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.

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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A new Modified FLAT TAX will result in LOWER TAXES for INDIVIDUALS AND FAMILIES allowing annual standard deductions for:

  • Individual :  $10,000
  • Family of 2:  $12,000
  • Family of 3:  $14,000
  • Family of 4:  $16,000

The Modified FLAT TAX of 10% will provide for (a) balanced Federal Budgets; and (b) a SURPLUS for a NATIONAL RESERVE FUND  through Fiscal Year 2000.

The NATIONAL RESERVE FUND will provide for:

  • Payment on National Debt
  • Repair of decaying national infrastructure
  • Creating more Jobs
  • Improved services and greater protection for citizens
  • Better FUTURE

IRS
Form 1040

Under the proposed tax law, the INCOME TAX REPORTING FORM will be ONE PAGE.