posted on Aug, 22 2011 @ 01:04 AM
We are plagued with runaway inflation, high tax rates, and low wages. Some are against tax increases and some say tax the rich. I have been trying to
think outside the box on how to solve this dilemma and think I have come up with a solution that will help those in society get the assistance they
need, at the same time lowering tax rates for the wealthy. I am calling this solution evaporating currency, because it does exactly that. I need
everyone's help though in analyzing causes and effects of how a system like this can be implemented. What would be the loopholes if any, and could
the loopholes be closed. Would this system of currency actually solve some problems in social spending? Please stay on topic. I haven't developed the
idea past the initial stages, but in theory I believe it could work.
The currency would work like this, the government would issue currency. This currency is given to someone in need of assistance (e.g. food stamps,
unemployment, medical care, etc.). The currency could be used for anything but is given to a person for life essential and life supporting reasons.
When the person spends this currency it can be used by anybody else, just like normal currency. In fact, it should look no different then regular
currency. Only when a person deposits it into a bank will the currency be identified as evaporating currency.
The currency can continually be used, as desired by the person who possess the money. At the end of the year when a person pays taxes, they pay the
taxes with the evaporating currency first. The currency then is destroyed having served its original purpose.
Now how will this lower taxes for the rich? Well to begin with there is essentially no entitlement programs, only the illusion of them. It is well
known that most of the money earned will filter to the top, so the direct beneficiaries of this currency will be the rich anyway. This system is
similar to the FEDs banking system accept it does not continually rob wealth, nor does it create debt to the Federal Reserve.
So could this idea not only save entitlements, but also assist business owners ensuring an ample supply of customers to grow their business? Could it
pull us out of a recession?