082916 president barack obama

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Thomas J. Kraus, Executive Director, Global Destiny Creative Concepts, P.O. Box 24802, Brooklyn, NY 11202-4802, tjk271@yahoo.com, (917) 795-6610
Thomas J. Kraus
Executive Director
Global Destiny Creative Concepts
Because Money Does Grow on Trees
599 Ralph Avenue
Brooklyn, NY 11233
Phone: (917) 795-6610
tjk271@yahoo.com
President Barack Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
Call the President
Phone Numbers
Comments: 202-456-1111
Switchboard: 202-456-1414
TTY/TTD
Comments: 202-456-6213
Visitor's Office: 202-456-2121
Dear President Obama: August 29, 2016
On the Yellow Brick Road to the Reform of the Federal Reserve, and
Behind the Curtain of the Wizard of Oz: Holistic Monetary, Tax and
Fiscal Policy as Part of a Comprehensive Plan for Restructuring the American
Economy to Retire the National Debt within 20 Years without Tax Increases
Igniting a Real Estate and Stock Bull Market that will Carry the
Nation into the Twenty Second Century
People in the financial services industry should be focusing their efforts on reforming the Federal Reserve and lobbying the federal state and
local governments on their collective need to downsize the government bureaucracy and get their financial houses in order. All financial services
companies or businesses should come under Federal Deposit Insurance, including insurance companies, stock and bond brokers, Hedge funds and not
just traditional banks. The premiums paid into Federal Deposit Insurance, like any other commercial insurance should be invested in the global equity
markets by the Federal Reserve as part of its monetary policy. When the financial service companies need to be rescued or bailed out they would be
bailed out with the collective reinvested returns on invested Federal Deposit Insurance Premiums.
Government Agencies and departments should each be required to bank 24% of their annual allocation of funding into dividend reinvestment
plans otherwise known as D.R.I.P.S. They should be required to have to reinvest 76% of the dividends earned on investments continuously to acquire
additional dividend paying equities. Previsions should be made in the tax code to permit citizens and business to exempt from taxation 24% of their

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income for the establishment of long term savings. This is especially needed by American families because 25% of American families lack both a
checking and savings account. Capital gains on dividends and interest on savings should not be taxed because they are taxed when they are earned.
There needs to be a coherent relationship between monetary, tax, and fiscal policy to formulate sound economic policy. Instead of holding
interest rates on bank deposits to near zero to force savers to invest in the stock market in their efforts to chase higher yields on their savings the Federal
Reserve should raise interest rates back up to their historic norm between 5% and 6 % and sell government bonds and take the money generated from
selling government bonds and turn around and reinvest that money in the global equity markets then take half the stock purchased and use it to endow the
Social Security, Medicare and Medicaid Trust Funds with corporate dividend paying equities and take the 50% of equities purchased to establish an
infrastructure investment bank. As stated earlier, 76% of dividends would be constantly reinvested to acquire additional dividend paying equities and
24% of the dividends earned on corporate equities purchased after selling government bonds would be used to pay down government debt on those same
government bonds. Money collected to finance Social Security, Medicare, and Medicaid would also be invested in the global equity markets to acquire
dividend paying corporate equities.
Medicare and Medicaid resources will be combined into a single government health insurance program to be called E Pluribus Unum
HealthCare. The separate social service delivery systems of the federal, states and local governments would be combined into a single social service
delivery system jointly financed by each level of government and the work force and their offices would be downsized through attrition over a decade
and a half and the savings in administrative costs would be poured into the global equity markets to properly fund Social Security, E Pluribus Unum, and
the underfunded government employee healthcare and pension plans of the remaining government workers. Nobody would be laid off; everyone would
be permitted to safely retire out of government service as fewer new hires would replace retiring government workers.
The money supply would grow at a rate of 7.6% regular interest rates on bank deposits will be set at 76% of 7.6% or 5.776% the minimal
interest rate on bank deposits would be set at no lower than 76% of 5.776% which would come to 4.38976% and the federal reserve would pay banks
interest on money they are required to keep at the Federal Reserve bank which would be paid at 76% of 4.38976% or 3.3362176%. Banks would be
permitted to substitute collateral such as Untied States Treasuries or State and Local Debt which will also become triple tax exempt as state and local
governments clean up their balance sheets.
The Federal Reserve under this plan would be required to invest 24% of their foreign currency reserves into the home stock exchanges from
which they originate and be required to reinvest 76% of those same dividends into the same foreign market and repatriate 24% of the remaining
dividends into the American stock markets.
Government real estate will lease it air development rights to commercial real estate developers to erect on government land commercial office
buildings that will reserve space in their structure for a government agency or department rent free. The building would be permitted to exceed the local
zoning code’s height limitation by twice the square footage occupied by the government agency or department. The government agency or department
would lease their air development rights for three times the agency or department’s annual operating budget. So that one third of the air development
right lease revenue will cover the operating costs of the of the government agency or department and two thirds of the air development right lease
revenue would be invested in the global equity markets with 76% of dividends constantly reinvested to acquire additional dividend paying equities and
the remaining 24% of dividends would be added to other operating revenues of that same agency or department.
For example, at the local level of government public schools, public libraries, public museums, and public performance arts venues could be
financed with air development rights revenue so that the monies that now fund these institutions could be redirected towards paying down debt or better
funding public parks. In the case of public schools, the real estate taxes that now fund public education could then be redirected to funding public
infrastructure such as roads and highways, bridges and tunnels, and mass transportation’s tramways, ferries, buses and trains. So with real estate taxes
added to the current revenue for these expenses the tolls collected by highway authorities and the fares collected by mass transportation agencies could
instead be invested in the global equity markets and 76% of dividends earned would be constantly reinvested to acquire additional dividend paying
equities and the remaining 24% of dividends would be added to other operational revenues of highway authorities and mass transit agencies so that fare,
tolls and taxes can remain stable as compounding dividends would provide government sufficient operating revenue to meet expenses without having to
raise taxes.
All sales taxes especially those on real estate, energy and telecommunications will be phased out to make healthcare more affordable because if
you eliminate these taxes the return on investment or ROI of the insurance industry which is responsible for financing 25% of all real estate
developments in America will be higher (as it would be for all other businesses) with a higher ROI for the insurance industry the unit cost of insurance on
every policy will fall as profits of the real estate industry will rise, along with the profits of every other industry in America. That is the meaning of E
Pluribus Unum.
Businesses will be given 7 income tax exemptions for the benefits they provide their employees, 6 would be for 15% each and the seventh
would be for 10% and they would be as follows, 1) Healthcare Plan 2) Retirement Plan 3) Paid Sick Leave 4) Profit Sharing for all employees not just
management 5) Flex Time Work Schedules allowing employees to set the hours they begin and end their shift and the number of days their work hours
are spread over. 6) Post-secondary school educational enrichment for all employees’ not just top management. 7) For charitable contributions to nonprofit
organization(s). This would have to be phased in gradually as we phase in the financing of government via the leasing of air development rights of
government owned real estate and shrink the size of the federal state and local governments simultaneously as I describe in this letter. Providing these
seven benefits to the companies own employees and the community the company serves would allow the company to not have to pay income taxes but
they would still have to pay real estate taxes.
Profit sharing in publicly traded businesses for not management personal could be done via fractional shares of stock not to be worth less than
1/5 of a full share of stock that management and investors earn. . It is a pet theory of mine if all publicly traded corporations distributed a small
percentage of their profits as dividends, as little as 7.6%. The stock market as a whole would have a greater propensity to rise rather than fall if all other
things remain equal. Because people buy stock as an investment in hopes that it will appreciate, and if stocks do not pay a dividend, when they do
appreciate people are more likely to sell some of their stock to obtain a return on their investment. But if they were all along receiving dividends paid on

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that same stock they would be more likely to hold the stock and use the dividends to purchase more shares of that particular stock or another stock
creating more upward economic trajectory whereas when people sell stock to realize a return, their selling of their stock will tend to either slow the
upward trajectory and possibly send that stock and the market falling.
Please read on.
Kevin Warsh
Is the Shepard Family
Distinguished Visiting
Fellow in Economics
434 Galvez Mall
Stanford University
Stanford, CA 94305-6010
Pam Widrin
650-725-6728
pwidrin@stanford.edu
650-723-1754
Dear Mr. Warsh: August 25, 2016
Responding to “Federal Reserve Needs New Thinking”
Yesterday I wrote to Alan S. Binder in response to his article of August 10, 2016 in the Wall Street Journal “Trump and Taxes: Don’t Look
behind the Curtain.” The title of my response letter to him was, Behind the Curtain of the Wizard of Oz: Holistic Monetary, Tax and Fiscal Policy. Today
August 25, 2016, I read your article in the Wall Street Journal and thought what I said to Alan S. Binder, yesterday is relevant to today’s article written
by you so I thought I would send it to you as well. I have long believed if our nation is going to get its financial house in order we as a nation must
conduct monetary, tax and fiscal policy in relation to one another and not as has been done since 1914 which was to conduct these three economic
disciplines completely independent of one another. I believe sound economic policy can only be conducted if the three economic disciplines are seen as
forming an equilateral triangle so that each corner of the triangle would be equally important in conducting sound economic policy. You cannot have
sound monetary policy without sound tax and fiscal policy. And you cannot have sound fiscal policy without having sound monetary and Tax policy.
Fiscal Policy
Tax Policy Monetary Policy
The reason employers cannot provide a defined benefit retirement plan is because of the Federal Reserve’s monetary policy. There should be a
minimum interest rate below which interest rates on savings would never fall. There should be a fixed relationship on the interest paid on depositor’s
savings and the interest charged by banks on loans so that both interest rates rise and fall in tandem with one another. Whatever banks charge on loans
they should pay their depositors an interest rate that is 80% of the rate that banks charge customers for the use of bank funds because what are bank funds
but in reality nothing more than substantially, the collective savings of depositors? I believe the growth of the money supply should substantially reflect
the total return on investment in the American economy minus a currency stabilization factor. The total return on investment in the American economy is
said to be equal to 10% of whatever is invested in a given calendar year. Because the Federal Reserve is always behind the curve of whatever is
happening in the economy at any given moment, and because of their incomplete data you would want to have a currency stabilization factor that is 24%
of the total return so that the money supply, would grow at 7.6% symbolic of 1776 the birth of our nation and Adam Smith’s The Wealth of Nations
coincidentally published the very same year our country was founded, because you would not want for incomplete data to cause the money supply to rise
too high accidentally. The interest rate paid on bank deposits should be 76% of 7.6% rate of growth of the money supply, which coincidentally is 5.776%
with the last three digits following the decimal being the same as the last three digits in 1776, which rounded up would be 5.78% The minimum interest
rate should never fall below 76% of 5.776% which would be 4.38976% or 4.39%. If the minimum interest rate on bank deposits never fell below 4.39%
employers could provide their employees a minimum defined benefit plan that may actually provide their employees a higher return when the fund was
stocked with financial instruments that provided at least a 4.39% return on investment but also provided higher yielding financial instruments. I also
believe the Federal Reserve should pay banks for the money they ask banks to keep on hand at the Fed and that money should earn an interest rate of
76% of 4.38976% which would come to 3.3362176% or 3.34%. Banks should be able to substitute collateral for cash such as government bonds of the
federal state and local that could be sold quickly to cover any loans that under preform by the banks.
I believe the federal, state and local governments should be required to put aside in savings at least 24% of every government agency or
department’s annual allocation in funding which the Federal Reserve would invest in the global equity markets buying all the stock exchanges in the
world via exchange traded indexed funds. Having government agencies and departments have to save at least 24% of their annual allocation and have to

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reinvest 76% of all dividends earned to acquire additional dividend paying equities would serve to keep inflation in check as well as the growth of debt.
Paying depositors no less than 4.39% will also insure that depositor’s money does not become eroded by inflation which is part of the Federal Reserve’s
responsibility in fighting inflation as it sits in the bank. Government spending should be kept to the same rate of growth as the minimum interest rate paid
to depositors which would be 4.39% which would include use of 24% dividends earned in dividend reinvestment plans or drips all government agencies
and departments would be required to invest their savings.
Under this plan 24% of all foreign currency reserves would be invested in the home market of which the currency originated from with 76% of
all dividends reinvested into the same foreign market while 24% of dividends earned would be reinvested into the American market which should lead to
central banks the world over doing the same and reinvesting their American foreign currency reserves into the American market.
Liquidity traps occur when the interest rate paid on bank deposits and the interest rate charged on bank loans move too far in the opposite
directions discouraging bank depositors from saving their money in the bank reducing the amount of money available to banks to originate new loans
which is what caused the banking crisis of the late 1980’s after Jimmy Carter in the I970’s decided to tax the interest earned on bank deposits along with
capital gains in order to put towards retiring what then was only a $750 Billion debt. George F. Will critiqued that policy and predicted it would not raise
sufficient revenue to address the national debt but would likely do more harm than good for the economy. Banks did away with passbook savings
accounts in favor statement savings accounts and introduced minimum balance requirement accounts which perversely discouraged the lower middle
class from saving and to this day 25% of American families lack a checking or savings account as a result. Those minimum balance accounts punished
people for failing to save instead of rewarding people for saving by paying them higher interest on their savings.
The way to address liquidity traps is not for the Federal Reserve to print money nor to drop helicopters of money into the banking system but
for the interest rate on bank deposits and the interest rate on bank loans to move closer together. Liquidity traps can be seen as market signals to the
banking system that interest rates have moved too far apart on bank deposits and bank loans. In the olden days before collateralized debt obligation bonds
made up of sliced and diced bank loans, banks had a rule of thumb. To remain profitable they needed to have a depositor to borrower ratio as close to
100% as they could get meaning every depositor was also a borrower and to achieve the objective it was necessary for the interest rates paid on bank
deposits to not be too far from the interest rate charged on bank loans because bank customers wanted to deposit their money in banks that paid the
highest interest on deposits and wanted to borrow from banks that charged the lowest on loans. Keeping the interest rates relatively close to one another
facilitated them capturing both depositors and borrowers in the same bank.
Doing away with passbook savings accounts discouraged people from saving along with the punishing fees banks charged against accounts that
failed to maintain a minimum balance and many families were forced to leave the banking system because they could not afford to have banks
continuously charge them punishing bank fees for failing to maintain a minimum balance and because the powerful psychological effect of seeing your
interest on your savings grow over months and years was lost to bank to depositors when passbook savings accounts were phased out. We need to stop
taxing capital gains and the interest on bank deposits because both of those things were taxed at the time they were earned.
The state and local governments should honor the tax exempt status of other state and local government’s debt obligation bonds on interest
earned as a means of making state and local government bonds as desirable as United States Treasuries in their triple tax exempt status. If they did, banks
would purchase more state and local government debt as they purchase United States Treasuries as collateral against outstanding loans on their books so
they could loan out more money.
Please read on.
Professor
Alan S. Binder
Woodrow Wilson School
Of Public and International
Affairs
Princeton University
Robertson Hall
Princeton, NJ 08544-1013
Office:
105 Fisher Hall
Phone:
609-258-3358
Email:
blinder@princeton.edu
Dear Professor Binder: August 24, 2016
Behind the Curtain of the Wizard of Oz: Holistic Monetary, Tax and Fiscal Policy

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Is it not time that we bring Monetary, Tax and Fiscal Policy in line with one another and shouldn’t tax cuts coincide with spending cuts and
economic restructuring of the national, state and local economies whenever Presidents, Governors or Mayors propose tax cuts? Responding to your
critique of Donald Trump’s Tax Plan August 10, 2016 in The Wall Street Journal, “Trump and Taxes: Don’t Look behind the Curtin” Please do not be
alarmed with the length of this proposal for reforming the American Economy. Can we truly have sound monetary policy when tax and fiscal policy are
unsound? I am 55 years old and I have noticed a peculiar quirk of economics you may be aware of as well. Proposed tax increases often do not bring in
as much revenue as imagined while proposed tax cuts often bring in more revenue than anticipated and when governments bring in more revenue than
anticipated they rarely put the increased revenue towards paying down a larger share of the debt and usually instead use the increased revenue to finance
new spending.
Financial advisors of families recommend when setting up a family budget the family consider living on just 50% of their disposable income
and put aside a fixed percentage of their take home pay as savings usually between 20% to 25% of disposable income and they also recommend families
establish emergency reserves to covers to cover unanticipated expenses that may arise in their families budget which also tend to fall between 20% to
25% income or three to six months of pay held in savings in emergency funds in addition to money put aside for long term savings such as an individual
retirement plan. Shouldn’t governments also be required to establish emergency reserves and savings for the future and not spend every dollar taken in
revenue? Imagine if governments put 24% of every department or agency of government annual allocation into dividend reinvestment plans and
constantly reinvested 76% of dividends earned in the global equity markets.
From a monetary perspective the Federal Reserve is required to fight the twin evils of monetary policy which are inflation and deflation to
maintain relatively stable currency valuations and as well conduct monetary policy in such a manner that high employment is promoted. Is it not true that
rising taxes are the single greatest cause of inflation when you factor in the reality that all tax increases imposed on business are passed along to the
customers of the business in the form of higher prices for goods and services and as well passed along to employees of the business in the form of slower
rising wages and possibly cuts to benefits coupled with layoffs?
Is it not also true in addition to rising taxes contribution towards rising inflation that rising debt also contributes to inflation at least when the
debt to income or debt to GDP is relatively low below 50% but when debt to income closes on 100% of GDP that rising debt will tend to suppress
economic growth and inflation and cause the Federal Reserve and other central banks to become worried about deflation and falling prices as Japan as
struggled with now for two decades?
If governments put aside at least 24% of revenue into dividend reinvestment plans and had to live on just 76% of their annual allocation that
this would contribute to a dampening of inflationary pressures and also serve us well in dampening the growth of debt? If households, and business
similarly put aside 24% of their income into dividend reinvestment plans we would have relatively high economic growth with low inflation because the
taking on of excessive debt by an economy in the short term is inflationary when debt to income is less than 50% but in the long term can become
deflationary when debt to income exceeds 75% or more of income.
Currently the worlds’ total debt of all governments, all businesses and all households exceeds $224 Trillion while the total income of the world
is little more than $75 trillion which means debt exceeds income by 300% and it is this factor that accounts for why the global economy has had trouble
rising above 2% annually.
With a world population of 7.4 Billion People how come all the nations of the world are following more or less the same flawed economic
policies and have more debt than income? How could so many people think so much alike?
In the western world we like to espouse the virtues of Capitalism as an economic system but despite our admiration of Capitalism not a single
government in the western world is financed via Capitalism. Is that not odd? In economics we are taught that savings equal investment but monetary
policy, tax and fiscal policy make no allocation for governments, businesses and households’ needs to save for the future. We tax interest on savings and
the dividends earned on capital gains when both of those things were taxed at the time the money was earned. The total return on all investment in the
American economy is said to be 10% so you would think you would set up an economic system that insured the savers would be able to put more aside
in savings both as a percentage of income and in number of monetary units each succeeding year as interest on savings and dividends earned on
investments compound so that the 10% total return on investment would continuously be a larger dollar figure but our tax polices imped that objective
with a tax system that is called progressive but actually is regressive in function taxing people at higher rates the more they earn.
The Mercatus Institute, at George Mason University, several years back did a study of the income tax system since its creation in 1913 and
revealed that no matter how high the maximum tax rate was set at, the Federal Government never managed to bring in in revenue more than 20% of
GDP in taxes. If no matter how high you set your maximum tax rate you only manage to bring in 20% of GDP in taxes that maybe the maximum tax rate
should be no higher than 20% and the number of tax brackets should be fewer maybe just three. I would suggest 7.6% 17% and 20%.17% and 7.6%
symbolic of 1776 the founding year of our nation, and 20% symbolic of 20/20 vision, just a thought.
If we wish to raise the income of the people at the bottom of the economic latter and we wish to reduce income inequality why not provide
employers 7 tax exemptions for the benefits they provide their employees and the larger community so that employers or businesses would pay no
income taxes just property taxes, and we eliminate all sales taxes especially those on real estate, energy and telecommunications. We provide businesses
6 tax exemptions of 15% each for the following benefits provided by employees. 1) Healthcare Plan 2) Retirement Plan 3) Paid Sick Leave 4) Profit
Sharing for all employees not just management 5) Flex Time Work Schedules allowing employees to set the hours they begin and end their shift and the
number of days their work hours are spread over. 6) Post-secondary school educational enrichment for all employees not just top management.7) The
seventh tax exemption would be for 10% for charitable contributions to nonprofit organization(s). This would have to be phased in gradually as we phase
in the financing of government via the leasing of air development rights of government owned real estate and shrink the size of the federal state and local
governments simultaneously as I describe in this letter.
The idea behind targeted tax exemptions to reduce employers income taxes to zero is to leave the employer with more money in their pocket so
as to allow employers to be better able to pay their workers higher wages. Wages of workers rise faster where income taxes on employers is lower. Fewer

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numbers of taxes and fewer tax brackets should bring in more revenue to government as a result rapidly rising wages especially because I tap a new
source of revenue to finance government’s operational costs which is to lease real estate air development rights on government real estate
Flex time work schedules would allow workers to choose their own work schedules the start and end time of their work days and the number of
days their work hours are broken up over. I aim to lower taxes enough that workers could afford to work a 30 hour work week broken up over as few as
three days or as many as six days. And I hope to boost hourly wages by 50% so as to make it possible to reduce hours worked by 25% allowing workers
to come home earning 12.5% more in a typical work week while working fewer hours.
Flex time work schedules would spread out the start and end times of many workers and in so doing would reduce the wear and tear on roads
and highway infrastructure reducing pollution that contributes to global warming because rush hours both at the beginning of the day and at the end of
the day would have fewer cars on the road spewing fumes into the air.
Non-management employees’ profit sharing could be in the form of fractional shares of stock worth not less than a fifth of a full share of stock,
that management and investors are compensated with, via stock grants as opposed to stock options to buy a stock below market value. I believe
employees who are compensated in stock should be compensated with stock grants because their labor for the company purchases the stock just as their
labor is compensated with wages for the hours they have worked. This is how you end income inequality.
I would phase out all sales taxes, including those on real estate, energy, and telecommunications. I would finance government largely through
air development rights lease revenue leasing government owned real estate to commercial real estate developers to erect on government land commercial
office buildings that would reserve space in their structure for a government agency or department whose square footage in space they occupy in the
commercial office building would not count towards the zoning codes’ height limitations and the real estate developer could be allowed to exceed the
zoning code height limitation by twice the square footage a government agency of department occupies in a commercial building erected on government
land, the government rents for free. Such agencies or departments would lease their land to commercial real estate developers for three times their annual
operating budget and use one third of their air development rights lease revenue to finance their annual operating budget and invest the other two thirds
of their air development rights lease revenue in the global equity markets to acquire dividend paying equities and to reinvest 76% of those dividends to
acquire additional dividend paying corporate equities and the remaining 24% of dividends would be added to their other operating revenues of
government agencies.
Land that government buildings are erected on generate no real estate taxes for local governments if government leases that land to commercial
real estate developers as I described above and takes space rent free in those buildings whose operational costs would be financed with the air
development rights lease revenue all land now untaxed could be added to the tax rolls and expand the tax base without having to raise taxes on everyone
else. If public schools are financed with air development rights lease revenue, the real estate taxes that now fund public education could instead be used
to finance public infrastructure such as roads and highways, bridges and tunnels, and mass transportations’ tramways ferries, buses and trains so with
those funds being added to existing funds for those expenses the money collected by highway authorities in tolls and the money collected by transit
agencies in fares could instead be invested in the global equity markets to purchase dividend paying equities and 76% of those dividends earned could be
reinvested to acquire additional dividend paying equities with 24% of dividends being added to other operational revenues so that fares, tolls, and taxes
could be kept flat while compounding dividends would provide transit agencies and highway authorities with sufficient revenue to meet their operating
expenses.
Please read on.
Peggy Noonan
The Wall Street Journal
1211 Avenue of the Americas
New York, NY 10036
Corrections: wsjcontact@wsj.com
Letters: wsj.ltrs@wsj.com
Communications
Ashley Huston
Head of Corporate Communication
ashley.huston@dowjones.com
CUSTOMER SERVICE
Thom San Filippo
Vice President, Customer Service
t.sanfilippo@wsj.com
Dear Ms. Noonan: August 23, 2016

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World in Crisis, and There is a Genius in Sight, With a Solution, He is Me, Thomas J. Kraus
I have spent the last 22 years attempting to communicate to people in both parties, a number of think tanks, a number of universities, people
who work at the Federal Reserve, The international Monetary Fund, The United States Chamber of Commerce and on and on, a feasible means of retiring
the national debt of America along with the debt of the state and local governments, and the debt of the world, without raising taxes nor decimating vital
services with indiscriminate budget cuts, nor destroying the American and global economies in the process. Enclosed here is part of my economic plan
for retiring the national debt within 20 years’ time without raising taxes but by completely restructuring the American economy so as to finance the cost
of government through Capitalistic means instead of the current Socialist System that relies almost exclusively on taxation. I believe we must change the
relationship between governments’ and their citizens, and the market from a parasitic relationship to symbiotic relationship by financing governments’
costs more so through investment in the global equity markets and less so through taxation so as to have dividends earned by governments investments in
the global equity markets substantially replace taxes as the prime means of financing the costs of government so that low taxes and limited regulation will
be as much in the economic interests of government as it is in the interests of workers, business and investors.
I believe every agency of government should put at least 24% of their annual allocation in funding into savings in the form of dividend
reinvestment plans otherwise known as drips and that 76% of dividends earned would be constantly reinvested to acquire additional dividend paying
equities. I believe people who work for corporations should pay income taxes while corporations should be exempted from having to pay income taxes
via the use of targeted tax exemptions for the benefits they provide their own employees and charitable donations to nonprofit organizations. They would
be able to exempt 15% of their income from income taxes for each of the following benefits they provide their employees. 1) Health Insurance, 2)
Retirement Plan, 3) Paid Sick Leave 4) Flex Time Work Schedules, 5) On the Job Post-Secondary Education for all workers, not just management. 6)
Profit Sharing for all Workers not just management. 7) And the last tax exemption would be for 10% for charitable donations to nonprofit organizations.
Flex time work schedules would allow workers to choose their own work schedules the start and end time of their work days and the number of
days their work hours are broken up over. I aim to lower taxes enough that workers could afford to work a 30 hour work week broken up over as few as
three days or as many as six days. And I hope to boost hourly wages by 50% so as to make it possible to reduce hours worked by 25% allowing workers
to come home earning 12.5% more in a typical work week while working fewer hours.
Non-management employees’ profit sharing could be in the form of fractional shares of stock worth not less than a fifth of a full share of stock,
that management and investors are compensated with, via stock grants as opposed to stock options to buy a stock below market value. I believe
employees who are compensated in stock should be compensated with stock grants because their labor for the company purchases the stock just as their
labor is compensated with wages for the hours they have worked. This is how you end income inequality.
I would phase out all sales taxes, including those on real estate, energy, and telecommunications. I would finance government largely through
air development rights lease revenue leasing government owned real estate to commercial real estate developers to erect on government land commercial
office buildings that would reserve space in their structure for a government agency or department whose square footage in space they occupy in the
commercial office building would not count towards the zoning codes’ height limitations and the real estate developer could be allowed to exceed the
zoning code height limitation by twice the square footage a government agency of department occupies in a commercial building erected on government
land, the government rents for free. Such agencies or departments would lease their land to commercial real estate developers for three times their annual
operating budget and use one third of their air development rights lease revenue to finance their annual operating budget and invest the other two thirds
of their air development rights lease revenue in the global equity markets to acquire dividend paying equities and to reinvest 76% of those dividends to
acquire additional dividend paying corporate equities and the remaining 24% of dividends would be added to their other operating revenues of
government agencies.
Land that government buildings are erected on generate no real estate taxes for local governments if government leases that land to commercial
real estate developers as I described above and takes space rent free in those buildings whose operational costs would be financed with the air
development rights lease revenue all land now untaxed could be added to the tax rolls and expand the tax base without having to raise taxes on everyone
else. If public schools are financed with air development rights lease revenue, the real estate taxes that now fund public education could instead be used
to finance public infrastructure such as roads and highways, bridges and tunnels, and mass transportations’ tramways ferries, buses and trains so with
those funds being added to existing funds for those expenses the money collected by highway authorities in tolls and the money collected by transit
agencies in fares could instead be invested in the global equity markets to purchase dividend paying equities and 76% of those dividends earned could be
reinvested to acquire additional dividend paying equities with 24% of dividends being added to other operational revenues so that fares, tolls, and taxes
could be kept flat while compounding dividends would provide transit agencies and highway authorities with sufficient revenue to meet their operating
expenses.
Please read on.
Trump Pence
Campaign

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Trump Tower
725 5th Ave
New York, NY 10022
For Press Information Contact:
Amanda Miller
amiller@trumporg.com
Phone: (646) 736-1779
Dear Presidential Nominee Trump; August 18, 2016
Making America Great Again With Winning Economics
Creating a Single Government Healthcare Plan Called
E Pluribus Unum HealthCare
You and Your Campaign must attack the Obama Care, Medicare, and Medicaid and put forth a new single unified government healthcare plan
that will combine the resources of Medicare and Medicaid into a single government healthcare plan that will be financed the same way as commercial
health insurance via investment in the global equity markets. Once Medicare and Medicaid are combined into a single healthcare plan it would be called
E Pluribus Unum Healthcare. There are 50 separate state social service delivery systems in the nation, 3007 local government social service delivery
systems in the nation and the federal government’s own social service delivery system for a total of 3058 separate social service delivery systems at the
governmental level. The state and local governments would have to repeal all forms of sales taxes, including those on real estate, energy and
telecommunications. Because the existence of these taxes make healthcare more expensive than it ought to be. Eliminating these taxes while moving to a
three tier income tax system as you propose and merging and consolidating the federal state and local governments separate social service delivery
systems into a single social service distribution system financed jointly by the federal, state, and local governments as they already finance Medicaid
would provide significant savings in administrative costs that could be used to improve the quality of healthcare provided by government health
insurance while lowering the overall cost to the tax payers by having government insurance avail itself of the power of compounding dividends that
commercial insurance have at their disposal as a result of being invested in the global equity markets. Staffing will be reduced by attrition as government
employees retire fewer new government employees will be needed to replace retiring government workers. A single universal application for government
social services would be used to apply for local, state and federal social services. All existing government workers would be permitted to safely reach
retirement without fear of being laid off. Because it would do our economy no good to put millions of government workers on unemployment where the
private sector would not be able to absorb them all fast enough and their existence among the already high number of unemployed would serve to drive
down wages and the taxes government needs to collect to provide services and pay down debt. The same workers who apply citizens for local social
services will also apply citizens for state and federal social services within the same city and state.
You are the best candidate to sell my economic plan because of your having made your fortune in the real estate industry and my plan calls for
utilizing real estate air development rights to finance a significant portion of governments’ operating costs so for example, at the local level of
government air development rights of public schools systems real estate will fund public education instead of real estate taxes, air development rights of
public libraries public museums, and public performance arts venues would also fund these institutions so the money now spent on these institutions
could be spent on public parks which are underfunded. These institutions would lease their air development rights for three times their annual operating
budget and use one third of the air development rights to cover their annual operating budget and invest the other two thirds of their air development
rights revenue into the global equity markets and reinvest 76% of all dividends earned continuously and utilize 24% of dividends earned to supplement
other operating revenues so over time a greater portion of government’s operating budget would be financed with dividends earned in the equity markets
instead of taxes.
Once public education is financed with air development rights, real estate taxes could be used to finance public infrastructure such as roads,
highways, bridges and tunnels and mass transportation’s tramways, ferries, bus, trains, and light rail. When real estate taxes are combined with the
existing revenue for these infrastructure priorities, the money collected in tolls by highway authorities and fares collected by mass transportation systems
could then be invested in the global equity markets with again 76% of dividends being constantly reinvested in the global equity markets and 24% of
dividends earned being added to the other operating revenues of highway authorities and mass transportation systems so that taxes, fares and tolls could
remain stable long term as compounding dividends would provide sufficient revenue for these agencies to meet their operating costs.
Currently the land the under above institutions, especially public schools, are erected upon generate no local income taxes for the local
governments. In the case of public schools, the land occupied by public schools consumes real estate taxes. Under such a proposal, more of the land in a
city will generate real estate taxes for local governments plus air development rights lease revenue so it would be possible to transition to a single low
real estate flat tax rate which will make it easier to erect more affordable housing and to attract new employers to create jobs in the local governments of
the state of New York which has been losing population and jobs for over 60 years now. Every decade going back 60 years we have lost seats in congress
and political power in Washington falling from being the most populous state in the union to now the fourth most populous state in the union, behind
Florida, which has gained population from New Yorkers who have located there after retirement . The Cato Institute has determined that the state once
known as the Empire State is the lest free highest taxed and highest regulated state in the Union which is why we are only the fourth most populous state
in the union when we were the most populous state 60 years ago.
Mr. Trump, back in the 1990’s I personally dropped off at your office my proposal for keeping the Yankees in the Bronx, I suggested if we
could not keep them in the same neighborhood of the Bronx they spent most of their history by moving them across the street from their former stadium
then they should consider moving them to the North East Bronx outside of Ferry Point Park and that Ferry Point Park be converted to a golf course and
possibly we develop the water front as a marina where people could rent boats and make the area a nice tourist attraction.

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The Yankees did move across the street from their old stadium and you did develop Ferry Point Park into a very respectable golf course. In
2012 I wrote you to encourage you to run for President in this election and to win it if you ran. You are now the Republican Nominee. Some people
believe you do not want to be President but I hope they are wrong and you wish to be elected president because I believe the time has come for you and
me to meet and for you to put me on your campaign staff as a paid aid to you. I want to go to Washington with you so I could have a front row seat on the
fifty yard line of history as I watch you become America’s greatest President of the United States bar none, including the great Ronald Reagan. Without
ever meeting, my ideas shared with you, and your influence and know how have already served New Yorkers well. These ideas below, which I worked
on for 22 years of my life I offer to you freely as I have shared these ideas with others of the years some of which are included in this letter to you for you
to read, We have a good track record together without ever meeting. Imagine what you and I will accomplish working alongside of each other. I give
you three weeks to put me on your staff as a paid aid to you traveling with you everywhere you go so that I may learn from you and better serve
you. But after September 8, 2016 I will share these ideas with Hillary Clinton and Gary Johnson, the Libertarian Candidate, maybe one of them
will give me a paid position on their staff and a front row seat on the fifty yard line of history and go down in history as the greatest President of
the United States of America. My own economic plan wants a three tier tax plan as yours does, but my three tax brackets are 7.6% 17% and
20%, 17% and 7.6% symbolic of 1776 the year our country was founded, and 20% symbolic of 20/20 vision. But to get to those three tax
brackets all of what follows bellow must be implemented over the next 20 years.
Please read on.
Chairman
Carl Weisbrod
New York City Planning Commission
120 Broadway
31st Floor
New York, NY 10271
Tel. 212-720-3300
Fax 212-720-3488
dparish@planning.nyc.gov
Dear Chairman Weisbrod; August 17, 2016
How May New York State’s Local Governments
Modernize Infrastructure While at the Same Time
Create a Frame Work for Reducing Overall Debt?
Also, How May New York State and Its Local Governments
Save Money in the Delivery of Social Services Over the Next
20 Years Helping to Reduce State and Local Government
Worker’s Underfunded Healthcare and Retirement
Benefits Liabilities?
I am writing you to not oppose the state legislation recently passed in the legislature that grants the MTA Zoning Exemptions on Real Estate that
they control because if all your local officials in New York State follow the enclosed economic plan for restoring our state to being the Empire State we
will succeed in ending the 60 year decline in political representation in congress and we will be able to cut taxes yet bring in more revenue so we could
properly fund the underfunded government employee pension and healthcare plans.
As you well know the national debt is $19.4 Trillion dollars, not including agency debt of the federal government which comes to another
$8.24 Trillion and State governments collectively hold about $1.17 Trillion dollars while local governments hold $1.88 Trillion State and local
governments have an estimated underfunded pension liability between $1 Trillion to $4 Trillion, according to the Urban Institute. Total debt of all levels
of government is conservatively estimated to be between $31.69 and $34.69 Trillion All this debt can more easily be reduced if the federal, state and
local governments were to get on the same page to reduce their collective debt via collective action merging and consolidating redundant separate federal,
state and local government functions that could be joined financed by each level of government but administered at the local levels of government which

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are closer to the American people. This based on a Catholic principle of subsidiarity which means that social and economic problems should be resolved
as close to where they originate by the smallest most efficient entity or institution.
Local governments could save money financing public education, public libraries, public museums and public performance arts venues via the
leasing the air development rights of the real estate these institutions are located on to commercial real estate developers who wish to be allowed to
exceed the local zoning code height limitations which local governments could agree to allow them to do by having these historically standalone
institutions instead erected inside commercial office buildings built on government land allowing real estate developers to exceed the maximum height
limitation by 3 times the square footage the government entity occupies in a commercial real estate development. These government entities could make
sure they lease the land they own for three times their annual operating costs and use one third of their air rights development revenue to cover their
annual operating budgets and use the remaining two thirds of air development rights lease revenue to invest in dividend paying equities and continuously
reinvest 76% of all dividends earned to acquire additional dividend paying equities. The remaining 24% of dividends could then be added to other
operational revenues so that over time dividends earned on investment in the global equities markets could come to replace taxes as the primary source of
government revenue.
With these institutions financed with air development rights lease revenue the real estate taxes now collected by local governments to finance
public education could then be redirected to financing public infrastructure for roads, highways, bridges and tunnels, and mass transportation’s tramways,
ferries, bus and trains and light rail. With real estate taxes added to the currently inadequate funding for public infrastructure the money collected in tolls
from highway authorities and the fares collected from transportation agencies could then be invested in the global equity markets in dividend paying
equities with again 76% of dividends constantly reinvested to acquire additional dividend paying equities and 24% of dividends earned being used to
supplement operation revenues of highway authorities or transportation agencies.
Currently the land the under above institutions, especially public schools, are erected upon generate no local income taxes for the local
governments. In the case of public schools, the land occupied by public schools consumes real estate taxes. Under such a proposal, more of the land in a
city will generate real estate taxes for local governments plus air development rights lease revenue so it would be possible to transition to a single low
real estate flat tax rate which will make it easier to erect more affordable housing and to attract new employers to create jobs in the local governments of
the state of New York which has been losing population and jobs for over 60 years now. Every decade going back 60 years we have lost seats in congress
and political power in Washington falling from being the most populous state in the union to now the fourth most populous state in the union, behind
Florida, which has gained population from New Yorkers who have located there after retirement . The Cato Institute has determined that the state once
known as the Empire State is the lest free highest taxed and highest regulated state in the Union which is why we are only the fourth most populous state
in the union when we were the most populous state 60 years ago.
There are 50 separate state social service delivery systems in the nation, 3007 local government social service delivery systems in the nation
and the federal government’s own social service delivery system for a total of 3058 separate social service delivery systems at the governmental level.
The federal, state and local governments could save money consolidating their separate social service delivery systems into a single social service
distribution system jointly financed by all three levels of government as they all currently jointly finance Medicaid and all the resources that currently
separately finance Medicare and Medicaid can be combined into one insurance program called E Pluribus Unum HealthCare to provide all current
American citizens covered separately under Medicare or Medicaid a single Unified Government Healthcare System financed the same way as
commercial insurance is financed via investment in the global equity markets. The problem with providing affordable healthcare to the American people
is that if a single payer healthcare system makes sense at all it only make sense at the government level. If we eliminate all forms of sales taxes, energy
taxes, and telecommunication taxes and transition to a low single real estate flat tax then it will be possible to provide every American Affordable
Healthcare
If we merge and consolidate federal, state and local social service offices we could reduce the combined size of the social service distribution
system that process cash benefits over a decade and a half through attrition as fewer new government workers would be hired to replace retiring
government workers and the same workers who process local social services could also process state and federal social services utilizing a universal
application for financial assistance for Americans in need within the same city or state.
The federal state and local governments could also save money locating their separate courtrooms within the same, but much taller government
office building courthouses. The building could be divided into three separate legal jurisdictions the three levels of government could save money on the
infrastructure costs associated with erecting courthouses. Instead of having to acquire land for three separate office buildings they could collectively have
to acquire one office building whose costs would be split between the three levels of government. While they would each would be responsible for the
costs of their own judges, prosecutors, law clerks, and legal secretaries they could share the costs of facilities management, court officers and
stenographers.
In 1898 five independent counties in lower New York State merged and consolidated to form a greater New York City combining the outer
counties of Queens, Brooklyn, Staten Island and The Bronx with New York County, or Manhattan. They merged to obtain the economy of scale of
having fewer redundant government positions eliminating 4 mayors, 4 Police commissioners, 4 fire commissioners, 4 Sanitation commissioners, 4 city
councils, four school chancellors etc., etc., etc. The same idea is needed not only throughout the state of New York combining two or more smaller local
governments into fewer but larger local governments, it may be necessary to combine two or more smaller states into large corporate entities shrinking
the number of states while increasing the size of those states in population and geography.
The federal, state and local governments could save money in environmental policy by merging and consolidating the separate federal, state
and local environmental laws into a single environmental law that applies the same way from city to city, state to state, coast to coast. Local governments
could investigate environmental complaints within their jurisdiction and turn over their investigatory information to the state prosecutor and the state
prosecutor could compare data from other local governments within its jurisdiction to see if the same corporate polluters are causing environmental
complaints in other local governments and if so, combine the complaints into one law suit saving the state and the accused money ligating the law suit so
whoever loses the case would have more money left over to cover the cost of cleaning up the environmental damage.
Cc Thomas M. Roach President of NYSCOM

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Peter Baynes, Executive Director NYSCOM
Stephanie A, Miner, Mayor of Syracuse
Robert T. Kennedy, Mayor of Freeport
Please read on.
Executive Director
Scott Pattison
National Governors Association
Hall of the States
444 N. Capitol St., Ste. 267
Washington, D.C. 20001-1512
Phone: (202) 624-5300
Fax: (202) 624-5313
Please read on.
Tom Cochran
The CEO and Executive Director
The United States Conference of Mayors
1620 Eye Street, Northwest-Washington, DC 20006
Phone: (202) 293-7330 Fax: (202) 293-2352
info@usmayors.org
Please read on.
Chairman
Thomas F. Prendergast
Chief Executive Officer
Metropolitan Transit Authority
347 Madison Anenue
New York, NY 10017
Dear CEO Prendergast; July15, 2016
How May The MTA In Particular and Government at All Levels Navigate Through These
Currently Economic Hard Times So That We Pay Down The Debt Of The Federal, States
and Local Governments and Avoid New York State’s MTA from Returning to The
Economic Conditions Of The 1970’s and 1980’s that Caused the Agency to Put off Proper
Maintainace and UP Keep of the MTA?
Three years go this November 20, 2016, I wrote to then MTA New York City Transit President Carmen Blanco with an idea to bring more
revenue into your agency via the exploitation of real estate air development rights. That letter is immediately below this letter to you. It is my belief that
real estate taxes should more appropriately be used to finance infrastructure costs for roads and highways and as well bridges and tunnels and mass
transportation infrastructure’s trains, buses, ferries, and tramways. I further believe it makes more sense to finance public education via exploiting the air
deelopment rights of real estate owned by public school systems to encourage commercial real estate developers to erect on public school land
commercial office buildings that will reserve some space in their structure for public schools, rent free, that would be financed via the air development

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rights lease revenue so that real estate taxes could then be added to the revenue sources for infrastructure modernazation of roads, highways, bridges and
tunnels, and mass transportation systems’ ferries,tramways, buses and trains. My objective is for our nation to be able to wipe out the debt of the federal,
state and local governments over the next twenty years without having to resort to draconian tax increases nor draconian budget cuts decimating vital
services the American people have to come to expect and desire from their government, by having the federal, states and local governments join together
in the restructuring of the American economy in how governments finance and deliver services to the American people. My proposal calls for the gradual
reduction of taxes by 50% over twenty years at every level of government by repacing 50% of tax revenue with revenue derived from dividends earned
on investments made in the global equity markets, including real estate, by every level of government. In sharing these ideas with you, I hope you will
help me communicate these ideas to other Transit Chiefs in Transit Agencies across the nation so that we can get America back on the right track lterally
and figuratively over the next twenty years so we may retire American debt without creating economic hardship in the process.
Enclosed is an article from the June 8, 2016 edition of The Wall Street Journal concerning MTA Zoning Exemptions which which the state
legislature passed this year based on ideas I helped inspire in the consciousness of New York State political leaders as the letter below will demonstrate. I
will reach out to the political leaders listed in the enclosed article to encourage them to allow your agency to obtain the zoning code exemptions the state
legislature granted your agency without repeal of the zoning code exemptions so that your agency could afford to hold off on high and frequent increases
in fares on your transit system and as well hold off on high and frequent increases in tolls on the bridges you control. The long term goal is to transition
to public education being financed with air development rights of the real estate controlled by public school systems on which commercial office
buldings would be erected as the public school systems lease that land to real estate developers to erect commercial office buildings upon school land that
will provide local communities new state of the art public schools inside commercial office buildings at little or no costs to the tax payers to erect or
finance the operation of once built because air rights lease revenue will cover the operating costs of the public schools. The same idea can be applied to
Public Libraries, Public Museums, and Public Performance art venues all of which are built as statnd alone structures that occupy valueable untaxed real
estate if placed on the tax rolls will bring in more revenue without having to raise taxes on existing tax payers so each of these government dependancies
can become self sustaining independent of tax revenues.
I suggest that these institutions lease these properties for a modest three times their annual operating budget and while utilizing one third of
their air rights development lease revenue to cover operating expenses and invest the remaining two thirds of their air rights development lease revenue
into the global equity markets to acquire dividend paying equties (only to provide a revenue stream independent of taxes without having to sell the
equities.) and reinvest 76% of dividends earned to acquire additional dividend paying equities. The remaining 24% of dividends earned by these cultural
and educational instituions could then be added to their then other existing operational revenues. As public schools, public libraries, public museums, and
public performance art venues become self sustainingly financed with air development rights lease revenues and the dividends earned on investment in
the global equity markets in dividend paying equities, the moneies that now finance these culturial and educational instituions could then be directed
towards public infrastructure. These moneies include real estate taxes, and revenue from income taxes as well. With these additional funds added to the
current funding sources for infrastructure for transportation purposes in roads, tunnels, bridges, and highways to be supported by investments in trains,
buses, ferries, and tramways the funding of separate dedicated tracks for high speed commuter rail, and freight rail tracks can be undertaken which in
many parts of the country currently travel on some of the same tracks slowing down the potential of current commuter trains because freight rail that uses
the same track as commuter rail must traavel much slower considerably to avoid derailing because heavy freight cars cannot turn on the same narrow
radius turn that lighter weight commuter rail cars only loaded with people and not weighed down with heavy equipment, produce, or sanitary waste, are
able to safely turn on at higher speeds.
Adding real estate taxes and taxes from income taxes that now fund culturial and educational instituions to the current funding sources for
transportation infrastructure would allow Highway and Bridge and Tunnel Authorties and Mass Transit Agencies to invest their toll and fare revenues in
the global equitties markets and reinvest the 76% of the dividends they earn on those investments and utilize 24% of the remaining dividends earned to
supplement their other operating revenues so that taxes, fares, and tolls can remain stable as compounding dividends would allow the operational
revenues of Highway, Bridge and Tunnel Authorties and Transit Agencies to keep pass with operational costs. When all the buildings government
agencies do business from operating costs are significantly covered with air rights development lease revenue and whose land is added to the real estate
tax rolls, the nation could then transition to a real estate flat tax system lowering both commercial and residential real estate taxes to one single low tax
rate.
Thank You Sincerely
Thomas J. Kraus
599 Ralph Avenue
Brooklyn, NY 112333
917-795-6610
tjk271@yahoo.com
P.S. There is much more to my economic plan than you will see here. I could have probably given you an outline of this entire proposal in only seven
pages without including only just some of the people in business, academia and politics I have already shared these ideas with before you but than you
would not now have any idea of the kinds of people and trade associations I have been reaching out to in support of these ideas including all the past
Presidents of the United States of America that are still alive and as well Donald Trump, Bernie Sanders, Hillary Clinton and Dr. Benjamin Carson. And
a number of Think Tanks across the country on the left and on the right.
Sincerely
T. J. K.
Please read on.

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.
Carmen Blanco
President
MTA NYC Transit
2 Broadway
New York, NY 10004
Real Estate Department
Metropolitan Transportation Authority
347 Madison Avenue
New York, NY 10017
Telephone: 1- 212- 878-7049
EmailMTARE@mtahq.org
Dear President Blanco: November 20, 2013
Getting America on the Right Track
Eliminating the Structural Deficits of the Local and State
Governments of New York; a Brief Outline of a Long Term Action Plan
For Increasing Revenue to Pay for Government Services and Reducing Debt
Without Having to Raise Taxes So That Government Employees Will Not
Have to Continuously Suffer Back To Back Years of 0% Pay Increases
And Risk Having to Suffer Pension and Healthcare Benefit Cuts
The governments of the United States, such as our own cities and state, are burdened with structural deficits that cannot be eliminated via tax
increases and they must cut spending, and cut taxes to attract more investment in job creation, while tapping new sources of nontax revenue to finance
government’s operational costs. The national debt will not be eliminated until the Federal, State, and Local governments work together for
comprehensive structural reform of the American economy and the delivery of government services.
One reform the Local and State Governments of New York could implement to cut spending, cut taxes, pay down debt and generate additional
revenue would be to up zone the real estate on which Public Schools, Public Libraries, Public Museums and Public Performance Arts Institutions now
rest to allow for much taller buildings to be erected of 1000 feet in height or more. Than have the air rights above these government financed institutions
leased to real estate developers to erect new Public Schools, Public Libraries, Public Museums and Public Performance Arts Institutions, not as stand-
alone facilities but as part of much larger sky scrapper office buildings whose construction cost will not be borne by the tax payers and whose air rights
revenue paid to the government institutions would finance their operational costs. In the case of Public Libraries, Public Museums, and Public
Performance Arts Institutions now funded with government dollars once they are funded with air rights revenue in perpetuity the money now spent on
them could be redirected to serving other government objectives such as beefing up government employee underfunded pension costs and underfunded
healthcare benefit liabilities, pay down government debt, increase funding for police an fire protection, increase funding for education, and Medicaid and
Medicare and a host of other government services without having to raise taxes.
Having public education funded with air rights revenue would allow us to take the real estate taxes that now fund public education and instead
use those revenues to fund infrastructure modernization of the MTA roads and highways, and bridges and tunnels, again, without having to raise taxes. If
the real estate taxes combined with the taxes that now fund the MTA were to fully cover the operating costs and capital costs of the MTA independent of
the fares and tolls collected from buses, subways, passenger rail and bridges and tunnels then the fares and tolls not being needed to meet the agency’s
day to day operating costs could be invested in dividend paying corporate equities and 50% of the dividends earned on those investments would be used
to continuously acquire more dividend paying corporate equities and the second 50% of dividends collected could be combined with the taxes of the
MTA to supplement both the operational budget and as well the capital budget allowing the MTA to underwrite capital costs at lower rates of interest
leaving more money to pay workers higher wages and better benefits. Most Importantly, such restructuring may allow us to roll back the fares and tolls
of the MTA by 50% long term making our state more attractive to employers to come and create good paying jobs needed to raise the tax base to finance
government workers’ salaries and benefits. If this idea is copied nationwide the savings in spending and the increase revenue from air rights and the
investing of fares and tolls in the equity markets would allow us to pay down the national debt without draconian budget cuts nor draconian tax increases
each of which would destroy the economy by creating even more unemployment which would make it more difficult to pay down government debt at
every level of government.
Such a plan will make it possible to finance high speed rail nationwide even while we pay down the national debt and the state and local
government debt. There is much more to this plan but this is of particular interest to your own agency economic interests. Please share with the Chairman
of the MTA. I would have sent it to him but your agency’s web site does not clearly indicate where I should write to communicate with him.

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Please read on.
Senior Fellow
Journal
52 Vanderbilt Avenue,
New York, N.Y. 10017
Phone: (212) 599-7000
Fax: (212) 599-3494
adamsmith@manhattan-institute.org
Dear Senior Fellow Gelinas: November 18, 2013
Long Term Means of Avoiding Risky Fare Games
Would you care to publish the letter below addressed to Mayor Elect Bill de Blasio in the City Journal? A version of this letter to you
was just sent to the New York Post where I read your column that appeared there today. (The first 1 ½ pages.) Its subject matter in general
concerns real estate development but specifically a new means to finance the cost of modernizing or constructing new cultural institutions and as
well, to finance their operating expenses independent of taxes by leasing their air rights to real estate developers to erect on their property mixed
use real estate developments that would incorporate the cultural institutions in the larger development and utilize the air rights revenue to cover
the operational costs of the cultural institutions.
Over the weekend, I was thinking this idea could also be used to finance the cost of constructing new Public Schools at little or no cost
to the tax payers and possibly as well finance the Public Schools operational costs. Imagine if you will, The City of New York up zoned all the
real estate in the city to allow for much taller buildings to be erected especially the land on which Public Schools, Public Libraries, Public
Museums, and Public Performing Arts Institutions exist. If the land on which these public institutions was zoned for buildings 1000 feet high (or
more) and the zoning code had a stipulation that if 50% of the square feet in height was occupied by nonprofit entities than those square feet
would not count towards the maximum height allowance and the developer would be permitted to exceed the maximum height by another 1000
feet. Than The Department of Education Leased all the Air Rights Above Public Schools to real estate developers to erect office buildings that
would incorporate the public schools in their structure. Because the Public schools own the air rights they would not have to pay rent to the real
estate developers for the space they occupy and they would collect the air rights revenue from the real estate developer to finance the
operational costs of the public school system.
The real estate taxes now collected instead of being spent on public education could then be spent on mass transportation, roads,
highways, bridges and tunnels that could keep the subway fare and the tolls on bridges and tunnels stable long term. If the entire Public school
system could be financed with air rights revenue, and the real estate taxes now collected for public education was able to fully cover the cost of
both the MTA’s Subway and Passenger rail systems and bridge and tunnels roads and highways independent of the existing fares and tolls then
the MTA instead of using fares and tolls to meet their day to day operational expenses could use that revenue to buy corporate dividend paying
equities and utilize 50% of the dividends paid off of the corporate equities to finance the obtainment of additional dividend paying equities and
the remaining 50% of dividends to supplement the taxes to finance the MTA’s capital and operational budget which would allow fares and tolls
to remain stable long term and (as well taxes) and make our City and State more competitive with other States and their cities in job creation
especially if this idea allowed the MTA to generate enough revenue that they could not only maintain the current fares and tolls long term but
allow the agency to cut current fares and tolls by 50% long term. Of course we must restructure the city’s economy over at least a decade or two
to fully accomplish this objective because it would take time to replace all the Public Institutions to accomplish these objectives. This Idea Might
Make It Possible to Finance the Replacement of the Tappan Zee Bridge by allowing the state and city to both cut spending and in addition to
generating more revenue without raising taxes.
Inspiration for this idea came from an Office Building on Park Avenue between 32St
and 33nd
Street which houses the Norman Thomas
High School. The school takes up about 10 floors of the office building and has its own entrance on 32nd
Street while the main entrance of the
office building is on Park Avenue and there are commercial businesses on the ground floor of the Office Building surrounding the High School.
Another inspiration was the fact that the air rights from the Chrysler Building have since the buildings opening have financed the free college
education of students of the Cooper Union University.
Please read on.

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Bill de Blasio
New York City
Public Advocate
1 Centre Street, 15th
Floor
New York, NY 10007
(212) 669-7200
Dear Mayor Elect de Blasio November 8, 2013
Increasing Funding for Public Libraries, Public Museums,
And other Cultural Affairs, Affordable Housing, Public Parks
And Many Other City Objectives without Having to Raise Taxes
Let us get your New Administration off to a good start. The worst time to raise taxes is during a recession or a recovery from an economic
downturn because you risk creating a double dip recession. Before you consider raising taxes you need to recognize you have valuable resources at your
disposal you can exploit for revenue to fund city objectives. Government at all levels must cut costs, cut taxes, and generate new revenue sources
independent of taxes while preserving essential services if the nation is to be able to pay down the national debt because the national debt is not a Federal
Government Problem to be resolved but an American problem to be resolved.
If you lease the air rights above Public Libraries, Public Museums, and Public Cultural Performance Space Institutions such as Lincoln Center
and Carnegie Hall to Real Estate Developers to erect new cultural institutions on the same sites that are not stand alone propositions but are part of mixed
use cultural/commercial/and residential real estate the air rights revenue collected by the cultural institutions from the real estate developers would fund
the operational costs of the cultural institutions in perpetuity regardless of the state of city finances. Such mixed use developments would include 20%
Affordable Housing. The city could also provide incentives to build more Affordable Housing by changing zoning laws so as to exempt from the
maximum height the square footage of Cultural Institutions and the Affordable Housing Portions of mixed use cultural/commercial/and residential real
estate. If the combined square footage of Cultural Space and 20% Affordable housing component of a mixed use Cultural/Commercial/ and residential
real estate development do not exceed 50% of the current zoning codes maximum height the real estate developers should be permitted to erect a building
that exceeds the current zoning code maximum height by twice as much. To make clear, if the current code allows for a building that is 1000 feet high
and the combined square footage of Cultural Space and Affordable Housing in height do not exceed 500 square feet than the real estate developer should
be allowed to erect a building that exceeds the 1000-foot limit by another 1000 feet.
By mixing Cultural/ Commercial/and 20% Affordable Housing with 80% market rate residential housing we will insure that the real estate
developments will earn sufficient profits so that the Affordable Housing Component will not become run down crime infested dwellings shortly after the
affordable housing is built as happens when you build Affordable Housing by itself in standalone institutions where the rents collected are not sufficient
to do proper maintenance on the facilities and to fund security. Including cultural institutions in mixed use developments that include Affordable Housing
we could bring the Arts and Humanities to the common citizen who otherwise might not be able to afford to participate in the Arts and Humanities.
Once these cultural institutions are financed with air rights revenue the money now spent on them could be spent on other objectives such as
Police and Fire Protection, City Parks, and Public Education without having to raise taxes. As new Affordable Housing is built above these cultural
institutions city residents now living in City Public Housing Developments could be moved into the new Affordable Housing Dwellings and the city
could then sell its Housing Developments to Private Sector Real Estate Developers to either refurbish or tear down and replace with new residential
housing where 20% of housing units would have to be Affordable Housing. As the city gets out of Running Affordable Housing Dwellings and city
housing projects land is returned to the real estate tax base the city would collect more in real estate taxes without having to raise tax rates on real estate
so the city could afford to provide needier families with rent vouchers and provide more real estate developers tax abatements for building Affordable
Housing.
Ultimately, the objective would be for every residential real estate development to provide 20% Affordable Housing. What makes housing so
expensive in our city is the segregation of Luxury Housing from Market Rate Housing and Market Rate Housing from Affordable Housing. If we
included Luxury Housing, Market Rate Housing and Affordable Housing within the same real estate developments with commercial real estate
everybody’s housing costs would be more affordable and the Real Estate Industry would earn greater profits with or without tax incentives. Like you, I
am opposed to micro apartments of less than 400 square feet and believe Affordable Housing Units within buildings that include Luxury, Market Rate
and Affordable Housing in the same building should be no smaller than 500 square feet. For such buildings to be erected affordably for developers the
Market Rate apartments would have to make up 50% to 60% of the habitable square footage and the Luxury and Affordable Housing components would
have to each make up 20% to 25% of the square footage of habitable space, space excluding stair cases, elevators and hallways leading to apartments.
While the total square footage of the luxury and affordable housing components of a real estate development would be the same the Luxury apartments
would be fewer and each would take up more space while the affordable housing units would be greater in number but each would take up less space.

16 of 27
For Example, in a building with 300,000 square feet of habitable space, the Market Rate Apartments could make up 150,000 Feet of space with
each apartment occupying 1000 square feet for a 150 apartments. The Luxury Apartments could make up 75,000 square feet of space with each
apartment occupying 3000 square feet of space for 25 apartments and the Affordable Housing Apartments could be occupying another 75,000 square feet
total with each apartment occupying 500 square feet for another 150 apartments.
I believe you would be wise to appoint Mr. George McDonald your Deputy Mayor in charge of the Department of Homeless Services and
privatize the city shelters and have all shelters in the city follow the model of the Doe Funds program of helping the homeless by first connecting them to
jobs as Mr. Mc Donald Doe Fund does. I believe you would also be wise to hire Mr. Joseph Lhota your Deputy Mayor in charge of New York City
Housing Authority and the city’s Housing Preservation Program and privatize NYCHA. By privatizing city shelters and NYCHA you could put more
police officers on the street by having the housing police and the police for the department of homeless services retrained and placed in the city subway
system to improve security underground.
Appointing your rivals for the Mayoralty as Deputy Mayors will demonstrate that you are a true progressive. Privatizing the city shelters and
NYCHA will allow the city to actually better serve the homeless and low income individuals and families who cannot afford Market Rate Housing
because more Affordable Housing could be built and more rent vouchers can be issued if the city did not both operate Housing Developments and
subsidize private sector affordable housing and more services could be brought to the homeless if the city did not both operate its own shelters and
supervise and inspect privately run shelters. Getting homeless people into jobs will save the city tons of money in entitlement programs. Cutting costs in
this manner is utilizing a laser scalpel instead of a meat cleaver to trim the budget so as to cauterize the wounds as we cut to eliminate unnecessary
bleeding on the body politic of the city.
Sincerely
Thomas J. Kraus
347-414-0958
tjk,271@yahoo.com
John H. Cochrane
Professor of Economics
The University of Chicago
Booth School of Business
5807 S Woodlawn Avenue
Chicago IL 60637
Phone: 773.702.3059
Cell: 773.919.3257
Email: john.cochrane@chicagobooth.edu
Webpage: http://faculty.chicagobooth.edu/john.cochrane/
Office location: Harper Center 459 (South-East side)
Dear Professor Cochrane: June 9, 2016
Is Not America’s Slow Growth Tailspin a Function of Enormous Global Debt Planet Wide?
The total debt worldwide exceeds $224 Trillion which is inclusive of government debt, business debt and household debt while the total
income of the planet is little more than $75 Trillion dollars. (Figures are two years old) Which means debt exceeds income by 300%. Shouldn’t any Free
Trade Agreement have provisions in government policy to tackle paying down Government Debt worldwide, and facilitate the reduction of Business
Debt and Household Debt? If you are pressed for time, please read just pages1-3 and the first 6 lines of page 4 quickly, and you may read the rest of the
letter in your leisure when you have more time. On Page 12 is a letter to Stanley Fischer, Vice Chairman of the Federal Reserve, dated September 18,
2015. I had originally intended to send you a letter around the same time last year but have got caught up in other matters and issues and neglected to
reach out to you. I intend to reach out to Paul Volcker former Chairman of the Federal Reserve, sometime within the next week or so. Thank you
sincerely. Thomas Kraus.
In your Wall Street Article of July 2, 2014 which was updated from June 8, 2014 “The Failure of Macroeconomics you state, “Where
Macroeconomists differ, sharply is on the cause of the post-recession slump and which policies might cure it. Broadly speaking, is the slump a lack of
demand which monetary or fiscal stimulus can address or one of structural sand in the gears stimulus won’t fix”?
To answer your above question Macroeconomists must come to the recognition the global slowdown in economic growth is not an either/or
problem but a both/and problem. Going back to the 1990’s many millions of Americans have been downsized into lower paying jobs or have managed to
find a way on to Social Security Disability and simply lack the money to increase spending. Employers do not wish to hire a great number of workers nor

17 of 27
raise wages until there is greater demand but working Americans are not going to increase spending until their wages rise so there is an economic catch
22 holding back the economy. Employers need tax cuts to hire more workers and to pay higher wages. It is a problem that calls for prolonged stimulus,
raising interest rates on bank deposits and on government debt while cutting taxes and spending of governments worldwide. It also calls for increased
saving by government, business and households. At low rates of interest, you might entice more people to desire to borrow more money from banks but
at such low rates of interest many credit seekers are looked at as greater financial risks, so banks do not lend to them. At near zero percent interest banks
cannot afford to sell government bonds because no commission is paid on the sale of debt so average Joes who might have bought savings bonds at
higher interest rates do not buy government debt so that the only parties buying government debt is the other governments and institutional investors and
the Federal Reserve through monetary easing or printing new money. If American money was not the reserve currency of the world we would be
experiencing runaway inflation.
I am interested in reading your proposals for Equity Financed Banking and a Run Free Financial System of May 16, 2016 and your proposal for
A New Structure for Federal Debt of January 2015 (Formerly titled U.S. Federal Debt in the 21st
Century. I have already requested those articles in PDF
form be emailed to me. I have long proposed that monetary policy, tax policy and fiscal policy all need to be reformed so that they form an Equilateral
Triangle so the three economic disciplines would be conducted jointly in relationship to one another and not independently from one another as has been
done since the creation of the Federal Reserve. I believe every level of government, every department and agency should establish Sovereign Wealth
Dividend Reinvestment Plans putting 24% of every revenue dollar into Sovereign Wealth Dividend Reinvestment Plans and be required to constantly
reinvest 76% of dividends to acquire additional dividend paying equities and add the remaining 24% of dividends to governments other operational funds
so over time a greater share of government’s operational funds would come from compounding dividends from investments in the global equity markets
and not taxes. I similarly believe federal, state and local tax policies should make provision for tax paying citizens and business being permitted to
exempt 24% of income from federal, state and local income taxes while phasing taxes on capital gains and interest on bank deposits, sales taxes of all
kinds, including those on real estate, energy and telecommunications.
This plan also calls for governments exploiting the value of their real estate air development rights to generate additional operational revenues
without raising taxes. By leasing the air development rights of real estate they own to real estate developers to erect on government land commercial real
estate developments that would reserve space in their structure for a government agency or department rent free whose operational costs would be
covered by the revenue collected from the air development rights lease revenue. All a government agency or department need do is lease the property for
a modest three times their annual operating revenue and use one third of air rights lease revenue to cover the operational costs of the agency and
department while investing the other two thirds of air development rights in the global equity markets and reinvest 76% of dividends in global equity
markets and add the remaining 24% of dividends earned to the other operational funds derived from air rights leases.
If all public schools (or Public Libraries, Public Museums, or Public Performance Art Venues) which now are erected as standalone buildings
that generate no real estate taxes for local governments and instead eat up real estate taxes were placed inside commercial real estate office buildings and
were financed with air development rights revenue, we could transition to a lower flat real estate tax system and instead of utilizing real estate taxes to
finance public education we could utilize real estate taxes to supplement the monies now going to inadequately finance public infrastructure for roads,
highways, bridges and tunnels and mass transportation’s buses ferries, tramways trolley cars and trains. With real estate taxes added to these underfunded
infrastructure projects, the money now collected in tolls and fares by highway authorities and transit agencies could then be invested in the global equity
markets with 76% of dividends being constantly reinvested to acquire additional dividend paying equities and the remaining 24% of dividends being
added to the other operational funds of highway authorities and transit agencies so as dividends compound fares, tolls, and taxes can remain stable or
even be cut while providing those agencies sufficient revenues to operate effectively.
Note the above suggestion demonstrates how to cut government spending over both the short term and long term without decimating vital
government services or having to eliminate or reduce entitlement benefits. It is what some would call austerity done right or intelligently. Governments
cannot be sustainably financed unless they are financed through Capitalistic Means and they cannot eliminate debt nor keep inflation at bay long term
unless governments run continuous surpluses. I believe an Autopsy for Keynesian Economics might be premature because I believe Keynesian
Philosophy is laying on the economic operating table in that state of being between life and death when a patient’s heart has stopped and the patient sees
a bright light and hears a voice telling her that her time on Earth is not finished and she must go back to finish her assigned work on Earth or to complete
the purpose for why she was born. If governments run continuous surpluses during prosperous times than the deficit spending needed during economic
downturns could easily be engaged in without having to run up debt by having the deficit spending done with the reserves that were established for that
purpose with the establishment of Sovereign Wealth Funds. Having government agencies and departments split their annual allocation of funding into
two parts spending only 76% to cover their annual operating budget and banking 24% of their annual allocation in a Sovereign Wealth Fund Dividend
Reinvestment Plans would unite Fiscal Policy and Monetary and not to forget to mention tax policy. If we truly want to contain inflation we must raise
the savings rate of the country discouraging governments, business and households from spending every last dime today failing to save and invest enough
for tomorrow. Government taxing and spending is a major contributing factor to rising inflation.
Contrary to what many Macroeconomists believe, there is not a glut of savings 45% of Americans if faced with an emergency that required
them to come up with $400 quickly many would be very pressed to be able to do so. If you added another $100 you might discover more than 50% of
Americans would have difficulty coming up with the money. Financial planners recommend a budgeting strategy for families where 50% of disposable
income go for rent/housing costs, food, clothing, transportation, and entertainment, 25% go for health insurance and retirement plans, and 25% go for
savings spending reserves for emergencies. With the high tax burden Americans face there is not enough disposable income for healthcare, retirement
plans and emergency savings, especially if you earn less than $50,000 a year. If you eliminate all forms of sales taxes, especially those on real estate,
energy and telecommunications all businesses would earn a higher return on investment which would allow them to pay higher wages and possibly
provide better benefits to their employees whose higher wages earned would offset the taxes that were eliminated so governments would in fact collect
more tax revenue as they eliminate the number of varied taxes and lower tax rates and reduce tax the number of tax brackets.
You might be aware that George Mason University did a study several years ago of the income tax system since its creation in 1913 the same
year as the Federal Reserve. They discovered that no matter how high the maximum tax rate of the country the federal government has never managed to
bring in more than 20% of GDP in the form of taxes. Which leads me to ask, does it make any sense to have tax rates higher than 20% if the government
will not bring in more than 20% of GDP in tax revenue?

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