Chapter 4

Taking Back Our Democracy

Both our political parties have been unable, or unwilling, to make the changes to our laws that are necessary to maintain our democratic system of representative government. As a result, we have lost control to a small group of very wealthy corrupt capitalist who continue taking advantage of weak campaign finance laws to buy legislation that benefits them.

Many of these corrupt capitalist got their vast fortunes through inheritances. These inherited assets are managed by highly paid lawyers, bankers, money managers, accountants, and security personnel who are compensated based on the rate of return they earn on the assets. These are the people who are robbing our government and undermining our system of government and they are the people who we must go after.

After we take back our government we can make some minor changes to our laws that will prevent this wealth concentration and political corruption situation from every happening again, and these changes to our laws is the subject of this chapter.

Fixing The Law

Many of these inheritance rich corrupt capitalist are just spoiled brats who didn't do a thing to earn the wealth they own. Many of them don't know what it's like to work a forty hour week. They have not earned the right to lead this country and yet that is what is happening and that is why we must take their power away from them.

Because of the money management systems set up for the inheritance mega rich our government has been infiltrated by people who are working for them, and not us. George W. Bush, George H.W. Bush, and Ronald Reagan were just highly paid political puppets. Barack Obama and the elected officials currently working in Congress are no different.

None of our top elected leader's leadership has not been what they promised it would be during their campaigns, state of the union speeches, and press conferences. As a result, their leadership has harmed America's middle class, our government's institutions, our countries creditability, our national security, our federal government's fiscal health, and our soldier's lives and health.

If we allow this lack of honest political representation and wealth concentrating legislation to continue our government will be completely robbed and bankrupted. The super rich will take way our rights and freedoms, our ability to move up the economic ladder, and our high standard of living. They are already doing all these things.

It is time we do our constitutional duties as self-governors by exercising our rights and moral obligations to overthrow these corrupt leaders and take back what has been stolen from us. Then we can correct the laws that allowed these corrupt individuals to win political office and wealth to become concentrated in the hands of a few families. These guys have had over thirty years to fill the books with rotten legislation so we have a lot of work to do.

These changes to our laws won't require that anyone lose their jobs, except a few politicians and lobbyist, or that any industries shut, except for the ones based on organized crime. In fact, these changes will result in new jobs and the birth of a number of new industries. The overall effect will be extremely positive for average Americans, and can happen quickly and almost transparently.

Change is often frightening but just try to imagine the horrible economic depression that will occur for middle class families if we do nothing. If you're having trouble imagining this scenario just look at Mexico and what the one sided wealth distribution in that country has done to the vast majority of its citizens.

Getting Rid of The Money Whores

The first thing we need to do is to get rid of our current national political leaders in the House and Senate, by force if necessary. All these people have not necessarily violated the letter of the law but they have clearly violated the spirit of the law. Since we are a country based on the rule of law we need to fight so that we can restore the rule of law. These leaders should be fired, fined, and possibly arrested.

During the history of our country habeas corpus laws have been suspended in order to protect the American people, and it may be necessary again to remove our elected leaders from power and take back what has been stolen. Other parts of the Constitution may also need to be temporally suspended until corrections can be made, new leadership can be elected, and stolen assets can be taken back.

Restoring the Rule of Law

After the current crop of corrupt officials are safely behind bars, or exiled out of this country, we can begin the process of restoring the rule of law. The first and most important change we should make is to the way we elect our federal and state leaders. We must get the corrupting influence of big money out of the election's system and there are a few simple ways to do it.

Following are some of the changes to the law we must make if we want an honest system of government controlled by the majority of the American people. The first group of changes are mandatory changes that must be made quickly if we are going to have a democracy in America based on the Constitution. The second group of changes are optional changes and will have a very positive effect on our economy, society, and democracy. These changes are listed in the order of their importance:

1. One Time Tax On Wealth

A fraction of the top 1% of Americans currently owns most of the assets in America. To correct this gross imbalance in wealth distribution, that was brought about by way of a corrupt campaign finance system and a regressive tax system, we need to take back most of their wealth with a one time tax on their wealth. This tax will only apply to people who have net worth's above $10 million dollars. Following is a table showing the tax rates and tax brackets:

Proposed Tax On Concentrated Wealth

This tax is the key to fixing the political and capitalist systems in America, but the possibility of getting Congress to pass this tax legislation of zero. Not because it is unconstitutional, the sixteenth amendment allows for this type of tax, but because the people in Congress are corrupt and they are working for the people this tax is going to effect.

Therefore, to pass this tax a new constitutional amendment will need to be added that effectively fires all the people currently serving in Congress and replaces them with a direct democracy. In a direct democracy average citizens will be empowered with the ability to vote directly on legislation, initiate new legislation, and impeach unpopular, or corrupt, elected leaders. This new direct democracy will be talked about more later (#3).

This one time tax on wealth will not make anyone poor who is currently rich. It will only take away some of the rich people's excess wealth. After this tax the top 1% will still be the top 1%, but instead of counting their wealth in tens of billions of dollars they will be counting it in tens of millions of dollars.

All the assets this tax collects will be held in a public trust for the benefit of the American people, and as backing for the U.S. currency.

These new government assets will continue to be managed by the people and organizations who are currently managing them, but instead of managing them for a few mega rich families they will be managed for all the families of America.

After this tax we will still have a capitalist system, but this one time tax on wealth will have the effect of hitting the reset button on the capitalist game. The doors of opportunity will suddenly be opened to a new generation of capitalist.

Following are the types of assets this tax will capture for the American people:

• 98% of all the commercial real estate in America.

• 90% of all the corporate farm land in America.

• 95% of all the corporations in America.

• 90% of all federal debt held by the public.

• All the professional sports teams.

• All the big retail chain stores (Sears, JC Penney, Macys, Dillards, Target, Wal-Marts, etc.).

• All the big chain restaurants (McDonalds, Burger King, TGI Fridays, Chili's, Applebee's, etc.)

• All the big banks and financial institutions.

• Patents, Trademarks, and Royalties.

• Art Collections.

• Foundations and Charitable Trust.

This transfer of America's assets from the super rich to the government will allow the federal government to do the following:

• Stabilize and strengthen the value of the dollar by having assets to backups its value.

• Pay off the federal debt held by the public.

• Shore up Social Security and Medicare without raising taxes on workers or employers.

• Cut taxes for middle class workers and corporations.

• Eliminate taxes on the poor.

• Provide much lower cost medical care and drugs for all citizens.

• Greater regulatory control over the corporations that are currently getting away with price gouging and murder of U.S. citizens.

2. Progressive Income & Estate Taxes

The primary reason wealth has become so concentrated in American is because of a highly regressive tax system. Currently, the average middle class family pays a much higher percentage of their income in taxes than the average billionaire. President Reagan and the Republican controlled congress turned our highly progressive tax system into a highly regressive tax system in 1981. Since that time middle class incomes have stagnated and the income and wealth of the top 1% has been growing exponentially.

The last truly progressive tax still in effect is the estate tax. However, because of President George W. Bush's 2001 tax cut legislation the estate tax went to 0% this year, and the Republicans have been fighting day and night to make that estate tax repeal permanent. If they succeed they will have transformed our democratic republic into a form of monarchy.

Therefore, we need to return our tax system to a highly progressive one. This will prevent the lose of our form of government and it will re-open the paths of upward mobility to the middle class.

Following are the recommended income and estate tax rates:

Proposed Income Taxes Rates & Brackets

Proposed Estate Tax Rates & Brackets

Congress will never pass any of these proposed tax rates because they amount to tax increases on the top 1%, but under a new direct democracy we can pass them.

3. America's New Direct Democracy

Our representative democracy was the creation of our founding fathers and is written into the U.S. Constitution. It was a fantastic idea for its time, but times have changed and it is time to move our democratic republic to a much better system of direct democracy.

When our Constitution was written it took several days to travel a few hundred miles and there was no other means to communicate across distances. This communication issue created the need for people to elect representatives who would travel to meetings where ideas could be heard, put into legislation, and voted on.

However, today we have technologies that solve that communication problem and therefore representatives are no longer needed. In fact, having representatives is a horribly inefficiency and unfair. Also, representatives don't always represent the people who elected them, but do represent the people who gave them money to run for office. Finally, when we vote for someone to represent us we are actually giving away our power.

Therefore, we need to amend the Constitution to return that power to the American people, and to the states. Following are the changes that are necessary:

• Eliminate the House of Representatives and let the citizens vote directly on legislation, create new legislation, and impeach unpopular leaders.

• Eliminate the Senate and give that voting power to state Governors.

• Allow citizens to cast votes electronically (internet, voice votes over the phone, and polling stations), and make all voting records open public information so that everyone can see if their vote counted and how others voted.

4. Campaign Finance & Election Reforms

Even with a direct democracy people will still need to vote for a President, state Governors, and local officials. To keep these politicians honest we need to limit the ability of wealthy individuals and organizations from influencing them. Following are the necessary reforms to correct the current corrupt campaign finance system:

• Require public financing of political campaigns.
• Limit the amount of money that can be spent before the election, and the amount of time allowed for campaigning before an election.
• Require that all the major mainstream media companies provide free time and advertising space to candidates in the weeks leading up to election day, and without commercial interruptions.
• Open the major televised debates to third party and independents candidates who poll above 2%.
• Require that every voting computer generate two paper receipts. One for the voter to take home and one for the ballot box for audit purposes. Also, require random independent recount audits to ensure accuracy.

Unless these few simple reforms are passed into law none of the other reforms that follow will matter. In fact, unless these election reforms occur first the other reforms will end up being twisted and used to help the powerful and to screw everyone else.

5. Political Reforms

Our politicians are not serving us well and regardless of the poor quality of their services they continue to vote themselves salary increases and take gifts from lobbyist. Following are the reforms necessary to keep our elected officials honest:

• Elected officials cannot vote themselves pay raises over the average family income.
• Elected officials cannot accept any gifts, travel, or benefits from lobbyist before, during, or after their public service.
• Elected and appointed officials cannot take jobs with any of the companies or industries they were regulating while in office.
• Elected officials should be paid bonuses up to 50% of their annual salary based on the % increase in the net worth of the federal government, and the % increase in family incomes above inflation. Remember all assets and debts owned by the federal government really belong to all the citizens of America.
• Presidential pardons must be ratified by a majority vote of the American people.
• Allow at least 3 days of study and debate before legislation can be voted on after it comes out of committee.
• For something to be declared a matter of "national security" is must be unanimously agreed to by the President and state Governors.
• No-bid contracts should be made illegal. Companies found guilty of illegal activities, over charging, or not performing on their government contracts should be barred from all future government contracts. 

6. Additional Tax Reforms

In addition to the tax reforms already talked about following are some other reforms that will correct the corrupt tax policies currently on the books:

• Fix Social Security - The following changes would extend the solvency of the Social Security system and improve that quality to beneficiaries: 1. Remove the cap on income subject to Social Security taxes. 2. Exempt the first $10,000 of income from Social Security taxes for both employees and employers. 3. Means test Social Security beneficiaries so that only people who need the financial help get the help. 4. Exempt all Social Security income from income taxes. 5. Increase Social Security benefits to a livable income amount and adjust annually for inflation.
• Close Tax Loopholes - Tax offshore bank accounts and U.S. based companies foreign sales just like they were domestic income and wealth. No more offshore tax shelters or income hiding.
• Fix Trade Laws - Repeal NAFTA and all free trade deals and restore trade tax rates to inflation adjusted 1963 levels. Withdraw from the anti-worker WTO.
• Encourage Domestic Manufacturing - Create a new progressive tax for companies that shift jobs, factories, or other operations overseas, and provide tax incentives for companies that move their jobs, factories, and operations back to America.
• Clean the Environment - Increase taxes on oil, gas, and coal and cut taxes for clean alternative like wind, solar, and hydrogen.
• Open Tax & Voting Records - Require full public access and disclosure about incomes, wealth, taxes and votes.

7. Health Care Reforms

Good health care should be a right not a privilege. Every American citizen regardless of employment or income should have access to quality health care services. America is the richest country in the world and we can afford the best health care system in the world. Insurance, drug, and hospital companies are currently gouging the American consumer and they are getting away with murder because of laws passed by a corrupt Congress. Following are the necessary reforms:

• Create a national health care plan through the Medicare system that covers everyone for every possible aliment or injury, including dental. Savings would result through bulk drug purchases and economies of scale. This plan will be paid for through an sizable increase in the Medicare withholdings tax, but it would eliminate the need for all other health insurance so a net saving is possible. Healthy life style incentives can be provided by offering a lower tax rate for healthy individuals and for people who participate in preventive health care programs.
• Price fix medical services and drug prices to limit the amount that can be charged.
• Increase penalties for waste, fraud, and abuse of the Medicare system.

8. Tort Reforms

Corporations and wealthy individuals don't what to be held accountable for anything, ever, and yet they want draconian accountability laws applied to everyone else. President Bush's tort reforms are in the wrong direction. President Obama is considering the Republican's tort reforms for the current health care reform legislation. Following are the necessary reforms to return power to the people:

• Punitive damages cannot be capped.
• Jury award decisions are final and must be paid immediately.
• Jury tampering is a capital offense and is punishable by life in prison.
• Trial Lawyers are limited to a max of 25% of all awards, settlements, or compensation.
• Jurors must be paid at least $100 per day for their time.

9. Bankruptcy Reforms

Congress recently passed a bankruptcy reform bill that makes it very difficult, and in some cases impossible, for people to get out from under their debts, even if those debts are incurred as the result of a medical emergency, natural disaster, or economic cycle. Slavery and indentured servitude are immoral and illegal and yet that is what this legislation does. We don't want to fill our prisons with people who can no longer pay their bills because someone in their family becomes ill, or is the victim of a natural disaster or economic cycle. Therefore, following are the necessary reforms:

• Repeal the 2005 bankruptcy reform bill.
• Limit the interest rate credit card companies can charge and their ability to change terms.
• Require a 65 day grace period before credit card companies can consider an account in default and thus increase your interest rate or charge you a penalty.
• Expand the assets that are exempt from creditors.

10. Immigration Reforms

Illegal immigration has made a mockery of our immigration system. Both illegal and legal immigration is straining our public services, and it is depression wages. Illegal immigration is a national security and public safety issue. Following are the necessary reforms:

• Seal the southern border from illegal immigration.
• Make illegal immigrants leave America.
• Increase criminal penalties for companies that hire illegal immigrants.
• Increase the limits on legal immigration.

11. Illegal Drug Reforms

Making any type of drug illegal is a recipe for creating a black market that will be run by criminal organizations. We saw this happen when alcohol was made illegal through prohibition in the 1920's, and we are seeing it now with marijuana, cocaine, and heroin. The current war on drugs in America is very costly and has had minimal effect. Following are the necessary reforms:

• Legalize and regulate all substances. Make the very harmful and highly addictive substances available only with medical supervision by a licensed doctor.
• Allow medical marijuana to be sold and taxed just like beer and wine.

12. Military & Intelligence Reforms

The most important job of the federal government is to make sure the American people are safe and secure physically, economically, and socially. It can do this job without costing all of us an arm and a leg, and without taking away our civil liberties, rights, and freedoms. The military-industrial complex has been feeding at the trough of a corrupt government and as a result the fraud, waste, and abuse in the system are rampant. Following are the necessary reforms:

• Eliminate the CIA and NSA and shift all intelligence operations into the defense department.
• Cut the size of the FBI in half and delegate most FBI and Homeland Security operations to state and local governments.
• Remove all policing powers from the ATF and turn that organization into a collections and watchdog agency.
• Expand the TSA to inspect all flights, ships, trains, and trucks coming into this country.
• Cut the current $1 trillion dollar military budget in half until we have a clear need for their services to fight a major war that threatens American soil.
• Require one year of mandatory military service for all people between the ages of 18 and 24 divided into three equal trimesters (boot camp, advanced specialized training, service).
• Place much greater limits on the types of businesses that can be sold to foreigners and on the types of domestic businesses foreigners can control.

13. Energy Reforms

Our entire economy was built on a plentiful supply of energy, and if we want to keep our economic engine alive and maintain our mobile middle class life styles we must make sure we have plenty of energy in the future. America still has a lot of untapped oil, gas, and coal resources in this country, however, the rest of the world is eager to sell us their supplies of oil at a very low price. Therefore, we should continue to buy their oil and hold some of our own oil in reserve for future needs. At the same time we need to reduce our dependence of fossil fuels by developing cleaner alternatives. Following are the necessary reforms:

• Tax domestic oil production at a higher rate than imported oil.
• Provide tax incentive for homes and businesses that install solar and wind devices.
• Encourage the use of more efficient cars and appliances by increasing the tax to consumers on gasoline and natural gas.
• Reduce the need for travel through high speed communications technologies.

14. Media Reforms

The airways are owned by the federal government. Therefore, we should not allow a handful of giant media companies control what we see on TV, hear on radio, and transmit wirelessly while paying almost nothing for that right. Following are the necessary reforms:

• Change licensing fee schedule to a percentage of gross revenues calculation.
• We should increase the number of channels that are open to the general public and the number of commercial free channels.
• We should place greater limits on media company consolidations and new regulations on such monopolies.
• We need to require that channels maintain their adult content ratings so that parents can control what their children watch using V-chip technology.

15. Other Reforms

In addition to the above critical reforms there are a number of other reforms that will increase the likelihood of our survival as a democracy, capitalist economy, and peaceful military power. Following are some recommended reforms:

End the Federal Reserve - The Federal Reserve is an external private enterprise that is not transparent or accountable. They have failed to perform their functions of protecting the value of the U.S. currency and overseeing the operations of banking to protect investors and consumers. We need to end this system and create a government agency inside the Treasury Department.

Education Reforms - The cost of a college education has been skyrocketing, and the current system of using private banks to loan money to students is a scam and a rip-off. If we use the internet we should be able to reduce the cost of a college education to a few dollar per credit hour. At the grade school level teachers are not allowed enough flexibility in what they teach or how they teach and as a result students are dropping out in record numbers. Teachers need more flexibility and better incentives.    

Population Reforms - We are out populating our food and water supplies and this over population problem is contributing to global warming and whatever consequences it may bring. Solutions involve family planning services, abortion rights, tax incentives, and euthanasia. These ideas are very unpopular with the Religious Right but perhaps it's time for less religion and more common sense.

Environmental Reforms - We need to pass tougher regulations over all pollution emissions. We need more inspectors to insure compliance with regulations. We need to make polluters pay for cleaning up their own pollution messes.

Labor Reforms - We need to encourage workers to join labor unions so they have more representation in Congress and more leverage over corporations.

Prison Reforms - We need to use our criminal population to work in trash recycling operations. We should end the death penalty and use that long-term man power to help our society deal with its pollution problems.

Additional Campaign Finance Reforms - Get rid of the electoral college and allow for the direct election of the President by popular vote. Move elections to the weekend and allow for internet voting. Get rid of the paperless voting computers and require a paper audit trail for every voter. Require highly controversial pieces of legislation to be voted on by the public, or allow for a direct democracy. Open all voting database records to the public.

Communications Reforms - The ability to communicate freely should be a public service provided to all Americans free of charge. The federal government should own and control the fiber optic cable backbone that connects every home and business in this country. High speed internet access and video telecommunications should be almost free and available to everyone.

Israel Aid Reforms - The U.S. gives Israel over $3 billion dollars a year in cash, military aid, and free trade. Israel uses that money to carry out assassinations, collective punishments, building settlements on land they steal, and thumbing their noses at the U.S. in a number of different ways. Israel is a racist theocracy terrorist state that has destabilized the Middle East and divided the loyalty of Jews in the U.S.. The U.S. should stop all funding and support for Israel until they can show a much higher degree of humanity towards its neighbors.

Patent, Trademark, & Copyright Reforms - Congress recently passed legislation that increased copyright protection from 50 to 70 years, and the Supreme Court affirmed that legislation. This law deprives the American people of many valuable assets that should be in the public domain, and it keeps opportunities in the hands of a few rich people. Now, Congress is considering increasing patent protections. We need to change these laws in the opposite direction so that the number of assets in the public domain increases sooner. This will benefit middle class entrepreneurs who will be able to uses these intellectual properties to create new businesses.

None of these ideas are new or revolutionary, but they are common sense ideas that have been unable to become law because of corrupt government leadership. If the American people ever realize the potential that exist for their lives under good government leadership and progressive policies they will completely abandon any and all right-wing, small government, or conservative ideologies.

America's top ranking economy and large middle class are the products of a highly progressive tax system, big social safety net programs, and strong federal regulations. We are losing our top position in the world to China, Germany, and Japan. When we return to the progressive model of success we can realize the standard of living our founding fathers intended in the dynamic U.S. Constitution.

Chapter 4 Summary

Change is never easy and the changes we must make to take back and reform our government are going to be doubly difficult. However, the reward will be knowing that our actions saved countless generations from certain poverty and powerlessness. We will be given to future generations what we inherited from our founding fathers and forefathers. Hundreds of thousands of American men have died to secure our democracy, rights, and freedoms and it is time to honor their sacrifice by acting, or in this case FIGHTING.

Book Summary

During the Revolutionary War our ancestors fought and died to keep the chains of oppression off our ankles. During the Civil War Americans fought to free black people. During World War II our grandparents and great grandparents fought and died to prevent the fascist from taking over the world and choosing who would get to live and who would be killed in gas chamber. Now, the yoke of slavery is about to be put around our necks by a handful of corrupt Robber Barons and their whores working in our government. We must rise to this challenge or we must learn how to live on our knees in powerless silence.