Thursday, March 3, 2011

The Cards That Really Pay You Back

Nevermind Discover. Forget about "miles." How would you like a credit card that REALLY paid you back?

It’s part of my plan to revitalize Social Security. While the President and the Congress bicker back and forth about cutting education budgets and disemboweling Social Security, I’ve come up with a plan that will not only reinfuse Social Security with funds, but also take away the need for Washington to bicker over it. The plan is simple.

Step 1: Congress will create a new holding account for Social Security. They should name it Social Security 2.0, and write into the provisions of Social Security 2.0 that all monies collected and deposited remain in holding, except to be distributed to Social Security recipients, and ONLY Social Security recipients; all other government agencies or entities will be prohibited from ever having access to that money.

Step 2: Implement a new “operating fee” to be imposed upon the credit card industry, whereby 1% of each credit card company’s quarterly profits are given over to Social Security 2.0

Here’s how it will work:
A) The public will continue to pay into the existing Social Security program, and the Government will continue using that money as it pleases.

B) The credit card companies will then pay their operating fee into the Social Security 2.0 fund, effectively replacing the money the Government has used, and will continue to use, from the original Social Security.

C) All recipients of Social Security benefits will be paid from the SS2.0 fund.

This means the following: Every swipe of a credit card and every single online purchase will benefit the American public. As the Social Security 2.0 fund increases, those who have paid into Social Security will be able to be compensated for the actual amount paid in, not just a percentage. The Government will get to use the money we working people pay into Original Social Security (SS1), and ultimately the credit card companies will be paying us back for the money the Government has “borrowed”.

This, of course, may mean that the credit card companies will want to raise their fees and increase their percentage rates. Consider that the Operating Fee is a percentage taken from their profits - therefore the more money they take in, the more money they have to pay out. There will be no loopholes for them to skate through.

Pretty slick, huh?

With that in mind comes part 2 of the plan… how to ensure the subsidization of Public Education – which as we all know is again on the chopping block in Washington. Simple answer… require the same 1% operating fee of the corporate banks. The Government will charge the banks a 1% fee on their quarterly earnings, which then goes into another protected fund reserved exclusively for Public Education. From this fund, the nation can raise the standard of education, build new schools where needed, outfit classrooms with necessary technologies, implement better and healthier lunch programs, and much more.

The nation’s banks and credit card companies have taken so much from the American people. We've bailed them out without so much as a "thank you" in return. Perhaps that's because they didn't need as much bailing out as they claimed. And they keep inventing new ways to purloin our money. Well, through this plan, they will finally be giving back to America – no doubt begrudgingly – and helping to get this nation back on track as a global leader.

If you are in support of this idea, please sign the petition to get this before Congress. We need a minimum of 50 signatures, so please pass this around to your friends and family!

Here's the link: Save Social Security and Public Education

1 comment:

  1. FAQ's:

    I've had a few questions about this proposal, so let me answer them to help eliminate any confusion...

    Q) What if the credit card companies and banks raise their fees/percentage rates?

    A) If they do, they will still be required to pay 1% of their profits. As their profits go up, the amount they pay into the system goes up.

    Furthermore, if people get pissed off enough they may decide to use their credit cards less or take their money elsewhere. These industries will be forced to change their policies and make them more consumer-friendly if they want to remain in business.

    Q) How can you get away with charging banks and credit card companies an "operating fee"?

    A) The same way they get away with charging fees: just do it. Credit card companies charge operation and usage fees to consumers and merchants alike, although they charge way more than 1%. If you buy a debit/gift card, regardless of the amount, you get charged an "activation" fee that can range from $3.00 to $6.00 depending on the brand and the denomination. That's as high as 15% on a $20.00 card. Credit card companies also charge usage fees to merchants who accept their brand. And banks charge fees for everything they can. So charging an operating fee to these businesses is just as legal as their charging usage or so-called "activation" fees to us.

    Q) How can you guarantee that the funds will be protected and used for their purpose, instead of pilfered as has already been done with Social Security?

    A) By building language and protections into the bill that prevent the Operating Fee provision from ever being reversed, amended, or altered, and which will keep the funds safe by denying access to them by Congress or any other agency or organization or special interest. There will be no date of termination allowed on this plan, and privatization or conveyance of any outside ownership by the parties paying into the system will be absolutely prohibited. The Government will be signing a contract with the American People to protect these monies and interests for the Public Good. And the 1% fee will be a straightforward, cut and dried, loophole-free fee without exemptions.

    This can also pave the way for making other corporations fund public interests such as health care, or subsidize energy costs and underwrite the revamping of the infrastructure, all of which could allow a greater percentage of our tax money to go farther, and perhaps even allow a reduction of taxes upon the American people over time.

    Any other questions?