Frequently Asked Questions

What is Accountable Infinite Prosperity (AIP)?

AIP is a comprehensive state-level economic framework that replaces income tax with a Gross Receipts Tax (GRT) while providing universal healthcare, lifetime education, affordable housing, retirement security, and water infrastructure.

The "accountable" comes from the repayment mechanism: benefits are paid for through GRT and repaid through your Stability Account at maturity. Nothing is free — everything is funded and accounted for.

What is the Five State Alliance?

Utah, Nevada, Arizona, Colorado, and New Mexico. Five states working together to implement AIP, share infrastructure costs (especially the water pipeline), and provide political cover for transformative policy.

Combined: 22 million people, $1.5 trillion GDP.

Why these five states?

• Water need: All five face Colorado River shortages and growing demand
• Pipeline route: Columbia River → Salt Lake City → Las Vegas → Phoenix, with branches to Denver and Albuquerque
• Political mix: Bipartisan governors, no single party dominance
• Existing infrastructure: New Mexico already has GRT, others have reform momentum

What is a Gross Receipts Tax?

A tax on all business transactions — goods and services — collected at the point of sale. Unlike income tax, there's no filing, no deductions to game, and no annual paperwork.

You pay GRT automatically every time you buy something. That's it.

What's the GRT rate?

Varies by state (11-14% at launch), but designed to decline dramatically over 65 years as Stability Accounts mature and begin repaying the system.

Phase	Years	Rate
Building	0-15	12-14%
Maturing	16-40	8-12%
Repaying	41-65	4-8%
Sustaining	65+	2-4%

Isn't 12-14% really high?

Yes — at launch. But consider what it replaces:

• State income tax (2.5-5%)
• Health insurance premiums ($8,000-$25,000/year)
• Healthcare out-of-pocket ($2,000-$8,000/year)
• Childcare ($10,000-$25,000/year per child)
• Student loan payments

Net result: families save $28,000-$43,000/year depending on state.

Do I have to file taxes?

No. GRT is collected automatically at point of purchase. No annual filing. No tax prep. No H&R Block.

What is a Stability Account?

A state-funded investment account created at birth. The state deposits $25,000 (amount is dynamic and can adjust). The account invests in domestic dividend-paying stocks with dividends automatically reinvested (DRIP).

At age 65, the account matures. You repay the system for services used, and keep the remainder.

How much will my account be worth at 65?

At 6.88% average growth over 65 years: approximately $1,890,000.

After repaying 2x principal ($50,000) plus healthcare and education costs, most residents keep $1,200,000+.

What do I repay at 65?

• 2x principal: $50,000 (if initial deposit was $25K)
• Healthcare costs: Actual costs, capped at $400,000 (state absorbs overage)
• Education costs: Actual costs, no cap (your choice how much to use)

Example: $1,890,000 account - $50,000 principal - $400,000 healthcare - $200,000 education = $1,240,000 you keep

Can I contribute more to my account?

Yes. Personal contributions are allowed and grow alongside the state deposit.

What if I die before 65?

The account is personal property. It goes to your heirs.

Can I opt out?

Yes. Use private insurance, pay for your own education, and keep your full Stability Account at maturity.

Why domestic stocks only?

Keeps capital in the US economy. Millions of accounts buying domestic dividend stocks creates patient, long-term investment in American business.

Are Stability Account gains taxed?

State: Tax-exempt. No state income tax exists under AIP.

Federal: Structured for tax-advantaged status, similar to 529 plans or Roth IRAs. States will petition for federal exemption as a condition of launch — the same treatment already granted to state-run retirement programs like CalSavers and OregonSaves.

Full federal exemption achieved upon national AIP adoption, when federal income tax is replaced by federal GRT.

How do Stability Accounts affect markets?

Stability Accounts create structural market stability:

• Continuous buying pressure: ~$100B/year of new investment from newborn accounts — buying regardless of market conditions
• No forced selling: Unlike 401(k)s where retirees must sell during downturns, repayment comes from account balance transfers, not market liquidation
• 65-year horizon: Dollar-cost averaging through every market cycle eliminates timing risk
• Floor, not ceiling: Accounts create a permanent demand floor for domestic equities while allowing normal market function above it

Norway's $1.9T sovereign wealth fund demonstrates this stabilizing effect at scale.

How does healthcare work under AIP?

State pays providers directly. No insurance companies. No premiums. No deductibles. No copays. No denied claims.

Medicare stays in place for 65+. For under 65, the state covers everything.

Costs are tracked and repaid through your Stability Account at maturity (capped at $400,000).

What if my healthcare costs exceed $400,000?

The state absorbs the overage. The cap protects high-need individuals from losing their entire retirement.

What about my employer's health plan?

Employer-sponsored insurance becomes unnecessary. Employers save ~$17,000/worker/year in premiums alone, plus administrative costs.

Does this require federal approval?

No. Medicare and Medicaid are federal programs — they stay unchanged. If you've paid into Medicare your whole life, you use it. State AIP healthcare covers everyone else who doesn't have federal coverage. The state isn't touching federal programs, so no federal approval is needed.

What does "lifetime education" mean?

Access to education from birth to death. K-12. College. Trade school. Graduate school. Mid-career retraining at 50. No age cutoffs. No tuition. No student debt.

Costs are paid by GRT and repaid through your Stability Account. You choose how much education to consume — more education means more repayment, less remainder at 65.

What are the school hours?

6 AM to 7 PM, year-round. This solves childcare — parents can work full schedules without paying for before/after care or summer camps.

What about meals?

Breakfast, lunch, and dinner included. Kids are fed at school.

What's "Nordic-style" education?

Development-focused rather than test-focused. Play-based learning. Social-emotional development. Outdoor time. Low student-to-teacher ratios. Professional teacher pay. Formal academics delayed until age 7+.

What about STEM, arts, athletics?

All included. Extended hours (6 AM - 7 PM) provide time for enrichment programs that are currently extras families pay for separately.

What are Housing Affordability Zones (HAZ)?

Designated areas on state-owned land where private builders construct affordable homes under cost-per-square-foot caps. The state sells land to builders at 50% of market value in exchange for meeting affordability standards.

How does the financing work?

• At purchase: No upfront down payment
• Loan: 80% Fannie Mae loan at 3%
• At move-out: Pay 20% of original purchase price to state

The 20% deferred down payment returns to the state fund to finance the next home — self-sustaining system.

What are the home specs?

Max home size	1,800 sq ft
Lot size	2x home sq ft (max 3,600 sq ft)
Green space	50% of lot required
Garage	Not required
Tenure	100% owner-occupied (no rentals)

Who qualifies?

• State resident for 2+ years
• Primary residence only (no investment properties)
• Must live in home 2+ years before selling

Why no rentals?

100% owner-occupied means every resident has skin in the game. No absentee landlords. No speculation. Community stability. Simpler administration.

Where does the water come from?

Columbia River. 200 million acre-feet flows unused to the Pacific Ocean annually — over twice California's total consumption. The Alliance diverts 5-10% of this surplus.

What's the pipeline route?

Columbia River (OR/WA) → Salt Lake City (UT) → Las Vegas (NV) → Phoenix (AZ), with branch options to Denver (CO) and Albuquerque (NM).

Who owns the pipeline?

The Five State Alliance — an interstate authority. Not private. Paid for by GRT, operated by the Alliance.

What about jobs?

Decades of employment along the entire route: intake facility construction, pipeline construction, pumping stations, green energy installation (solar/wind farms to power pumps), treatment facilities, ongoing maintenance and operations.

Isn't there already a pipeline proposal?

Yes. The Western Water Project has proposed a $125B undersea pipeline from Columbia River to the Southwest. AIP's overland route to SLC → LV → PHX may be shorter and serve the Alliance first before extending to California.

How long does this take?

• Year 0: Alliance formation, interstate compact
• Year 1: Enabling legislation in each state
• Year 2: GRT systems built, healthcare transition begins
• Year 3: Full launch — GRT in effect, income tax eliminated, first Stability Accounts funded
• Years 4-15: Housing zones expand, water pipeline construction, education transformation
• Year 65+: First accounts mature, system self-funds, GRT drops to maintenance level

What about people who are already 40, 50, 60?

Adults at launch don't receive Stability Accounts — those are for newborns only. Generation 1 pays higher GRT and receives full benefits (healthcare, education, housing) without the account. They're investing in their children's and grandchildren's future.

By Generation 3-4, the system is self-sustaining and GRT drops dramatically.

What if one state backs out?

The Alliance structure provides mutual commitment. Water infrastructure especially creates interdependence — backing out means losing water access.

Why hasn't this been done before?

• Insurance industry opposition: $1.3 trillion industry loses if this passes
• Complexity: Voters understand "cut taxes" better than system transformation
• First-mover risk: No state wants to go alone (Alliance solves this)
• No political champion: Someone has to go first

This sounds too good to be true.

Nothing is free. Everything is paid for — through GRT now and Stability Account repayment later. The system works because:

• Eliminating insurance overhead saves 15-30% of healthcare costs
• Compound growth over 65 years turns $25K into $1.89M
• GRT is harder to evade than income tax
• Scale (22M people, $1.5T GDP) makes infrastructure affordable

What if the stock market crashes?

65-year time horizon smooths volatility. Even the Great Depression recovered within 15 years. Dividend reinvestment (DRIP) means buying more shares when prices are low.

Historical 65-year returns have never been negative.

Won't businesses leave to avoid GRT?

GRT applies to point of sale within the state. Moving headquarters doesn't help if you're selling to state residents. And the benefits — healthier workers, no employer healthcare costs, educated workforce — make the state more attractive, not less.

Who validates these numbers?

AIP is a framework seeking validation from qualified policy experts, economists, and political leaders. The math is presented for scrutiny. This is a promising starting point, not a finished solution.

Gross Receipts Tax — Already Operating

• New Mexico: GRT since 1930s — 5.125% to 8.6875% statewide
• Hawaii: General Excise Tax (GET) — 4-4.5% on all business activity
• Washington: Business & Occupation Tax since 1933
• Ohio: Commercial Activity Tax — 0.26% on gross receipts over $1M
• Nevada: Commerce Tax on businesses over $4M revenue
• Texas: Margin Tax on corporate revenues
• Delaware, Oregon, Tennessee: All have active GRT variants

Result: GRT is proven, operational, and generates stable revenue. AIP scales it to replace income tax entirely.

Sovereign Wealth Funds — Already Working

• Norway: $1.9 trillion fund (2025), ~$340,000 per citizen. Averaging 6.59% annual returns since 1998. World's largest sovereign wealth fund.
• Singapore CPF: $609 billion managing retirement, healthcare, and housing for 4.2 million account holders. Newborns receive automatic MediSave grants.
• Alaska Permanent Fund: $80+ billion, pays annual dividends to every resident since 1982.

Result: Government-managed investment funds work. Norway proves 65-year compounding at scale.

Baby Bonds / Birth Accounts — Launching Now

• UK Child Trust Fund (2002-2011): £250-500 at birth for 6.3 million children. First accounts matured 2020.
• Connecticut (2023): First US state — $3,200 per Medicaid birth, grows to $11,000-$24,000 by age 18.
• Washington DC (2021): Baby bonds for low-income births.
• California HOPE (2024): $4,500 accounts for foster youth.
• Vermont, Rhode Island: Active baby bond programs.
• Federal "Trump Accounts" (2025): $1,000 for babies born 2025-2029 — passed Congress.

Result: Birth accounts are bipartisan and spreading. AIP's Stability Accounts are the scaled, comprehensive version.

Universal Healthcare — Already Working

• Costa Rica (CCSS): Universal coverage since 1941. 100% population covered. Ranked #1 in Latin America by UN, #36 globally by WHO. Funded by 6-11% income contribution.
• Norway: Universal tax-funded coverage. Life expectancy 83+ years.
• Singapore: CPF MediSave + MediShield — automatic enrollment at birth, mandatory savings for healthcare.
• Taiwan: Single-payer since 1995. 99.9% coverage, 6% of GDP (vs US 18%).

Result: Universal healthcare works in diverse economies. AIP adds accountability through Stability Account repayment.

Water Infrastructure — Already Built

• Central Arizona Project: 336-mile canal operational since 1994 — delivers Colorado River water to Phoenix and Tucson.
• Colorado River Aqueduct: Operational since 1941 — 242 miles to Southern California.
• California Aqueduct: 444 miles delivering water from Northern to Southern California since 1973.
• Navajo-Gallup Pipeline: Under construction — tribal water rights settlement, 280+ miles.

Result: Long-distance water pipelines are proven engineering. The Columbia River pipeline extends existing infrastructure patterns.

Stability Accounts Create Market Floors

Unlike 401(k)s where retirees must sell during downturns, Stability Accounts create structural market stability:

• Continuous buying pressure: ~$100B/year of new investment from newborn accounts — buying regardless of market conditions
• No forced selling: Repayment comes from account balance transfers, not market liquidation timing
• 65-year horizon: Dollar-cost averaging through every market cycle
• Floor, not ceiling: Creates permanent demand floor for domestic equities

Norway model: Their $1.9T fund stabilizes global markets by buying during crashes and holding long-term. AIP replicates this at individual scale.