Untaxing U.S.A. Acknowledgements
The only way that the United States of America and Western nations saddled with spiraling debt will immediately get out of this death spiral is to bring the opposite of debt, which is equity, into play. The statement “without debt you will never have a financial crisis” by Bengt Holmstrom, Ph.D. (Department of Economics at Massachusetts Institute of Technology) is significant because a scientific solution, as presented in this white paper, is sorely needed for the economic problem of debt and taxes.
Timothy Geithner the United States Secretary of the Treasury and Ben Bernanke the Chairman of the Board of Governors of the Federal Reserve System are subtle geniuses in pledging to keep interest rates low and, in consequence, a lower dividend rate.
The lower the interest rates the lower the dividend rate, and the lower the tax rate the more equity value is produced in the general economy of the US and the world. The higher the interest rate the higher the dividend rate, and the higher the tax rate the lower the equity value that is produced. These rates’ effects on equity value or market value are illustrated by the Katchings Curves.
Thanks to Colleen J. Hannigan, Lowthers College, to Marcus B. Farrow, Occidental College B.A., University of Southern California M.B.A., and to Isaac Rosier, United States Air Force Academy, University of Southern California M.B.A. for their tireless work over the years.
Special thanks to Ananda Glover-Akpey, Dartmouth College A.B., Thayer School of Engineering B.E., and to Dru Farnham, University of Southern California B.A., California State University Los Angeles, M.A. for a super job of patience in editing this much-needed white paper!
When academics, politicians, corporate leaders and the American People read and understand how all Americans are an integral component of true capitalism, America will have acknowledged her destiny of debt-free economics.
This is the purpose of The Untaxing of the United States of America.
Paul Douglas Katchings
February 29, 2012