Auto Consumer investment Tax Credit Program for energy efficient vehicles – See Blog for complete details

Provide Government sponsored Retraining Centers in different cities to offer people who are unemployed and are willing to be retrained or cross trained in a new field of employment.

These centers will hire private contractors to retrain people in new skills at the contractor’s facility. The contractor will receive a training fee with a bonus upon completion by hire of the trainee in either the contractor’s facility or by another employer using the trainee’s new skill.
The trainees retain their unemployment insurance benefits, and receive a small supplemental trainee fee. Upon completion and hire by a new employer they receive a small bonus tax credit.

This concept and solution will need more details to iron out any prospective problems. The thought for it just came to mind.

Some other food for thought
When my mother passed away at the age of 86, my uncle her brother made the following comment at her funeral, which is very appra pro for the present candidates.

"She had the cleanest mind, because she changed it so often."

When a President, a legislator, a political candidate changes his position on an issue or a policy, he is not "flip-flopping"; he is just cleaning his mind.

Accordingly, based upon new information I update my blogs.

JFK said “Ask not what your country can do for you, but what you can do for your country.”

Well Mr. President I am trying – but will you do a Mitzvah and ever listen.
BLOG LINK : WWW.THECANDUMEMO.BLOGSPOT.COM

MRCANDU10 (Cousin of MR.GET-IT DONE)

Lloyd Michael Abrahams CPA

Letters to my President-Elect that have never been read

2009-01-13T21:54:00.000-08:00

From: MRCANDU10To: MJFinquiry@magicjent.com

Sent: 1/21/2009 9:08:19 A.M. Eastern Standard Time

Subj: Attn Magic Johnson Basketball and the White House

Dear Magic,

I have an idea that I think you will be very much interested in. It is about President Obama and basketball

We all know that President Obama is passionate about basketball (almost as much as you and I) and would like to have full length professional basketball court at the White House. I think this will actually make him a better President.

We also know that if he gets the government to pay for it, it may cause some people to feel he is opulent or not thinking about that the government could better spend its money on helping people.

This is what I propose

You organize an NBA White House Basketball Court Fund (the NBA WHBC Fund}.

This fund would raise the entire cost to build and equip a separate structure on the White House grounds (perhaps using the existing short outside half court space). In order to make the cost fully deductible as a contribution the fund would actually make out the check to pay for it to the US Government.

The structure would contain an NBA regulation full court, some spectator stands, bathrooms, and small locker rooms with showers.

Older, but still young, retired NBA basketball players (who I would ask to contribute financially to the fund), such as MIchael Jordan and Larry Bird would form an emeritus team to occasionally play the White House Staff team. Perhaps mixing retired professional players to play on each side. We could also offer Televised videos or live with sponsors to raise money for charities. The President could invite at different times kids to watch the games. This would be goodwill all around.

The fund should get approval and possible sponsorship from the NBA.
I think that for whatever funds are needed, there are plenty of NBA players (both active and retired) who would want to contribute.
This could be a win-win for everybody - especially President "Barry" Obama!

Magic -you and I know someone in common. You remember Jersey Giant Sub Shops in Lansing - Particularly Britt Slocum. I had been back in 1995 thru 2000 their accountant. I still handle the Ken Slocum's (the father of the four Slocum brothers) personal tax returns. In 1995 in one of my visits to them, the boys and I played some pickup basketball in a Lansing gym. This is when I made a once in a life time shot. From 10 feet from half court I shot a high arcing shot that hit the rim and bounced 25 feet in the air - hit a beam and came down thru the hoop. They still talk about it in Lansing.

Hope to hear from you soon.

Lloyd Michael Abrahams

**********************************************************************************
By Fax: 202-638-2716 (Updated)

January 11, 2009
President-Elect Barack Obama
The Hays Adams Hotel- a Registered Guest
16th & H Street, N.W.Washington DC

Dear President-Elect Obama

In light of the current Middle-East conflict in Gaza, there is a window opening for a new and different approach to resolve this Middle-East Conflict and to stop the rockets from being fired from Gaza and attacks by suicide-bombers.

I propose using the world's most powerful, but most under utilized weapon system, that has decisively defeated terrorists and insurgents every time it has been used in Iraq. This weapon system is more powerful than a B2 bomber loaded with nuclear weapons. It is how this weapon system is used may determine its success. The use of this weapons system to resolve the Israeli-Palestinian ageless conflict will take heroics, expertise, and diplomatic finesse as we are dealing with fierce enemies that have been digging two graves with every death. It can be the missing key to resolving this conflict. It will take a powerful and eloquent world leader who is willing to change world politics to successfully resolve this conflict. The timing is perfect upon your inauguration.

I have written you the President-Elect, President Bush, Congress and the media previously about this weapon system that can decisively defeat terrorists and insurgents. You have said that if someone was sending rockets at your home where your daughters were living you would do everything possible to stop this terrorist act.

To all those that think that Israel is using a disproportionate or discriminate response to Hamas, I ask them one question:

If you lived in NY CIty or Westchester NY and Hamas was in power in Jersey City and was firing rockets indiscriminately into New York City or Westchester NY, would you be as restrained as the Israelis have been in your response, or would you want your Airforce to carpet bomb Jersey City until it had no more capacity to fire rockets ?

It is interesting that the media when reporting casualties from this latest conflict in Gaza neglects to report on Israeli casualties incurred by Hamas from rockets fired and suicide bombers incursions into Israel since the year 2000. If you then compare the two sets of numbers you would find that Israel is answering disproportionately less than Hamas. If Israel was using disproportionate responses now they would carpet bomb indiscriminately Gaza and there would be 400,000 plus Palestinian casualties. Nobody has ever fought a war like this with such effort to minimize collateral damage. Shame on the media. Even in World War II, the US bombing raids did not exercise as much restraint as the Israeli Air Force and IDF have done in this conflict.

I sincerely hope that you will listen to this new and unique approach to resolving the Israeli-Palestinian Conflict. You have personally experienced the full power of this weapon system.

MRCANDU10 (Cousin of MR.Get-It Done)
********************************************************************************

Someone in the Obama Transition team must have read my blog -because they are partially stealing and using in a limited way my solutions to our nation's financial crisis.

THE OBAMA PLAN IN CONGRESS:
"Under the plan, individuals would receive up to $500 and families up to $1,000 through a cut in payroll taxes on the first $8,100 in income. The money would be delivered through paychecks as a reduction in Social Security withholdings, and is intended to bolster consumer spending by giving a small lift to household pocketbooks. "
EXCERPTS FROM THE CANDUMEMOS to OBAMA and the CONGRESS on how they could do better
Saturday, November 22, 2008

The Theory of Tax-Enomics-Presidential Economic Solutions
For The President, the President-Elect, the Transition Team, the Congress, the Secretary of the Treasury (Present and to be) , and the Federal Reserve Chairman -UPDATED and REVISED 11/22/08The Theory of Tax-Enomics is the use of Federal, State and local tax laws to produce positive economic and social changeIMMEDIATE 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.

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.
SEE Blog for rest of this Candu MEMO

BY FAX: 202-638-2716
Attn Concierge Hay-Adams Hotel

DO NOT TELL ME THAT PRESIDENT-ELECT OBAMA IS NOT REGISTERED AT YOUR HOTEL - BELOW IS THE PROOF. FAILURE TO DELIVER THE LETTERS INCLUDED IN THIS FAX IS DERILICTION OF DUTY ON YOUR PART.

Obama Family Living at Hay-Adams Hotel
Jan 07, 2009 6:19 - By: Catherine Lincoln

Hay-Adams Hotel, Washington D.C.
Like Eloise at the Plaza, Malia and Sasha Obama get to make a hotel their home, at least for their first two weeks in Washington D.C.

By Fax: 202-638-2716 (Updated)January 11, 2009President-Elect Barack ObamaThe Hays Adams Hotel- a Registered Guest16th & H Street, N.W.Washington DC
Dear President-Elect Obama
If you would like to see and hear new approaches and solutions to resolve our economic crisis, by turning around our economy, we can show you how to use the Theory of Tax-Enomics, of which I am the founder and foremost authority in the country, to accomplish this We need to use the Theory of Tax-Enomics to solve our financial crisis and stimulate and expand the economy by providing five basic stimuli simultaneously(see my blog for full details):

1. Taxpayer and consumer confidence that the melt down has halted will be revitalised.

2. Taxpayer incentives that provide the Taxpayer-consumer with more disposable income, while preventing foreclosures and stabilizing the housing market.

3. Government jobs programs that include retraining individuals so they can cross train to new jobs, while receiving a living wage during retraining. Examples:
A Solar and Wind Energy WPA program
The Auto Consumer investment Tax Credit Program for energy efficient vehicles.
4. Government must be the immediate consumer of sufficient goods and services that businesses will rehire or create new jobs to produce the increased supply, while government is providing the supported demand for these goods and services. Example – Government purchase of US made Energy Efficient Economically viable vehicles.
5. Government thru the Federal Reserve must establish a Federal Lending Authority and Federal Vehicle Authority that will function like the FDIC and the FHA. By guaranteeing bank loans with a small insurance premium, businesses and individuals will be able to get the necessary credit that is needed in our economy.
. The stimulus must be geared to give the taxpayer worker more disposable spendable income and it should be tied to the creation of private sector jobs. One key is the revision and immediate reduction of the graduated downward tax – the Social Security Payroll tax, offset by removal of the cap on earnings it is subject to.
 Example: Reduce the Social Security rate to 2.50% on the first $200,000 and then to 3.25% on excess over $200,000 with no top cap for employer and employee. Now we have room for a 1.45% Basic Health Care Tax with no cap for both employee and employer that will work like Medicare. Companies will only need then to offer a medi-gap policy to their employees if they want to or can. This solves a lot of problems and will be self financing. More power for the congressional financial buck spent.
For full details on these programs and proposals see my blog WWW.THECANDUMEMO.BLOGSPOT.COM
MRCANDU10 (Cousin of MR.Get-It Done)BY FAX: 202-638-2716
Attn Concierge Hay-Adams Hotel

DO NOT TELL ME THAT PRESIDENT-ELECT OBAMA IS NOT REGISTERED AT YOUR HOTEL - BELOW IS THE PROOF. FAILURE TO DELIVER THE LETTERS INCLUDED IN THIS FAX IS DERILICTION OF DUTY ON YOUR PART.

Obama Family Living at Hay-Adams Hotel
Jan 07, 2009 6:19 - By: Catherine Lincoln

Hay-Adams Hotel, Washington D.C.
Like Eloise at the Plaza, Malia and Sasha Obama get to make a hotel their home, at least for their first two weeks in Washington D.C.
By Fax: 202-638-2716 (Updated)January 11, 2009President-Elect Barack ObamaThe Hays Adams Hotel- a Registered Guest16th & H Street, N.W.Washington DC
Dear President-Elect Obama
If you would like to see and hear new approaches and solutions to resolve our economic crisis, by turning around our economy, we can show you how to use the Theory of Tax-Enomics, of which I am the founder and foremost authority in the country, to accomplish this We need to use the Theory of Tax-Enomics to solve our financial crisis and stimulate and expand the economy by providing five basic stimuli simultaneously(see my blog for full details):
1. Taxpayer and consumer confidence that the melt down is being halted.
2. Taxpayer incentives that provide the Taxpayer-consumer with more disposable income, while preventing foreclosures and stabilizing the housing market.
3. Government jobs programs that include retraining individuals so they can cross train to new jobs, while receiving a living wage during retraining. Examples: a Solar and Wind Energy WPA program  The Auto Consumer investment Tax Credit Program for energy efficient vehicles.
4. Government must be the immediate consumer of sufficient goods and services that businesses will rehire or create new jobs to produce the increased supply, while government is providing the supported demand for these goods and services. Example – Government purchase of US made Energy Efficient Economically viable vehicles.
5. Government thru the Federal Reserve must establish a Federal Lending Authority and Federal Vehicle Authority that will function like the FDIC and the FHA. By guaranteeing bank loans with a small insurance premium, businesses and individuals will be able to get the necessary credit that is needed in our economy.
. The stimulus must be geared to give the taxpayer worker more disposable spendable income and it should be tied to the creation of private sector jobs. One key is the revision and immediate reduction of the graduated downward tax – the Social Security Payroll tax, offset by removal of the cap on earnings it is subject to.
 Example: Reduce the Social Security rate to 2.50% on the first $200,000 and then to 3.25% on excess over $200,000 with no top cap for employer and employee. Now we have room for a 1.45% Basic Health Care Tax with no cap for both employee and employer that will work like Medicare. Companies will only need then to offer a medi-gap policy to their employees if they want to or can. This solves a lot of problems and will be self financing. More power for the congressional financial buck spent.
For full details on these programs and proposals see my blog WWW.THECANDUMEMO.BLOGSPOT.COM
MRCANDU10 (Cousin of MR.Get-It Done)
For full details on these programs and proposals see my blog

WWW.THECANDUMEMO.BLOGSPOT.COM

MRCANDU10 (Cousin of MR.Get-It Done)

A Tax-Enomics Auto Industry Financial Crisis Solution Program

2008-12-06T09:12:00.000-08:00

The CANDU MEMO for an alternative Auto Industry Finance Crisis Solution :

THE SHORT-TERM IMMEDIATE SOLUTION:

I have called in a suggestion to members of the Senate Finance Committee for an alternative Auto Industry Finance Proposal.

1. Have the Fed create and fund the FVA (Federal Vehicle Authority -modeled after the FHA).

2. Instead of loaning the auto industry the $34 billion, why not have the FVA order -purchase 3 million (1 million from each of the big 3) of US Made (Jobs In US) of economically priced green cars (hybrids and electric) and resell them or lease them thru auto dealers with Sales Tax Free - low interest government guaranteed tax free auto loans and business credit lines - floor plan dealer financing guaranteed by the Fed's FVA. THE FVA WOULD HAVE TITLE TO THESE VEHICLES until sold or leased - Collateral for the financing.

3. If the dealers can not sell of the green cars fast enough, the FVA could sell or lease them direct to Federal, State and local government agencies - sales tax free and with low interest tax free auto loans or leases.

4. There would also be a 100% reduction and rebate of all Payroll taxes for the month of December 2008 and a 50% cut in payroll taxes employer expense for 3 months for production workers (not Administrative and CEO EXECUTIVES WITH PRIVATE COMPANY PLANES-now driving green to meet Congress) employed working to produce these cars. If the production UAW workers agree to a substantial contribution to lower the costs of these vehicles purchased by FVA, then they too would received the same rebate and reduction for the same period of Payroll taxes withheld (Social Security and Medicare).

5. If we really want to conserve the cash, we could offer banks that would finance this a tax free status on the income earned on the business loans to the auto industry which would be guaranteed by the Fed's FVA .

LONG-Term Auto Financial Crisis Solution

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.

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

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.

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's FVA (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:

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.

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).

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 TAXPAYER'S BUCK SPENT WISELY.

NOTE: I have found a product that has increased the gas milage on my cars by an average of 30%. I used to average on the road 20 MPG in my 2002 Chrysler Sebring Convertible(6 Cyl). When I used this product on the road my MPG average rose to 28.5 MPG. On my mpg gauge I saw it register at different times and speeds, as high as 40 MPG. A 3 year supply of this product with the sale of existing vehicles in production or on dealer lots would make the vehicles substantially green without engineering changes. The big 3 Auto manufacturer's should test it themselves in their vehicles. It increased the efficiency of the molecules of gas. The Product is called Ethos.

MRCANDU10 (Cousin of MR. Get-It Done)

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

2008-11-09T06:10:00.000-08:00

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:

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.
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.

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.

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.

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.
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.

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.

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.

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.

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.

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.

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.
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.
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.

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.

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.

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

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.

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.

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.

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.

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.

$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.

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.

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.

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.

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.

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:

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.

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

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.

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."

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.

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

2008-11-08T23:30:00.000-08:00

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. 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,

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:

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.
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).
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.
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:

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.
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).

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.
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).
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

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.
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

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.
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.
The lender would be required to notify all three credit bureaus to remove all derogatory credit with respect to the mortgage account.
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

2008-11-08T06:47:00.000-08:00

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)

THE CANDU MEMORANDUM - PRESIDENTIAL CANDIDATES COMPARISON

2008-09-21T22:44:00.000-07:00

I belong to a very special political party - it is called "WE THE PEOPLE". I am trying to steer the ship to the American People.

I am deeply troubled because I am having great difficulty deciding which Presidential Candidate has shown me that they can be the President that I want to lead our country in solving the enormous problems that will face the President, The Congress and the American People.

These are some of the major factors that are causing me to have this difficulty in deciding which Candidate will be the best for the country and for basically "WE THE PEOPLE". In listing these factors I will give my own impressions of how each candidate measures up to the factors tested.

THE FACTORS:
1. Integrity and Crossing the Isle for good politics:
In this factor, I believe that both Candidates will try to act with integrity if elected. Both Candidates show that presently and for many years past , they both have strong family values and I believe will try to avoid any conflict of interest with any special interests. I think both Candidates have compromised on certain principles when they had to vote on legislation that had both good and bad features. However, I believe, it was not for personal benefit, but for getting legislation passed that had some important good features that they believed in. This is the nature of legislative politics and is very difficult hurtle to overcome. In this area I think both candidates have been "mavericks", but Senator McCain has been so for a substantially longer period of time, having served in public service for most of Senator O'bama's lifetime.

2. Judgement and Experience to serve as the military Commander in Chief in an international military crisis.

In this area I believe that Senator McCain has had the advantage of long experience and a long period of contacts with many international leaders. His ability to face a military crisis and analyze it from a military point of view is probably superior to Senator Obama's. Not withstanding, Senator Obama's academic experience is probably superior to Senator McCain's. Therefore, his ability to analyze all aspects of military decision from a political, economic, social and international effect on a one on one basis (McCain vs Obama) is probably superior. and overall may be more effective.

If at this point in an international military my ideal appointments between the two would be to have Senator Obama as President and Senator John McCain as Secretary of Defense and as chief military advisor to the President as military Commander in Chief.

Not withstanding, as long as either Candidate finds the best qualified military, national security, and international political advisers, whose opinions they trust and can be relied on, either Candidate as President should make the right decisions for the American people.

Senator Obama will have to rely on military advisers, more than Senator McCain, because of Senator McCain's war experience and his long service in US Senate and Congress, on key committees.

However, Senator Obama has shown that his superior academic experience has enabled him to run a very successful political primary campaign, in a business like manner against superior odds. This may be due more to successful political advisers who helped him avoid a lot of political mistakes during the primary campaign.

Senator McCain ran a Republican primary campaign as a maverick, where he demonstrated his perseverance against adversity, which is probably a direct result of his prisoner of war experience. Very few Americans could have performed as admirably as Senator McCain did during his 6 1/2 years as a POW. His military analysis of the "Surge Approach" was certainly more on the money than Senator Obama's. However, this is probably due also to the superior military management of General David Petraeus, whom Senator McCain supported and approved of, even when it was politically unpopular to do so. This is one of Senator McCain's superior qualities as a military leader. His distaste for any condolence for torture of war combatants, as well as his complete opposition to fighting a war without the proper amount of men and equipment are good reasons why he would not consider military options carelessly to settle international military crises.

He knows first hand what personal sacrifice our national treasure (Our men and women in Military Service) may have to make. I truly believe that he would rather lose an election and than lose or fight an unnecessary war if it could be avoided by other means (international diplomacy).

Men who have served in war for our country, and have lost brothers and sisters in arms, would rather avoid a war, than wage it unprepared or for the wrong reasons, or without a proper exit and peace plan when the battles of war have been won.

I also believe, that although he lacks both the military and international political experience as compared to Senator McCain, that Senator Obama would be very careful about using the military option. I believe he should know how to seek out trusted and qualified military advice. I believe he has the analytical expertise to analyze and properly digest all of the military, political (internationally and domestically), the economic and social factors.

Even with his expertise as a public political speaker, the biggest question will be if Senator Obama as President can convince others in the outside international world (both opponents and allies) , that he will (carefully and well planned) use the military option, if no other option in his opinion can succeed, after careful analysis with qualified and trusted advisers.

3. Economics, Taxation, Alternative Energy and the Environment
This is the area that disappoints me most about both candidates. Neither candidate has extensive business managerial experience in the private sector as a governor of a state. Both candidates have spent most of their adult lives in public service as legislators.

Senator McCain , as a Naval Academy Graduate (even if not the highest in his graduating class) did give him an academic military education which is a benefit to him if he serves as a military Commander in Chief. His primary economic experience is really only from a long legislative experience and as an officer in the US Navy.

Senator McCain did have one period of managerial experience when he took over command of the Naval Air Unit in Florida with good results. His long service in Congress has provided him from a legislative point of view with some economic experience

Senator Obama is a graduate lawyer from Harvard Law with very high honors, which gives him an academic edge with respect to economics and taxation. However his work experience did not include a real practical experience in the area of taxation and its economic effects.

His successful experience as a community organizer, which did have managerial aspects to the endeavors in the semi-private sector, did give him some economic experience in addition to his limited legislative experience in the Illinois legislature and the US Senate..

Neither of these two candidates (nor the President, the Congress or the media) understands,or has any knowledge or has ever personally read about "The Theory of Tax-Enomics"or any of the economic proposals using this theory, although their campaigns, Senate offices, the White House and the media have received numerous emails and web mails with these proposed problem solutions.

As usual as politicians and the media in Washington, they have not been willing to listen to any other ideas from the public, other than their own. This is evidenced by the numerous boilerplate intern responses that say (I am paraphrasing) - "Thank you for your interest in writing us - here is our ideas and proposals. but due to the volume of emails and web mails we do not have the time to respond to all emails and web mails sent to us"

They NEVER acknowledge any of the ideas presented, never voice an opinion on the ideas presented - although encouraged, because the proposed solutions all come with the statement that we ask you to at least read the ideas and proposals and tell us where you feel they will not work, but we do not believe you can. We can respect disagreement, but not the lack of courtesy to respond where someone has taken extensive time and analysis to present them with new and unique proposals on many topics, including the questions that have been asked and never answered as follows:

1. What is the world's most powerful, but most under utilized military weapon system which has defeated terrorists and insurgents decisively every single time it has been used in Iraq?

This weapon system attacks the Achilles Heel of Al Quada and other terrorists, It can win the 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. Do either of the candidates, the White House, the Congress and or the media understand or acknowledge what is the hidden "AMT" tax that works in the reverse (The lowest income taxpayer pays the higher rate of tax)? How, using the Theory of Tax-Enomics, this hidden "AMT" tax structure can be revised with lower rates and increased tax revenues, and at the same time provide a BASIC national health care solution. It may not even be too complex for our students of legislative taxation - The candidates, the White House, the Congress and the media.

3. 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.

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 this plan be basically self financing, reverse our current economic and infra-structure crisises, with the creation of jobs stamped "MADE IN THE USA"?

Most of the tax proposals that the candidates have vaguely presented, show that they have a complete lack of knowledge and understanding in the Theory of Tax-Enomics. Taxes are like cholersterol - there are good (economically benefical) taxes like good cholesterol and there are bad regressive taxes like bad cholesterol.

I believe that the Presidential Candidate that can answer correctly the above questions will get the keys to White House with a 4 year renewable lease. However they would have to read my blog WWW.THECANDUMEMO.BLOGSPOT.COM
for complete details.

Some other food for thought
When my mother passed away at the age of 86, my uncle her brother made the following comment at her funeral which is very appra pro for the present candidates.

"She had the cleanest mind, because she changed it so often."

When a Presidential candidate changes his position on an issue or a policy, he is not "flip-floping", he is just cleaning his mind.

MRCANDU10 (Cousin of MR.GET-IT DONE)

A Theory Of Tax-Enomics Solution for Energy Conservation, Environmental Protection, Social Security Fund Solvency, and a Subsidy for Basic Health Care

2008-09-16T16:19:00.000-07:00

Provoq concept is GM's look at a fuel-cell electric vehicle for the luxury market..

THE ENERGY CONSERVATION AND ENVIRONMENTAL PROTECTION SOLUTION - MISSING IN OUR MID-EAST POLICY - Combined with two programs for the SOCIAL SECURITY FUND

to repair equitably and fairly the SOCIAL SECURITY FUND's assessment of payroll taxes (SOCIAL SECURITY TAX) for employees and employers

to resolve the future Insolvency of the SOCIAL SECURITY FUND. and provide for a Health Basic Care Tax to subsidize a Universal Health Care Program for all Americans.

A coordinated dividend from theses combined solution programs is a substantial automatic economic stimulus in jobs stamped "MADE IN THE USA."

This blog originally was part of THE CANDU MEMORANDUM for Iraq, is now being expanded and separately published.

It should be read by the President (and President to be), Congress, and the media.

It uses the Theory of Tax-Enomics, to produce solutions for both economic and social problems facing our country (note I am the founder of this theory and its foremost authority).

Mr. President, we are trying to steer the ship to you.

Obviously, our dependence on Mid East oil (which has now risen to $142 per barrel) to meet our domestic energy needs has very significant influence on our Mid East policies. We need to expand and find energy conservation and alternative energy sources to remove our dependence on imported Mid East oil and to improve our environment, including the issue of global warming. We need to bring the full and maximum utilization of alternative energy sources with more efficiency in all devices that utilize energy.

However, I would note here from one of the published comments to my blog on Iraq by Larry Sanazaro, that it is also needed for the government in parallel to the above to provide the necessary consumer and industrial incentives to vastly stimulate energy conservation and to substantially reduce consumer and industrial oil consumption.

Additionally, many environmentalists have made a multitude of valid claims of damage to the environment from both fossil fuels and alternative energy sources. Nuclear power eventually may become very limited because we will run out of space on earth to store nuclear waste - certainly by the years 3000 and 4000.

Here are some suggestions for programs to provide solutions using the“Theory of Tax-Enomics”

ETHANOL VS. GASOLINE:
Today in many parts of the country we see particularly in the summertime that gasoline has 10% ethanol (thus the remaining 90% is gasoline derived from refined oil). What we need to see is 90% Ethanol and 10% gasoline. We can do this with the proper economic and tax incentives and the assistance of the Federal government by use of government grants. We need those pipe lines throughout the country, so that ethanol fuel from corn and cellulose from energy waste can flow easier to the consumer.

By utilizing significant tax incentives for the consumer and producer, ethanol gas (90% ethanol and 10% oil refined gas) could be produced in sufficient quantities and technological improvements to replace gasoline with only 10% ethanol as our primary source of energy for running motor vehicles and other public transportation. We need to get our airplanes to be able to utilize this (which I recently heard it now being tested for bio fuels) and other alternative energy sources, including nuclear power. The economic law of supply and demand will also improve the cost of these alternative energy sources, because the larger demand and supply could significantly reduce the unit cost of these alternative energy sources.

At this point I want to insert in to this blog an excerpt from a very recent news release:

Gulf Ethanol: Cellulose Efficiency Will Far Surpass Corn Based
Ethanol

HOUSTON--(BUSINESS WIRE)--Gulf Ethanol Corporation (OTC:GFET):
Recent studies by the U.S. Department of Agriculture (USDA) and
the University of Nebraska found that cellulose feed stocks can produce 540% more energy than is consumed in their production. Corn ethanol has been criticized by some as energy inefficient because it produces only 25% more energy than it takes to make it. Cellulose changes the energy equation for ethanol production. A five times energy output to energy input will make ethanol a very efficient renewable fuel.

Farmers in Nebraska and the Dakotas participated in the five-year study by planting switch grass and carefully recording all costs for fuel, fertilizer, etc. The study concludes that ethanol production would equal 300 gallons per acre. U.S. News and World Report states, “If cellulosic ethanol becomes a widespread fuel, it would be a boon for agricultural regions.”

However, as noted by Larry Sanazaro in his comment alternative energy sources such as sugar cane, corn and other ground grown sources of alternative energy may eventually effect the balance of nature such as rain forests and their depletion. Perhaps, as example, some better consumer and business incentives to maximize the use of speed limit reduction to the 55 MPH, which in the past has proven to be a very effective way of reducing gasoline (refined oil) consumption.

SOLAR, WIND AND SEA POWER VS. OIL HEATING SOURCES:
These sources of power have been totally underutilized. Many people argue that the unit cost and effectiveness (particularly of Solar Power) limits the growth and significant increase in their utilization. I say the opposite particularly as to SOLAR for the following reasons:

SOLAR POWER
This is an alternative energy source appears to be unlimited in supply, which it my opinion makes it one of the best sources of alternative energy.

If we ask the question what will be our primary source of energy in the years 3000 and 4000 when we used up all the fossil fuels and bio fuels are limited or non-existant, because the world's poplulation has increased substantially more than 100 fold, Solar Power may be the only answer.

If this source of energy can be captured and stored cost effectively it could prove to be the most widely used alternative source of energy. Almost all other sources of energy that come from the earth including ground grown alternative sources may eventually, even if centuries away, be limited or non-existant in supply.

Imagine if we could store energy produced by Solar Power in sufficient quantities to heat and air condition our homes, businesses and government offices; to run our autos and trucks, perhaps even our ships and airplanes; to generate the power to run our businesses, industrial and government offices and plants; and all of our other energy needs. Imagine if we could have huge strategic reserves of stored Solar Power. I ask why trucks, cars, trains, airplanes and other transportation vehicles can not use Solar Panels on their roofs to gather Solar Power. All we have to do is find a way for the Solar Power to be stored more efficiently and magnified.

Obviously, this will take tremendous technology advancements to increase the efficiency and storage of Solar Power. Government and proper tax incentives could make this research possible , and the jobs should all be stamped "Made in the USA.".

I wish the President would have stated in the State of Union Speech, that the Federal Government, in partnership with all our State Governments ,would form a SOLAR WPA project that would produce within a 2 year period

1. 5,000,000 Solar Panels to be put on the roofs of all our government buildings including all military bases.

2. 20,000,000 Solar Panels to be put on the roofs of office buildings, schools, universities, and apartment buildings.

3. 25,000,000 Solar Panels to be put on the roofs of resident homes.

It has been said that it takes 9 weeks to train a worker to be able to produce Solar panels. The workers hired to do so would receive a one year contract for work, which would include the 9 weeks of training.

All these jobs under this program would be stamped "MADE IN THE USA." All Solar Panels would be manufactured domestically to provide additional jobs stamped "MADE IN THE USA". The manufacturing material cost of the Solar Panel project would be substantially reduced by granting special investment tax credits and availability of government financing using low rate tax free government bonds to the manufacturers of the Solar Panels for meeting increased production of reasonably priced Solar Panels.

The financing for the entire cost of labor and materials for the installation of the Solar Panels for the non-government sector could be accomplished as follows:

1. The Panels would be installed where they would have all the power produced from Solar Panels would be transferred back and sold to the respective Utility companies. It would be sold back to the Utility companies at the same rate they are charging the respective consumer. There would be two meters on each property. The existing usage meter and a new meter for the sale of power to the utility companies, which would be subject to computerized government monitoring. As the power generated by the Solar Panels is immediately transferred to the utility company, there is no necessity to store it at the property owner's location.

85% of the Power sold by the consumer to the Utility company would be applied to the utility's maintenance cost for the panels and the actual financial cost of the Solar Panels until fully paid for including the financing cost (the interest to carry the principal). This financial cost would be a separate government mortgage on the respective property and title to the Solar Panels would be held by the government until fully paid for.

It would use tax free low interest rate government bonds (both Federal and State, and not subject to AMT) to provide low cost financing through the FHA, Fanny Mae and Freddie Mac for the installation of Solar Panels on the roofs of residential homes. This will add value to all homes acquiring Solar Panels. There would not be any out of pocket outlay cost by the private sector property owner.

15% of the power sold by the consumer to the utility company would be applied to the consumer's charges from the utility company for the electricity used by the consumer.

The expansion in the manufacture of these panels will produce domestic "MADE IN THE USA" jobs. With an increase in technology applied to this manufacture of Solar Panels, these USA manufacturers could become substantial exporters in the future of these products to other countries that want to expand their alternative sources of energy to USA manufactured Solar Panels.

4. 25,000,000 Electric or HYBRID Autos - all made in the USA which will be financed to the owners with tax free government bonds. Vehicles will have to get better than 40 miles per gallon and cost with normal equipment not more than $15,000. Special Tax credits will be issued to both the consumer and US manufacturer (all vehicles must be made and or assembled in the USA with JOBS stamped made or assembled in the USA). Two good examples, except for their current cost, of the ideal car would be:

A. The Tesla AC Current all electric vehicle has a torque that makes this vehicle "the highest 30 to 70 miles acceleration of a car ever made (tested." This car "has an aluminum extrusion body and carbon fiber top."Above INFO REPRINTED from AOL and Google. An expensive electric vehicle with all the right ideas, but very costly at present.

B. (THIS IS A direct REPRINT)
The Provoq concept is GM's look at a fuel-cell electric vehicle for the luxury market. The Caddy Provoq is an all-electric production, using the fifth generation of GM's fuel-cell and two large hydrogen fuel tanks to make electricity for the lithium ion batteries and electric drive motor.

According to GM's spec sheet, the crossover-styled Caddy can travel 300 miles on a 6 kilogram hydrogen fill-up, 20 of it run in all-electric mode from the grid-charged batteries. (A kilogram of hydrogen compressed at 10,000 pounds per square inch is the energy equivalent of approximately one gallon of gasoline).
Once the initial battery charge is depleted, the Caddy's E-Flex system relies on juice produced in the fuel cell (which mixes hydrogen with oxygen to make electricity) to power the all-wheel drive vehicle's electric motors – one driving the front wheels and a pair of individual wheel-mounted motors in the rear.
The system can produce up to 88 kilowatts of power, a 10 percent increase from the system shown just eight months ago in Shanghai, and uses a 9 kW-hour battery pack with 60 kW peak power, versus an 8 kW-hour, 50 kW peak pack in the Shanghai version.

GM claims a zero-60 mph acceleration time of 8.5 seconds for the Provoq, with a top speed of 100 mph.

The concept uses lots of recycled and recyclable materials, features a brake-by-wire system that eliminates brake hydraulics, and has low-rolling-resistance tires from Michelin and solar panels in the roof to help generate power for auxiliary items such as the audio system and air conditioner.

Producing alternative energy vehicles such as the Tesla and the Cadillac Provok will be costly initially. However, if the technology used in these vehicles were adapted in a more mass produced US made vehicle with government subsidies and tax exempt financing and by tax credits to the producer and consumer it would make these vehicles a very desirable cost effective alternative to the current gas guzzlers. In the short term, we need a massive program nationwide to facilitate the use of natural gas for transportation fuel consumption. It is true we may have Bio Fuels, including synthetic bio fuels for many generations to come. However, they will be competing for other uses.

As Solar power usage would be expanded to provide at a reasonable cost to the business, government and individual consumers substantial electric power particularly for heating, air conditioning and general power needs, our demand for this power from refined oil and electricity using refined oil will dramatically decrease. If we expand the use of electric autos, this power could be used ultimately to charge the batteries and power these vehicles. Gas stations could now have electric power outlets for autos to charge up. The efficiency of these electric charges would need to be dramatically increased.

As Solar Energy from the sun is unlimited as an energy source, it probably is our best solution to find sufficient and unlimited domestic alternative energy without producing global warming or an in balance of nature. It should be noted that I have heard there is a new technology currently in use in Israel and in A section in California that makes use of mirrors and thinner Solar Panels. Additionally, infra-red rays from the Sun have been used.

An interesting way to increase the effectiveness and decrease the unit cost of SOLAR POWER has not been exploited (except by a firm I believe in Texas from a rumor I heard).

It is very simple. Do you remember when you were a child, someone would take a magnifying glass on a sunny day and get a piece of paper on the ground to burn? Well that was energy. Maybe we could find a way to increase effectiveness of SOLAR POWER and the condensed storage of SOLAR POWER by the use of magnification?
Another idea would be Solar Panels on the roofs of all trains and container trucks. All we have to do is find a way to safely and cost effectively capture and store the energy heat generated by these roof solar panels With trains, they may be able to transmitt the power back immediately as generated thru the rail system.

My ideas - but if someone spends the money maybe they could be made to work.

WIND AND SEA POWER:
Two additional sources of very powerful energy that has been totally underutilized. These two alternative sources of energy also appear to be of unlimited supply, but may be harder to control their intensity and frequency. However, they do appear to not cause any in balance to nature by their use.

Obviously, the effectiveness for utilizing these two energy sources is presently limited by the unit cost to the consumer and producer. However, the unit cost is significantly decreased by a massive increase in their utilization. Also we need significant technological improvements to decrease the unit cost.This is where the Federal Government via a tax incentives and grants to US businesses in this field would have huge benefits.

Also significant increase in the utilization of all of the above energy sources will have other positive effects to our economy and our environment such as:

1. A positive effect on global warming. All of the above would have significant positive effects on the global warming problem that our children, grand-children and future generations will be facing.

2. The economic benefit of utilization of American workers to produce locally this energy source could be a major source of "MADE IN USA" jobs and employment in the US, which would help our local economies grow, and at the same time will increase our base of taxpayers and thus increase tax revenues (without increasing tax rates) at both the Federal, State, and local levels.

3. The reversal of our trade balances with external oil producers from the Mid East, South America and elsewhere, thus pouring US dollars back into the US economy instead of the pockets of foreign oil producing countries. It should be able to remove our dependence on the importation of fuel oil within a two year period if we put the full SOLAR WPA PROGRAM into effect, if this program is combined with nationwide expanded program to produce reasonably priced electric autos.

Some people would say this is too expensive and too costly for our government to massively utilize these alternative energy sources ( that have unlimited quantities, far in excess of all of the oil reserves). The cost of not to do this is far more expensive, particularly if in future generations we run out of fossil fuels or caused excessive global warming.

"Green Jobs" used in implementing such energy saving devices, such as installing and manufacturing Solar Panels, will ultimately significantly reduce the cost of increased utilization of these alternative energy sources, and these jobs would be stamped "MADE IN THE USA".

There are other parts of this solution that here that could have several very positive effects on our economy described as follows:

Some have called for the privatization of the Social Security Fund Accounts. Those that have argued against privatization argue that the Social Security Fund should be untouchable and retirees; benefits if not paid to some would generate the need for more public welfare as an offset for lost benefits.

Well, we could do a compromise with no risk to the retirees, but a way to significantly increase the Social Security Fund and protect our consumers and the economy from price gouging by foreign oil producers.
Here is the TAX-ENOMICS proposal:

A. The Federal Government would transfer financial ownership of the strategic oil reserve to an investment fund to be owned by the Social Security Fund. Annually, the Federal Government - Congress and the President as part of our annual budget would appropriate and transfer sufficient funds to this investment fund sufficient to increase the strategic oil reserve by 5%.

Whenever the price of oil would drop low enough, this investment fund of the Social Security Fund would buy in the open market from the new funds appropriated, additional oil (or possibly oil futures) for the Strategic Oil Reserve.

Whenever the market has the artificial rises in the price of oil the investment fund of the Social Security Fund will sell off a portion of its strategic oil reserve in the open market at the higher prices (LIKE THE RECENT RISE TO $100 A BARREL) to force the price of oil down by increasing the oil supply domestically. At the same time this investment fund of the Social Security Fund will turn a tidy profit for the Social Security Fund. MORE POWER FOR THE BUCK INVESTED.

B. This investment fund owned by the Social Security Fund would also invest part of its funds in long-term financing for consumers and businesses investment in alternative energy sources such as the SOLAR PANEL INSTALLATION GOVERNMENT BONDS.

Again we would have a compound effect of generating additional and higher income for the fund and encouraging with government financing the consumer and business investment in alternative energy sources and equipment.
In both cases the Federal Government would be a guarantor for the Social Security Fund's investment to protect it from any loss, which under the above plans should never happen.

C. The third part of the Tax-Enomics proposal is meant to more equitably increase the Social Security fund in a unique way.

It is somewhat similar, but uniquely different than Senator Barack Obama's proposal for uncapping the Social Security tax.

Briefly recapping the present structure, we have a 6.2% FIXED RATE Social Security Payroll tax assessed separately for both employee and employer against all earned income (salaries and wages) with a cap now at $97,500.

For everyone below this present $97,500 thresh hold this payroll tax is a 6.2% payroll tax withheld of their gross earned income. In some cases at the lower end, this a larger tax than the income tax assessed the taxpayer.

For everyone above this $97,500 thresh hold this tax is a declining variable rate of their gross income earned. See the following chart, which shows the drastic declining rate of payroll tax percentage of gross earned income earned above the present tax threshold of $97,500:

<-------------PRESENT-------------->
FICA*******EARNED******FICA

TAX *******Income*******SS Tax
RATE***** Tax Base*****TAX WH
6.20% $****5,000.00 $***310.00
6.20% $***10,000.00 $***620.00
6.20% $***15,000.00 $***930.00
6.20% $***20,000.00 $*1,240.00
6.20% $***25,000.00 $*1,550.00
6.20% $***30,000.00 $*1,860.00
6.20% $***35,000.00 $*2,170.00
6.20% $***40,000.00 $*2,480.00
6.20% $***45,000.00 $*2,790.00
6.20% $***50,000.00 $*3,100.00
6.20% $***60,000.00 $*3,720.00
6.20% $***70,000.00 $*4,340.00
6.20% $***80,000.00 $*4,960.00
6.20% $***90,000.00 $*5,580.00
6.20% $***97, 500.00 $*6,045.00
6.05% $**100,000.00 $*6,045.00
4.84% $**125,000.00 $*6,045.00
4.03% $**150,000.00 $*6,045.00
3.45% $**175,000.00 $*6,045.00
3.02% $**200,000.00$*6,045.00
2.42% $**250,000.00 $*6,045.00
2.02% $**300,000.00 $*6,045.00
1.73% $**350,000.00 $*6,045.00
1.51% $**400,000.00 $*6,045.00
1.34% $**450,000.00 $*6,045.00
1.21% $**500,000.00 $*6,045.00
1.10% $**550,000.00 $*6,045.00
1.01% $**600,000.00 $*6,045.00
0.93% $**650,000.00 $*6,045.00
0.86% $**700,000.00 $*6,045.00
0.81% $**750,000.00 $*6,045.00
0.76% $**800,000.00 $*6,045.00
0.71% $**850,000.00 $*6,045.00
0.67% $**900,000.00 $*6,045.00
0.64% $**950,000.00 $*6,045.00
0.60%$1,000,000.00 $*6,045.00

Accordingly, from this chart, it becomes obvious that this payroll tax is a MINIMUM HIDDEN AMT TAX FOR ALL TAX PAYERS EARNING LESS $97,500 with absolutely (unless self-employed) no deductions available. It is a declining rate and disappearing NON AMT Payroll Tax for all Taxpayers earning more than $97,500.

It is interesting that throughout history the income tax laws (both Federal and State) have a graduated tax rate that basically increases in its tax rate as the net taxable income of the taxpayer increases. The lower the net taxable income subject to tax, the lower the rate. Someone, when they designed the income tax rates seemed to feel that the taxpayer with little taxable income could ill afford to pay a higher rate of tax than the taxpayer with a larger taxable income.

However, when you look at the chart above, the designers of the Social Security tax, which rates have substantially increased since its inception, developed a tax that is at a higher rate for the people least able to afford and pay it.

Now we also must recognize that the employer of the taxpayer bears a matching portion of this tax.

To the employer this payroll tax he bears is a PAYROLL TAX EXPENSE that adds no value to the employers goods and services produced. This payroll tax expense under the present program is also a deterrent to economic growth because in some cases, it is cheaper sometimes to employ a few high paid employees to replace several lower paid employees.
It substantially increases the cost of doing business and in some cases, because of its cost have put some employers out of business.

Not withstanding, the present program has come about using the principal that today's payers of the payroll tax will pay the present retirees benefits. This only works in the long run when the tax base expands at a greater rate than the expansion rate of benefits paid out currently. Our impending crisis in the future solvency of the Social Security Fund looms above us now is that the benefits being paid out and to be paid out are increasing at a higher rate than the payroll tax revenues being received by the fund.

Now let us look at a unique possible solution to revising in a fair manner the assessment of this payroll tax against the employee and the employer. A fair manner for assessing the employee his share should be at a graduated rate, so that this AMT Payroll tax on earned income, will be assessed more on the ability of the taxpayer to afford and to pay the tax. We would also like to find a way to increase domestic employment with an increase in new jobs stamped "MADE IN THE USA". At the same time we would like to ease the employer's burden of this payroll tax expense, so that his cost of using domestic labor - jobs stamped "MADE IN THE USA" is decreased. At the same time in finding a way to revise this tax, we must find a way or ways to match the benefits paid out to the payroll tax revenue assessed and received. If not matched, at least a lot closer than the present disparity.

Well now I have given you a perfect wish list for what appears as an impossible solution, I have a surprise for you. It is possible using the principles of the Theory of Tax-Enomics (see my separate blog).

The key here is to increase the tax base by increasing sufficiently the number of taxpayers. At the same time decreasing effectively the payroll tax rates used in assessing both the employee and the employers Portions of the tax.

If we change the present PAYROLL TAX FIXED RATE of 6.2% to a graduated rate with no caps for the employee and or the employer, we will have a far more equitable method of assessing this payroll tax rate based more on the ability to afford and pay the tax. Simultaneously, it will stimulate domestic economic job growth in additional new jobs stamped "MADE IN THE USA".

The result to the employee earning $97,500.00 or less will be that this taxpayer is paying a lower rate of PAYROLL TAX and therefore will have more disposable income to pay his bills with, to pay his mortgage with, to save, to pay off his consumer credit, and to spend in domestic consumption which stimulates local economic local growth.

The result to the employer is that his payroll tax cost per employee is lowered so that the employer is encouraged to hire more employees at the lower salary levels, than one highly paid employee at higher salary levels.

The Chart below proposes a graduated tax rate with a lower starting rate - similar to the manner that most income taxes Federal and State tax income. It will still be a Minimum "AMT" Payroll tax, but it is assessed in a more equitable manner.

This chart with its proposed graduated rate will provide substantial relief to middle and lower income tax payers, who desperately need the tax relief. However, it will actually increase tax revenue flowing to the Social Security fund. because it will be cost effective to hire, for example two $50,000 employees, rather than pay one employee $100,000 thru overtime etc.

To defeat the argument that this tax program now excessively taxes the richer taxpayers earning more than $200,000 a year with no increase in Social Security benefits, the program would have two other provisions:

Any tax collected above $6,500 level in any year from the employee would be allowed as a non-refundable, but carry forward credit, towards the AMT Income Tax. Any used credits for taxpayers over the age of 65 would become eligible to be applied to regular income tax as a non-refundable credit. (This will help Seniors needing any income tax relief).

Self-employed Taxpayers (who pay 12.4% SE TAX - the employee and employer portions) would be capped on their Self Employment income at $200,000 - $6,500.00.

The employer portion (expense portion of the tax to the employer) would be capped at $9,750 per employee (the amount assessed against an employee earning $300,000.00).

<------------------PRESENT-------------------><---PROPOSED---->

*************Earned
FICA SS**** INCOME********FICA SS******><*FICA SS*FICA SS>
Tax Rate***Tax BASE*******TAX**********><*Tax Rate*Tax*>
6.20% $****5,000.00***$****310.00******2.50%$****125.00
6.20% $***10,000.00***$****620.00******2.55%$****255.00
6.20% $***15,000.00***$****930.00******2.60%$****390.00
6.20% $***20,000.00***$**1,240.00******2.65%$****530.00
6.20% $***25,000.00***$**1,550.00******2.70%$****675.00
6.20% $***30,000.00***$**1,860.00******2.75%$****825.00
6.20% $***35,000.00***$**2,170.00******2.80%$****980.00
6.20% $***40,000.00***$**2,480.00******2.85%$**1,140.00
6.20% $***45,000.00***$**2,790.00******2.90%$**1,305.00
6.20% $***50,000.00***$**3,100.00******2.95%$**1,475.00
6.20% $***60,000.00***$**3,720.00******3.00%$**1,800.00
6.20% $***70,000.00***$**4,340.00******3.05%$**2,135.00
6.20% $***80,000.00***$**4,960.00******3.10%$**2,480.00
6.20% $***90,000.00***$**5,580.00******3.15%$**2,835.00
6.20% $***97,500.00***$**6,045.00******3.20%$**3,120.00
6.05% $**100,000.00***$**6,045.00******3.25%$**3,250.00
4.84% $**125,000.00***$**6,045.00******3.25%$**4,062.50
4.03% $**150,000.00***$**6,045.00******3.25%$**4,875.00
3.45% $**175,000.00***$**6,045.00******3.25%$**5,687.50
3.02% $**200,000.00***$**6,045.00******3.25%$**6,500.00
2.42% $**250,000.00***$**6,045.00******3.25%$**8,125.00
2.02% $**300,000.00***$**6,045.00******3.25%$**9,750.00
1.73% $**350,000.00***$**6,045.00******3.25%$*11,375.00
1.51% $**400,000.00***$**6,045.00******3.25%$*13,000.00
1.34% $**450,000.00***$**6,045.00******3.25%$*14,625.00
1.21% $**500,000.00***$**6,045.00******3.25%$*16,250.00
1.10% $**550,000.00***$**6,045.00******3.25%$*17,875.00
1.01% $**600,000.00***$**6,045.00******3.25%$*19,500.00
0.93% $**650,000.00***$**6,045.00******3.25%$*21,125.00
0.86% $**700,000.00***$**6,045.00******3.25%$*22,750.00
0.81% $**750,000.00***$**6,045.00******3.25%$*24,375.00
0.76% $**800,000.00***$**6,045.00******3.25%$*26,000.00
0.71% $**850,000.00***$**6,045.00******3.25%$*27,625.00
0.67% $**900,000.00***$**6,045.00******3.25%$*29,250.00
0.64% $**950,000.00***$**6,045.00******3.25%$*30,875.00
0.60% $1,000,000.00***$**6,045.00******3.25%$*32,500.00

BENEFITS FROM THIS PROGRAM OF GRADUATED FICA SS TAXES:

Immediate substantial tax relief to all taxpayers with earned taxable income earning less than $200,000 per year (both employees and Self-employed taxpayers), with an equitable adjustment for those earning over $200,000 per year. The tax is now being assessed more on the ability to afford and pay the tax.

Immediate substantial tax relief to businesses with employees earning less than $200,000 per year. The relief is so substantial a the lower end, that it will encourage businesses to hire more employees and thus create new jobs - stamped "MADE IN THE USA".

From the increase in the number of new taxpayers earning and contributing to the Social Security System (as incentified by the program's lower rates for employers hiring an increase in lower income taxpayers), and from the higher amounts of Social Security tax collected from upper income high paid employees (who can better afford the increased tax) will offset the lower amounts collected from the lower to middle income taxpayers earning less than $200,000. The "golden parachutes" will have a little less gold.

HEALTH BASIC CARE TAX - TO SUBSIDIZE A UNIVERSAL BASIC HEALTH CARE PROGRAM

As part of the above program, as a means to help subsidize a Universal Health Basic Care Program, the employee and the employer would now each be assessed each a 1.45% "Health Basic Care Tax", with no cap. Although some might consider this new payroll tax an "AMT" tax, it is being assessed equitably at the same tax rate to all taxpayers with earned income, who are benefiting from the tax.

This Health Basic Care Tax would be assessed against Unemployment Insurance Benefits at the rate of 2.9%.

Social Security Benefit holders who are not eligible for Medicare (under age) would be assessed the same Health Basic Care Premium as Medicare Recipients.

The proceeds of the tax would be used in a Universal Health Basic Care Program, that would operate similar to the medicare program. Employers would be able to lower their regular health care costs, because this new Health Basic Care Tax would be the premium for the Health Basic Care Program. The program would provide for Universal Basic Health Care and major desease health care.

Employers, at a substantial savings to their present health care costs, could offer or pay for a group Health Care Medi-Gap Program (similar to the AARP Medi-Gap Program) , that would pickup medical costs not paid for by the Health Basic Care Tax Program. One of the advantages of this program would be the reduction in paper work for the insured.

This program could bring Universal Health care in a combination of the two programs - Health Basic Care Program and the Health Care Medigap Program to be economically affordable and equal to the Congressional Health Insurance Program (presently available to Senators and Congressmen). The Health Care Medi-Gap Programs would be able to bring medical insurance costs to be more competitive.

All other cost saving steps, such as, but not limited to, digital medical records and national negotiation of insurance and medical costs, to reduce overall medical costs should be used where ever possible. There should be a high tech overseer program to that would monitor any abuses within the system. With technological advanced digital medical records and insurance coordination, this will be a major part of keeping medical costs from being abused.

MEDICARE CARE TAX AND MEDICARE/HEALTH BASIC CARE TAX JOBS CREDIT

At this point it should be noted that we did not bring the 1.45% Medicare Tax into this program as it is now being assessed equitably with no caps on all taxpayers with earned income. Thus all taxpayers, bear the tax at the same rate. True, it is an AMT Payroll tax, but it is equitably shared by all taxpayers assessed who will benefit from the Medicare Tax.

However, the employers who also bear the 1.45% Medicare tax and the 1.45% Health Basic Health Care tax as an expense with no caps, should be eligible to receive a JOBS CREDIT for an increase in new hires (New Jobs stamped as "MADE IN THE USA").

EXPLANATION OF MEDICARE-HEALTH CARE JOBS CREDIT:

The JOBS CREDIT would establish the prior calendar year as the base year for base QUALIFYING wages.

The base QUALIFYING wages would be all Medicare/Health Basic Care Taxable Wages from Employees earning LESS than $50,000 per year in the PRIOR taxable year.

Eligible JOBS CREDIT wages would be all Medicare-Health Basic Care Taxable Wages from Employees earning LESS than $50,000 per year in the CURRENT taxable year.

The JOBS CREDIT would be equal to 50% of the INCREASE in the TOTAL MEDICARE TAX AND HEALTH BASIC CARE TAX PAID ON THE INCREASED MEDICARE WAGES PAID IN THE CURRENT YEAR.

The JOBS CREDIT would be computed as part of the year-end Federal Income Tax form ( a very simple 1 page form). The credit could be applied as a NON-Refundable Income Tax Credit or by the Employer as credit on the quarterly payroll tax form (FM.941) as a NON-Refundable credit not to exceed in any quarter the amount of Medicare Tax reported on the form. The credit would be charged by US Treasury against the General Fund, not against the Social Security Fund or the Medicare Tax Fund.

SUMMARY AND CONCLUSION:

It should be noted here that all of the above tax programs produce for both the employee and employer each

1. A NEW COMBINED PAYROLL TAX RATE of a maximum of only 6.15% (3.25% SS Tax +1.45% MC Tax +1.45% HBC Tax) compared to the PRESENT COMBINED PAYROLL TAX RATES of 7.65% (6.20% SS Tax +1.45% MC Tax).

2. For wages below $100,000 per year the NEW COMBINED RATE DECREASES DOWN GRADUALLY to as low as 4.95%.
Thus by increasing the Tax Base equitably for taxpayers, Combined Payroll Tax Rates, including a new Health Basic Care Tax, have actually been substantially reduced with new benefits added (Basic Health Care). The program should stimulate and create jobs domestically ("MADE IN THE USA").

In summary the above programs, using the principles from The Theory of Tax-Enomics provide solutions to many inter related Economic and Social Problems facing the President (and President to be) and Congress primarily as follows:

The programs are specifically designed to INCREASE the Taxpayer Base, and Lower the Tax Rates for Middle and Lower Earned Income Taxpayers, and economically stimulate domestic employment and domestic consumption. At the same time the above programs will be the major step towards Universal Health Care, without burdening the employer and employee. They should bring jobs back to the US by effectively lower business payroll tax and health care costs.

Programs for expansion of Energy Conservation and Environmental Protection, with economic benefits of an increase in domestic employment (Jobs stamped "MADE IN THE USA"), improvement in our balance of trade, economic savings for the American Taxpayer Consumer, and a substantial reduction in the domestic consumption of imported refined oil.

Programs to bring solvency to the Social Security Fund, without privatization, and equity to the assessment of this AMT Payroll Tax on the employee, employer and the Self-employed.

As JFK said "Ask not what your country can do for you, but what you can do for your country."

Well Mr. President (or President to be) I am trying to do a "Mitzvah". I only hope you will listen. Then you can do a "Mitzvah".

MRCANDU10 (Cousin of MR GET-IT DONE)

The CANDU MEMORANDUM - IRAQ - A NEW MISSION, SOLUTION AND A DIFFERENT DIRECTION

2008-09-14T00:29:00.000-07:00

The CANDU MEMORANDUM - IRAQ - A NEW MISSION, SOLUTION AND A DIFFERENT DIRECTION - A SPECIFIC PLAN THAT CAN ALLOW US TO WIN IN IRAQ, WITH HONOR, TERM LIMITS AND WITHOUT CUTTING AND RUNNING

I dedicate THE CANDU MEMORANDUM - IRAQ to every member of our armed forces - the troops. Every single soldier's life should be treasured as it represents our nation's treasure.

BY FAX,Email, and WEB MAIL
A letter to a President (and a President to be), Congress and the media
that every Presidential candidate both Democratic and Republican should read

For the Presidential Candidates - If you Read this Blog - use its ideas, then you will get the keys to the White House and a 4 year renewable lease.

I will try to steer the ship to you Mr. President

This BLOG has been expanded and up dated from previous faxes to the President, Congress and the media.

Updated May 14, 2008

THE CANDU MEMORANDUM - A NEW MISSION AND A DIFFERENT DIRECTION for the War In Iraq and the War on Terror

A Timely solution (a real working bi-partisan plan) for a President and for Congress on how to decisively win the War in Iraq and Leave with honor and

“A NEW MISSION ACCOMPLISHED”

We will need less "Golden Hours" for the medical teams in Iraq.

Dear Mr. President ,

I want to stop the tears in my eyes and those of the families of our beloved troops who have been lost or wounded. I want to find a way to stop the coffins draped in American flags from coming home, but I want to honor the memory of those that did, so that their deaths will not be in vein. I want the troops to be able to leave Iraq with honor and a new mission accomplished. A difficult task, but not impossible.

I see the importance of not leaving IRAQ until the mission is accomplished.

WE SHOULD NOT CUT AND RUN AND WE MUST DECISIVELY BEAT THE TERRORISTS AND INSURGENTS, OR WE WILL SOME DAY AGAIN HAVE TO FACE THEM ON OUR OWN SOIL. WE HAVE AN OPTION THAT HAS BEEN TOTALLY UNDERUTILIZED. IT IS THE “WE THE PEOPLE” OPTION. NO MORE MEDIA POLLS. WE NEED SOMETHING REAL.

Mr. President, you have said when it would be time for our troops to leave Iraq, when the Iraqi troops stand up, our troops will be able to stand down.

We should also expect the Iraqi people to stand up with their troops as part of this plan. They must be Iraqis first and then define themselves as Sunni, Shiite or Kurd (just as they
expressed pride in their recent international sports victory).

In the US we are FIRST citizens of the the US and then residents of a particular state and or city, or defined second by our ethnic orientation.

You have stated clearly we are not in Iraq as occupiers but we are liberators of a people who we want to give the freedom of choice.

Freedom of choice should include the right of the Iraqi people to vote us out.

Congress missed the boat. The American people have stood up and spoken.

The American people, the US Armed forces and the Iraqi people have “skin in the game”, it is time that the Iraqi people fully participate in establishing security for themselves in their own country.

It is time now for the Iraqi people to step up to the plate. They must stand up. They must speak and the voice of the Iraqi people must be heard loud and clear by both the Iraqi government and the US government.

They have to fight for their freedom and speak with their vote. We have seen the use of the most powerful weapon in Iraq - that is the VOTE WEAPON - the vote by the IRAQI people.

They have seen the honor and dignity of the democratic voting process by the people. The American people during the months of the democratic campaigns have seen the power of the VOTE WEAPON.

You have said you would listen to a good idea, so here is one that I hope you will listen and discuss its possibility. This would be real “sachel” on your part. An honorable Exit Plan for IRAQ with a new mission accomplished A true BI-Partisan solution, which will get international support and approval.

This plan lets the Iraqi people (not the Iraqi Government or the US Government) set term limits for our forces to be in Iraq and for the Iraqi people and their armed forces to stand up. This plan can be utilized even if we want to reduce or increase our forces in Iraq (the surge approach) during its
implementation.

THE POLITICAL SOLUTION - MISSING IN OUR PRESENT IRAQI DIRECTION USE THE VOTE WEAPON

A national referendum to be held every two months in Iraq with only three questions - YES or NO on each question as follows:

QUESTION 1:

Do you want the Iraqi troops and security forces to take over fully Iraqi security and for US troops to leave Iraq at the end of one year from the date of this first vote?

QUESTION 2:

Do you consider yourself as first an IRAQI CITIZEN and SECOND By your origin-ethnic Affiliation of SUNNI, SHIITE, or KURD?

QUESTION 3:

Do you want an Iraqi National Government to govern the Iraqi people instead of Al Qaeda or an Iranian sponsored government?

If the results of this referendum for the FIRST QUESTION are yes, you, the Iraqi citizen, will have an opportunity every two months to vote again and confirm your vote by two more consecutive national referendums. or if you have changed your mind because you feel that Iraq needs the US troops to remain in Iraq for adequate security on the same question then you can vote no.

When the RESULTS FOR THREE CONSECUTIVE NATIONAL REFERENDUMS for the FIRST QUESTION are yes, the US Troops will leave (redeploy outside of Iraq) within 6 months of the results of the 3rd consecutive positive referendum. The referendums will continue to be run every two months or monthy after 6 months until there are THREE POSITIVE RESULTS on QUESTION 1

The idea is simple. (So simple that it is scary)

When the IRAQI PEOPLE- NOT the Iraqi or US governments

have voted by three consecutive referendums for our troops to leave, then the IRAQI people - not the Iraqi government nor the US government - will have spoken and we should abide.

In one of your speeches you even said so.

Then we can leave with honor and our new mission will be accomplished. WE WILL NOT BE “CUTTING AND RUNNING”.

Our troops will now be true heroes, because they will now be seen in Iraq not as occupiers but as liberators - the way we wanted them to be seen. The Iraqi people will now know that anytime they feel secure enough with their own troops and security forces, and have voted accordingly three consecutive times, that we will redeploy within six months or sooner outside Iraq. The Iraqi people will know that we stay in Iraq at their invitation (not their Government's) , and they have the power at anytime by three consecutive positive referendum votes tor revoke our invitation.

Either way we win, because even if the "bad guys" want us out - they have to democratically vote to get us out, and they have to do it three times in a row!!

Every vote is a bullet in the eye of a terrorist or insurgent.

Now we have true honorable term limits on our mission. I believe someone famous (FDR) once said, " the only thing we have to fear is fear itself".

Are we afraid or do we fear to let the Iraqi people (not the Iraqi Government or our Government) speak and be heard, and for the Iraqi people to decide how long our troops will stay in Iraq?

This idea could be modified to hold the vote more or less frequently every month or quarterly instead of every two months.

However, the total votes should be spread over a least the first 6 months for it truly to be effective and decisive.

Now look at the results of this idea when applied.

1. Iraqis will no longer feel that we are occupiers because they can vote us out. We will be winning the hearts and minds of the Iraqi people. Our military presence has been the rallying cry of the insurgents.and Al Qaeda.

By the SECOND QUESTION - PART A OF THE NEW MISSION -the Iraqis will have to decide whether they are FIRST IRAQIS or FIRST SUNNI, SHIITE, OR KURD. If they say they are Iraqis first, this does not mean that they give up their ethnic origin, only that they are one people with different ethnic origins. By this question they decide if they want to be one nation of Iraqis, with seperate ethnic areas or states.

By the THIRD QUESTION - PART B OF THE NEW MISSION - the IRAQI PEOPLE will have to decide if they want their own Iraqi National Government to govern Iraq, or a non- Iraqi government run by Al Qaeda or an Iranian
sponsored government? This does not mean that local governments can not be ethnically or local origin oriented.

This is the political solution our military needs to be successful.

QUESTIONS 2 & 3 are PARTS A & B of the NEW MISSION.

No plan can truly be successful in Iraq or anywhere else in the Middle East unless we have won the hearts and minds of the people we are fighting for and they define who they are.

2. The Iraqi Army and Police (Internal security forces) will have ample time to prepare themselves to fully assume the responsibility and stand up, so our forces can stand down. The Iraqi Army and Police will know that they have term limits to stand up and be counted. If the Iraqi people can vote us out, then they will have to be able to assume the responsibility.

3. The VOTE WEAPON is the Achilles heel of the terrorist. He can not defeat it because he has no government. It has been the most successful weapon used in Iraq against terrorists and insurgents. It has defeated the terrorists and insurgents every time it has been used in Iraq. The only way the terrorists and insurgents can get us out is by encouraging the Iraqi people to vote yes, and/or by their not committing acts of violence against Iraqi people that would discourage a yes vote.

4. The VOTE WEAPON can be expanded to accomplish more. Give the Iraqi people something to vote on and they will respond. Democracy wins and terror loses every time. Examples such as three separate entities with a common federal government, with the sharing of national assets (the oil revenues). The Iraqi people could vote on proposals by national referendum to list the priorities and their order of importance to the Iraqi people - Security, Electric Power, Full employment, education, religious freedom. The Iraqi government, if it follows the vote will now have the power to implement these items with the support of the Iraqi people. The Iraqi government will receive its own term limits by their responses to the National Referendums.

5. Use of the VOTE WEAPON in Iraq properly and creatively allows the Iraqi people to practice democracy in its purest form.

6. Use of the VOTE WEAPON will have both bi-partisan and international support. It is time now to win the war on terror decisively - we can do so decisively with the VOTE WEAPON. With success of the VOTE WEAPON in Iraq, peoples of other nations will demand to be able to use this weapon instead of the terrorist weapons now be used to express dissatisfaction with existing governments. It is definitely more powerful than any military weapon we possess for accomplishing the MISSION in IRAQ and the WAR ON TERROR. It is

THE DIPLOMATIC SOLUTION - MISSING IN OUR PRESENT IRAQI DIRECTION

Now if we add to this idea the World’s Second most powerful Weapon to deal directly with Iran, Syria and North Korea - a proven diplomatic team with a true Bi-partisan and international approval.

You guessed it Presidents Bush and Clinton, and we could even have the Russians throw in Michael Gorbachev to round out the team. The British could add Tony Blair.

All of the above are now statesman and former politicians. Where could you find a more powerful proven and experienced diplomatic statesmen team, who if given the full power to negotiate as a unanimous team will be very difficult to oppose. Now the principals in the opposing countries that they negotiate with will be facing a powerful, but proven weapon. More powerful than a B 2 Stealth bomber!

If the team needs a good advisor the President should draft Donald Trump whose credentials include his book "The Art of a Deal". After all everything that is negotiated has really to do with real estate world wide!! Who better to negotiate real estate?? Other advisers who could be instrumental in the success of this diplomatic team would be Tony Robbins (probably the best analyst in people motivation) and possibly Catherine Bell (her expert knowledge of Farsi- Grandmother was Iranian born- in addition to her fame throughout the world as a star of JAG might be extremely useful in dealing with Iran). These additional advisers to the “Statesmen Team of Bush Sr. Clinton.Gorbachev and Blair” would have international and bi-partisan support.

This now would truly be the world’s second most powerful weapon system. One of the real advantages of this team would be that its leaders are recognized now as experienced statesmen and not as politicians seeking reelection.

This team could even meet with the leaders of other Middle East countries to influence them to have national referendums - even if they want their people to express by referendum their disapproval of the United States.

The key here is every time their people vote - regardless of the topic voted on - they practice democracy.

THE MILITARY SOLUTION - MISSING IN OUR PRESENT IRAQI DIRECTION

The US armed forces have many troops deployed throughout the world outside of Iraq and Afghanistan. Now with the increase in technology and air power, our international need to station troops in other countries is not equal to that of the past. In Iraq we have had very few other countries (other than Great Britain) with any significant troop support and now the Brits are almost gone. In Afghanistan, at least we have NATO troops with a significant presence. Here is a military partial solution to give relief to our troops in the field.

We will “borrow our troops” in other countries and have the local country's troops fill the gap until our troops can leave IRAQ.

Examples are as follows:

SOUTH KOREA - 38TH PARALLEL:

We have about 35,000 troops there. We should reduce this to 10,000 or less troops and borrow South Korean Troops to fill the void. Our diplomatic team will let North Korea know what we are doing in not meant to threaten them or establish weakness on our part in any way. With South Korea our Air Power at sea can certainly fill this void together with the replacement by South Korean Troops. The cost of maintaining the South Korean troops in place of our troops would be borne by the South Koreans. Our troops, may come back some time in the future to replace the “borrowed” South Korean troops. I believe Our “DIPLOMATIC SOLUTION TEAM”, with its team of suggested advisers could make North Korea understand this.

JAPAN:
Our troops there cost our government and taxpayers a pretty penny and provide an unfavorable balance of trade in part because the money to support these troops there does little benefit for the US economy. We can still leave a smaller contingent there and “borrow Japanese troops” (to be paid for by the Japanese government not our government) to fill the void.

GERMANY:
With the exception of military medical and hospitals units located
in Germany, including related air bases that support these facilities, we should look to reduce US Government armed forces to a minimal force. We can still leave a smaller contingent there and “borrow German troops” (to be paid for by the German government, not our government) to fill the void.

It is true that all of these troops “redeployed” from the other countries may not be an exact match for those used and needed in Iraq and Afghanistan. However, many of them could be utilized to increase in AFGHANISTAN the hunt for Osama Bin-Laden.

Not withstanding, the “borrowing” of these troops and their redeployment would provide significant relief to our present troops, including National Guardsman, deployed in Iraq and Afghanistan. As an accountant I would call this a better utilization of existing “assets” to provide additional human resources and cost savings.

If the above POLITICAL and DIPLOMATIC solutions are employed, we may even be able to get NATO replacements in IRAQ.

THE ECONOMIC SOLUTION - MISSING IN OUR PRESENT IRAQI DIRECTION

The economic problems in these countries are breeding place for our security difficulties in these countries. By use of the VOTE WEAPON, we can let the people prioritize what they want and in what order. Jobs , education , medical facilities, safe markets, water, power utilities etc. could be on the national referendums to give the Iraqi government a priority list for order of importance to the Iraqi people. It is true all of these problem areas are of significant importance to all of the Iraqi people. Not withstanding, it will allow the Iraq government to have the guidance from the Iraqi people as to what they consider to be of importance and the order they want for solving these Iraqi problems.

With international support and additional security provided by NATO troops, the ECONOMIC SOLUTION would be an integral part of the total solution.

THE TROOPS SUPPORT SOLUTION - MISSING IN OUR PRESENT IRAQI DIRECTION

Another suggestion so the American People can support the troops, the vets, and their families, which we really need to do after recent events such as the problems from Walter Reed. We need a check off box on the form 1040 just like the $1.00 box for the Presidential fund. This one could be labeled the

"WE THE PEOPLE SUPPORT THE TROOPS FUND".

Each taxpayer could check off whether they want $5.00 of their taxes to go to the fund (or less if Congress does not want to give up some Congressional Universal Pork Programs).

I would make Bill Gates and Warren Buffet co-chairmen of the fund All other employees hired by the fund to assist in its administration, should either be, if qualified, Disabled War Vets, unemployed War Vets, or members of their families.

This idea will not be a favorite for the Presidential candidates, who seek matching funds. However, Gates and Buffet I am sure would make the plan work properly with cost effectiveness. They are proven business managers.

THE ENERGY AND ENVIRONMENTAL SOLUTION - MISSING IN OUR PRESENT IRAQI AND MID-EAST POLICY DIRECTION

This part of this blog has been moved to its own seperate blog

As JFK said "Ask not what your country can do for you, but what you can do for your country."

Well Mr. President I am trying to do a "Mitzvah". I only hope you will listen. Then you can do a "Mitzvah".

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.

The White House comment line liked my ideas and asked that I fax and
or Email it to the White House comment fax line. Even if you do not agree with my ideas, I hope I will not get the usual boilerplate intern written response from the director of White House communications ( I have too many of those already). If you disagree tell me why they will not work. I do not believe you can.

Thank you for your timely attention to this matter. A personal response would be appreciated, even if you disagree with the ideas.

Respectfully yours,

MRCANDU10 (Cousin of MR GET-IT DONE)

Lloyd Michael Abrahams CPA

Osama Bin Laden's Achilles Heel CANDU MEMO No. 2

2008-09-13T20:49:00.000-07:00

HE HAS AN ACHILLES HEEL!!

After hearing all of the news media commentary about Osama's latest tape, it should be more obvious than ever, that the

"VOTE WEAPON"

from

"WE THE PEOPLE"

is the most powerful effective weapon in defeating OSAMA and his terrorists.

It attacks Osama's achilles heel as he has no government.

He is trying to associate "our occupation" of Iraq as an infidel occupation of Islamic territory. See

THE CANDU MEMORANDUM

for specifics in how to defeat Osama, the terrorists and the insurgents in Iraq with the

"VOTE WEAPON".

It is time now to win the war on terror in Iraq and everywhere else. "Staying the course" will not win. - We need a new mission and a different direction.

MRCANDU10

THE CANDU MEMO - MIDEAST SOLUTION

2008-09-12T17:28:00.000-07:00

I will try to steer the ship to you Mr. President

Mr. President
If you give me 10 minutes I will give you Mr. President the keys to Jerusalem

Do Not Be Sleeping on
the Ship

Wed January 9, 2008,
THE CANDU MEMO - MIDEAST SOLUTION
BY EMAIL and FAX : 202-456-1907

January 9, 2008

President George W. Bush
White House
1600 Pennsylvania Avenue
Washington DC

RE: BI-Partisan Solutions for a President - A Mid East Solution with a 30 day window
This is an update of a previous faxes to POTUS on 11/17/04 and 11/07/2007

Dear Mr. President

I have an idea for a solution to the Palestinian and Israeli conflict that may only have a short window. This solution is built on the new Bush doctrine of building trust between the parties.The following are certain given conclusions which I doubt that anyone will dispute.

1. The Palestinians have both moderates and extremists (Hamas, Islamic Jihad,Hezbollah and numerous other extremist factions). However, no moderate Palestinian leader will ever succeed, without the extremists assenting to letting him (or her) to succeed. At present there are two chances for this to happen, and they are not even “slim or none”. There are moderates, who if allowed to by extremists, could succeed if the hearts and minds of the Palestinian people were won.

2. All proposals in the past to settle this conflict, have never let the United States to be in the driver’s seat or with any power to restrain the parties from violating any agreement.

3. History has proven that even where there has been inhumane behavior by parties to a conflict, that many years later the parties can mend some or most fences if the opportunities are there and people have relearned to trust each other. However, most of those, who suffered directly in the conflict, have great difficulty even after many years, forgiving the countrymen of the then enemy, who inflicted on them the inhumane pain (be-headings, torture, bombings etc.). Examples are the relationship of the US with Germany and Japan.Think of those died and those who survived at Bataan or the American soldiers who died at Wake Island and Midway, and elsewhere in the South Pacific. Look at the unique relationship between the German and Israeli governments since the formation of the state of Israel after the Holocaust. Look at our current relationship developing between Vietnam and the United States.

4. The Palestinian people at present have an extremely high rate of poverty and unemployment, lack of government infrastructure, and many other economic and social problems - all of which make the Gaza Strip, the West Bank and the refugee camps a breeding ground for terrorists and suicide bombers. Due to the security requirements the Israelis have no choice but to restrict free movement of Palestinians who want to work in Israel. Isreal can never make a peace while rockets continue from Gaza to land in Israel.

5. Yassar Arafat represented a symbol to the Palestinians of macho bravado, because he stood up to the Israelis. However, the corruption within the PLO government was as rampant as any unchecked disease. When he passed, the Hamas was able to succeed politically with the Palestinian people because they appeared to be a new government with far less corruption, even though they openly supported Terrorism. The Hamas used the VOTE WEAPON to succeed to their power. The Hamas might not be able to win an election today if run in both Gaza and the West Bank. Now the PLO with its shell government operating from the West Bank, completely divorced from the Hamas government in the Gaza Strip, is operating like a successor government. Its present leader Mr. Abaas is powerless, unless he wins the hearts and minds of the Palestinian People.

6. With Madrases educating the Palestinian children in the art of bomb making, the cycle of violence is built into the roots of the Palestinians, which on the outside appears to be a hopeless enigma.

Now that we have stated the problem which is obvious to most people who are familiar with the history since the establishment of the State of Israel, we ask ourselves what are the possible results if we find the solutions to these problems.

First we must ask ourselves to close our eyes and picture an Israeli State and a Palestinian State living securely side by side with each of its citizens having no fear from the other. Is this a dream or a figment of the imagination.?

Second we must ask ourselves to close our eyes and picture a Palestinian State of Gaza and the West Bank, which has now become an economic power in the Middle East, a full competitor of Israel. The Palestinian people, now with our eyes closed, we see are removed from their abject poverty and have become a state of full employment of its citizens, with the highest state of employment and standard of living of any Arab state in the Middle East. Its citizens have improved their educational status so they can develop the technology to compete with the modern world. The agriculture flourishes, by use of high technology to more than feed its people, they export to the world. Manufacturing industries have bloomed, that they are exporting products to the rest of the world. Democracy flows to all its people and corruption in government is minuscule. Citizens of Palestine and Israel move freely between the states, without fear of terror, because there is trust by both peoples in each other.

Is this a dream or is this a possibility? I believe it is a possibility, with a brand new but very bold approach. However, we may only have a a very short window and time is of the essence.

There is a way to succeed, but it is a new and uniquely different approach. However, if accepted it could be the beginning of a new era. We have a limited amount of time to plant the seeds for Mid East peace, or it may be gone for centuries.

The answers to the above will involve delicate but very skillful and possibly secret diplomacy. Accordingly, I will not disclose the full details in this Email and the fax. As part of the solution, it does involve very specific use of the under -utilized "VOTE WEAPON" - the World's Most Powerful Military weapon, more powerful than a B2 Stealth bomber with nuclear bombs. This weapon has worked successfully every single time it has been used in Iraq. How it can be used now to get a 2 state solution is the key to success in your peace process endeavors. Rhetoric alone will not succeed. It will involve having the Palestinian people directly involved in their own future. For some additional detail read my main blog, you will find the basis for getting you the keys to Jerusalem. The delicate part of the secret diplomacy will only be disclosed on a personal contact basis. Your investment wll only be 10 minutes of your time and can save many lives. You will get some "sachel" for a solution when you read the blog.

THE CANDU MEMORANDUM - IRAQ - A NEW MISSION, SOLUTION AND DIFFERENT DIRECTION

From My Main Blog - THE CANDU MEMORANDUM
As JFK said

"Ask not what your country can do for
you, but what you can do for your country."

Well Mr. President I am trying to do a "Mitzvah".

I only hope you Mr. President will listen. Then you can do a "Mitzvah".

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, and Congresses make and declare War. However, it is always the people who have to fight and die in the wars. True statesmen will only use war as a last method of dealing with dictators of radical, totalitarian
governments.
Just as the pen is mightier than the sword, the "VOTE WEAPON" is more powerful than our mightiest military weapon.
Thank you for your timely attention to this matter. A personal response would be appreciated, even if you disagree with the ideas.
If you believe it is worthwhile to hear it I will come to Washington to meet with you in the West Wing personally.
Respectfully yours,
MRCANDU10

Lloyd Michael Abrahams CPA

THE CANDU 911 NYC WTC MEMORIAL MEMO

2008-09-11T01:00:00.000-07:00

WE NEED YOU DONALD!!!

After 911 2001 with tears still in my eyes today, I had a vision of a 911 NYC WTC MEMORIAL. Every year since this vision has become clearer to me.

There would be two memorial buildings - one for each tower. Each building would have a square shape with a walking ramp for each side of the original tower. Each building would be somewhat similar in design to the new Basketball Hall of Fame in Springfield Mass. , which I recently visited. Particularly if you visit the third floor for all of the enshrined members. There would be pictures on the wall of the lost ones by floor and office-company number. There would be separate sections for each company in the building, particularly for the upper floors where there was such a great loss of life.

For each company there would be picture album at its position in the tower. There would be two elevators with glass sides on all 4 sides that would take visitors to the top of each building so they could walk down. The elevator would have several stops on the way down to assist visitors so visitors could stop at a respective upper building floors and companies. The middle and lower level floors where there was much less loss of life could be combined.

At the base of each building would be a lobby dedicated to the fallen first responders and a videos that could be viewed by company and or floor.

I can not draw this vision, but its picture is very vivid to me. My description above is a very brief description of my vision which is often blurred with tears for the lost souls of 911. The memorial buildings would mirror the original towers, even though they would be substantially smaller in size. They would be New York City's response to the attack on 911. The Families of the lost souls from 911 would find these buildings as holy sites in memoriam of their loved ones lost on 911.

These are buildings I believe Donald Trump should build. I know he will see my vision.

MRCANDU10

THECANDU SOLUTION to WEST COAST WILDFIRES

2008-09-07T08:28:00.000-07:00

A MESSAGE FOR GOVERNOR ARNOLD SCHWARZENEGGER

A SOLUTION to DEFEAT FUTURE CALIFORNIA FOREST FIRES

WHAT IS NEEDED IS AN INLAND WATERWAY NAVIGATION SYSTEM- Inter coastal series of canals from the Pacific Ocean going inland for up to 50 miles inland. These inland canals would run perpendicular to the coast. Off of these inland waterways there could several possibilities:

1. An inland saltwater sprinkler system ,or if desalination at a reasonable cost is possible, the sprinkler system would have unsalted sea water. The sprinkler system could be composed of a string of ocean water reservoirs off of the inland waterway canals.

2. An inland series of man-made lakes that would be fed water from the inland waterway canal system.

If we were to look at the Inter coastal system in Florida and many of its man-made lakes, a framework of possibilities would be available.

One of the advantages of the inland canal waterways would be that shoreline residential properties to the canals might be very desirable from a real estate point of view.

If we analyze the cost of each forest fire in the past ten years , the cost and benefit of an inland inter coastal navigation system may not seem so insurmountable.

NEWSDAY REPORTS NOVEMBER 6, 2007 - TWO TAXES ONE VOTE

2007-09-01T11:59:00.000-07:00

Homeowner living in 2 towns wants twice the vote -

Posted in the Newsday Forum
My comments on Channel 12 News may have had a material effect on defeating this proposal

So my voice was heard. See how powerful the VOTE WEAPON is

Brookhaven Prop 3 -- 294 of 294 precincts reporting (100%) Community Preservation Fund
No 40,251 61% (X)=winner

Yes 25,719 39% loser

TO GET HERE TYPE INTO GOOGLE

NEWSDAY LI LLOYD ABRAHAMS

YOU WILL SEE COMMENTS AND MY ANSWERS TO COMMENTS AT THE NEWSDAY ARTICLE
RECOPY OF THE ARTICLE
Newsday.com
Homeowner living in 2 towns wants twice the vote
BY STACEY ALTHERR
mailto:stacey.altherr@newsday.com?subject=Newsday.com
9:38 PM EST, November 6, 2007

More than 240 years after American colonists employed the slogan, a Lake Grove man has resurrected the famous rallying cry: Taxation without representation is just plain wrong.Lloyd Abrahams pays town taxes in both Smithtown and Brookhaven because his land is divided by town lines. But he is allowed to vote only in Smithtown and he says that's not fair. Especially this year, Abrahams said, because he would have liked to have voted Tuesday against the land preservation proposition in Brookhaven.Abrahams, who bought the house on Seawanhaka Avenue two years ago, said his 479-square-foot bungalow is situated in Smithtown, but "once I step out my back door I'm in Brookhaven."The situation is "very unusual," according to an official at the Suffolk County Board of Elections, who said the election district in Smithtown would have been chosen for Abrahams because that's where his house lies.Election officials cited the one-person, one-vote rule as the reason for not allowing Abrahams to vote in Brookhaven as well. They noted the issue also affects Manhattan residents who own homes on the East End or on Fire Island and have to choose one as a primary residence because a citizen can have only one voting district.Boundary lines are determined by townships and usually follow along streets, making it easier to define the townships, a board of elections official said. Election districts are drawn using the same criteria, so that a person living in Brookhaven would not be eligible to vote in a Smithtown town board election, for example.But in Abrahams' situation, the town line was not drawn along the streets. His neighbors on either side also have their property split between the two townships."I guess the guy who drew the town lines was drunk," Abrahams quipped.Nassau Board of Elections official Vincent Grasso agreed that such cases are unusual. But when they have occurred in Nassau in the past, he said, a person's voting jurisdiction is determined by "where the bed is."Smithtown Assessor Gregory Hild said Abrahams is hardly alone. Hild said he knows of properties in Commack, for example, where the line between Smithtown and Huntington goes right through homes."Remember that town lines go back hundreds of years when it was still farmland," Hild said.The location of the town line means that Abrahams' tax bills are complicated. He pays about $796 to Smithtown, $234 to Brookhaven and $371 to the Village of Lake Grove, the municipality that picks up the garbage for his 50-by-100-foot property. His school district is Sachem, which covers parts of three towns: Brookhaven, Islip and Smithtown. "My tax bills are a hodgepodge," he said.Still, he wishes he could vote in both towns. "I spoke to the Board of Elections, and they tell me, 'One man, one vote,'" said Abrahams. "But I want to be like King Solomon, and divide the baby."
Copyright © 2007, Newsday Inc.