INTRODUCING A NEW SELF-REGULATING MONEY SUPPLY REDISTRIBUTION PLAN BASED ON TAX-INCENTIVES THAT WILL CURB INFLATION AND AT THE SAME TIME ADDRESS OUR MOUNTING NATIONAL DEBT CEILING CRISIS AND ANNUAL RECURRING BUDGETARY SHORTFALLS

INTRODUCTION

With a re-awakening Economy and the public beginning to consume again at pre-Pandemic levels but hampered, in part, by MAJOR Supply Chain Issues causing shortages and hence, an abnormally high demand for a number of popular consumer goods and with businesses and retailers, at the same time, trying to “make up” for “lost time” and lost revenue and now also paying entry-level employees and others higher wages and with many getting back to work, now making more per hour, we have a consuming public with money to spend also needing, at the same time, to replace many items and supplies that were exhausted from the days of The Pandemic thereby creating an extra, additional High Demand Component and as result of all of the above, there has been a sizable spike in prices causing a new pandemic-like tidal wave of INFLATION affecting both the public and many businesses, alike.

Also included in this present ONSLAUGHT OF INFLATION, one must also factor in the MANY NEW EXTRA dollars presently in circulation by way of previous stimulus checks and PPP (the Government’s Emergency Paycheck Protection Program) that was printed up by The Fed and introduced into Our Economy, albeit, a much needed and NECESSARY Emergency Measure but also increasing The Nation’s Supply of Money at the same time, which, in turn, had the unfortunate negative side-effect of having “too many dollars” chasing “too few” goods and business, investment opportunities which, by the way, equates to a “root” (classic textbook definition) cause for Inflation.

Now because of the much publicized “ships-in-harbor-waiting-to-be-unloaded” being the reason for Our (immediate) Supply Chain Issues, Experts argue that Inflation caused by this (hold-up) is transitory, but others say a goodly portion of our (inflationary) increase being experienced and existing nation-wide is here to stay as there are other (more fundamental) factors at play and once put-into-play are harder to reverse.

Which brings us to the theme and basic question of this article–Could some of this Inflation have been avoided? Well, like-duh, of course, “If we didn’t have The Pandemic!!” God, what a stupid question! Why am I reading this? Who wrote this??

Well, like I totally “get” the concept about The Pandemic. But, seriously for a second, could Our Economy–Could it have been engineered differently somehow from the beginning to make it systemically better prepared, so that some of this Inflation could have been prevented??

To discuss this in a broader sense, to put this question–to present it in proper perspective, just think of earlier periods of Inflation when there wasn’t a pandemic. Could there have been an Economic System in place such that the phenomenon of Inflation, itself, could have been avoided or minimized??

That’s what this article is all about>>>>

It is a proposed long term solution to curb our present, pressing problem of Inflation and future instances of Inflation by, in the first place, better allocating Our Nation’s Money Supply to more efficiently meet the current (shifting) complex needs of Our Economy and Society and the means by which to best begin to facilitate this would be by coming up with a mechanism to create a better balance than we presently have that specifically addresses the competing monetary needs of the private sector and the public/government) sector and a system that “knows” or senses how to (automatically) reallocate Money Supply when the competing monetary needs of the private sector and the public/government) sector decrease or increase as The Economy adjusts to shifts in business and investment opportunity requiring varying (lesser or more) amounts of Capitalization caused, in part, by shifts or predictions in Supply and Demand.

This proposed solution would be to give a tax break incentive when The Economy begins to “overheat”, a motivational tax break incentive to entities and individuals to increase the purchasing of U.S. Treasury Bonds which, in turn, would redirect large sums of Money (Supply) away from those particular portions of the private sector already “over-amped” with Money Supply, i.e., “too many dollars” chasing “too few” business and investment opportunities that otherwise left unchecked would lead to inflated values of many businesses and investment (including stock market) opportunities which, in turn, left unchecked, would, down-the-road, eventually “give way” to inflated prices of goods and services affecting the consumer.

Now, let’s step back a bit and begin from the beginning>>>>

The way the Government gets its money is to tax, tax and tax and when the Government has budget overruns it sells Bonds to cover these revenue shortages. Up to now, those buying Government Bonds must, in general, pay an income tax on the (same) dollars used to buy bonds just like one pays an income tax on money he/she uses for anything else–like to pay your rent, buy food, gas, that new pair of Nikes you’ve been eyeing. Say if you have a business, then for your business. If you have stocks or any other investment instrument, then for your stocks and so on.

Bottom-line, one gets NO tax break when buying U.S. Government Treasury Bonds, Bills, or Notes. You buy U.S. Treasuries with your taxable income just like with anything else. And at the low interest rates we have now and when considering returns on such an investment (in bonds), who in their right mind would buy bonds, at this time, to begin with? (Exception: There are some entities and institutional investors that do so and, also, there are foreign investors whose governments actually had negative interest rates during the pandemic but that’s a discussion for “another day.”)

Hence, because of our current low interest rates, investors, corporations, businesses, and wealthy individuals would rather invest in a business scheme of questionable return than buying bonds at our present low interest yield rates. For example, the current yield on a ten (10) year bond is 1.665%, less than the rate of inflation! Also, the proverbial “tax shelter”, the losing business venture, just to invest in as a “tax write-off” to avoid paying taxes is more popular than ever.

And let’s not forget the stock market though the DJIA (Dow Jones Industrial Average) has climbed higher than ever before! But that was simply, in part, because of lack of business opportunities and investment elsewhere from the pandemic–basically a situation of “too many dollars” chasing and, as a result, bidding up those “too few” options to invest in. Therefore, part of the gains in the market have been inflationary and even somewhat illusory if one examines the average price-earnings ratio (actual dividend returns) for many stocks and sees that this ratio has not kept up with the average increase in stock prices.

To prevent inefficient use of money in these instances, if the investor and business community were to be given an “out” where they could “park” their money and not pay tax on that money until a “really good deal” came along or other good or necessary business reasons developed, investors or businesses could choose this route of “parking” their cash reserves instead and if such a move were to also benefit the government as well–then, this certainly would be “the best of both worlds.”

THE BENEFIT TO THE GOVERNMENT BEING THAT WHILE THESE INVESTORS AND THE BUSINESS-CORPORATE COMMUNITY COULD DEFER A PERCENTAGE OF THEIR INCOME NOT PAYING TAX ON THAT INCOME UNTIL THEY NEEDED IT FOR A REASON OR WANTED THIS MONEY FOR A SOLID “SURE-FIRE” INVESTMENT, THE GOVERNMENT, IN EXCHANGE, WOULD BE ABLE TO FREELY USE THESE DOLLARS IN THE MEANTIME FOR THEIR PRESSING BUDGETARY NEEDS.

NOW, let’s get into the specifics of all this. So sit back, kick back, put your feet up, be entertained and ENJOY>>>

TO START, even before the pandemic, our National Debt was already at $22 Trillion and now less than 2 years later largely due to Covid-19 and accompanying federal deficit spending with stimulus checks for business and individuals, we’re at a whopping 28.8 Trillion with this Debt STILL climbing! Considering Biden’s two Infrastructure Bills, one for $1.2 Trillion for traditional Infrastructure and the other (dubbed Social Safety Net/Social Infrastructure/Build Back Better) being negotiated in the range of $1 Trillion to $1.75 Trillion though it is claimed such would be fully financed through pre-existing earlier Covid-19 Rescue Plan Funds, increased IRS auditing and certain minimum proposed corporate, capital gains and wealthy individual tax increases, something else, this author contends, is required to better facilitate and more fluidly, fully “address” all the needs of a society with its many modern and also future soon-to-be present problems!

Something else, something “unique and novel”, a new financial tool, if you will, this author contends, needs to be created that more accurately “addresses” the needs of all the moving parts of a modern technological, industrialized society as it enters into the future with new, novel, never before “addressed” problems such as climate change, depletion of fossil fuels, scarcity of resources, new deadly diseases and a troubling institutional lack of monetary funding to properly handle all these many critical concerns and needs of our society with the only apparent answer presently being more taxation OR simply NOT addressing these important life-or-death issues!

While it is necessary to tackle the problems of the Working Man, Woman and Working Family and, at the same time, those less fortunate through no fault of their own and to make programs and funds available for the proper functioning of government at all levels (federal, state and local), it is also necessary for funds to be available for the business community to have the money for adequate business growth, investment and capitalization, or otherwise, in the long run, down the road, we won’t, in the future, have enough jobs and adequate wages and salary increases for the backbone of our society—The Working Man, Woman and Working Family —to be able to own a home, have the basic niceties of life, adequately provide for their family and kids and to be secure in retirement and old age.

Frankly, as it stands now, there isn’t quite “enough” “to go around”. That is, our GNP and in particular our GDP (Gross Domestic Product) compared to the Cost of Living, what the government (federal, state and local) needs to perform its many functions, duties and meet its obligations (including Social Security and other social programs) and what business (the private sector) needs for future growth, investment and capitalization is NOT enough “to go around” for all 3 categories (business, government and the public) “AND THEREIN LIES THE PROBLEM”!!

Now as modern technology and scientists work frantically in their labs trying to “come up” with a better (and hopefully less expensive, lol!) way of life, what could be done in the meantime to better allocate our limited resources and, in particular (this being an article on the U.S. Economic Policy, I’ll take another lol! on that!), is the ALLOCATION of ONE of OUR MOST BASIC FINANCIAL “RESOURCES”—I.E., OUR MONEY SUPPLY, ITSELF!!

HERE’S THE IDEA–OFFER A FINANCIAL INCENTIVE TO CORPORATIONS and ALL BUSINESSES for that matter, INSTITUTIONAL INVESTORS, WEALTHY INDIVIDUALS, IN FACT, ALL TAXPAYERS for that matter TO PARTICIPATE IN THIS PLAN which, in turn, would better allocate and utilize our MONEY SUPPLY!! Thereby preventing situations where there are large buildups of cash with “too few” business, investment opportunities which, otherwise, left to “market forces”, would lead to inefficient use of Money leading to Inflation, lessening returns and greater chance for losses.

Just to back up a little bit and (re-)lay some groundwork—As it stands now—The way the Government finances its operations is through taxation and whatever it needs when it has a budget overrun (which occurs every year–no lol! on that!!), it sells bonds to make up the difference. Lately because of extremely low interest rates causing a resultant lack of bond-buying investment “interest” (to begin with) and with the many stimulus and bailout checks the government has already sent out to individuals and businesses due to the pandemic, the Government has had to engage in unprecedented Asset Purchasing (for example, mortgage-backed securities) and in deficit spending (QE-Quantitative Easing) where it buys its own bonds with newly printed money which it just created “out of whole cloth” “from thin air” which it then circulates back into Our Economy that can eventually (and often does) lead to unwanted INFLATION!—from “virtue of the fact” that there are now more dollar bills IN THE ECONOMY!!–chasing the same (not more) number of goods and services bring offered to the public and to business and with the same (not more and in some instances, less) business and investment opportunities (than before.)

And because there’s PRESENTLY NO INCENTIVE for corporations and wealthy investors to buy bonds (the other way, in addition to taxation, the government finances its budgetary needs) because bonds presently offer very low yields (because of our presently low interest rates) compared to other investment opportunities like, for example, in the stock market, the market has become over-priced especially because of lack of investment opportunity elsewhere (business expansion and startups that were lacking, being far and few between, due to the effects of the pandemic) causing all these extra dollars in Our Economy to be bid up in the stock market compared to a more normally price-earnings “bid-up” ratio—relatively speaking.

Now if there were a “SHUNT” if you will, an alternative offered to investors or, for that matter, anyone with extra dollars looking to ‘park” those dollars of theirs somewhere, BONDS but with a 401(k), IRA Retirement characteristic-like TREATMENT (but, in this case, having nothing to do with Retirement) would be an ideal answer and now HERE’S THE PLAN AND HERE’S HOW it would work:

OFFER ANYONE FILING A TAX RETURN—Corporations, Businesses, Wealthy Individuals, your Average Working Joe, would have the option to buy U.S. Treasury Bonds with a percentage of their net income (after deductions) and have that income with which they purchased such bonds deducted from their declared income for that year, the tax on such income used to purchase these bonds to paid in the year in which such bonds are redeemed or mature instead of paying the tax in the year earned–similar to how a 401(k), IRA is TREATED. But keep in mind, what is being proposed here has ABSOLUTELY NOTHING TO DO WITH RETIREMENT but THE (BOND) TREATMENT WOULD BE (IDENTICALLY) THE SAME!!

This way the Federal Government would have full use of such (bond) money and the bondholder would thereby avoid (delay) paying any income tax on such income used to purchase said bonds until redemption in a future year or bond maturity date (if a bond maturity date is assigned.)

The advantage to the bondholder would be multi-fold. (1) The bondholder could redeem any bonds purchased in a year where there was a loss or minimal or no income. This way by combining (and declaring the income from the bond) in a year of loss, no income, or minimal income the tax paid on the income from the bond could now be less or zero when combined with a loss (negative income), no (zero) income, or minimal income.

(2) The bondholder could redeem any bonds purchased in a year where the corporation or business expended capital (income) for any legitimate business deduction—equipment purchases, work done or services rendered to the corporation or business, business startups, expansions, etc. That way, the bond income now being used instead for a business deduction would not be counted as net taxable income.

(3) The same analysis would work for the costs resulting from any unexpected emergencies.

NOW one could say—Wouldn’t the above scenarios result in the government collecting less taxes?? NO, NOT REALLY AND HERE’S WHY—Because someone will end up paying the tax on that money!!

For example, in all the above, even in years of loss, no or minimal income, these monies WHEN DECLARED would be paid out to employees, suppliers, creditors, independent contractors and/or other businesses rendering services to the company-corporation in question adding to THEIR (net) incomes and THEY would pay any additional tax to their incomes generated from the income produced from any redeemed bond cashed in by the corporation or business suffering from no or little income or incurring any business deduction paid out ” to employees, suppliers, creditors, independent contractors and/or other businesses rendering services to the company-corporation in question.”

This, by having this “nest-egg” in the form of Profit Carry Forward Tax Deferred Bonds would, in addition, to helping the company-corporation in question avoid debt by paying off money presently owed to employees, suppliers, creditors, independent contractors and/or other businesses rendering services, it would also help them avoid a possible negative credit rating from the above situation/scenario and also, in more severe cases of outstanding debt, help the company-corporation avoid possibly declaring bankruptcy.

(4) Also, even in years of income, the corporation or business may still want to redeem any of these Profit Carry Forward Tax Deferred Bonds when the corporation or business still making a profit but say a lesser profit may still want to redeem and declare such additional profit to give a healthier year-in and year-out steadier “no-dips” in multi-year yearly profit statement(s). This strategy would help the corporation or business in the future when and if applying for loans or even when selling their business should that occur.

(5) And should a good (hot) business or investment opportunity arise THEN redeeming these Profit Carry Forward Tax Deferred Bonds AND paying the tax would, IN AND OF ITSELF, make sense.

Lastly, in a macro-economic money supply analysis, by providing an option for these Profit Carry Forward Tax Deferred Bonds this would allow for years or periods of time where investment and/or other business opportunities were de minimis and as a result corporations, businesses, institutional investors or wealthy individuals could simply shield part of their extra income and profits from any (or less) taxation, allow the government full use of this money where instead we would otherwise have a situation for ripe for INFLATION of again, of “too many dollars” chasing “too few” business and investment, market opportunities.

IN OTHER WORDS, these Profit Carry Forward Tax Deferred Bonds would act as a self-regulating VARIABLE “SHUNT” shifting large pools, hundreds of billions of dollars, away from the private sector and stock market and so forth when business and investment opportunities were poor or over-saturated AND NOT IN ANY NEED OF EXTRA CAPITAL.

THIS STRATEGY WOULD THEREBY DIRECTLY PREVENT INFLATION FROM OCCURRING OR THE SETTING INTO MOTION OF ANY INFATIONARY TREND eventually resulting in higher prices to the Consumer.

Rather ‘parking” large sums of cash in these new temporary “holding-pattern” government tax shelters (i.e., these Profit Carry Forward Tax Deferred Bonds) AND WHEN business and investment opportunities materialized, these participating bondholding corporations, businesses, institutional investors or wealthy individuals could then “cash in” their Profit Carry Forward Tax Deferred Bonds, pay the tax due and owing TO THE GOVERNMENT and still make a profit when business and investment opportunities were more realistically available and profitable.

PLUS, with these Profit Carry Forward Tax Deferred Bonds being issued, the government instead of collecting the present 21% corporate tax rate, or any higher 25%, 26.5% or 28% rate, though being a tax, such being “free and clear”, the federal government would be able to raise 4 TO ALMOST 5 times the amount of capital “in one fell swoop” from the sales of these bonds, themselves!

For example, if a corporation, business, institutional investor or wealthy individual paid the tax on say $100,000 net taxable income, the government would collect $21,000 to $25,000 “free and clear” but if that same corporation, business, institutional investor or wealthy individual purchased a Profit Carry Forward Tax Deferred Bond for $100,000, the government would immediately get that $100,000 in spendable revenue, although admittedly, that $100,000 would, in the future, have to be paid back.

But remember, TAXES would continue TO BE COLLECTED on Bonds being redeemed or maturing!!

AND ALSO, when these bonds mature and/or are redeemed, at the same time EVERY YEAR there would be new corporations, businesses, institutional investors or wealthy individuals and a multitude of middle-class income earners as well taking advantage of and purchasing into this new popular Profit Carry Forward Tax Deferred Bond Series and such new incoming Bond revenues would be used to cover any Bonds maturing or being redeemed.

NOW all this would have to be “finely-tuned” by experts as to what amount or percentages of incomes could be converted into these Profit Carry Forward Tax Deferred Bond Series OR EVEN THE AMOUNT OF ACTUAL TAX DEFERMENT. In other words, instead of these bonds getting a total tax-free deferment, the tax rate could be say half or a third of say 21%. This would be worked by tax experts, through negotiation and by “trial and error” AND WOULD BE DEPENDENT UPON HOW MUCH BUSINESS AND WALL STREET WERE READY FOR NEW GROWTH AND CAPITALIZATION OR IF THE PRIVATE SECTOR (BUSINESS AND WALL STREET) WERE ALREADY “OVER-AMPED” AND FURTHER INFUSION OF CASH (MONEY SUPPLY) WOULD LEAD TO UNWANTED INFLATION AND HIGHER-PRICED SHARES WITH NO SIGNIFICANT “UP TICK” IN (REAL) GROWTH OR DIVIDEND PAYOUTS.

Basically, just like anything, The Economy is changing all the time. Some sectors pick up speed and begin to develop at a higher rate while other sectors reach their “peak” of production and taper off. Monitoring shifts in Supply and Demand is a good indicator. Once Demand for a particular product or service to the public or other businesses levels out, then it’s time to lower Supply–that is, the “means of production” or availability of the offering of a particular service. Therefore, the cash flow and resources flowing into such sectors needs to be re-adjusted downwards. Or if Demand appears to be going up, then more cash flow or Money Supply would then be warranted.

There are certain governmental offices that keep track of all these trends and business in general and when The Economy as a whole appears to about to pick up or is on a positive trend, then such information could be relayed to the IRS and the tax experts there could adjust their tax deferment rates up or down on these Profit Carry Forward Tax Deferred Bonds depending on how much Money Supply needs to fueled into business and Wall Street. If the private sector (business and Wall Street) is already “fully-primed” and more Money Supply would be Inflationary, then the Tax Deferment Incentive Rate should be lowered (possibly even to a zero tax rate) to shunt money away from the private sector into government coffers for The Government’s own pressing Budgetary Needs and to be made available when participating Profit Carry Forward Tax Deferred Bondholders require, desire or need that money back.

OTHER ISSUES TO BE WORKED OUT BY TAX EXPERTS, THROUGH NEGOTIATION AND (MORE THAN LIKELY) “TRIAL AND ERROR” WOULD BE What the maturity dates of these bonds would be (if any) if not redeemed. Whether these special series bonds could accrue yields while being held to be applied against taxes due and owing on tax being deferred. Whether these Profit Carry Forward Tax Deferred Bonds could be (later) converted to Standard Issued Bonds presently available (the kind of bonds we have now) which when purchased immediately begin to accrue a Yield. Whether any tax bracket tax rates or progressive levels would be changed and/or POSSIBLY HAVING A (OR DIFFERENT) CORPORATE MINIMUM TAX REQUIREMENT FOR ELIGIBILITY TO PURCHASE Profit Carry Forward Tax Deferred Bonds to begin with!

EITHER WAY, THIS WOULD CERTAINLY MAKE FOR GREATER SENSE FOR CORPORATIONS AND OTHERS TO DECLARE ALL THEIR INCOME AS PART OF THEIR PROFITS WOULD ALLOW THEM TO QUALIFY FOR PREFERENTIAL TAX TREATMENT/DEFERMENT (versus hiding income or keeping such income in off-shore Cayman Island style accounts.)

ALL THIS BEING DONE WITH THE SINGLE AND SOLE PURPOSE OF HOW TO BEST UTILIZE, REALLOCATE AND REDISTRIBUTE LARGE CACHE SECTORS OF MONEY SUPPLY TO MAKE OUR ECONOMY MORE EFFICIENT AND PRODUCTIVE BY ‘parking” large sums of cash in these Profit Carry Forward Tax Deferred Bonds when business and stock market investment opportunities were “down” and when business and investment opportunities materialized, these participating bondholding corporations, businesses, institutional investors and/or wealthy individuals could then “cash in” their Profit Carry Forward Tax Deferred Bonds, pay the tax due and owing and still make a profit when business and investment opportunities became available.

SUMMARY AND CONCLUSIONS

This Plan would have the additional effect of propping up a presently sagging bond market because of presently low yield bond interest rates AND thereby would give The Fed greater control over keeping interest rates low because of significant increases in bond buying by way of offering these new Profit Carry Forward Tax Deferred Bonds to the business and investment community and public at-large and (as a result of these new greater sales and now, as a result, an ENHANCED Federal Government bond pool and, as a further result, AN EXTRA SURPLUS of hundreds of billions of dollars of ready cash) and, as a FURTHER CONSEQUENCE, a better handle on fulfilling its Budgetary Needs and therefore, a greater command-control over Our Economy as to when to raise OR NOT RAISE interest rates at the appropriate time which would also help it “stay in step” with The Fed’s pronounced target of 2, 2+% Annual Inflation Rate (since Bond Auctions, henceforth, otherwise used to raise extra capital would NOW become rarely necessary under this proposed scenario as Federal Government Budgetary Shortfalls would seldom occur due to this newly created surplus of ready cash generated by the sales of these new Profit Carry Forward Tax Deferred Bonds AND if and when the Federal Government has or would predict it will have a budget shortfall, where it otherwise would have to deficit spend (do more QE, i.e., print more money) or to avoid deficit spending (QE), conduct a bond auction to attract buyers (especially in a robust economy) when it (The Fed) may or would have to raise bond yield interest rates to a higher level to attract enough buyers and, thus, make the necessary sales needed–this scenario/situation resulting in interest rates going up across-the-board and throughout The Economy would likewise rarely occur thereby giving an INTEREST RATE STABILITY to Our Economy so desperately needed now.

MEANING–AND THIS IS SO VERY VERY VERY IMPORTANT–THE FED WOULD ONLY ever NEED TO RAISE IINTEREST RATES IF IT ABSOLUTELY ABSOLUTELY ABSOLUTELY NEEDED TO–i.e., TO COMBAT INFLATION which and this is COMMON KNOWLEDGE AMONGST ECONOMISTS–that is, the best AND MOST EFFECTIVE WAY to combat Inflation in an economy beginning to “overheat” IS to RAISE interest rates.

BUT to raise interest rates simply to compete with the private sector (businesses and investors) for cash revenue for the government to meet its budgetary needs would be ABSOLUTELY ABSOLUTELY ABSOLUTELY THE WORST THING ONE COULD DO as it would tend to stifle and thwart an otherwise healthy economy or one coming out of a recession-depression that is “cash-strapped” or in this case–one recovering from a world-wide Pandemic needing to get back on its feet!!

FYI–UNNECESSARILY RAISING INTEREST RATES INCREASES THE COST OF BORROWING FOR BUSINESSES TRYING TO EXPAND THEIR OPERATIONS OR FOR INVESTORS SEEKING TO BORROW TO INVEST IN A BUSINESS OR IN THE STOCK MARKET OR FOR CONSUMERS WANTING TO PURCHASE A CAR, A HOUSE AND FOR LOANS IN GENERAL.

ALSO, RAISING INTEREST RATES INCREASES THE COST OF DOING BUSINESS AND OFTEN THIS COST IS PASSED ALONG TO THE CONSUMER IN TERMS OF HIGHER PRICES MEANING THE CONSUMER CAN NOW BE PAYING A HIGHER PRICE FOR A CONSUMER GOOD OR SERVICE AND IF HE OR SHE HAS TO BORROW FOR A GOOD OR ITEM AS IN THE CASE OF A CAR, HOME, OR SAY A SERVICE LIKE REMODELING OR HOME REPAIRS, HE OR SHE MAY HAVE TO PAY A HIGHER INTEREST RATE FOR THE LOAN THAT MAY BE INVOLVED.

ALSO, BUISNESSES PURCHASING SUPPLIES AND RAW MATERIALS FROM THEIR DISTRIBUTORS FACING SIMILAR COST OF DOING BUSINESS INCREASES WOULD BE ADDITONALLY AFFECTED WITH THESE EXTRA COSTS BEING PASSED THROUGH TO THEIR CUSTOMERS AND CONSUMERS AS WELL.

AND AGAIN, IN CONCLUSION–Such a situation (bond auctions) if allowed to (repeatedly) occur would be why interest rates would GO UP which could stifle Our Economy. However, allowing interest rates to rise to 2% or slightly higher (the normal annual rate or (inflationary) rise in Cost-of-Living) would NOT be unhealthy by any means! This 2%+, the normal annual rate or rise in Cost-of-Living, is, also, often referred to as the “natural” built-in Inflation of any healthy Economy UNLIKE our current overall last-reported national average of 6.2% INFLATION we’re experiencing now. Of course, when you’re at the gas pump, it DOES seem like a lot more!!

ALSO, these Profit Carry Forward Tax Deferred Bonds would solve our current Debt Ceiling Crisis as we would have incoming Capital and better resources to cover Budgetary Shortfalls and as a result (just to repeat myself) Raising The Debt Ceiling by way of deficit spending (the Government printing up uncollateralized dollar bills which, at the same time, (as each dollar is printed) devalues The Dollar and (incrementally, one by one) adds to Inflation) would be now SUBJECT TO BETTER CONTROL

AND FINALLY, such sales of these Profit Carry Forward Tax Deferred Bonds to the public if such bonds were to be authorized would HELP more accurately “meter” the rate of Fed’s new strategy and policy of Tapering—gradually reducing its present rate of $120 Billion per month to 50, 30 Billion in Fed bond buys WITH LESS PRESSURE AND BETTER CONTROL TO (MORE GRADUALLY) RAISE INTEREST RATES.

IN CLOSING—ONE LAST FINAL POINT

What we’ve been discussing would help Biden get his Build Back Better Bill passed. There would be a strong incentive to vote for this Bill because of its very favorable income tax deferment features. The Government would literally get Hundreds of Billions of Extra Dollars immediately upfront from those participating in this Plan purchasing what would turn out to be significant amounts of U.S. Treasury Bonds. Participants would include Corporate America, businesses in general, wealthy individuals and even the public-at-large.

These Bonds would be used to fund the many upfront costs of Biden’s Build Back Better Plan and would gradually be paid back to Participants when, in following years, those Participants would elect to redeem their Bonds to cover years of low or no or even negative income loss or in years where a multitude of business deductions were declared OR when a particularly good business investment/deal would arise where even paying the tax due on these Profit Carry Forward Tax Deferred Bonds would still make sense!

REMEMBER—In those cases of low or no or even negative income loss or in years where a multitude of business deductions were declared, the government would still collect a tax on those Dollars from where those Participants’ Redeemed Bond Dollars were spent, i.e., to (from) the receivers of these Redeemed Bond Dollars.

If Biden and the Democrats really want to get their Build Back Better Bill passed, a possible way to get Joe Manchin’s and Kyrsten Sinema’s approval (and their much needed 49th and 50th votes for passage in the Senate) and possibly with Republicans in general, for that matter, would be to propose what we’ve been discussing here.

So far, what Biden and the Democrats have proposed, this Build Back Better Plan—what it lacks—there’s no incentive in the Bill to gain any undecided votes—there’s no incentive for Corporate America and, hence, Republican Party Representatives to give their support to “back” this Plan.

But if businesses and Corporate America were given a way to temporarily avoid paying a portion of their income tax and pay it in a year where it would be accounting-wise more sensible, then passage of This Bill would definitely be enhanced.

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