Nothing could be more fair than this solution as it would equitably -- no progressive assessments -- eliminate the total national debt in ONE DAY -- i.e. the "day of record" for determining the ownership of any and all assets and their value. Under this system, no asset could be hidden from valuation and each asset would have to have an owner of record on the record day, who would be responsible for paying the 8%.
The beauty of this system is that no person is taxed anything at all. The equity contribution is made on ASSETS, regardless of ownership. The owner of record is responsible to pay the equity contribution, which is a one-time payment to wipe out the national debt. After that, the nation would be "clean".
This solution would also apply to institutions such as religions and foundations, who pay no taxes and thus ride free on the US economy to the detriment of those who have to work for a living and who have to pick up the bill for everyone -- inlcuding religions and foundations -- if taxation is the method of government financing. The "equity contribution" solves that problem. No tax here, just an "equity contribution" based on assets.
Robert J. Shapiro, Ph.D. and Aparna Mathur, Ph.D. in The Social and Economic Value of Private and Community Foundations (Sonecon, December 2008), write that:
"From 1997 to 2007, foundation giving soared from $16.0 billion to $42.9 billion..., while total foundation assets grew from $329.9 billion to $669.5 billion..... By 2007, the assets of U.S. private and community foundations were equal in value to all of the fixed assets of the American agriculture, mining, and utility industries; and foundation giving in that year exceeded the GDP of 110 of the 180 countries tracked by the International Monetary Fund and the World Bank."
Religions are tax havens, not unlike offshore investment paradises. An institution such as the Church of Jesus Christ of Latter-Day Saints (Mormon Church) has amassed total church assets of ca. $30 billion (tax-free) and may generate as much as $20 billion in annual revenues (all tax-free). The Mormon Church would have to make an equity contribution of $2.4 billion to eliminate the national debt and to support the nation that permits them to operate the way they do, but for which their church pays no taxes. They are riding free on the backs of those taxpayers, many NOT Mormons, who DO pay taxes.
The Roman Catholic Church, financed by 1 billion members, is by far the richest organization in the world, all tax-free. In 1994 the Vatican Bank had deposits of $40 billion and that amount will be much higher today, also in the USA and its assets. Just consider that the total amount paid by the Roman Catholic Church to settle sexual abuse cases is currently approaching $3 billion. Not only does the American taxpayer indirectly finance these escapades, but, as written at about.com by Austin Cline:
"The assets of the Roman Catholic church alone exceed those of the five largest American corporations combined and cash donations to churches total tens of billions of dollars every year.Under the "equity contribution" program for eliminating the US national debt in one day, the assets of ALL churches would be counted and assessed 8%, and each church would thus finally be paying their fair share for the American government system that enables them to exist and prosper.
Every dollar not paid by churches or other religious organizations must be made up from some other source. When all tax exemptions are taken into account, it is estimated that the average family may pay up to $1,000 in extra taxes every year to make up for the lost revenue not received from churches and religious groups. This includes sales taxes, inheritance taxes, income taxes, personal taxes, and ad valorem taxes."
Any questions? Or is this too simple for today's modern man, who prefers convoluted, complex and often, in the last analysis, ineffective solutions.