Highlights: Experts agree these changes Will End The Housing Crisis, Stimulate The Economy, and Elevate ALL Economic Classes like nothing before in the history of CAPITALISM!
No tax on incomes less than $120,000/year! Let’s give young people and new businesses a chance to succeed! 80% of young people have no chance financially without these changes! Our realistic expectation is that more people will reach the $120,000 income faster than ever!
Landlords will gain more in TAX-FREE business than in owning housing. This will greatly reduce the cost of housing and produce more goods and services, JOBS, income tax, business tax, and sales tax.
In slumping industries, let investors, business owners, and employees have a TAX-FREE income! That way the rich will stimulate our economy, not you the taxpayer.
We want the rich to get richer at our benefit, not at our expense!
These concepts apply to the worldwide housing crisis not just to the housing crisis in America.
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AKA: Prosperity For Most Americans.
AKA: Reducing Poverty In America.
AKA: Make Business more Profitable than Housing.
START OF ARTICLE:
These Future tax laws are terrific for America; everyone WILL profit from them: landlords, x-landlords, renters, homeowners, corporate lenders, individual investors, real estate agents, title companies, property managers, builders, new and established business owners, and their employees. America will be saved from the financial disaster many Economic Experts predict!
Once the American people and OUR politicians believe these tax changes WILL benefit everyone, it WILL happen!
NOTE: All tax-related numbers are estimates. The numbers can be adjusted by Financial Experts before implementation and adjusted as times change to benefit the greatest number of people/ voters/ taxpayers.
MAIN TOPICS:
Play explaining key points>
Great for landlords:
Business investors’ profits are tax-free!
Business owners’ profits are taxable>
114 MILLION Americans Denied the American Dream>
2 Corporations Deny 200,000 American Families!
What Weakens the Family, Weakens America!
Tenants Pay For Everything + Landlord’s Profit!
What You Can Do:
Our Main Objectives>
Our Method> to aBetterLife4All(TM):
Tax Changes Defined>
Recommended TAX Changes>
All Tax Reductions will return more Tax>
America’s Faulty Taxation & Stimulus Strategy.
Our Vision of Taxation & Stimulus Strategy:
Let’s reward the Investors!
Ex-Landlords will become even Richer!
The New Tax-free SBA Business Fund>
Stimulating Large Business Sectors>
Financing Construction and Purchase of Apartments:
Preventing A Disruptive Shock to Large Landlords.
The building industry will get a boost.
BAMBOO can provide Vast, Renewable building materials!
BAMBOO Can Rescue Civilization!
Enhanced FHA Loans for New Homebuyers.
Current Homeowners can move up.
Even Welfare Recipients will Prosper>
Worldwide Housing Crisis.
America will SOON die Economically!
Rescuing America from Financial DEVASTATION!
Now housing prices are skewed way up!
Young Families have no chance for Prosperity unless…
Rental Housing is destroying America!
Feudalism is Suffocating Capitalism!
Socialism NO. End Feudalism YES!
Ben Franklin’s MARVELOUS Plan to Wealth!
Solving California’s Housing Crisis!
California Civic Engagement Project’s 7 Ideas.
Managing Non-Profit Apartments>
MAIN TOPICS END.
Our First Objective is to provide Landlords/Investors with greater financial gains by investing tax-free in Business, Business loans, construction loans, or housing loans rather than owning today’s Rental Housing.
Investors can opt to invest in new tax-free, government-insured, safe, no-load, open-ended SBA> or HUD> / FHA> loans. This will take the risk out of investing in business: SBA and HUD/FHA will manage your investment, guaranteed. Or an Investor can opt to be a tax-free Entrepreneur, a tax-free Venture Capitalist, or tax-free hire a business manager. Or invest in tax-free stocks and bonds that will stimulate selected economic sectors of our Future Larger Business economy.
This will also reduce the cost of housing, energize the Economy, and produce more goods, services, JOBS, income tax, sales tax, and business tax!
Our Second Objective is to provide first-time home buyers a Rent-to-Own, no down payment, no mortgage insurance, low interest, and a scam-free opportunity to buy housing. And provide apartment tenants with condos or non-profit Home-Providers(TM) that were previous apartment complexes and that pays tenants yearly equity growth by yearly rent REDUCTION! Tenants will receive the equity that Landlords now keep and condo owners receive when they sell!
This will reduce Housing costs for everyone. Our Nation’s Economy will catapult upward if most of the money now invested in rental housing is reinvested in businesses or housing loans for the production of much more goods, services, JOBS, income tax, sales tax, business tax, and low-cost housing! Everyone will have more money to buy much more goods and services! There will be “A Better Life 4 All“(TM).
Our Third Objective is to reward Investors to Stimulate our Economy! Experts know it is far better to have investors finance economic growth rather than the federal government, that is you the taxpayers. Tax-free stocks and bonds Capital gains will stimulate selected economic sectors of our Large Businesses economy. A tax-free future SBA fund will greatly stimulate small businesses.
Let the investor keep all his gains tax-free as an incentive/reward for stimulating our economy. This is a tax that would not have been collected anyway. And all the taxes paid by the business created or stimulated by these investments will more than makeup for capital gains tax NOT paid by the investor. The taxes that will be collected are ADDITIONAL income, sales, property, and business taxes that would not exist without the investors. We want the rich to get richer at our benefit, not at our expense!
END OF Our Main Objectives.
OUR METHOD to aBetterLife4All(TM) is based on FOUR aspects of taxation:
FIRST: Establish a Small Business Administration Business Fund (SBA> Business Fund) which will be a low or no-tax, risk-free, high-gain, liquid, no-load, open-ended business investment fund that anyone can invest in. It will be managed by SBA business experts and Federally insured. The gain will be high because the SBA receives a percentage of all yearly sales from businesses it started. This gain is passed on to YOU, the Fund investor! This will be one of the best investments EVER! Don’t believe that? Look at the major investment alternatives: 11 best investments in 2022> and precious metals are unstable.
This Fund provides the Capital to non-profit Credit Unions to make SBA-approved loans and grants.
The SBA can enhance its startup business loan policy. The SBA experts can finance and guide people and businesses they have high confidence in. Investors in the SBA Fund will receive the tax-free interest paid by the SBA and tax-free profits gained by the SBA!
SECOND: Establish a U.S. Department of Housing and Urban Development (HUD>) Housing Fund which will be a low or no-tax, risk-free, good-gain, liquid, no-load, open-ended housing investment fund that anyone can invest in. It will be managed by HUD experts and Federally insured. This Fund will provide a huge influx of investor money to give first-time home buyers a Rent-to-Own, no down payment, no mortgage insurance, low-interest, scam-free opportunity to buy housing. Note: it is easier to evict delinquent renters, rather than to foreclose on delinquent owners.
Renters with over 12 months of history of continuous rent payments equal to or greater than their new monthly mortgage payments qualify for homeownership immediately. Renters with less than 12 months of continuous rent payments will qualify once 12 months are reached or if they make a down payment to complete their 12 months requirement.
THIRD: Eliminate the wealthy’s tax breaks: only the wealthiest 20% should pay taxes, and the other 80% of Americans pay ZERO tax! The first $120,000 of individual income should be tax-free! These 20/80 and $120,000 ideas came from Key Advisor Jim/James>.
We recommend no tax on the first $120,000 yearly income. A flat tax rate of say 20% on yearly incomes over $4 million. And a linear tax increase on incomes in between. The IRS can change these numbers yearly, as they do now.
This includes all Sources of Income: Salaries. Wages. Commissions. Tips. Small Business profits. Corporate profits. Interest. Dividends. Capital gains. Royalties. Pensions. Annuities. Rent. Sales. Investments. Gifts, etc.
FORTH: We recommend that taxing agencies use tax reductions to stimulate slumping sectors of the economy. A current example: tax-free capital gains on utility stocks etc.
A future example: The Federal government could declare zero or low tax on the capital gains of stocks in a slumping economic sector or even a single slumping company for a period of say 10 years.
A further future example: A state may have construction limitations: not enough workers, not enough contractors, and not enough building material suppliers. That state could request the federal government to not tax any income involved in construction in that state for a period of say 10 years. Even lenders who finance construction would receive tax-free interest. This would cause more people to get into the construction field in that state or even to move to that state. Let the wealthy x-Landlords get even richer by financing slumping economic sectors.
We believe taxpayers’ money should not be used to stimulate economic sectors. Instead, give those sectors tax breaks and let investors stimulate those sectors.
We believe these tax breaks will produce more tax revenue during the taxpayer’s lifetime: helping a business get started will make a more substantial, more productive individual business and national economy!
There will be “A Better Life 4 All“(TM).
END OF OUR METHOD.
Note: Tax Changes to stimulate Economic Sectors could mean low-tax, no-tax, or even subsidies. The Federal Government could pay investors 10% per year on sectors that need stimulus. Tax changes to stifle Economic Sectors mean a tax increase.
Ex-Landlords/Investors will become even richer as tax-free (or reduced tax) business investors! These businesses will greatly increase the production of housing, goods and services, JOBS, income tax, sales tax, property tax, and business tax so there will be “A Better Life 4 All”(TM)! Investors will be able to invest in several new, tax-free (or reduced tax), perhaps even Subsidized>, prosperous, and Economy Propelling ways:
- A New Tax-free SBA> Business Fund> to stimulate selected small business sectors.
- New Tax-free and Federally guaranteed Loans> for the construction of New Apartment Complexes and the purchase of Existing Apartment Complexes.
- Have Tax-free FHA> guaranteed loans so lenders retain all interest profits! This will finance new homeowners! Down payments can be reduced even more to provide most people the “American Dream!”
- Have Tax-free loans for new businesses so lenders retain all interest profits! This will finance new businesses!
- Have Tax-free investment funds to stimulate economic sectors like BAMBOO (BAMBOO Can Rescue Civilization!) or construction!
- New Tax-free stocks selected> by the Federal Government to stimulate selected big business sectors.
- Ben Franklin’s MARVELOUS Plan to Wealth!
The New Tax-free SBA Business Fund will be much more lucrative than investing in rental property that has a 5% positive cash flow. The fund can be Tax-Free, with High Gain, expertly managed by the SBA, with no risk (federally insured), liquid, no-load, and open-ended. This is an investor’s dream come true! This tax-free fund is a CHEAP way to stimulate our economy WITHOUT taxpayer money!
This will Propel our economy! More people will have JOBS, making more money, paying less rent, and buying more goods and services than ever before. The Rich will get richer and all the rest will have a better life, a much better life!
“We all will have more than ever before!”(TM).
All Americans will profit from this plan; we have the voting power to make “A Better Life 4 All“(TM)
This is the best solution to California’s affordable housing crisis we have ever seen! Just as important, this solution will greatly increase the economy by greatly increasing the production of goods, services, JOBS, and income and business tax revenues! Apartment complexes can be sold to new NON-PROFIT organizations to rent at true supply and demand prices: much lower than today’s rent prices! This solution will allow most tenants and low-income homeless to gain equity in their housing while paying a TRUE (much lower) SUPPLY AND DEMAND price!
Now housing prices are skewed way up because wealthy investors compete against each other, so they can profit from renting housing to low-income people who have very little chance to match the purchase price paid by the wealthy investors! This solution encourages investors to invest in businesses rather than residential housing. New businesses will greatly increase the production of goods and services, JOBS, income tax, sales tax, and business tax!
Today’s Young Families have little or no chance to buy a house, and little or no chance for Prosperity unless we enact these tax changes! Young Families can not outbid big Landlords. Encouraging these Landlords to invest in Business will allow Families to bid against each other to bring housing costs DOWN to true supply and demand prices!
Note: the tenant is now paying the true supply and demand price PLUS an ever-decreasing profit to the landlord, and the tenant is LOSING the equity buildup taken by the landlord!
America’s Faulty Taxation & Stimulus Strategy. The history of taxation strategy in the United States appears to be maximum tax revenue. We believe this to be an incorrect strategy. The Laffer Curve> has been used to maximize tax revenue by increasing taxes until tax revenues start decreasing when investors and workers become discouraged from participating due to high taxation. This strategy has not raised enough to pay for the necessities: public programs, works, services, infrastructure, education, health, welfare, defense, etc. Debt interest and stimulus money add even more to our growing HUGE National Debt: $28.4 TRILLION at the end of 2021
Our Vision of Taxation & Stimulus Strategy: The goal of taxation> should not be to raise maximum tax revenue, but to raise the quality of life for all Americans to its maximum! (Quote from aBetterLife4All(TM) March 2022.) Just enough tax revenue should be raised to pay for the necessities: public programs, works, services, infrastructure, education, health, welfare, defense, etc. Debt interest and principal will start DECREASING with our strategy!
Instead of trying to maximize revenue, taxes can be set to channel huge INVESTOR money into sectors that need stimulating and away from sectors that stifle Capitalism. This is a CHEAP way to propel our economy WITHOUT taxpayer money! This will greatly stimulate the production of goods, services, and jobs! This will greatly increase income tax, sales tax, and business tax revenues. This increased tax revenue should pay for our necessities and start paying down our National Debt!
Let’s let the investors, not the taxpayers, stimulate Capitalism. Let’s let those investors gain great rewards by not taxing them; let’s give investors incentives to PROPEL our economy! This is done in a small way now: some bonds are tax-free to attract investment money.
A low tax rate on the SBA business fund will stimulate a large portion of our economy: small businesses that employ almost half of the American workers!
Stimulating Small Business Sectors with Investor Money: The SBA Business Fund can Finance the sectors that need the most help. Or for independent investors, the IRS can adjust taxes to stimulate economic sectors.
Stimulating Large Business Sectors with Investor Money: For Large Businesses, those traded on the Stock Markets, each year the federal government could select stock sectors and adjust capital gains taxes up or down for one or a specific number of years. This will stimulate or depress chosen economic sectors.
Let’s Reward Investors to Stimulate Our Economy! Instead of using tax revenue for Stimulus money, let’s encourage Investors to Stimulate our Economy with no or low Capital Gain Tax!
Worldwide Housing Crisis. Many countries have this Crisis. We believe most of these Housing Crisis Worldwide can be resolved with our Tax Strategy!
Feudalism is Suffocating Capitalism!
America will SOON die Economically unless Investors invest in Capitalism (Business) instead of Feudalism (Rental Housing: Landlords over Tenants)!
Let’s reward the Investors by letting them get richer by not taxing them when they invest in Business!
Now Landlords Investing in Rental Housing is a Dead-End for the Tenants, the Landlords, Capitalism, and America! What is happening is the percentage of a renter’s income for housing is ever increasing (now 50-75% or more!), leaving less and less money to buy goods and services. Landlords are receiving less and less positive cash flow (average now only 5%). Some landlords lost their rental houses and even lost their own homes. These numbers are getting worse! This is suffocating the Capitalistic cycle.
NOW, today, without any tax changes, Ben Franklin’s MARVELOUS Plan to Wealth> is a far better plan than the average current 5% positive cash flow of today’s Landlord! Ben’s plan will benefit everybody; it will benefit our Nation.
Most of today’s Tenants, Peasants in the eyes of most Landlords, will have much lower rent and even gain equity and have much more money to buy many more goods and services! The Rich will become richer and there will be “A Better Life 4 All“(TM), a much better life 4 most of us!
Socialism NO. End Feudalism YES!
We work in Capitalism> but live in Feudalism>: almost half of Americans are impoverished Tenants, Peasants in the eyes of most Landlords, living UNDER huge Landlords! Now the Landlords gain equity while the Peasants pay for it and gain nothing.
Strict Socialism> allows no private ownership; this is unacceptable to most Americans. Many things in America are publicly owned: police, fire departments, libraries, roads and highways, the military, etc, and there are many State-owned corporations>.
Taking Apartment Complexes out of private hands will create aBetterLife4All(TM)!
Recommended TAX Changes to Make Business more profitable than Rental Housing.
Change the tax laws so Landlords will benefit from selling rental housing. This will reduce Housing Costs. The sooner Landlords sell the more they will gain tax-free because housing prices will continue to drop! Then reward Landlords who invest in businesses to create more goods, services, JOBS, income tax, sales tax, and business tax! We all will have more money to buy more goods and services!
- Change tax laws so Landlords make little or no profit on say more than five rental Houses or five Apartment Units. These new taxes on excess units paid by the Landlords can be refunded to the tenants living in those units! However, one goal is for the Landlord to sell to people who want to own their own housing. The sooner Landlords sell the more they will gain tax-free because housing prices will continue to drop! Another goal is for Ex-Landlords to get richer with Tax-Free Business Investments to produce much more goods, services, JOBS, income tax, sales tax, and business tax. The results: More people will have more money to buy more things. Then there will be “A Better Life 4 All”(TM).
- Change the capital gain tax laws so a Landlord can sell those excess, profitless units without paying any or much capital gain tax, if the Landlord reinvests in any business program within one year. The sooner Landlords sell the more they will gain tax-free because housing prices will continue to drop! Tax revenues will not be lost, because landlords would not sell otherwise.
- Establish tax-free and Federally guaranteed Loans for the construction of New Apartment Complexes and the purchase of Existing Apartment Complexes.
- Establish a Business Fund through the Small Business Administration (SBA). This fund can be Tax-Free, with High Gain, expertly managed by the SBA, with no risk (federally insured), liquid, no-load, and open-ended. This is an investor’s dream come true! This tax-free fund is a CHEAP way to propel our economy WITHOUT taxpayer money! And more profitable for investors than a Landlord’s typical 5% positive cash flow!
- And/Or More government money for start-up businesses could be provided through the Small Business Administration and other resources. The government will get its money back later when new businesses prosper. Of course, employee income tax and state sales tax will be collected even during the first five years.
- Have Tax-free FHA> guaranteed loans so lenders retain all interest profits! This will finance new homeowners! Down payments can be reduced even more to provide most people the “American Dream!”
- Have Tax-free investment funds to stimulate economic sectors like BAMBOO (BAMBOO Can Rescue Civilization!) or construction!
- Have Tax-free loans for new businesses so lenders retain all interest profits! This will finance new businesses!
- Change the capital gain tax laws so every year the federal government could select stock sectors and adjust capital gains taxes up or down for one or a specific number of years. This will stimulate or depress chosen economic sectors.
- Limiting the number of rental units and the number of tax-free start-up businesses per person provides prosperity to more people because more people will own their own housing and businesses. Prosperity will also increase because most people will have more money to buy more goods and services due to increased productivity requiring more jobs.
- Change income tax laws: We recommend no tax on the first $120,000 yearly income. A flat tax rate of say 20% on yearly incomes over $4 million. And a linear tax increase on incomes in between. The IRS can change these numbers yearly, as they do now. Let’s give young people and new businesses a chance to succeed and pay more taxes later!
- Tax Loopholes that do not benefit the public should be eliminated. The only “loopholes” we want are the ones that benefit the public. We want the rich to get richer at our benefit, not at our expense! We will say this over and over again!
- Change the tax law so that housing builders and their investors pay little or no taxes on profits for say the next ten years. This is an excellent way to stimulate the building of new housing. Stipulations could be applied, as in where and what to build.
- Change laws to balance the trade deficit, so more goods, and jobs will be produced in the USA.
- Reduce building permits from $25,000 in CA to $6,000 like in other states
- Ease the Environmental Protection requirements.
All Tax Reductions will return more Tax by the additional production of more housing, goods, services, and JOBS that will increase income tax, sales tax, business tax, and property tax revenues even at moderate tax rates!
A Disruptive Shock could be caused by a sudden shift of investment money going from Rental Housing to Businesses. Some investors, especially big investors with hundreds of units (some corporations own tens of THOUSANDS of Houses) would need time to adapt, and the new businesses would need time to stabilize. To reduce this shock, let’s change the tax laws so Landlords will have high taxes added to 20% of their original number of excess units each year. This gives all Landlords, especially the Big Landlords, 5 years to sell their excess units without any tax penalties.
Great for Landlords: they can sell their rental property over a 5 year period, invest 30% of their equity growth in TAX-FREE business instead of paying 30% capital gains tax, do whatever they want with the other 70%, and make much more TAX-FREE business profits than the average 5% positive cash flow they now make on their rental units! Then after a few years, these X-Landlords turned business Investors can sell their interests in these businesses at a greater profit than the small rental equity growth foreseen for the future.
Business investors’ profits are tax-free for the first 5 years of as many new businesses as they want to finance; that is, investors’ profits do not add to their taxable income for the first 5 years of any new business.
Business owners’ profits add to their taxable income from the very beginning. Owners still pay no tax, until their incomes are over $120,000/year.
114 MILLION+ Americans Denied the American Dream! According to the market & consumer database Statista, nearly 44 million housing units were rented, comprising 34% of the total U.S. households. Per U.S. Census data, the average household size is 2.6 people. Thus, the number of renters was 114.4 million, or 35% of the U.S. population in 2021.
The majority of these families will never have a chance to buy a home of their own, unless we change these tax laws!
Just TWO of Many Huge corporations NOW own more than 200,000 rental houses in America. That’s over 200,000 families that will never achieve the American dream of home ownership! Let’s change the tax laws so these huge corporations will sell 20% of their units each year and take 5 years to sell all but five of their units without any tax penalties.
What Weakens the Family, Weakens America! The Family is the foundation of America; what weakens the American Family, weakens America! Changing these tax laws will Greatly Strengthen the American Family and America itself!
Financing Construction and Purchase of Apartments: Let’s have tax-free and Federally guaranteed Loans for the construction of New Apartment Complexes and the purchase of Existing Apartment Complexes. Lenders will be willing to lend capital to non-profit organizations to build or buy Apartment Complexes in exchange for security and tax-free interest profits! Some Landlords will carry the purchase loan themselves to gain security and tax-free interest profits!
The building industry will get a boost as well: current low-income homeless people will be able to buy or rent housing at TRUE SUPPLY AND DEMAND PRICES, which INCLUDE the current building cost of entry-level housing.
BAMBOO can provide Vast, Renewable building materials! BAMBOO Living> Buildings can look conventional with drywall sheetrock and stucco or other wall covering materials. Yes, even BAMBOO particle boards! (see BAMBOO Can Rescue Civilization!)
Current Homeowners can move up to NEWLY BUILT better houses with the same monthly mortgage, then low-income people can buy the vacated old houses! That’s more business for the building industry!
Even Welfare Recipients will be able to pay rent and still have spending money, even if a Recipient lives alone. Couples, families, and groups will do even better.
Some say “It is simple, just build more housing units.” These tax changes are HOW to afford BUILDING new housing. More people will be able to afford housing, so more housing will have to be built to accommodate them.
Managing Non-Profit Apartments can be done by a paid staff just like in Condos. The previous Landlord’s apartment management staff can stay on and manage the now Non-Profit Apartment Complex. The tenants can vote for what services they want.
What You Can Do: If enough people, that is voters, do some of these things, it will happen: “A Better Life 4 All“(TM)!
- Do whatever you think is best to make “A Better Life 4 All“(TM).
- Help us by answering the following questions in the comments, anonymously if you wish: Do you think this plan will end the housing crisis? Do you think this plan will stimulate the economy? What would you do differently?
- Contact your federal, state, and local elected leaders through USA.gov>
- Contact your local SBA>. Ask them your questions about the new SBA Business Fund. Send them the link: https://abetterlife4all.online/2015/02/08/prosperity/#method
- Share these Ideas and your Opinions, especially with your fellow renters.
- Contact Newspaper and TV Financial editors, reporters, and writers.
- Contact Local Organizations that represent Tenants, Landlords, Investors, Realtors, etc. Many cities have their own Tenant Organization.
- Search for, then post comments on related Internet articles in your favorite mediums.
There are several more sound Ideas in a Sac Bee Housing Crisis article; Mindy Romero’s 7 steps are particularly important. Mindy is the Founder and Director of the California Civic Engagement Project at UC Davis:
1. Reduce or expedite regulatory and permit processing requirements, to create more certainty and predictability in the development process.
2. Allow more flexible zoning for the construction of underutilized housing products like accessory dwellings, multiplexes, and cottage apartments.
3. Cut back on some required state building regulations, such as those for the minimum required parking and expensive building materials.
4. Reduce development fees for projects that include or increase the share of affordable housing.
5. Provide more job training in the construction profession. Some building projects are stalled due to limited labor supply.
6. Encourage local governments to use public surplus lands for affordable housing.
7. Develop and fund local housing trust funds to create subsidized housing that is accessible to low-income households.
If Capitalism becomes more profitable than Feudalism (that’s tenants under landlords), your Landlord may say to you, “Because of the new tax changes, I am getting out of the landlord racket and want to offer you the first chance to buy this house. The down payment will be two months’ rent and your mortgage will be half your monthly rent. Are you interested?” Most will say, “YES!”
Then the landlord may say, “Because of the new tax changes, I am starting a new business in your field. I know you have the experience, and I would like to finance you as the owner of the business. You can help me get started and run the business for me. I know how much you make now; I’ll double your salary, match your benefits package, plus give you 10% of the profits. Are you interested?” Most will say, “YES!”
Your landlord-turned-business financier can half your housing expense, double your salary, match your benefits package, and give you 10% of the profit!
The culture of NIMBY (Not In My Back Yard) will weaken because the low lives will become “almost” respectable.
GREATEST ECONOMIC FACTOR:
The economy is so complex that no one or group understands it completely. Attempts to improve the economy often backfire. There are many factors that influence the economy. One of the greatest is housing; we feel it is the greatest economic factor. Housing is the greatest expense for most people. The value of housing in America is more than EVERYTHING else combined. It is one of the few things that one person owns and another person uses.
Feudalism in America:
Feudalism has had various forms throughout history. The central concept has been landlords controlling land and possessing financial and social power for exploitation over tenants, the Peasants (non-landowners).
Today we use the same terms used in the Middle Ages: landlords and tenants. The tenants are today’s Peasants.
Financial exploitation is the same today as then. As wages and the minimum wage go up in an area, vacancy rates go below a threshold and the landlord increases the rent. The house or apartment is not any better; it just costs the Peasant tenant more. A $100 rent increase is as immoral as a burglar stealing a $100 item each month. If the Peasants get a raise, the landlords will take it! It is their LEGAL right.
In high-income areas, rents and property values go up because landlords will suck the prosperity out of the workers.
Rent and property values go up in an area until landlords can no longer suck more money from tenants (our workers) because the tenants are at the financial breaking point. When the minimum wage goes up, the landlords raise the rent and legally “steal” the increase!
We use the Middle Ages term “Peasants” for today’s non-owners known today by the more “pleasant” Middle Ages term “tenants.” Most tenants are not in the top 10%; most tenants are poor Peasants compared to the wealthy; we are sad to say. We use “Peasants” to emphasize the situation and hopefully motivate the “Peasants” to organize and vote for these new tax laws for their Prosperity.
In the 1970s Feudalism became more profitable than Capitalism. More investors chose to be landlords rather than business owners. Over the decades, more and more investors competed against each other to squeeze more and more money out of the Peasants. As the decades went by, profits for landlords from rental investments went from a pot of gold, to silver, to bronze, and finally to lead. It is because of our economic system and the Peasants can’t pay anymore.
The cost of buying a house or condo is not determined by Peasants bidding against each other hoping to buy a house to live in. Peasants also have to bid against landlord investors wishing to make profits at the Peasants’ expense. Many landlords have vast property equity and great loan credit. A strong landlord can easily outbid most Peasants.
The many advantages of owning vs. renting are great. The equality (value increase) over five years can be $30,000 on a $ 500-a-month apartment. The landlord gets that now; wouldn’t you like to get that! You morally deserve it.
A friend said most people don’t understand this. The people who do understand become landlords and don’t want tax changes. This is leading to a dead end.
Today’s Economic Dead End:
As the landlords bid the prices up, and up, and up competing against each other, the Peasant tenants are finding it harder and harder to keep up. Our economic system and many Peasants are stressed to the limit. Many Peasants live month to month or day to day. More and more Americans are homeless.
Things will get worse without these tax changes.
Even some landlords are losing money. I know several landlord friends that invested in three to five rental properties and lost them all and even lost their own homes during the housing crisis.
LABOR LAWS in the first half of the 1900s reduced the exploitation of workers and strengthened Capitalism. It is now time to strengthen Capitalism by weakening Feudalism. It is time to protect our workers at home as well as at work!
TAX-FREE BUSINESS START-UP; MORE GOODS, SERVICES, JOBS, and income and business tax revenues:
To encourage new business, start-ups could be tax-free or low-taxed for say the first five years. New businesses will create more goods, more services, more JOBS, and more income and business tax revenues. Each person could have one or a few tax-free chances to start a business in their lifetime. A smart, wealthy investor could start several businesses tax-free for five years by financing new business owners to start and/or run businesses.
Written Version of the Play explaining key points:
PlayRevDate: 230414.16:32 (yymmdd). An Audio Version will be posted soon.
I am Walter volunteer spokesperson for aBetterLife4All.online, that’s aBetterLife, the number four, All. online.
The Title of this play is “You WILL Prosper With Tax Changes!>”
Experts agree these changes Will End The Housing Crisis, Stimulate The Economy, and Elevate ALL Economic Classes like nothing before in the history of CAPITALISM!
The Time of this play is in the near future when new tax laws have created greater gains in business for landlords than owning rental housing today! Businesses that will produce more goods and services, JOBS, income tax, sales tax, and business tax than ever before! And there will be much lower housing costs for everyone!
The characters in this play are the TENANT and the LANDLORD.
The Scene for this play is the front door of a rented house. A knock on the door starts the play.
TENANT: Who is it?
LANDLORD: It’s your Landlord.
TENANT: Come in. I was hoping you would come by.
LANDLORD: I want to sell this house because of the new tax laws. This house is in excess of the five-housing unit tax limit. The taxes on excess rental income is so high, that I don’t make any profit on excess units.
You have been a good tenant for many years, and I want you to own this house. I will carry the loan. There’ll be no down payment. And your mortgage rate will be 1% below the going rate. It will be a 30-year loan. Your monthly mortgage payments will be 25% less than your current monthly rent!
Are you interested?
TENANT: Yes indeed, I am interested! This is great for me! This is very generous of you.
LANDLORD: It’s great for me as well. If I carry the loan on any rental property I sell, I do not have to pay the 30% capital gains tax on that property! And more: I gain the interest on the loan tax-free! I’ll be making more this way than when I owned your residence! Even more: long-term equity growth in rental housing looks bleak, because renters are near the limit that they can pay for rent: 50 even 75% of their income! Rental housing investments are about to go sour!
I am selling all my rental property this year, investing 30% of my total equity growth in businesses and loans instead of paying 30% capital gains tax. I have not yet decided what to do with the other 70%. And I am making big tax-free profits on the businesses I have so far financed! I was barely breaking even on my rental units’ cash flow and as I said future equity growth looks very poor to me!
I know you are a superb 3D metal artist hobbyist. I want to finance your ownership of a 3D metal art studio and showroom! My offer is: I’ll double your current salary, add a good benefits package, plus give you 10% of the profits! I will buy any additional equipment you need.
Once I recover my investment, the business will be yours free and clear in exchange I receive 5% of all your yearly sales, plus one of your average-priced art pieces each year. I’m hoping you’ll become famous and your artwork will be worth hundreds of thousands of dollars! The percent of all your yearly sales you pay me is an expense for you and is tax deductible. Your yearly art piece payment to me is also deductible. And you will not have to pay income tax until you profit $120,000 a year.
Are you interested?
TENANT: Yes, oh yes! That has been my dream for many years. You’ve made my dream come true.
LANDLORD: It’s these new tax laws that make your dream come true. It is now more profitable to invest in business than to invest in housing. Financing you in business eliminates my 30% Capital Gains tax dollar for dollar on the equity gained on the rental housing I have sold in the last year. Every dollar I invest in approved investments I save a dollar in taxes. I’m going to be making more money than ever before. That is more than the 1% positive cash flow on my rental properties and future equity growth looks very limited.
I owned 50 houses and a 155-unit apartment complex. I have hired a very bright business manager who has so far started 22 new businesses with 22 new business owners. I had planned to start 20 new businesses. But my business manager is fantastic, he and his staff do all the work, take their percentage, and leave me tax-free profits that are far greater than the 1% positive cash flow I had as a Landlord! I am so very grateful for these terrific tax changes!
That leaves about $10.3 Million that I would have to pay the 30% capital gains tax, if it wasn’t for the Small Business Administration’s> Business Fund. Investing $3.1 Million in the SBA fund eliminates the capital gains tax on my $10.3 Million remaining equity increase.
Even better, the SBA Business Fund investment is an excellent investment! It is a tax-free, risk-free, high-gain, liquid, no-load, open-ended business investment fund (Small Business Administration managed and Federally insured). The SBA has small business experts who provide investment funds and tremendous support to people and businesses they have high confidence in. All the gains are tax-free for me as an investor. The SBA will not cheat an investor like some private business managers have done. This is an investor’s dream come true. Tax-free is music to my ears!
I had 205 housing units at the start of this year, that’s 200 excess housing units. The new tax laws increase the taxes on 20% of the excess units each year, for me that’s 40 units each year for 5 years. However, I will sell all my units as soon as possible thinking the prices and my equity will drop during those 5 years.
TENNANT: Maybe I should wait for prices to go down before buying this house.
LANDLORD: If you wait, I’ll sell to someone else, and you will have to move. Besides, if you buy now, in a few years you will be able to buy a better house at the same mortgage payment because house prices and mortgage rates should both drop.
TENNANT: Yes, I can see that. I want to buy now! I love this house!
LANDLORD: Great! Let’s get back to your art business. I will do with you about the same thing the SBA often does: the SBA pays the new business owner a salary with benefits, plus 10% of sales until the SBA interest-free investment is returned by 90% of sales. A non-profit Credit Union manages the loan and receives interest payments from the SBA. Once the SBA investment is paid back, the business owner owns the business outright and pays the SBA a percentage of all yearly sales; this is a non-taxable expense. All business owners will always pay taxes on profits above $120,000 a year.
The SBA is a non-profit Federal Government Agency. The SBA passes all the profits on to me the investor! This is FANTASTIC! All SBA profits go to the fund investors each month proportionally to how much money is in their account that month.
The SBA can make any kind of a deal it wants that the business owner accepts, just as I did with your 3D metal art. The SBA deal could be that the metal artist pays the SBA 5% of sales plus the amount of two average pieces of art each year.
This SBA Business fund is a CHEAP way to stimulate our economy WITHOUT taxpayer money! 48% of all US employees work for Small Businesses!
TENANT: One of the new tax laws I like is that the first $120,000 of an individual’s income is tax-free, with a flat tax rate on yearly incomes over $4 million, and a linear tax increase on incomes in between.
At first, I did not believe that an individual could have an income up to $120,000 and pay no Federal Income tax! The concept is the top 20% of the wealthiest Americans can pay all the taxes with very little or no change to their lifestyles. They will still be wealthy beyond belief!
I agree with their realistic expectation that more people will reach the $120,000 income faster than ever! I am quite sure I will by owning my own business! Especially with your help and the SBA!
I also like the tax changes that eliminate most of the tax loopholes used by the wealthy to avoid paying taxes. This was the most difficult change to make. I liked reading: The only “loopholes” we want are the ones that benefit the public. We want the rich to get richer at our benefit, not at our expense! We will say this over and over again!
LANDLORD: Yes, that is true. It’s not changed my lifestyle one little bit. In fact, I feel better about things now: I see more and more happy people because they are not struggling month to month. I feel great about all the people I have financed to get lower housing costs and better-paying jobs! AND I am making more money now investing in business than ever before! I like it!
Just one of the businesses that I selected and financed, classic car upgrading, earned me more in one year than the one-time cost of $9,000 to get him started. He and his crew upgraded 10 classic cars last year; that number will keep growing each year. It cost about $8,000 to buy the old car bodies, the parts, and the labor. He mounts the classic car bodies on more recent car frames that include a powerful engine, the entire drivetrain, etc. He then can buy off-the-shelf parts for most of the upgraded vehicles. They look classic, but they have a modern engine and drivetrain. He and his team do all the labor including painting and reupholstering! His cars are beautiful!
These 10 cars sold for an average of about $35,000. Last year my tax-free profit from just this ONE business was $183,000 [($35,000-$8,000 expenses) X 10 cars = $270,000 – $60,000 his salary – 27,000 his 10% = $183,000 my TAX-FREE profit!]. And this profit is tax-free for the first 5 years! It does not add to my $120,000 tax-free income. That’s another reason why I’m so happy about these new tax laws!
I get to keep ALL my profits tax-free for the first 5 years of ALL the businesses I finance! After each business reaches the 5-year limit, my percentage of that business’s profits adds to my taxable income. This encourages investors like me to start more businesses with more business managers! Those who designed these tax laws are very clever!
TENANT: What are you doing about your 155-unit apartment complex?
LANDLORD: I sold it to a non-profit real estate management company. I am carrying the loan myself and am earning more tax-free interest than the 5% positive cash flow I was getting as the Landlord! The management company kept my staff personnel to run the complex; I am glad for them.
Last month the yearly assessment indicated an equity increase of $1,200/unit. Each unit’s tenants will receive the full equity increase by having their rent REDUCED by $100 per month for the rest of this year!
Altogether I am earning, tax-free, far more than the 5% positive cash flow I had as a Landlord! Yes, far more.
End of Audio Play.
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