Thomas Paine Debt Reduction and American Innovation Act Close the Loophole. Pay Down the Debt.
The wealthiest 10,000 households in America — those worth more than $200 million — can borrow against their assets, live like billionaires, and die without ever paying income tax. This bill closes that loophole. The money goes to debt reduction, nuclear fusion research, and 50-year infrastructure. Not one dollar goes to individuals.
The Debt Is an Existential Threat to America's Future.
The bill's first congressional finding calls the national debt an "existential threat to American economic sovereignty, national security, and Intergenerational Justice." These aren't talking points — they're written into the law as factual findings. Here's what the numbers actually mean.
The United States national debt has crossed $35 trillion — and interest on that debt now exceeds $1 trillion every year. That's more than the entire defense budget, paid to bondholders every single year, just to service what we already borrowed.
Every dollar of interest we pay today is a dollar that cannot go to roads, schools, research, or disaster response. And as the debt grows, the interest grows with it — crowding out everything else in the federal budget. The bill calls this an "existential threat" because, left unchecked, it is.
The Thomas Paine Act dedicates 40 cents of every dollar it raises exclusively to retiring the national debt — not loans, not spending, just paying it down. That's the bill's primary purpose. Finding 5 says it directly: this Act advances Intergenerational Justice by not passing this burden to our children.
Only 10,000 Households in the Entire Country Pay This.
The bill defines a "Covered Taxpayer" as any individual with a net worth exceeding $200 million. That's approximately 10,000 households nationwide — the top 0.01% of American households. Congress explicitly wrote into the bill: this "does not affect the 99.99% of American households below this threshold."
The $200 million threshold is inflation-adjusted using 2026 as the base year — so it doesn't accidentally sweep in people who just barely cross the line due to inflation. The threshold stays meaningful in real terms over time.
The Fair Contribution Amount has two parts. First: a 20% minimum contribution on Expanded Income — income from all sources — minus federal income taxes already paid. This is not a new 20% tax on top of everything else; it's a minimum rate, and taxes already paid count toward it.
Second: a 10% Livelihood Leverage Excise on "Livelihood Loans" — borrowing secured by appreciated assets used to fund personal consumption. This is specifically the Buy-Borrow-Die mechanism. Only loans used for living expenses qualify; business loans do not.
And critically: every dollar of voluntary contribution reduces the required amount dollar-for-dollar. The bill actively rewards those who choose to contribute more than required with the National Civic Honor Medal program.
The Legal Loophole That Lets Billionaires Pay Nothing.
Here's how the Buy-Borrow-Die loophole works. A billionaire buys stock worth $1 billion. It rises to $10 billion. They don't sell — because selling triggers capital gains tax. Instead, they borrow against the stock at low interest rates. They live on those loans — no income tax. When they die, their heirs inherit the stock at the current value, wiping out all the gains tax-free. The billions in appreciation are never taxed. Ever.
The bill calls this the "Artificial Aristocracy" — wealth perpetuated across generations without ever contributing to the nation that made it possible. The 14th Amendment guarantees equal protection; the Buy-Borrow-Die loophole creates a two-tier tax system where the ultra-wealthy pay effectively nothing while a teacher's salary is fully taxed.
The bill closes it three ways: treating death as a realization event (with generous exclusions), making large loans secured by appreciated assets taxable like income, and requiring annual mark-to-market on publicly traded assets for Covered Taxpayers. Together, these close the loophole and ensure Horizontal Equity — a dollar of purchasing power is taxed the same no matter how you extract it.
Every Dollar Has a Locked Destination.
The Debt Reduction and Innovation Trust Fund receives all revenues from this bill. The Board of Trustees — seven presidential appointees serving 14-year terms — is required by law to allocate funds in exactly this proportion. No wiggle room. No discretion. The split is written into the statute.
We're Running Down the Energy Return Cliff. Fusion Is the Answer.
Here's the energy problem hidden in plain sight: it takes energy to get energy. The ratio of energy out to energy in is called EROI — Energy Return on Investment. In the 1930s and 1940s, conventional oil had an EROI of 50:1 to 150:1. You put in one barrel's worth of energy and got 50 to 150 back.
That ratio has been falling for decades. Today conventional oil is around 20:1. By 2050, the bill's finding cites a projected EROI of 6.7:1. Below 5:1 to 6:1, complex industrial society — hospitals, manufacturing, food distribution, digital infrastructure — cannot be sustained. The bill calls this the "net energy cliff."
This is not a theoretical future problem. It's a decades-long trend that's already underway. The bill responds by mandating that at least 25% of the Innovation Account goes to Nuclear Fusion — the only energy source that could deliver EROI far above 15:1 with near-zero carbon emissions.
The bill also cites nuclear fission's existing track record: 3 gCO₂eq/kWh — the lowest carbon intensity of any electricity source — and only 0.03 deaths per TWh, compared to 24.62 for coal. An EROI Audit Board, established within the Department of Energy, evaluates all funded projects annually.
Jefferson & Adams Said It First: Talent Over Birth.
Thomas Jefferson and John Adams debated the nature of aristocracy in letters to each other. Both agreed: an "artificial aristocracy" based on birth and inherited wealth is the enemy of the Republic. A "natural aristocracy" based on talent and virtue is its foundation. This bill is named after Thomas Paine because Paine — in Agrarian Justice (1797) — made the same argument: large accumulations of capital that are protected by national institutions carry a civic obligation to the common good.
Six Tiers of Voluntary Honor. No Power. Just Recognition.
The National Civic Honor Medal, established by the Secretary of the Treasury, recognizes Covered Taxpayers who contribute more than they're required to. The honor is purely symbolic — no medal gives any right to influence policy. It recognizes civic virtue the way the Founders intended: by celebrating those who give more than duty demands.
Congress Wrote the Prohibitions Into the Law.
Section 3 of the bill is unusual: an entire section dedicated to listing what the bill explicitly does NOT do. This is written into federal law — any expenditure violating these prohibitions is automatically void, and any official who authorizes one faces removal for cause.
$75–150 Billion Per Year. Every Dollar Counted.
The bill's fiscal summary gives specific estimates for every revenue stream and allocation. The Board of Trustees reports to Congress annually. GAO reviews at Year 8. The bill sunsets December 31, 2036 unless Congress votes to reauthorize — reauthorization must be earned.
| Revenue & Allocation | Annual Estimate |
|---|---|
| REVENUE SOURCES | |
| 20% minimum on Expanded Income (Covered Taxpayers) | Part of $75–150B total |
| 10% Livelihood Leverage Excise (loans to fund lifestyle) | Part of $75–150B total |
| Realization at death (Sec. 301) — net of exclusions | Part of $75–150B total |
| Annual mark-to-market, publicly traded assets (Sec. 303) | Part of $75–150B total |
| Voluntary Civic Honor Contributions | Additional — variable |
| Total Estimated Annual Revenue (~10,000 households) | $75–150B per year |
| MANDATORY ALLOCATION (40-30-30) | |
| 40% → Debt Reduction (retiring U.S. public debt) | $30–60B / year |
| 30% → Innovation (NSF + SBA, research & entrepreneurship) | $22.5–45B / year |
| 30% → Infrastructure (50-year+ useful life only) | $22.5–45B / year |
"This Act is designed to reduce the national debt, fund American innovation, and build long-horizon infrastructure — NOT to redistribute wealth to individuals."— Thomas Paine Debt Reduction and American Innovation Act · Sec. 2(a)(8) · Gregory Burgess for Congress · CA-2 · No Party Preference
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The complete Thomas Paine Debt Reduction and American Innovation Act — all seven titles, all fiscal details, all constitutional safeguards — is available in the full platform download. Every number on this page comes directly from the bill text.