The Leviticus 25 Plan is unquestionably the most powerful economic acceleration plan in America. It is the only economic plan that pays for itself over 10-15 years.
The scoring model assumes that at least 80% of U.S. citizens will participate in The Plan.
The Leviticus 25 Plan’s recapture provision regarding income tax refunds (where participating families agree to give up their tax refunds for a period of five years) will provide for a massive revenue recapture. The IRS reported issuing 109,171,000 refunds, totaling $304.001 billion for 2015 (through November 2015).
Income tax refund recapture: $304 billion X 80% participation = $243.2 billion / year for five years for a total of $1.216 trillion.
A proportional amount of this revenue would be transferred back to the Federal Reserve each year to reduce the $18.0 trillion balance sheet expansion of the Fed-based Citizen’s Credit Facility.
Aside from the ‘recapture revenues,’ the debt reduction benefits would lead to the elimination of major sums of mortgage / HELOC interest-expense deductions and with significant health care deductions, which would generate considerable new federal and state tax revenue.
Revitalized economic growth would result in more Americans working, paying taxes and social security and Medicare and Medicaid payroll taxes.
A. Means-tested welfare programs – assumes 80% participation by participants
Total “means-tested welfare spending” (federal, state) reached the $927 billion level in 2011. This is projected to reach the $1.6 trillion level in the year 2022.
Cost savings over the course of a 5-year ‘recapture period (federal and state spending): Average Means-Tested Welfare spending of $1.1 trillion/year X 80% X 5 years = $4.4 trillion
Note: Medicaid cost savings is a factor of $5,000 deductible and a significant reduction in Medicaid-eligible families as more Americans become fully employed and covered under other more beneficial plans. Medicaid hit a record of 72,600,000 people enrolled for at least one month in 2012. CBO analysis projects that Medicaid “average monthly enrollment is expected to increase from 58 million in 2013 to 73 million in 2024.”
The cost savings under The Leviticus 25 Plan would be substantial.
B. Medicare savings – assumes 80% participation from Medicare recipients
In 2011 49.4 million Medicare beneficiaries collected approximately $564 billion in benefits “Americans paid $274 billion in Medicare taxes and premiums,” resulting in a deficit of approximately $290 billion. “Looking into the future, even the most optimistic estimate by the program’s trustees puts Medicare’s future unfunded liabilities at more than $38.6 trillion. More realistic projections suggest the shortfall could easily top $90 trillion” (CATO – Aug 24, 2012).
A 2011 GAO report estimated “$60 billion to $90 billion in fraudulent claims paid out each year.”
There are approximately 54 million enrolled Medicare beneficiaries in 2015, and that number is projected to grow to 64.9 million by 2020. Those numbers are expected to expand to 70 million by 2025 and to 77 million by 2030.The Plan’s recapture provision incorporates a $5,000 deductible per participant per year for Medicare eligible expenses.
Cost savings over the course of the 5-year ‘recapture’ period: 59.5 million Medicare recipients (projected average/year for the next 5 years) X 80% X 5 years X $5,000 deductible = $1.19 trillion.
Note: The Plan also assumes that with individual Americans managing the first $5,000 of their Medicare eligible expenses, fraud, overcharges/billing errors would be reduced.
C. Federal Employees Health Benefits Program (FEHB) – assumes 80% participation.
This health care program for civilian government employees (including Congress) and their dependents covers approximately 8.2 million insured at any given time. $5,000 deductible for FEHB eligible expenses that would be a direct cost to the government.
Cost savings over 5-year recapture period: 8.2 million X 80% X $5,000 X 5 years = $164.0 billion
D. VA Healthcare savings – assumes 80% participation from VA Priority Group members.
$5,000 deductible for VA eligible expenses that would be a direct cost to the VA.
Veteran’s participation noted in Priority Groups (2014):
1, 2, 3, 4, 5, 6, 7A, 7C, 8A, 8B, 8C, 8D, 8E, 8G = 5,586 million enrollees plus 305,000 non-veteran recipients
Cost savings over 5-year ‘recapture’ period: 6.16 million X 80% X $5,000 X 5 years = $123.0 billion
E. TRICARE – healthcare program for service members, retirees and dependents
Cost savings over 5 years: 9.5 million recipients X 80% X $5,000 X 5 years = $190.0 billion
F. Supplemental Security Disability Income (SSDI) – participants are ‘off’ SSDI.
The Plan assumes 80% participation of the approximate 12.2 million disabled beneficiaries and non-disabled dependents who received total payments of $132.64 billion during 2014.
Cost savings over 5-year recapture period: $132.64 billion X 80% X 5 years = $530.56 billion
G. Supplemental Security Income (SSI) – participants are ‘off’ SSI. The Plan assumes 80% participation of the current 8,335,457 recipients receiving $54.693 billion (2014).
Cost savings over 5 years: $54.693 billion X 80% X 5 years = $218.8 billion
H. Unemployment benefits – assumes 80% participation / $111.6 billion in payouts per year.
Unemployment benefits ($319 billion 2008-10) – $106 billion / year
Federal government has paid $109 billion of that bill.
Liabilities: 31 states have $41 billion in loans outstanding to cover unemployment
insurance payouts – a figure that is expected to rise further through 2015.
Extended federal unemployment benefits (~$56 billion over 10 years) – $5.6 billion/year
Cost savings over the 5-year ‘recapture’ period: $111.6 billion X 80% X 5 years = $446.4 billion
I. Stimulus bill – Additional stimulus bills would not be needed.
J. Corporate welfare – current $250-$300 billion / year.
Cutting 125 programs (Cato) would save taxpayers $85 billion per year.
Cost savings over 5 years: $85 billion/year X 5 years = $425 billion
Total from Recapture Provisions:
The Leviticus 25 Plan total recapture benefits over the first five years of the program (Income tax refund recapture plus A thru J above): $8.904 trillion, for an average of $1.78 trillion per year.
The Leviticus 25 Plan – primary scoring assumptions
The Plan assumes an 80% participation rate by U.S. citizens. Wealthier Americans would likely not participate, due to the size of their refunds. Certain individuals in the lower socio-economic sector would not participate, due to high benefits profiles that they would not want to give up.
The Plan assumes that participating families would use significant funds to pay down / eliminate debt and that the ongoing benefits of this debt reduction would flow to families and to federal, state, and local government entities (as tax revenue) for several decades beyond the event.
The Plan assumes that dynamic new efficiencies would emerge in the healthcare system – with more families managing/directing healthcare expenditures through their MSAs.
The Plan assumes that apart from the recapture provisions, there would be significant new general tax revenues growth for federal, state and local government entities. This would develop from free-market economic revitalization, more people working and paying taxes, and from the elimination of various income tax deductions (e.g. mortgage / HELOC interest expense).
The Plan assumes that there would not be a massive full-scale move back into the means-tested welfare programs, income security programs, SSDI, unemployment insurance at the end of the initial 5-year recapture period.
The benefits of a free market economy and newfound economic liberty for American families would provide positive economic inertia throughout years 5-10, and for many years beyond.
Recapture provisions would provide an estimated $8.904 trillion return over the initial 5-year period. Economic growth over the following 10 years would generate significant additional tax revenues for both federal and state governments.
Significant inertia from The Plan would also provide on-going, market-based growth benefits over succeeding years that far exceed any prospect for healthy economic growth that may be expected under America’s current big-government, central-planning approach.
These additional benefits would be generated from:
Massive liquidity gains and debt reduction at the family level.
Immediate, sweeping reversal of government “central planning” approach.
Major reversal in work disincentives embedded in social welfare program structures.
Economic growth, improved productivity and job creation.
Stabilization of housing market.
Strengthening bank capitalization.
Minimizing the role of government in managing, directing, and controlling the affairs of
The Leviticus 25 Plan would restore Biblically-inspired economic liberty and freedom from oppression – as intended by The Year of Jubile.