The Plan – credit extension details:
The Leviticus 25 Plan will deliver substantial liquidity benefits to individual American families by granting U.S. citizens direct access to liquidity through a Citizens Credit Facility, established by the Federal Reserve or the Department of Treasury. This credit facility will grant American families the same privileged access to liquidity that was granted to scores of major U.S. and foreign banking institutions during the critical years of the financial crisis (2007 – 2010). This included institutions whose high-risk, blind bets on Mortgage Backed Securities (MBS), Collateralized Debt Obligations (CDO) and other under-capitalized derivatives triggered the U.S. financial crisis.
American citizens deserve nothing less than the same direct access to liquidity that was granted to these financial institutions through the Federal Reserve Discount Window, and numerous funding facilities created by the Federal reserve, including the Term Auction Facility (TAF), Commercial Paper Funding Facility (CPFF), Primary Dealer Credit Facility (PDCF), the Term Securities Lending Facility (TSLF), Single-Tranche Open Market Operations (ST OMO), the Asset-Backed Commercial Paper Money Market Mutual Funding Liquidity Facility (AMLF) and several other credit facilities.
The Leviticus 25 Plan will provide American families the opportunity to directly manage the resources to manage their daily lives – that have been usurped by government central-planning. The Plan is voluntary – participation is not mandated by government.
1. $75,000 per U.S. Citizen – Participating American families would qualify for a direct credit extension from the Federal Reserve amounting to $75,000 per family member. $50,000 of that total would be directed into a Family Account (FA) and $25,000 would be directed into a Medical Savings Account (MSA).
To activate their participation in The Leviticus 25 Plan, individual families would be required to open up the two qualified accounts (FA and MSA) at an authorized bank or financial institution of their choice. Participants would be required to prove U.S. citizenship. They would be required to acknowledge that they understand and agree to the liquidity recapture provisions of the program. And they would be required to name beneficiaries for their accounts and select any other specific options for disbursements available within the plan.
A family of four, upon opening their two qualified accounts, would receive an electronic credit extension from the Federal Reserve of $300,000.
$200,000 would be deposited into the Family Account and $100,000 would be deposited into the family’s Medical Savings Account.
The primary goal of this targeted credit extension is to restore economic liberty, provide massive debt relief at the family level, and strengthen America’s financial health from the ground up.
The Plan would reignite sustainable economic growth. It would reestablish individual freedom and liberty by allowing citizens to allocate resources, rather than government. It would pay for itself over a 10-15 year period, and would set America on course to balance its budget
The Leviticus 25 Plan should be America’s top economic priority.
2. Medical Savings Account (MSA)
$25,000 would be electronically deposited into a family’s Medical Savings Account for each participating family member. These qualified accounts, opened through participating financial institutions, would allow families the freedom to allocate their healthcare dollars in a manner that best meets their needs.
Families would be encouraged to enroll in major medical insurance plans, with a high-deductible ($10,000 – $15,000) option, which would substantially lower costs for consumers and employers. Employer cost savings may then be shared with employees through incentive-based employer MSA contributions.
Qualifying medical policies must include a primary option that allows families the freedom to select a basic, no-frills, major medical plan with optional coverage riders (e.g. alcohol treatment coverage, mental health counseling, etc.), only as desired on a family-by-family basis. Policies would not be automatically loaded with expensive government healthcare mandates.
Premium costs would be dramatically lower with the high-deductible feature and the elimination of expensive government mandates.
Families would pay directly (MSA debit card) for normal, day-to-day healthcare purchases, up to a level of $5,000 per single family member, for example, to $10,000 or $15,000 per family of four. Health care would not be under the ‘management’ and control of a big government bureaucracy. Insurance coverage would be in place for major medical expenditures above the deductible trigger.
With the elimination of millions of minor insurance claims across the nation over the course of each month, efficiencies would improve, medical costs would drop significantly, and the direct patient-provider relationship would be restored. Medical professionals would not have to answer to HMOs, insurance companies, or government agencies in providing basic day-to-day healthcare access for their patients.
Those with extraordinary medical issues may be included in a high-risk category, with such plans being eligible for a government subsidy (similar to current Medicare Advantage).
Individuals enrolled in Medicare / Medicaid / VA / TRICARE / FEHB programs would be required to pay an annual deductible ($5,000 per year per enrolled family member) for a period of five years for those benefits. The dedicated MSA funds would fully fund the offset for the higher ($5,000) deductible feature. MSA funds could also be used to pay Medicare supplement premiums and other potential co-pay obligations.
3. Family Account (FA)
For each participating member of a family, $50,000 would be deposited into the Family Account. There would be no income tax assessed on the credit extensions received under The Leviticus 25 Plan. And there would be no penalty (reduction of Leviticus 25 Plan funds) for additional new income earned by family members. Incremental installments (quarterly or semiannually) may be required for those with unremarkable (poor) credit / job histories – in lieu of a full disbursement of funds to the Family Account during the initial funding phase.
4. Recapture provision – Income tax refunds
Those individuals / families choosing to participate in The Plan would agree, under the Recapture Provisions, to give up their individual income tax refunds for a period of 5 years.
Individual members of a given family may choose not to participate if their anticipated income tax refunds substantially exceeded the value of the plan benefits.
Income tax obligations each year of the five-year period would be maintained at a level not less than the average sum of income tax withheld for each year of the past 3 years prior to plan’s inauguration date, or the average sum of taxes paid annually for the past 3 years prior to the plan’s inauguration date – whichever is greater.
For example, if a family of 4 had $5,000 in income tax withheld, on average, each of the past 3 years, and received an average of $2,500 refund each of those 3 years, the tax obligation for this family would be not less than $5,000 per year. Taxes beyond the $5,000 average would be owed only if/when additional new income, in an improving economy, triggered a higher tax obligation.
Where an individual or family paid more income tax than that amount withheld on one or more of the past 3 years prior to the plan’s inauguration date, and the average for total taxes paid exceeded the average for income taxes withheld, then the tax obligation would be the greater average. Again, total income taxes paid may be more, based upon additional income earned.
The Plan assumes that government would not impose unanticipated new tax obligations which would undermine the commitments to, and major benefits of, the Plan.
Funds deposited in the Family Accounts of participating U.S. citizens would be “protected” from any legal confiscation by creditors or courts. Any funds withdrawn from the Family Account would be allowed to be repatriated within 30 days to retain “protected” status. Additional deposits into the Family Account, above and beyond the original Leviticus 25 Plan deposit, would not be allowed.
Funds deposited in the Medical Savings Accounts of participating U.S. citizens would also be “protected” from any legal confiscation by creditors or courts. Additional pre-tax deposits into MSAs would be allowable annually in amounts authorized by law.
5. Recapture provision – social program / general welfare benefits curtailed
Participating families would give up benefits from means-tested welfare programs, income security programs, social insurance programs, and unemployment insurance benefits for a minimum of 5 years. See full listing of individual program in these categories in FAQ section 6.
Participants concurrently enrolled in Medicare / Medicaid / VA / TRICARE / FEHB benefit programs would be required to pay an annual deductible of $5,000 per year per enrolled family member for each year in the initial 5-year period. MSA funds would provide a full offset for the costs of the higher deductible. MSA funds could also be used to pay Medicare supplement premiums and other potential co-pay obligations.
6. State, Federal Institution provisions (nursing homes, assisted-living centers, jails, prisons, other)
U.S. citizens who are institutionalized under direct government-sponsored care (residing in nursing homes, assisted-living, prisons, jails or other such facilities) do qualify for participation in The Leviticus 25 Plan. The credit extension funds for those citizens would be held in a custody account in the individual’s name at that institution. The federal, state or local government jurisdiction involved would determine a fair monthly charge to that account for living expenses involved – for as long as the person remained in such a facility.
Individuals being granted release or discharge from the participating institution would qualify for receipt of the balance of funds (not subject to further Medicaid repayment obligations) which were held in that person’s name in the custody account, with such funds being then transferred proportionately into a qualified Family Account and a qualified Medical Savings Account.
Participants must be citizens of the United States of America to be eligible for The Plan.
Minors who are citizens are eligible for participation. Parents or legal guardians (U.S. citizens) of eligible minors would act on behalf of the minors in receiving and managing funds in the Family Account and MSA account of that family. Proportionate funds may be may be transferred into qualified accounts on behalf of a minor subsequently turning 18.
Additional guidelines would specify the receipt and management of funds where the parent(s) or legal guardian(s) of eligible minor(s) is/are not U.S. citizen(s).
All new-born baby U.S. citizens, born to U.S. citizen parents within 10 months of the program closing date, would be eligible.
The Leviticus 25 Plan would be voluntary for eligible Americans. No eligible person or family would be forced to participate.
The Leviticus 25 Plan assumes that approximately 80% of U.S. citizens would participate in the Plan. The Plan assumes that wealthy Americans, with typically large annual tax refunds, would not participate. It also assumes that a percentage of low-income Americans, receiving significant social and medical program benefits would not opt out of those programs in order to participate.
The Plan therefore assumes an 80% participation rate, with an initial draw on the Citizens Credit Facility of $18 trillion – with $12 trillion deposited into the Family Accounts and $6 trillion into Medical Savings Accounts of participating families. See FAQ for further details.
Recapture provisions would yield a return of approximately 9-10% ($1.78 trillion) per year, resulting in a projected $8.904 trillion recapture over the first five years. This projection does not take into account the dynamic benefits of an improving economy and less dependence upon government by the general population. Additional revenue gains for the U.S. Treasury, as well as for state and local government entities, would begin immediately and would be significant, setting the nation and individual states on track for a balanced budget.
The private sector economy would experience a healthy relief from deflationary pressures, retail sales would improve, existing jobs would be saved and new jobs created– all directed from the private market allocation of resources.
Dynamic inertia would generate economic and social benefits for decades following, with excess reserves from ‘recaptured’ tax revenues and reduced social spending transferred back to the Federal Reserve each year to systematically reduce the size of the Federal Reserve balance sheet.
Case Study #1 Family of four. Father and/or mother laid off from their jobs or working part-time; living on food stamps, unemployment extensions, and other means-tested welfare programs.
Under The Leviticus 25 Plan, this eligible family may voluntarily ‘enroll’ in the plan with a bank / financial institution of their choice for their family’s $300,000 credit extension. A qualifying Family Account would be set up for receipt of the $200,000 deposit, and a qualified Medical Savings Account (with a presumably high-deductible major medical policy attached to the account) would receive a deposit of the remaining $100,000 for the family.
In return, the family would forgo any tax refunds for a period of five years. Their annual tax obligation during the five-year period would be the average amount of taxes withheld over the previous 3 years – or the average amount of taxes paid over the previous 3 years – whichever amount was greater. Income tax obligations beyond the applicable average would be owed only if additional new income, in an improving economy, triggered a higher tax obligation.
The family would also give up primary benefits from federal and state means-tested welfare benefits, income security and social insurance benefits, unemployment and workman’s compensation benefits for a period of 5 years. There would be an additional $5,000 deductible per family member for any Medicaid, Medicare, VA, TRICARE, and FEHB eligible expenses each year of the succeeding 5-year period.
A family of four, with $200,000 in their Family Account, would then have $40,000 per year for general living expenses for each year of the 5-year period. The family would also have a portable health insurance policy which they would manage themselves.
Case Study #2
Elderly person living alone on Social Security on modest retirement income; means-tested welfare benefits and income security benefits are significant, amounting to more than $75,000 over a 5-year period. This person would likely choose not to participate in The Plan.