Both political parties when in power have continued to charge on the US credit card and have increased the debt.
So you ask – How can we pay down the debt? How can we eliminate the $13 trillion and start over?
Well the answer comes from the Ronald Reagan former Director of the Budget – David Stockman. He says tax the personal net wealth of the richest 5% of Americans. What is the personal net wealth of the top 5%?
Stockman estimates that the richest 5% or approximately 1.5 million Americans are worth $40 trillion in net wealth. Net wealth is the amount a person is worth after all debts are subtracted from all the assets, cash, stock, real estate, etc. The top 5% are richer than the bottom 95% of all Americans, 308.5 million.
In 1985 this top 5% had a net wealth of just $8 trillion. Most of the gain in wealth is directly from low tax rates
Keep in mind this is “personal” wealth not corporate wealth and has NO affect on corporations or business.
Stockman says we should have a one- time 15% tax on this net wealth that would bring in approximately $6 trillion and use this to pay down the debt. We would still have about $7 trillion in debt.