National Economic Stabilization And Recovery Act
- This article is about the legislative tax reform proposal. For the internet based conspiracy theory involving secret laws, white knights, aliens, and September 11th, see NESARA Conspiracy Theory.
The National Economic Stabilization And Recovery Act or NESARA is a proposal for legislation to address fiscal policy reform, economic and monetary reform, and monetary policy reform in the United States of America. It was authored by Dr. Harvey F. Barnard. As a proposal it competes as an alternative to other monetary and fiscal policy reform proposals such as the Monetary Reform Act, FairTax, Flat Tax, and the Value Added Tax. NESARA has not been introduced into Congress.
In the area of fiscal policy, NESARA proposes a revenue-neutral reorganization of the existing United States tax system by eliminating the income tax and instituting a 14% national retail sales or excise tax administered by a new National Tax Service, while providing rules for simple over-the-counter exemptions on the necessities of life such as groceries, leases, medical services, and insurances, available to all. Social Security, and Medicare income taxes would remain however, as the need for these programs would take some time to be reduced after passage of the Monetary Reform provisions of the NESARA bill.
In the area of economic and monetary reform, NESARA proposes fundamental changes to the reserve and lending practices of the commercial banking system, including abolishing compound interest on all secured loans in favor a simple interest fee, and requiring principals on loans to be paid back first before banks collect the simple interest fee. The purpose of these changes being aimed to reduce bankruptcies and bank defaults, and reduce private debt-service burdens for American citizens and so spur economic growth. This economic growth would then be expected to help drastically reduce the public need for government welfare programs such as Medicare and Social Security, income taxes that could be eliminated once the need for these programs diminish, further increasing economic growth.
In the area of monetary policy reform, NESARA proposes a structural reorganization of United States monetary system in order to eliminate inflation altogether. NESARA proposes abolishing the Federal Reserve System and the reassignment of its functions and those of the Federal Open Market Committee and Federal Reserve Banks to a new government-controlled Treasury Reserve Board; and proposes creation of an additional monetary tool, the Treasury Reserve Account, to control aggregate national inflation and reduce it to zero. Banks would also be prohibited from owning government securities. The purpose of these actions being to immediately reduce American public debt by $1 trillion, and halt the currently accepted practice of constant monetary inflation.
Furthermore NESARA proposes amending the Federal Reserve Act of 1913 to replace the existing Federal Reserve System, including its currency with a new government-controlled Treasury Reserve System, and Treasury Reserve Board. New currency would be printed and gold and silver specie would be allowed to circulate. NESARA would also make legal again the pre-1913 practice of private coinage of specie and private printing of certificates redeemable for specie, making specie once again, a legal tender currency option for those who do not wish to participate in a fiat currency system.
NESARA proponents claim that if all provisions of their bill become law, it will double the standard of living for all Americans within 20 years.[1]