PLEF

Financing the American World Service Corps

Reducing the chances and overwhelming costs of too often

reverting to war as a public policy.

PLEF House Committee on Financial Services 11-2006

2

Foreign Holdings up faster than Debt since 2001

– Foreign ownership up 42% ++

PLEF

AWSC Congressional Proposals list five major funding mechanisms

1) Tax Revenues.

2) Miniscule import levee on developed nations with which we run a significant trade deficit

3) Public incentive driven contributions from America’s non or low-tax paying corporations.

4) Public incentive driven contributions from America’s richest.

5) Foundation donations.

PLEF

Bernanke: Fed faces global challeges SF Chron 3-3-07

• The huge flow of cash in and out of the United States, with foreign investors holding one-quarter of long-term, fixed income securities and more than half of publicaly held U.S. Treasury debt, has drastically changed the financial landscape in recent years. In 2006 “foreigners acquired $1.6 trillion in US assets, while U.S. investors purchased more than $1 trillion in foreign assets.”

PLEF

With visionary leadership fielding the AWSC could pay for itself

• With enough public knowledge and inspiring leadership, the AWSC could be funded largely by non-tax based revenue streams.

• By implementing the AWSC we could reduce the $600,000 (includes hidden costs) we annually now spend on each of our 1.5 million military personnel.

PLEF

One of five funding mechanisms in the AWSC Congressional Proposals calls for levying a minuscule import duty on those

developed nations with which we carry the largest significant trade deficit.

• Why?

• Some reasons for a minuscule import levee reflect themselves in the following slides.

PLEF

Top Trade imbalances

PLEF 8

China’s debt ownership2001 - 2006

PLEF Joint Economic Committee Economnic Policy Brief 11-2006

9

OPEC’s US Debt ownership 2xed in 2 years

PLEF

Debt ownership => Equity ownership

• Those holding significant amounts of our debt often turn those debt securities to equity ownership of American companies, large and small.

• Nations who save money by remaining at peace are smart for buying equity. To get back to peaceful saving and rebuilding our middle class, we need the AWSC and a minuscule levee will help it.

PLEF

Another funding mechanism comes from listing at a public web site donations from America’s

Richest to underwrite the AWSC’s costs.

• Gates,Buffet, and others have stepped up during these dangerous times to use their wealth to make the world safer for their children and grandchildren. More can and should be done.

• Please read the funding section of the proposed legislation to understand all funding mechanisms.

PLEF www.forbes.com/2004/09/23/cz_dw_0923philan_rl04.html

Forbes Richest 400 2006

Donated

Wealth Net Worth Philanthropy -

Adjusted

% Wealth

Given Away

Bill Gates

$28,291,699,101

$48,000,000,000 $76,291,699,101

37%

Warren Buffett

$321,189,039

$41,000,000,000

$41,321,189,039

1%

Paul Allen

$798,183,920

$20,000,000,000

$20,798,183,920

4%

Michael Dell

$1,255,224,204

$14,200,000,000

$15,455,224,204

8%

Donated to

underwrite

AWSC?

A

lot?

PLEF Forbes 2004 http://www.forbes.com/2004/09/23/cz_dw_0923philan_rl04.html

13

How much might the top four of the Forbes Richest 400 donate to

underwrite AWSC?

• Most of Forbes Richest donate very little to charity… The Turner, Gates, and Buffet standards gives the ultra rich an opportunity to use wealth to dramatically improve the world for their children by funding the AWSC that will involve millions of Americans if improving the world.

PLEF

America’s richest also care

• How much might the Forbes Richest 400 donate to underwrite AWSC?

Perhaps a lot.• What %age of their wealth do they now give to charity?

– Presently most give a very small percentage.– http://www.forbes.com/2004/09/23/

cz_dw_0923philan_rl04.html

PLEF

How much might the richest Americans donate to underwrite AWSC?

• The AWSC Congressional Proposals lists the richest Americans at a AWSC publicly accessible web site.

• When the AWSC passes Congress, families and friends of volunteering Americans will see at the web site how much the richest Americans are investing in making the world safer by helping underwrite the cost of sending our best to build peace and stability.

PLEF www.forbes.com/2004/09/23/cz_dw_0923philan_rl04.html

Forbes Starting Four

Donated Wealth Net Worth

Philanthropy-Adjusted

% Wealth Given Away

Bill Gates

$28,291,699,101 $48,000,000,000 $76,291,699,101

37% Warren Buffett

$321,189,039 $41,000,000,000 $41,321,189,039

1% Paul Allen

$798,183,920 $20,000,000,000 $20,798,183,920

4% Michael Dell

$1,255,224,204 $14,200,000,000 $15,455,224,204

8%

PLEF

Forbes 5th - 8th …barely begun

Larry Ellison

$151,092,103 $13,700,000,000 $13,851,092,103 1%

Steve Ballmer

$23,449,783 $12,600,000,000 $12,623,449,783 0%

John Kluge

$503,869,800 $11,000,000,000 $11,503,869,800 4%

Pierre Omidyar

$357,715,858 $10,400,000,000 $10,757,715,858 3%

Donated Wealth

% Wealth

Net Worth To Charity

PLEF

Forbes Richest 2006 9th –12th

Sumner Redstone Wealth $8,178,367,127

Donated $ 78,367,127 1% Net Worth $8,100,000,000

Phil Knight Wealth $ 7,400,000,000 Donated

$64,771,782 1% Net Worth $7,464,771,782 George Soros Wealth $12,637,283,942

Donated $5,437,283,942 43% Net Worth $7,200,000,000

Eli Broad Wealth $7,613,074,469

Donated $1,613,074,469 21% Net Worth $6,000,000,000

Michael Bloomberg

PLEF

Forbest Richest 2006 , 13th -16th

Donated Wealth Net Worth

% Wealth Given

Away Michael Bloomberg

$132,045,031 $4,900,000,000 $5,032,045,031 3%

David Geffen

$182,921,433 $4,400,000,000 $4,582,921,433 4%

Gordon Moore

$6,760,929,624 $3,800,000,000 $10,560,929,624 64%

Steven Spielberg

$96,970,456 $2,600,000,000 $2,696,970,456 4%

PLEF Financing section of AWSC Proposal

Charitable Trusts, Philanthropic Foundations

   Trusts and foundations may find the American World Service Corps meshes well with their goals of improving world and nation and reflect that in grants and donations. If the Gates Foundation wants to eradicate AIDS, a robust army of American volunteers could help make that happen.

PLEF Financing section of AWSC Proposal

Donations by the richest 1% of taxpayers.

• From the AWSC Congressional Proposals: “Consequently, a public web site linked to the AWSC web site will list the The Forbes Richest 400 Americans, who have benefited most from our nation’s human and physical infrastructure… Each month the web site will list donations that America’s richest have made to implementing the AWSC and reducing its cost to America’s taxpayers. Congress should seriously consider not having the donations counted as tax deductible.”

PLEF

Public knowledge of corporations paying little of no tax

• Many large corporations pay little or no taxes. The AWSC web site will list those corporations with the hope that public knowledge of this will influence many of these corporations to make non-deductible donations to underwriting the service our best resources will be giving to make the world safer for their businesses.

PLEF

Corporate tax %age of GDP1942 - 2003 Over the past 60

years corporate income taxes averaged:

5.6 percent of the GDP during World War II,

4.5 percent in the Truman and Eisenhower administrations,

3.7 percent under Kennedy and Johnson,

2.7 percent under Nixon and Ford,

2.4 percent under Carter,

1.6 percent in the Reagan and Bush I administrations, and

2.1 percent under Clinton.

PLEF From Financing section of AWSC Proposal

C) Donations by certain low tax paying corporations.

(from the AWSC proposals)…”Those corporations who have paid none, little, or received federal tax paybacks (negative taxes) for the past five years would be listed. This section of the AWSC web site would strongly urge these light or none paying corporations to contribute to underwriting the cost of …

For those who paid little, none, or negative taxes, Congress should not allow the donations to be tax deductible…

PLEF

America’s lost prestige and economy

• Astonishing percentages of people around the world no longer respect America.

• Our military as well as our economy and middle class is breaking.

• The AWSC helps rebuild our prestige,our economic competitiveness, and our military while teaching us to understand and productively work with the world and in its global commerce.

PLEF

Our Fiscal Imbalance alone should inspire us to erase the lack of world understanding that leads to stupid

wars that debilitate our middle class and give us wounded warriors for

generations.

PLEF

GOVERNMENT ACCOUNTABILITY OFFICE REPORT

“The U.S. government’s total reported liabilities, net social insurance commitments and other fiscal exposures continue to grow and now total more than $46 trillion, representing close to four times current GDP and up from about $20 trillion or two times GDP in 2000.” http://www.fms.treas.gov/fr/05frusg/05frusg.pdf

PLEF GOVERNMENT ACCOUNTABILITY OFFICE REPORT p12.

28

$49,403,000,000,000 Total US liabilities

The net present value for all of the responsibilities (for current participants over a 75-year period) is $49,403 billion, including Medicare and Social Security payments, pensions and benefits for Federal employees and veterans, and other financial responsibilities. http://www.fms.treas.gov/fr/05frusg/05frusg.pdf U.S. Liabilities

PLEF

Educated World Citizens prefer…

• Living productively. Raising their children in harmony.

• Building over bombing and killing.• Learning of different cultures and lifestyles

without having one forced upon them.• Implementing the AWSC gives us the

opportunity to peacefully do all of the above while generating a healthy economic and social multiplier throughout the world.