Posted: Apr 26, 2005 By: Dave Curtis

Comment: To: The President's Advisory Panel for Federal Tax
From: Ryan Kingsly, Administrator, The NESARA
Discussion Board

Advisory Panel Members:

Attached is the National Economic Stabilization and
Recovery Act
proposal as proposed by Dr. Harvey Barnard, PhD. at
Institute at

In association with the NESARA Institute, the NESARA
Discussion Board
has elected me to submit our support for this proposal
in this
attached draft that meets your comprehensive proposal
guidelines for

We sincerely hope that the members of the panel would
take a serious
look at this draft, visit and
reporting it to the President as a practical, viable,
and transitional
option for true fiscal and monetary reform.


Ryan Kingsly
The NESARA Discussion Board

The National Economic Stabilization and Recovery Act
as proposed by Dr. Harvey Barnard, PhD

The NESARA Institute
P.O. Box 70
Greenwell Springs, LA 70739
(225) 634-3228

The NESARA Discussion Board
An online community organization
in association with the NESARA Institute elects the
following submission by:

Ryan Kingsly
NESARA Discussion Board

April 26, 2005


"True tax reform is futile without reform of the
current monetary system and its policies." This
statement, written by Dr. Harvey Barnard (PhD in
Applied Science with an emphasis in Systems
Philosophy) has captured the essence of the current
financial woes of our nation. Tax reform, though a
nice bandage for solving things temporarily, does not
in itself provide the remedy this nation needs to
combat a rising deficit, a rising trade imbalance, a
rising public debt, and rising inflation.

Only by reforming both parts of our nation's
economy, the fiscal policies, as well as its monetary
policies, can the nation recover from decades of
waste, bloated government budgets, personal spending
habits, and continual cycles of serious recessions
that hurt our economy and our national strength.

No one change is perfect, and the changes that do
need to me made are too extensive as to be practically
applicable in any single administration. What is
needed is a transitional solution. Not a band aid.
Only the National Economic Stabilization and Recovery
Act as proposed by Dr. Harvey Barnard at the NESARA
Institute at, has presented itself
as the practical transition this nation needs, and we
ask the President's Advisory Panel on Tax Reform to
take a serious look at its proposal.


Ryan Kingsly
The NESARA Discussion Board

The National Economic Stabilization and Recovery Act
as proposed by Dr. Harvey Barnard, PhD

Contents of Proposal for Comprehensive Reform

Identification and Cover Sheet
Contents of Proposal

I. Description of Proposal
a. The Tax Base
b. Exemptions, Deductions, Credits, and Exclusions
c. Tax Rates
d. Distribution of Tax Burden
i. Provisions for Relief of Low Income Individuals
e. Treatment of Charitable Giving
f. Treatment of Home Ownership
g. Collection Methods
h. Treatment of Businesses

II. Impact of Proposal Relative to Current System
a. Simplicity
i. Transparency
ii. Stability
b. Fairness
c. Economic Growth and Competitiveness
d. Compliance and Administrative Costs

III. Transition, Tradeoffs, and Special Issues
a. Impact of Transistion
b. Tradeoffs
c. Special Issues and Considerations

IV. Conclusion

I. Description of Proposal
This proposal will primarily focus on the fiscal
reform provisions of the full NESARA draft at

a. The Tax Base
All non-exempt retail transactions performed within
the jurisdiction of the United States.
b. Exemptions, Deductions, Credits, and Exclusions
i. The necessities of life are excluded from the
consumption tax. The necessities of life are defined
as groceries, rents, leases, insurances, and medical
ii. Charities are exempt if their purchases are for
non-profit, non-competitive use.
iii. Initial issues of stocks and bonds are exempt.
iv. Government purchases are exempt.
v. Government services such as licenses, passports,
etc., are exempt.
vi. Bake sales, garage sales, and other small
ventures, as long as they are not commercially
frequent activities are exempt.
c. Tax Rates
i. A revenue neutral National Consumption Tax Rate
of 14%
ii. Secondary Sales of Securities Consumption Tax
Rate of 1.4% (10% of National Consumption Tax Rate)
iii. Gaming Sponsors Gross Profits Tax: 8% (since
gaming is a licensed activity, government is
considered a partner, therefore players are not taxed,
only the profits of the gaming sponsor)
iv. Social Security and Medicare income taxes remain
in effect until Congress decides otherwise.
d. Distribution of Tax Burden
i. Spending decisions determine level of tax burden.
Under this system, poor people, spending most of
their money on the essentials pay little if any tax
while the rich, who buy more cars and eat out, pay
lots of tax.
e. Treatment of Charitable Giving
i. The loss of the income tax removes the deductible
incentives, however some of this loss is recovered by
the government issuance of Credit Certificates to
donors to qualified non-profit organizations equal to
10% of the amount over $250. These Credit
Certificates are used to pay consumption tax
obligations, and can be transferred on the open
ii. Businesses do not have to charge consumption tax
for purchases by a registered nonprofit organization
if the purchase is for a nonprofit use, or
noncompetitive commercial use.
f. Treatment of Home Ownership
i. Buying a home is considered a qualified retail
event applicable to the National Consumption Tax.
ii. Used homes have a taxable base of only the
difference between the original purchase price and the
new selling price. Whereas new homes are taxed at the
full purchase price at the time of sale.
iii. Compound interest on secured loans is
eliminated. Only simple interest is allowed to be
collected as a monetization fee.
iv. Principles are required to be paid first before
banks collect their monetization fee.
v. These changes are retroactive on all secured
g. Collection Methods
i. Initiating a non-exempt retail transaction makes
one an agent for collecting the sales tax due for that
ii. The sales tax is due at the closest regional
bank by the 10th day of the following month of the
month the transaction occurred.
h. Treatment of Businesses
i. Businesses are treated as agents of the national
sales tax service. They collect sales tax on taxable
goods and services and remit their payments by the due
ii. Businesses have the ability to acquire new
secured loans without the inherent instability of a
compound interest loan equation, as all secured loan
payment plans always end in 0 since under NESARA,
principles are paid first. This has the effect of
generating fewer bankruptcies due to defaults, and
increases the ability of businesses to expand and
create jobs.
iii. The elimination of the income tax will
dramatically reduce the costs of goods and services
provided due to the inherent nature of the embedded
costs of the income tax (or any other tax system that
adds a tax throughout the process of making a good or
service). Estimates place this hidden embedded cost
reduction at up to 30%. On top of the monetary reform
provisions of NESARA, that is why we believe a 14%
rate is conservative revenue neutral rate.

II. Impact of Proposal Relative to Current System
Compared to the current system and other proposals,
NESARA is the simplest, fairest, and takes into
account the moral need to provide for blind tax
exemptions on the necessities of life.

a. Simplicity
A flat 14% sales tax on the non-essentials of life is
simple, especially when compared to a confusing eight
volume work of the current income tax code. A flat
national consumption tax is easy to manage as a single
percentage. All other exemptions and exclusions and
special provisions of NESARA are tied to that number,
making adjustments easy and understandable.
i. Transparency: The true cost of government is
reflected in a simple, flat, national
consumption/sales tax.
ii. Stability: The monetary reform provisions of the
NESARA proposal include the stability of our monetary
system as its chief priority. A flat national
consumption tax is a stable, easily manageable system
if simple over-the-counter exemptions are included.
Ultimately, however, it is the author's opinion that
true stability can only come with a reformation of our
monetary system as well. Please check out NESARA's
monetary reform provisions here:
b. Fairness
NESARA is blinded to individuals' incomes. If the good
or service is not necessary for living in the United
States, then that good or service must be taxed. The
rich, who pay more than just for the necessities, buy
more goods and services that aren't considered
necessities for living.

NESARA provides Congress the freedom to legislate what
is exempt and what is not. Also an arbitrary,
intrusive, expansive, and expensive national rebate
program is avoided altogether with simple,
over-the-counter exemptions on the necessities of
c. Economic Growth and Competitiveness
The monetary reform provisions of the NESARA proposal
returns a benefit to the economy that is just to great
to measure. It is estimated that $1 trillion of the
national debt would be eliminated, and approximately
$500 billion in bank reserves would be available for

A national consumption tax would also tax imports
equally, however with the hidden costs of the income
tax eliminated from purchases (calculated to be as
high as 30% of current prices), domestic prices will
fall and subsequently be more competitive versus
imported goods and services. NESARA projects a modest
2.5% productivity growth per year, which equates to a
doubling of the standard of living within a 20 year
period. It is believed that other nations would have
to adopt similar fiscal and monetary system just to
keep up with the United States.
d. Compliance and Administrative Costs
i. Compliance is mandatory for all non-exempt
commercial transactions.
ii. Evasion is harder since it will require more
than one party to evade paying the sales tax.
iii. If the national tax service believes the tax
has not been paid on a non-exempt commercial
transaction within the jurisdiction of the United
States, the parties named in a warrant of deficiency
only have to produce a receipt of the transaction
proving the tax was paid, or provide books and records
concerning the transaction.
iv. Investigation of continuing fraud becomes a mere
matter of a tax agent making a purchase and verifying
the tax was paid.
v. Administrative costs for the transition to the
fiscal provisions of NESARA are relatively small. In
fact, the tax service might find themselves with not a
lot to do, and hence a smaller budget.
vi. An expensive government rebate program is
avoided entirely with over-the-counter exemptions on
the necessities of life.

III. Transition, Tradeoffs, and Special Issues
It is believed the transition costs of both the fiscal
and monetary provisions of the NESARA proposal are
only the cost of printing new letterhead, new currency
(monetary reform provision), and the elimination of
current IRS staff.

a. Impact of Transition
The impact of converting the fiscal system of the
United States to one proposed by NESARA would see a
dramatic increase in tax compliance, competitive
downward pressure on prices versus imports, and an
increase in the value of used homes, helping to put an
end to urban blight. The benefits are just too
numerous to list here in full.
b. Tradeoffs
a. People no longer have to fill out forms to
discharge their tax liabilities.
b. The government does not have to keep yearly tabs
on the income of the people (assuming of course the
Social Security and Medicare income taxes are not
referred to in this proposal).
c. A national rebate program is avoided, and so more
government spending avoided.
Special Issues and Considerations
The monetary reform provisions of the NESARA
proposal provide for sweeping, positive changes to our
current monetary system, the benefits of which are
incalculable in terms of its prosperity to the economy
of the United States. Since true tax reform is futile
without reforming the monetary system, it is concluded
here that the President's Advisory for Tax Reform
visit to find out more.
The effect of the changes would become apparent
overnight. Taxes would cause prices to increase
dramatically by at least 14%, but at the same time,
businesses no longer have to collect income taxes from
their employees and so they pass on the savings to
their employees who receive a larger paycheck. Prices
for non-exempted items and services become temporarily
inflated. Over time, as cost-reductions are realized,
prices come back down slightly and stabilize. The
costs for the basic necessities of life stay the same
or become cheaper. The standard of living for the
working poor increases almost immediately as a result
since they are not largely affected the new national
consumption tax, but are freed from the government
intrusive income tax.
New home sales will skyrocket before the bill becomes
law. Once the bill becomes law, immediately the cost
of buying a used home becomes immediately more
NESARA's new loans equations become retroactive (a
provision for NESARA to guarantee fairness when
compound interest is eliminated on secure loans).
Some homeowners who are in the 17-20th year of paying
their home, under the NESARA equations that are
applied retroactively, many may find themselves with
their home completely paid for, or very nearly paid
for. Immediately their discretionary spending
Banks will find that they have their reserves met
faster as secured loans are converted to the NESARA
secured loan equations. They all of a sudden have
more money to lend. Some estimates place this amount
at $500 billion nationwide. This new pile of cash can
then become available for the community, for new
loans, or new government projects if the voters decide
to pay for them. If anything, the changes become
deflationary, and the government will probably have to
spend money the money to keep deflationary pressures
low - further increasing national productivity if
spending is increased.
In short, NESARA is a win-win solution to the
country's current monetary and fiscal problems, and we
would like representatives from the government to take
a serious look at the NESARA proposal at and feel free to ask questions about
it at
There are many more transitional changes that take
place that have not been talked about in this
proposal, however we have tried to focus on the fiscal
reform side of the National Economic Stabilization and
Recovery Act in accordance with the proposal

IV. Conclusion
We believe NESARA is the best proposal to date that is
fair, equitable, and revenue neutral, and we would not
be doing our job if we did not let the President's
Advisory Panel for Tax Reform be made aware of it. We
hope that someone on that panel takes a serious look
at it. Please check the proposed bill and its
detailed summary explanation at Thank you.


Ryan Kingsly
The NESARA Discussion Board

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