You may have heard the term NESARA mentioned in conversations about economic reform, tax policy, or even national recovery. But what is NESARA really? NESARA stands for the National Economic Stabilization and Recovery Act, a non-partisan bill proposed by Dr. Harvey F. Barnard in the late 1980s.
Though never enacted, NESARA outlines a powerful plan to restructure the American economy with a focus on fair taxation, debt relief, and the restoration of sound monetary policy. Let’s explore what NESARA proposes—and how it could transform the U.S. economy.
Stimulating the Economy Through Debt Reduction
- Eliminates approximately $1 trillion in national public debt
- Reduces future private debt by another $1 trillion
- Provides immediate debt relief for many homeowners
By reducing the burden of debt, NESARA increases disposable income, spurs consumer spending, and revitalizes American industry through increased demand and production.
A Fair and Transparent Tax System
NESARA replaces the complex income tax system with a simple 14% national sales tax, while exempting necessities and life essentials. Here’s what it changes:
- Eliminates: personal income taxes, corporate income taxes, estate/gift taxes, and capital gains taxes
- Exempts: groceries, rent, prescription drugs, medical services, educational materials, and more
- Sales tax only applies to non-essential consumption
This approach reduces hidden tax costs in goods and shifts the burden away from productivity and toward discretionary spending—simplifying the system while boosting fairness and privacy.
Reforming the Monetary System
One of NESARA’s boldest proposals is the abolition of the Federal Reserve System, replaced with a publicly controlled Treasury Reserve System.
- Restores Constitutional currency—gold and silver-backed money
- Ends debt-based money creation and interest on the use of currency
- Gives Congress full authority over monetary standards
- Introduces new tools like the Treasury Reserve Account to fine-tune the money supply and control inflation
This new system ensures the people—not private banks—have control over the creation and value of money.
Returning Banking to Public Service
NESARA transforms banking to better serve people and communities:
- Outlaws compound interest on secured loans
- Replaces it with a one-time monetization fee
- Eliminates bank failures except in cases of fraud
- Prevents banks from purchasing government debt or manipulating reserves
These changes return the banking industry to its roots: stability, transparency, and serving the public good.
Income Tax Overhaul
- Amends the Income Tax Act of 1939
- Eliminates the need for personal or corporate income tax filings
- Simplifies the tax code by eliminating thousands of pages of regulation
- Reforms the IRS into a streamlined National Tax Service
This results in more productive labor, less government intrusion, and restored financial privacy for all Americans.
Sales and Use Tax Structure
NESARA introduces a clear and limited consumption tax. The proposed 14% sales tax would exempt:
- Groceries, rent, medicine, and medical services
- Educational materials and nonprofit school transactions
- Recycled goods and nonprofit sales
- Government fees and services (passports, licenses)
- Sales of bullion, coin, and currency
This ensures basic needs are protected while luxury and discretionary spending bear a reasonable tax responsibility.
The Big Picture: Prosperity, Simplicity, and Sovereignty
NESARA’s full implementation would:
- Raise the standard of living for all Americans
- Eliminate hidden taxes and reduce costs of living
- Empower people to control their earnings and currency
- Reduce government waste and shrink bureaucratic overreach
- Encourage innovation, local production, and personal freedom
From tax relief to currency reform, NESARA offers a roadmap to a more prosperous and transparent America.
Want to Learn More?
To understand the origins, structure, and goals of NESARA in greater depth, explore Harvey F. Barnard’s book:
Draining the Swamp: The NESARA Story
Discover how NESARA could reshape the American financial future—for the better.
