By Hail Hamilton

The Internet is afire with a grand proposal. Instead of bailing out AIG to the tune of $85 billion, why not divide the money among all 200 million or so U.S. adults? As close as I can figure this is the story behind the mysterious proposal.

But first the proposal:

“I’m against the $85,000,000,000.00 bailout of AIG.

“Instead, I’m in favor of giving $85,000,000,000 to America in the form of a We Deserve It Dividend.

“To make the math simple, let’s assume there are 200,000,000
bonafide U.S. Citizens 18 years or older.

“Our population is about 300,000,000 counting every man, woman
and child. So 200,000,000 might be a fair stab at adults 18 and up.

“So divide 200 million adults 18 and older into $85 billon that equals $425,000.00.

“My plan is to give $425,000 to every person 18 years and older a We Deserve It Dividend.

“Of course, it would NOT be tax free. So let’s assume a tax rate of 30%.

“Every individual 18 years and over has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

“But it means that every adult 18 and over has $297,500.00 in their pocket. A husband and wife have $595,000.00.

“What would you do with $297,500.00 to $595,000.00 in your family?

“Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads

Put away money for college – it’ll be there

Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs

Invest in the market – capital drives growth

Pay for your parent’s medical insurance – health care improves

Enable Deadbeat Dads to come clean – or else
Save it for a rainy day or for retirement

“Remember this is for every adult U S Citizen 18 and older including the folks
who lost their jobs at Lehman Brothers and every other company
that is cutting back; and of course, for those serving in our Armed Forces.

“If we’re going to re-distribute wealth let’s really do it...instead of trickling out
a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.

“If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18 and over! As for AIG –

“Liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.

“Here’s my rationale. We deserve it and AIG doesn’t.

“Sure it’s a crazy idea that can “never work.”

“But can you imagine the Coast-To-Coast Block Party!
“How do you spell Economic Boom?

“I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.

“And remember, The Davis plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

“Ahhh...I feel so much better getting that off my chest. Kindest personal regards,

“PS: Feel free to pass this along to your pals as it’s either good for a laugh
or a tear or a very sobering thought on how to best use $85 Billion!!”

That gives $425,000 to every woman and man, the widely circulated e-mail says or $297,500 after taxes. Wow.

This idea has gotten a lot of traction online, particularly as Congress is now considering a $700 billion bailout or rescue or whatever for America's financial institutions.

"Sounds like a plan," exclaimed Cathy at Cathy's Blog -- For Me For Once, one of many bloggers who've passed the $85 billion "We Deserve It Dividend" proposal on.

There's only one small problem with this plan.

"It only works out to $425 per person," an anonymous reader of Cathy's Blog wrote. "Whoever is circulating that idea is an idiot. Don't believe everything you read."

But the WDID plan -- claimed by so many people as their own that it's impossible for us to know who hatched it (and forgot to double check the math) -- does suggest good uses for a huge chunk of cash if it were to fall into consumers' hands -- like paying off personal debt, spending it for college and investing it.

In fact, a Forbes.com article at MSN Money spells out other possible uses for the $700 billion contained in
the latest bailout proposal:

• The nation's bridges need $180 billion in repairs.
• Rail infrastructure needs $185 billion in maintenance.
• $150 billion would provide every American with private health insurance, and also pay for a universal automated health-information system.
• The government could pay off the $500 billion cost of the war in Iraq. "Unlike investments in distressed assets, paying for the Iraq war won't produce a return, but $700 billion would stem the government's future debt obligations to its creditors," the article says.

The author of the original WDID e-mail also tapped into people's unhappiness with bailouts like the ones for AIG (actually a federal loan), Fannie Mae and Freddie Mac, and the $700 billion granddaddy of all deals being negotiated as we write. One of the things people wonder is how we're all going to pay for it.

"Yes, he did his math wrong. It actually works out to $425 per person," wrote "spectral44." "But that’s better than the stick in the eye we're about to get, eh?"