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RETIRING THE NATIONAL DEBT 

Retire the National Debt: Our country is facing a financial crisis as our national debt continues to rise.  Our greatest challenge is "How do we service the skyrocketing national debt"?  Do we raise taxes?   Can we cut spending?   Where do we get the money?   The politicians have presented no solutions.  If we can not pay the down the debt in the near future, the debt will continue to grow and the interest payments will continue to consume a larger and larger portion of the annual budget.

Retiring the spiraling national debt is a crisis that is coming to a head.  Currently, the national debt is close to 12 trillion dollars not including the additional $36 trillion in unfunded social security and medicare obligations.  In 2008, interest alone on the national debt was $412 billion.  As our national debt mounts and if interest rates increase, this obligations will continue to increase at an unprecedented rate.   As such, it is essential that we can find a way to pay down this debt otherwise we will be in serious financial trouble as more and more of the budget is consumed by interest payments.  Soon we may not have money for anything else. As such, the need to pay down the national debt is critical to the long term viability of the United States.

Can we raise taxes? Raising taxes will cause the economy to stagnate and stimulate the criminal and underground economies as more people escape taxation and tax compliance by fleeing to the underground or cash economies to avoid taxation and tax compliance altogether.  As such, tax hikes may only worsen the national debt problem, encourage criminal activity, and weaken lawful economic growth.   The underground economy is really the key to the national debt.  Because the underground and criminal economies are cash economies, they can avoid paying taxes and this tax burden falls onto the lawful economy.  Not only do tax dollars have to be allocated to combat crime and drugs, but all of this illegal activity brings no tax revenue to the U.S. and state treasuries.  Additionally, legal businesses that operate in cash, can avoid taxation as well.   Estimates of the underground economy range from 10-20% of GDP (Gross Domestic Product).   The underground economy accounts for the income shortfalls which has created the massive national debt.    $14.2 trillion GDP x 15% (underground economy) x 19% (federal taxes) = $400+ billion in lost annual revenue on the federal level.  If we were able to collect this revenue over the past 20-30 years, we may not have a national debt today and the $400-500 billion in annual interest payments could be utilized as tax rebates to lawful taxpayers to spur the lawful economy. 

Because paper cash transactions are anonymous and untraceable, paper cash has allowed the criminal and underground economies to thrive.  In a CashlessMoney economy, all transactions would be electronic and would be permanently recorded; therefore everyone will have to pay their "fair share" as crime, drugs and the underground economies will no longer be subsidized by paper cash.  In doing so, we will be able to collect the hundreds of billions in lost revenue on the state and federal levels.   By converting to a CashlessMoney economy, we may have a chance to start paying down the national debt (as long as we can keep our excessive spending under control).

We can start the CashlessMoney revolution today by retiring the $100 bill. By retiring the $100 bill we can smoke out the drug dealers, criminals, terrorists while obtaining empirical results and reaping tens of billions of dollars from the drug cartels and criminal organizations which can be utilized as a down payment on the national debt. Click  Retire the 100 dollar bill

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Cashless Money---Enhancing the common good and restoring public order.