Jesús Arturo Devesa

Economist , MBA

Impact of Fiscal deficit reduction policies over economic sectors

Ideas and data for congressmen and senators:

Reducing older adult's vulnerability to food insecurity through state and federal fiscal policies

Submitted Solution to AARP Foundation (09/03/12)

1-Specific state and federal fiscal policies can reduce the high cost of food products for older adults.

The federal state should create a new type of business entity defined in the legal system.

This new type of business entity should be only open to provide food to older adults.

The states should create for this new type of business entity total sales and use tax exemption for farm equipment, machinery, diesel fuel used in farming and food processing, feed, animal life, seed, fertilizers, annual plants, and nursery stock used to produce food for older people consumption and drugs and oxygen intended to prevent or control animal diseases.

This new type of business entity should not file any kind of corporation tax.

2-Specific state and federal fiscal policies can help with the lack of monetary resources in older adults by modifying taxes in the chain of food distribution to older adult.

By modifying taxes in the chain of food distribution the final product will reach the end user at lower price than the current system.

The creation of specific supply for specific demand
(older adults) based on fiscal policies will offer a cheaper food item with the same nutritional value.

3-Specific state and federal fiscal policies can reduce the limited availability of commercially sold food by allowing the incorporation of new business under a new business entity with totally different fiscal implications.

When demand exceeds supply in a normal market, the price rises until it reaches a market-clearing level.

Specific fiscal policies can increase supply of food to older adults.

4- Specific state and federal fiscal policies can reduce the limited physical mobility of older adults.

The growing population of older adults is becoming a group of Second Class Citizens that can only be attended by the second class business, the small business.

There are only 6,139,463 employees in US working for companies with less than 4 employees and 40 million employees working in companies with more than 5.000 employees.

The tax system is preventing small business creation and self employed creation.

In order to be self employed you have to pay an annual fee to the IRS.

It is the equivalent to pay to the government to be alive.

Corporate tax is the same for 1 employee that for 50,000 employees.

5-Specific state and federal fiscal policies can increase transportation networks for older adults.

Food trucks have been one of the success stories of the tough economy, creating a niche market and giving foodie entrepreneurs an opportunity to start small.

Street vendors have always been among the beacons of opportunity in a rough economy,
giving operators a chance to start a business and create work when they couldn't find it elsewhere.

6-Specific state and federal fiscal policies can reduce the limited access to social networks to help with food purchasing by liberating food trucks business.

7-Specific state and federal fiscal policies can reduce the limited availability of nutritiously adequate food by giving farmers free direct access to supply to older people in non urban areas.

8-Specific state and federal fiscal policies can help to prepare food well that tastes good by liberating food trucks business.

9-Specific state and federal fiscal policies can help to older adults to receive culturally acceptable and desirable food by allowing small companies with less than 5 employees to get into the business without filing the sales tax, corporate income tax, state income tax, personal income tax, unemployment tax, social security and Medicare tax.

10-Specific state and federal fiscal policies are more helpful in The Southern United States.

25% of people living in New York state are in Medicaid

30% of people living in the state of California are in Medicaid.

11-Specific state and federal fiscal policies and U.S. cities officials can make possible for an unemployed to be an effective street vendor.

Effective street vendors are more needed for African Americans and Latinos.

Street vendors are an important tool reducing older adult's vulnerability to food insecurity

12-Specific state and federal fiscal policies are more needed for persons with disabilities

In a country with a long history of street vendors, local governments nationwide can increase this traditional form of bootstraps entrepreneurship in order to supply food to persons with disabilities.

Persons with disabilities even would allow street vendors to use their private property
to display their food items.

13-Specific state and federal fiscal policies are more needed in rural and urban areas.

Specific state and federal fiscal policies can facilitate the supply and deliver o food
to older people.

It is a big deal for older people to find, to buy, to pay, to cook and to eat a meal.

State and federal fiscal policies facilitating the creation of business to supply and deliver food to older people is an important way of reducing older adult's vulnerability to food insecurity.

14-Specific state and federal fiscal policies are more needed for people who live alone, are divorced or have never married.

People who live alone, are divorced or have never married end up paying other people's taxes in the higher prices of goods and services that pass along the higher taxes imposed on businesses.

15-Specific state and federal fiscal policies are needed in all demographics in every state in the U.S.

We have five years immersed in a severe global food crisis that is unlikely to disappear.

We are threatened by the countries where problems of malnutrition are increasing and may even cause a collapse.

Lack of food will become the social and economic priority in the coming decades in the U.S.

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