LP Kan Mallar! PO Box 24152 Tampa, FI, 33623 28 November 1980 Mr, Ronald Reazan President-Elect of The United States 1669 San Onofre Drive Pacific Palisades, CA 96272 Dear Sir, q I am writing you because I very much want' to sec you make it. Inflation was apparently the key issu. which swept you in. There IS a way to har When 1 studied economics at they still knew basic economics: scene has becn muddicd by two fore. Lord Keynes and Karl Marx. You can * tragedy of today to them. Their think plausible destruction. If you were to forthrightly aboli neome tax an substitute for it a ten percent Féderal sales tax, per centage adjustable for commodities like stocks and bon which have repeated sales, the Fedcrai Government woule have MORE money than it has now. The “rich” who buy things woula bear a lot of th2 tax and this could be used as anlargument for the plan. The XVI Amendment. does not rtquire Congress to tax incomes, it only authorizes|it to do so, and can cancel its own laws. It could also make it attractive to states to abolish theirs.Income tax removes the money from the society in the wrong place - before it is spent. Substitut~ ing a sales tax for it would put the money out into the market place. The banks would not like it at first qlance as it would become possible for companies and individuals to work hard to make moncy, Save up and use it, by-passing loans, But banks cannot prosper at double-diait infla~ tion and their surviva] would depend upon such a chanae. It wotld remove some of their excess paper from the market. The sucialist inheritance taxes often punish firms who have to find the money for estates. They can wreck a lot of people and do. The have-not vengeance against the successful should be abolished. - Social Security is really a farce. FDR put it in because he needed money right then which he would not have to repay until much later. The big insurance coi- panies would be utterly delighted to have it. phased over to them and off the government's back. Froducticn has to be raised to.absorb excess paper. The fact way to do it is simply abolish income tox, shifting the buying power over to the market plac abolish inheritance and witholding taxes and gut che morey into people's pockets to be spent. I realize that with your floods of m: will probably never reach your eyes. But I would bad, knowing what would bail you out, if 1 did rot it in your direction. I aman old fan ef yours. We were high up in Hollywood at the sane time. I reaily quite desperately want you to succeed. I want to see you break the presi- dential tradition and leave office-far more popular than you went iin, Well, there. I have sent it your way. It's good, straight economics. The move is bold but you will have to Ee bold to handle the awful mess Marx and Keynes got us in. Respectfully, L. RON HUBBARD LRH: 1dv: { |