America’s Failed Welfare System
The U.S. welfare system has failed America’s poor and has led to the bankruptcy the federal government. Our federal government struggles to maintain its 83 different welfare programs. Federal spending on welfare programs alone has increased 400% since 1980 exceeding $1.5 trillion in 2021. Current welfare and entitlement programs take up 80% of the total federal revenue each year. Include the yearly $500 billion interest payment on the federal debt and the federal government is left with less than 10% of its total revenue to fund all other government programs. Instead of reducing spending, the government adds $2.2 billion each day to the federal debt just to keep the government running.
State and local spending on welfare programs has more than tripled since 2000, increasing from $233 billion to over $800 billion in 2021. Welfare programs are the leading expense in most states surpassing all other program funding including primary and secondary education. When states spend more on welfare programs, they are forced to reduce funding for other state programs such as education, law enforcement, fire, and rescue. This means lower salaries and higher student loads for teachers. Lack of proper training and quality control for law enforcement. Outdated safety equipment for our fire departments and other first responders.
Despite spending more than $40 trillion on welfare and entitlements programs since 1935 the poverty rate in the U.S. has never dropped below 11%. As the U.S. population increases, the total number of poor in America also increases. Politicians have failed to reconcile inequality through legislation and actually have made the progress of many citizens consequently worse with welfare programs. America’s welfare structure requires recipients to persist in their impoverished status in order to maintain their benefits. If a citizen obtaining support from current welfare programs attempts to improve their station in life, they are quickly removed from their safety net. America’s current structure results in generations of families and ever-increasing numbers of single parents completely dependent on welfare, stuck in a substandard government-subsidized way of life.
United States Citizen Fund (USCF) Welfare Reform
A very important aspect of USCF welfare reform is to help citizens realize there is always hope for their future. This is particularly significant for our children. Research shows that children who develop a positive outlook for their future have fewer behavioral issues, are less likely to engage in risky behavior, perform better academically, and become successful in life. The USCF can help our children develop this mindset regardless of socioeconomic status. By the time our children reach the age of 18 they will have accrued more than $1 million Virtual Currency (VC) in their USCF and about $250,000 real dollars in their USCF Flexible Savings Account (FSA). After high school, young adults have the security of knowing that when they make the transition to college or the workforce these funds are available to help them prepare for their future.
USCF’s Supplemental Income Benefit (SIB) is the primary method of boosting income. Most economically disadvantaged people have a strong desire to work for a better way of life. Many individuals who previously relied on government support have become constrained by America’s welfare programs that keep them poor. It is well established that equitable income provides the hope necessary to lift people out of poverty and help them become part of the middle class. More people moving into the middle class not only improves opportunities for them and their children but helps reduce the overall cost of government programs.
The United States Citizen Fund is designed to significantly reduce overall government spending. The USCF eliminates all federal and state entitlement programs incorporating them into a single fund. The Currency Usage Tax and USCF work together to solve numerous issues Americans have endured with regard to the IRS, entitlement programs, education, healthcare, livable wage, retirement, crime, justice, and much more. USCF solves America’s problems utilizing sound reform that increases government efficiency, streamlines bureaucracy, improves quality, and reduces overall costs. While some Americans may be disappointed with the elimination of the IRS it is important to understand that its personnel and resources are needed for USCF management and oversight. The IRS will be transformed to assist Americans with their benefit programs as part of the Federal (FMS) and State Management Systems (SMS). The resources of the former IRS will be utilized by FMS and SMS to monitor and control USCF programs while preventing Fraud, Waste, and Abuse (FWA).
The Currency Usage Tax eliminates all revenue sources for the federal government and states utilizing a simpler and more efficient revenue process. CUT is a flat tax based on the Federal Reserve’s normal daily aggregate report of U.S. dollar funding flows. Typically, in America, between $6 trillion and $7 trillion dollars (excluding intrabank transactions) flows through the economy each day. Internationally, that amount is over $20 trillion per day. The CUT will be limited by law to extract a maximum of one cent for every dollar that flows through the U.S. economy. This will result in an approximate revenue stream of $65 billion per day, $2 trillion per month, or about $24 trillion per year.