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For
decades, unfair, unconstitutional TAX LAWS enacted by
Presidents and Members of Congress have crippled the nation,
downgraded standards of living for citizens, created fiscal
instability, and retarded national
progress.
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National
Referendum For… FAIR TAX LAWS
For
decades, unfair, unconstitutional tax laws perpetuated by
Presidents and Members of Congress have crippled the nation,
downgraded standards of living for citizens, created fiscal
instability, and retarded economic progress.
Under the
existing Constitution, Article I, Section 8, provides that
ONLY "The Congress shall have powerTo lay and collect
taxes….". Citizens were not provided with a
direct voice in enactment of tax laws.
Upon
adoption of a new Constitution, VOTER-TAXPAYER-CITIZENS will
be endowed with power to enact, change, or rescind TAX LAWS
by National Referendum.
Modified
FLAT TAX LAW
Reflecting
the Voice of TAXPAYER-CITIZENS, a National Referendum for
Enactment of FAIR TAX LAWS will be proposed to advocate
a new, modified FLAT TAX LAW for the nation.
The
objectives of the tax law will be (1) collection of
sufficient revenue to finance necessary expenditures of the
Federal Government; (2) fair, equitable distribution of tax
burden; (3) establishment of a National Reserve Fund
to fulfill ongoing and "catch-up" needs of the nation;
and (4) to provide opportunity for an above-the-poverty
level STANDARD OF LIVING for all individuals and
families.
A.
ANNUAL STANDARD DEDUCTIONS
Annual
Standard Deduction from adjusted gross income for
individuals and families--reflecting income necessary for
sustenance above the poverty level--will be as
follows:
- Individual
: $10,000
- Family
of 2: $12,000
- Family
of 3: $14,000
- Family
of 4: $16,000
For
larger families, annual standard deductions from adjusted
gross income will increase by $2,000 per person.
B.
CONTRIBUTIONS TO CHARITY
Valid
contributions by individuals, businesses, and other
organizations to bona fide religious, charitable, and other
public service organizations will be deductible from gross
income for Federal tax purposes.
C.
CHARITABLE INSTITUTION INCOME
Bona fide charitable, religious, and public service
institutions will be allowed income exemptions from Federal
taxation provided that they qualify as
non-wealth-accruing organizations in which no less than 90%
of income is allocated to valid charitable and
human-compassion purposes.
D.
Modified FLAT TAX
Under
the modified FLAT TAX, the ONLY DEDUCTIONS from gross
income will include: (1) contributions to charity by
individuals, businesses, organizations, and other economic
entities; and (2) income of valid charitable
institutions.
For all
individuals, businesses, organizations, and other economic
entities, a modified FLAT TAX of 10% will be imposed
on annual adjusted gross incomes.
The modified FLAT TAX proposal is founded upon
logical, economically-sound principles of fair, equitable
taxation on national incomes and wealth.
National economic values demonstrating that such a tax
system would be economically sound and valid
include:
- U.S.
ANNUAL GROSS NATIONAL INCOME: about $28
trillion
- DEDUCTIONS
FOR INDIVIDUALS AND FAMILIES (as provided in Section A
above): $1.5 trillion (estimated)
- DEDUCTIONS
FOR CONTRIBUTIONS to CHARITY (as provided in Section B
above): $100-200 billion annually (estimates based
on reported contributions for past years)
- DEDUCTIONS
BY CHARITABLE INSTITUTIONS of income (as provided in
Section C above): $100-200 billion annually
(estimate based on contributions for past
years)
- ADJUSTED
GROSS NATIONAL INCOME (after exemptions and
deductions): $26+ trillion
A
modified FLAT TAX RATE of 10% on an adjusted ANNUAL
GROSS NATIONAL INCOME of $26+ trillion would yield $2.6+
TRILLION in REVENUE.
For the future, projected Federal budget projections
range from
$1.8 trillion to $2+ trillion
anually.
NATIONAL
RESERVE FUND
The
new, modified FLAT TAX LAW would provide a
revenue surplus of $100-600 billion or more annually for
establishing a National Reserve Fund.
As
determined by CITIZENS in a Referendum, the
National Reserve Fund would finance priority goals
ofthe nation such as:
- Reduction
of National Debt
- Better
programs for employment, food and nutrition, health and
medical care, education, homes and living systems, and
other necessities of life for citizens
- Catch
up funding for decaying infrastructure:
highways, airports, railroads, waterways, bridges,
harbors, mass transit, and other public service
systems
- Catch
up funding for neglected needs of the nation,
including: flood control to protect homes,
communities, and other national resources; fire
protection for national forests, parks, public lands,
homes, and other property; new strategies for crime
control; as well as other protections for citizens and
resources of the nation
- Establishment
of a National Disaster Recovery Program to assist victims
of famines, epidemics, hurricanes, tornadoes,
earthquakes, drought, and other
emergencies
- Visionary
planning for a better future
Beyond
the year 2000, VOTER-TAXPAYERS would determine any change in
the percentage of the modified FLAT TAX system by
National Referendum depending upon (a)
growth--or downtrend--of the gross national
income; and (b) revenues required for services, protections,
and other expenditures necessary for the Government to
effectively serve citizens and the nation.
To
determine necessary adjustments for inflation,
devaluation of the dollar, recession or
depression, or other negative economic
factors, a National Referendum would be conducted
to adjust the Standard Deduction upward, or
downward, as well as make other equitable
modifications of the tax system.
Under the
new tax law, the INCOME TAX REPORTING FORM would be limited
to ONE PAGE--as contrasted to current multiple form
reporting, involving hundreds of pages of instructions
(often unclear, confusing, or not understandable by lay
taxpayers and professionals).
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