The United States Equalitarian Party’s Flat Tax Plan

Finally — A Flat Tax Plan that Just Might Work!

taxes

The United States Equalitarian Party (USEP) believes it is the government’s responsibility to help U.S. citizens pursue their dreams without undue economic, educational, or social impediments. The party of course understands achieving this vision requires funding gained through taxing its citizens and business entities. To build and maintain these funds, the USEP favors the implementation of a tiered flat income tax.

The tax revenue collected through payroll deduction would be used by the government to provide a strong national defense, ensure economic security, build international relationships, increase worldwide commerce, and maintain critical infrastructure. The USEP believes given these elements of national security, citizens, businesses, and government alike will be able to achieve their personal and collective goals.

Ideally, States would follow suite with their own similarly structured flat tax plan. This plan, sometimes called a proportional income tax, would be levied on both citizens and corporate entities alike. Tax rates would be set at pre-calculated levels and only adjusted when the government has been significantly impacted by changes to national strategy, public needs, and economic conditions.

This tax structure would accompany a proposed Amendment to the U.S. Constitution capping the U.S. citizen taxation rate at a combined Federal and State maximum of twenty-five percent. The rational for this amendment being; if a Government cannot operate with a maximum twenty-five percent of its citizen’s annual income — then that Government probably needs to be replaced with one that can or will.

To achieve these goals, the USEP’s tiered-flat income tax would apply a fixed Federal income tax rate to every taxpayer and corporate entity according to their annual earnings level. If States were to adopt a similar structure, income tax levels would be expected to vary from state to state based on the acceptance / rejection of Federal incentive funds, rate negotiations, and debt conciliation between the two levels of government.

Under the USEP’s tax plan, annual tax filing would be legally required and tied to awarding Social Security, Medicare, and other government credit qualifying programs (e.g., Pell Grants, Federal student loans etc.). There would be no tax refunds, no coupons, no deductions, and no exemptions. One-time inheritance, lump sum lottery winning, and gambling taxes would be applied at the end of the year in which the added income gain took place. To incentivize personal investment, income from investment dividends, distributions, capital gains, or other investments would not be taxed. Excise taxes would cease. The USEP reminds its fellow citizens they are in control of the Government and its finances — not the other way around.

There are of course, those who believe a tiered flat tax on all citizens would disproportionately and negatively affect lower income people. To them, the USEP offers this compromise. Only income earners above the Federal and State determined levels of poverty would be taxed and at a tiered rate.

USEP's proposed tiered Flat Tax Table

That said, the USEP believes a “fair share” means “a fair and equal voice.” If lower income people pay the same tax rate the rich do, their voice would hold the same value and political weight as those who believe they are paying more. In other words, if the voices of the indigent held the same value as the affluent — and were reminded they did — it wouldn’t be long before those voices began to more boldly assert their constitutional rights.

The following is an introductory breakout of Federal and State functions and programs supported by income tax revenue.

Federal Tax Programs: USEP’s Federal tax plan would reduce Internal Revenue Service-related bureaucracy and complications while simultaneously helping to balance the U.S. budget by establishing more predictable tax revenue estimates. IRS employees, currently focused on insuring return submission, accuracy, collection and auditing could be shifted to citizen and corporate entity filing compliance, and fraud / evasion prevention. Federal taxes would be expected to fund the following U.S. Governmental functions and programs:

  • U.S. Government Departments (e.g., Dept. of Homeland Security, Dept. of Defense, Dept. of Justice, Dept. of Energy, etc.,)
  • Federal Agencies (e.g., Internal Revenue Service, Federal Emergency Management Agency, Food and Drug Administration, etc.)
  • National Infrastructure, Environmental Protection, Highways, National Parks, Waterways, etc.
  • International Security Cooperation and Aid Programs
  • Social Security
  • Medicare
  • Federal Employee (including military) Pay, Unemployment Insurance, Benefits, and Retiree Pensions

State Tax Programs: USEP’s State tax plan (aka “Community Care Plan”) would ensure resident access to housing, preventive, basic, and emergency health care, education until the age of eighteen, worker disability, time-limited unemployment support, and sustenance support when the need has been validated. State tax revenue is meant to promote access to community development, social cohesion, advance educational and economic opportunities, and build interstate commerce. State taxes would be expected to fund the following state level functions and programs:

  • State Government and Agency Functions (Dept. of Motor Vehicles, State Courts, Civic Administration, Law Enforcement, Fire Department, Emergency Management and Recovery, Schools / Education, etc.)
  • County / Parish / City Agency Functions (Courts, Civic Administration, Law Enforcement, Fire Department, Emergency Management and Recovery, Schools / Education, etc.)
  • Disability / Unemployment Insurance
  • Medicaid
  • State Employee and National Guard Pay, Unemployment Insurance, Benefits, and Retiree Pensions
  • State Infrastructure, Environmental Protection, Highways, Parks, and Waterways
  • Social Welfare (EBT, SNAP, WIC, etc.)
  • Disaster Recovery, Emergency Services

National Disasters, Emergencies, and Congressionally declared war budgets could be financed through time-limited (e.g., two years) Value Added Taxes, State Sales Taxes, or Excise Taxes not exceeding five percent over then current tax rates.

Interested in knowing more or want to help further develop this plan? Feel free to reach out to the United States Equalitarian Party (USEP) at: www.usep.net