January 30, 2011 – Atlanta, GA USA – Scott “Dilbert” Adams in The Wall Street Journal Saturday (1/29/11) asks for “imagined solutions for the government’s fiscal dilemma.”
As a GREAT! IDEAologist, sounds like a fun challenge.
Dear Scott,
I agreement with you that “imagination is a wonderful thing.”
As you suggest, I “assume that as the fiscal meltdown becomes more perilous, everyone will become more flexible and perhaps a bit more open-minded. A good crisis has a way of changing people. … So let’s assume that our imagined solution is a brand new idea. That feels less crazy and more optimistic.”
So, I accept your challenge to “brainstorm … ideas for solving the debt problem …”
Instead of one, here are my five (5) GREAT! ideas to reduce the U.S. Federal deficit by creating value for people and companies to voluntarily part with their cash – rather than increasing taxes on the top 2 percent of American households.
1. $10 Billion Dollar Double Down and Pay It Forward America Dream Plan
If you didn’t have to pay taxes for 10 or more years, would your productivity skyrocket during that period to maximize your income (and presumably help grow the economy resulting in more employment?)
In 2012, you may pre-pay your personal/household taxes for your choice of 10 or more years by either $1 million for each year you elect to pre-pay or the average of your U.S. Federal Taxes for the 10-year period 1996-2006 – whichever is greater. You do not pay a penny more in Federal taxes during the 10 or more years than you have elected to pay it forward.*
If you believe your U.S. Federal Tax that would have been due during the years that you have elected to prepay (10 year minimum) exceeds this amount – and you have the cash – you have an incentive to earn the most money possible by not paying any additional U.S. Federal Tax in the 10 or more years selected.
$10 Million Pre-Paid in 2012 “Times” the Number of Participants
If 10,000 people elect the $10 million minimum pre-payment option, that’s $100 billion. If the taxpayer dies prior to the end of the term elected, the U.S. Federal Government gets the benefit of a guaranteed sum. Plus, that guaranteed sum may be higher than what would have been received (if the tax payer earned less or the tax payer died prior to the end of the term elected).
It’s win-win-win the for the Federal Government; the $10 million taxpayers; and the rest of the taxpayers in America.
Even if the taxes that would have been due exceed the amount of taxes pre-paid, the U.S. Federal Government got an upfront, guaranteed payment; an economic stimulus from the productivity of the millionaire that presumably help grow the economy resulting in more jobs. Plus, since the job creation is by the private sector seeking to maximize revenue, the marketplace will determine the most efficient way to hire, pay and retain employees with government spending.
The bonus: multiple millionaires that feel good about their potential to out perform their historical income in the next 10 years or more will gladly pre-pay in order to have the upside potential to earn far more income than they ever imaged would be possible.
And, that’s the American Dream.
*To be (reasonably) fair to your estate, if you die prior to the number of years you pre-paid, your estate receives: 50% “times” amount prepaid “divided by the number of years pre-paid “times” the sum of (number of years pre-paid “minus” the number of full years gone by).
2. 250 Billionaires Buy $10 Million Lottery Tickets for Chance to Win $1.3 Billion (Tax Free) Sponsored by the Private Banking Division of Morgan Stanley
Here’s how to get the U.S. federal deficit funded by billionaires around the world (and for everyone else to feel good about it):
A monthly U.S. national nationally televised lottery. Each lottery ticket costs $10 million (federal tax deductible). (So that only the top 2% of anyone in the world can afford to buy a ticket and the national lottery doesn’t compete with any state lotteries).
In addition to the winner receiving 51 percent of the lottery ticket sales (“more than half”), the winner also receives a money-can’t-buy-experience such as ”a flight on Air Force One for you and 100 of your closest friends” or “a beer with the President in the White House Rose Garden.”
Ticket buyers may choose to have their name made public to be included on a plaque in the lobby at the IRS: $2.5 Billionaire Club: An All Volunteer Federal Deficit Reduction Honor Role.
Scarcity: limit of 250 $10 million lottery tickets to be sold monthly (so there is a 1 in 250 chance to win nearly $1.3 billion (federal tax free) paid out in a 25-year annuity or a lump sum payment of $1 billion (federal tax free): that’s 40% of 250 $10 million lottery tickets sold monthly); and the Federal Government receives 40%: that’s $14.7 billion annually. Or, $18 billion annually, if all monthly winners opt for a lump sum pay-out rather than a 25 year annuity).
Tickets available exclusively at any Morgan Stanley Private Banking Office worldwide. (Driving traffic – billionaires – to the participating sponsor’s offices is a benefit of being the official sponsor.)
Once the 250 $10 million tickets sell out per month lottery drawing, tickets to the next monthly lottery drawing go on sale. The U.S. government gets the added benefit of the float until the lottery drawing is held.
And if a Google inspired syndicate steps forward to pool resources to buy $10 million tickets, that’s a plus!
[PostScript: (2/1/11) This $10 million lottery tickets idea is one of six Scott selected for his Poll: What's the Best Way to Tax the Rich? Thanks for voting for this idea!]
3. The Great American SOS Yard Sale: Rent To Own Sponsored by Aaron Rents
America’s attic, the Smithsonian, has assets in storage that should be leveraged to generate billions in revenue. [80% of National Air and Space Museum is in storage; and the Smithsonian's Mammal Collection has 680,000 specimens in storage, for example.]
The Smithsonian provides 1,000 treasures that are each available for one-year (or more) rentals at $50+ million (shipping, installation and insurance are extra) annually to the highest (sealed) bidder (multiple-year bids allowed too). Winning bidders must provide a bond for 20 times the bid (in the event the treasure is damaged, stolen or purchased). Bidders have an option to renew their rental each year and an option to buy their rental at 20 times the one-year rental price. Plus, the renter may apply 80 percent of the annual rental to the 20x purchase price.
If all 1,000 items are leased, that’s at least $50 billion in Year 1 rental income. If all items were purchased in year one, that’s 20 “times” at least $50 billion or $1 trillion.
There are probably enough billionaires worldwide that this offer would appeal to. Let’s test the idea with 100 “priceless” treasures across the broad spectrum of the Smithsonian’s collection in storage.
While renting – or renting to own – priceless treasures may seem like heresy, as Scott “Dilbert” Adams writes, “assume that as the fiscal meltdown becomes more perilous, everyone will become more flexible and perhaps a bit more open-minded. … A good crisis has a way of changing people.”
While renting – or selling – “priceless” treasures may end up in private collections, it’s possible that the items may end up in public viewing (which is better than Smithsonian storage – only to be viewed Robert Langdon.
As painful as renting – or selling – our national treasures may sounds, if we can unlock unprecedented value from assets in storage, Let’s Save Our Ship (SOS) before it sinks in a sea of debt.
What other assets does our country own that could be leveraged in this model?
[PostScript: 2/1/11: The Wall Street Journal includes this GREAT! idea in its article (1/31/11) about taxing the rich differently: Top 10 'Bad Ideas' for Taxing the Rich. Please see idea 9 of 10]
4. 24-Hour TV Auction: Let’s Do Lunch With the Stars And Reduce the U.S. Federal Debt By $3 Billion
“An anonymous bidder has offered to pay $2.63 million for a steak lunch with the investment guru Warren Buffett in an auction held on eBay Inc’s website, on the last day, making it the highest amount raised so far online since 2003,” reports International Business Times on 6/12/10. Proceeds go to a non-profit.
Imagine a 24-hour live TV auction – worldwide – offering one-on-one experiences with 1,000 “A-List” Stars of entertainment, sports, business and politics with 100% of proceeds earmarked to help fund a specific U.S. Government program.
Experiences might include one-on-one:
- Lunch with the President of the United States in the Oval Office
- Lady Gage sings a song to you on stage during a major concert
- Helicopter skiing experience with Will Smith
The person being auctioned off designs their “experience” and pays for it so that 100 percent of monies raised goes to reduce the U.S. Federal deficit.
If the President of the United States agreed to participate, that’s the yeast for a major broadcast or cable TV channel to take on this ambitious project so that 100% of monies raised goes to reducing the U.S. Federal deficit.
If 1,000 A-List stars of movies, sports, business, the President of the United States (and Kathy Griffin) average $3 million each, that’s $3 billion to reduce the Federal Deficit – all packaged into a worldwide TV entertainment experience.
[Don't worry, if $10 million is earmarked for education, for example, then this frees up $10 million from education for other uses. 100% of money raised reduces the Federal Deficit. It's a zero-sum game.]
Comcast, for example, could run simultaneous live shows targeting entertainment (E! Entertainment); sports (NBC); Spanish (Telemundo) and more.
A major auction house handles the bidding on the 1,000 featured stars. Bidding on addition experiences on eBay. From more stars of movies, sports and celebrities to everyday people could put their own package together – and eBay directs the purchase price to the Federal Government rather than to the seller of the experience.
Let’s build on the success of Year 1 and implement annually.
[PostScript: 2/1/11: The Wall Street Journal includes this GREAT! idea in its article (1/31/11) about taxing the rich differently: Top 10 'Bad Ideas' for Taxing the Rich. Please see idea 8 of 10.]
5. Kodak Moment: Man Lands on Moon (Again): Takes Ford Explorer For a Spin
It’s time to revisit activating brands in outer space, if the brand integration opportunities – SponsorSHIP packages – will help reduce the U.S. Federal deficit by $2 billion.
At the right price, everything is for sale. Why not high-profile U.S. space missions?
- Before we venture out of the IKEA Lunar Lander – that’s powered by MONSTER ENERGY DRINK – with our FORD EXPLORER moon rover, we’ll check GOOGLE MAPS to get us to our TARGET: the TACO BELL GORDITAS crater.
- Don’t worry, we’ve got ON STAR onboard and you can always text our BLACKBERRY or send more M&M’s with UPS ’cause UPS loves logistics.
- Be sure to FACEBOOK us and follow us on TWITTER, and watch us LIVE on CNN when we do our MOONPIE moon walk. We’ll post images to FLICKR.
- And, look for our FLIP ULTRA-HD video on YOUTUBE.
- And, if you want to join us, call AMERICAN EXPRESS travel. Ask for their Shoot-the-Moon GODIVA My Valentine CROWN PLAZA Crater Package on the inaugural commercial passenger flight from VIRGIN GALACTICA. It’s out of this world.
- Later today, we’re looking forward to some FACETIME with our families on our APPLE iPHONE.
- And, Wii – when I get home, I’m taking the family to DISNEYLAND (and bring my KODAK EASYSHARE camera that I use here in space during our COCA-COLA ZERO weightless-in-space moments.)
Far fetched? In 2004, The New York Times reported: ”Peter H. Diamandis, the founder of the X Prize Foundation, said that sponsorship was what made it all possible. After decades of a government monopoly on space, sponsorship provides “a much more vibrant, higher risk-taking and more consistent funding source,” he said. “This is a business.”
“The man behind the marketing is Jay Coleman, the chief executive of EMCI, a company that has connected products with rock stars, and has placed clients’ goods in movies, video games and, for more than eight years now, space. Mr. Coleman’s efforts have produced such moments as a four-foot-tall Pepsi can on the Russian Mir space station in 1996 and a Kodak banner on the side of the Russian module of the International Space Station. Russians have already helped promote Pizza Hut, Radio Shack, Popular Mechanics magazine and Lego.”
“‘The Russians were great to work with,” he said. “These guys were looking for hard currency, and they were willing to work with us.’”
“To Dr. Diamandis, anyone who is perturbed by the trend must answer the question: how else are people going to get to the wild black yonder?”
“‘If we can connect the desire of space with the desire of private companies to have their brand associated with heroes and speed and technology, everybody wins,’ he said.”
In light of the size of the U.S. federal deficit, it’s time to be creative in funding government. An integrated strategic alliance marketing sponsorship package meets brand buzz marketing campaign meets out-of-this-world-marketing may just be the thing.
Ten $50 million category exclusive sponsorships for each of the International Space Station, Moon and Mars and Jupiter = $2 billion.
It’s time to shoot for the sun, moon and the stars to reduce the U.S. Federal Deficit. ($14.1 billion – or $127,000 per taxpayer, as of 1/30/11, according to the live US Debt Clock)
America! Let’s JUST DO IT!
Scott, thank you for the inspiration for these five ideas to help reduce the U.S. federal deficit with win-win-win voluntary-part-with-your-cash ideas.
As a GREAT! IDEAologist in the TV and entertainment space, it was a fun challenge – “free to speculate all we want” – to “fix the budget problem because [our] government isn’t equipped to handle it.”
Hopefully, your reaction – like our Clients – will be, “Wow! That’s GREAT! Thinking.”
Happy New Year,
Dan Smigrod
P.S. Scott, you will enjoy this book: Thinking for a Living: Creating Ideas That Revitalize Your Business, Career, and Life
P.P.S. (Added 2/1/11): Scott, thank you for including my $10 million lottery tickets idea as one of your six ideas in your Poll: What’s the Best Way to Tax the Rich? I see that The Wall Street Journal included two of my five ideas in its Top 10 ‘Bad Ideas’ for Taxing the Rich (1/31/11) article: Let’s Do Lunch With The Stars And Reduce the U.S. Federal Debt by $3 Billion and The Great American SOS Yard Sale: Rent To Own Sponsored by Aaron Rents ideas.
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PostScript (2/1/11)
- Scott ‘Dilbert’ Adams includes $10 million lottery tickets idea in his Poll: What’s the Best Way to Tax the Rich? (1/31/11) It’s one of six ideas in the poll and 1 of 350+ reader’s posts to Scott’s request for ideas.
- The Wall Street Journal includes two of five GREAT! ideas in its Top 10 ‘Bad Ideas’ for Taxing the Rich (1/31/11) article: Let’s Do Lunch With The Stars And Reduce the U.S. Federal Debt by $3 Billion and The Great American SOS Yard Sale: Rent To Own Sponsored by Aaron Rents GREAT! ideas.