A New Tax Code

A New Tax Code for the United States

1. Preamble
2. Income Tax
1. Determinants
2. Margins
3. Deductions
3. Sales Tax
1. Amounts
2. Exemptions
4. Process for Receiving Taxes
5. Process for Making Tax laws
6. Punishments for tax fraud
7. Where the Money Goes

Preamble

The tax code is long, onerous, and complicated, this will be a simplified version for the United States of America no longer than 15 minutes long to raise the amount of revenue necessary for government functionality. It will prevent the amount of loopholes in the tax code which are used by corporations to rip off the American People. This means that at a reading rate of 100 words per minute, this tax code, including the preamble, is limited to 1500 words.

Income Tax

Filing statuses

• Individual File - An individual may file individually.
• Family - A married couple can file with their minor children on the same tax form.

Determinants
Income tax will be determined by the sum of income from wages, stocks, bonds, interest, dividends, gambling, game show winnings, rental income, and tips, before tax breaks. This includes all domestic and foreign income under these expenses. Short-selling stocks does not get a deduction. Taxes.

Margins

1. People will pay no income taxes on income up to the cost of living in their state.
2. People will pay 5% on all income from 100% up to 150% of the cost of living.
3. People will pay 10% on all income from 150% up to 500% of the cost of living.
4. People will pay 15% on all income from 500% up to 1000% of the cost of living.
5. People will pay 20% on all income from 1000% up to 1500% of the cost of living.
6. People will pay 25% on all income from 1500% up to 2000% of the cost of living.
7. People will pay 30% on all income from 2000% up to 3000% of the cost of living.
8. People will pay 35% on all income from 3000% up to 4000% of the cost of living.
9. People will pay 40% on all income from 4000% up to 5000% of the cost of living.
10. People will pay 45% on all income from 5000% up to 6000% of the cost of living.
11. People will pay 50% on all income from 6000% to 7000% of the cost of living.
12. People will pay 55% on all income from 7000% to 8000% of the cost of living.
13. People will pay 60% on all income from 8000% to 9000% of the cost of living.
14. People will pay 65% on all income from 9000% to 10000% of the cost of living.
15. People will pay 70% on all income equal to and above 10000% of the cost of living.
16. The cost of living will be determined by the cost of transportation, food, utilities, and housing for different family sizes. Utilities is defined as average cost of water, electricity, and internet. This will be determined by the Bureau of the Census annually for every state and region. People’s cost of living will be determined by their region that the Bureau of the Census will determine. Each region needs to have a similar cost of living and economy. The cost of living paid for each household will be determined by the head of household, spouse, and number of minors residing in the same place.

Deductions

1. The value of money spent on post-secondary education will be fully deducted from the income tax until no tax is owed. Money used for sending out scholarships that are dispersed will also be fully deducted until no income tax is owed. Schools that this money can be spent on must have a transfer/graduation rate equal to or greater than 50% and 50% or more graduates should be employed at least part-time by one year after graduation. The Department of Education will monitor schools that fit these requirements.
2. The value of money you spent on health care will be fully deducted, and money can be earned through this credit if the value of health care exceeds the taxes owed before exemptions. Expenses on vitamins or vacations do not count. You can include any medical expense you pay for any person. Life insurance, baby sitting, maternity clothes, nutritional supplements unless prescribed by a doctor, cosmetic surgery, toothpaste, teeth whitening, food, and weight-loss expenses are not deductable.
3. There will be a deduction equal to State Income taxes. You cannot get money back for this.

Sales Tax

There will be a sales tax in the United States in the following margins. It will function as an income tax on businesses which is forwarded to customers in slightly higher rates.

1. A 2% tax will be charged on the gross profit in America on every business with operations in the United States.
2. A 50% tax will be charged on the net profit of every business whose CEO is an American citizen. The net profit will be determined by the cost of wages, rent, and business supplies. There will be a $100 break for every American employee who worked over 1500 hours in a calendar year until there is no net income tax owed.
3. A 10% tax will be charged on the sales of cigarettes and cigars along with the 2% general sales tax.
4. A 2.5% tax will be charged on the sale of alcohol along with the 2% general sales tax.
5. A 20% tax will be charged on the sale of firearms along with the 2% general sales tax.
6. A 10% tax will be charged on the sale of ammunition for firearms along with the 2% general sales tax.
7. A 10% tax will be charged on the services of tanning salons.
8. A 20% tax will be charged on the sale of any vehicle having less than 10 miles per gallon on the highway along with the 2% general sales tax.
9. A 15% tax will be charged on the sale of any vehicle having between 10 and 15 miles per gallon on the highway along with the 2% general sales tax.
10. A 12.5% tax will be charged on the sale of any vehicle having between 15.1 and 20 miles per gallon along with the 2% general sales tax.
11. A 10% tax will be charged on the sale of any vehicle having between 20.1 and 30 miles per gallon on the highway along with the 2% general sales tax.
12. A 5% tax will be charged on the sale of any vehicle having above 30.1 miles per gallon along with the 2% general sales tax.
13. $5.00 per ton will be taxed on every amount of coal mined.
14. 10% of the price of electricity coming from a coal plant will be charged by the federal government.
15. There will be a $0.05 tax on every gallon of gas sold.
16. There will be a $0.10 tax on every gallon of diesel sold.
17. There will be a $0.10 tax on every gallon of Jet fuel sold.
18. There will be a $0.10 tax on every gallon of aviation gasoline sold.
19. There will be a $0.05 tax on every gallon of aviation karosene sold.
20. The sale of hydrogen for a fuel cell car will not be taxed.
21. The sale of cars that use fuel cells as their primary source of power will not be taxed.
22. Anything sold at a college store will not be taxed.
23. Any organization registered as a charity or religion, being that their goal is to make no profit, and give over 75% of their earnings to people in need will not be taxed. All organizations will be required to present their budget to the IRS.
24. Non-corporate organizations whose primary purpose is to preserve environmental and/or historical treasures in America or internationally or are based to help education and give over 75% of their earnings to their cause will not be taxed. All organizations will be required to present their budget to the IRS.
25. Organizations that are religious and have not donated any money to a political movement will not be taxed. All organizations will be required to present their budget to the IRS. Religious organizations that donate to political campaigns will be treated as businesses.

There will be no Corporate Income Tax.

Where the Money Goes

1. 1% of all revenue of the Government of the United States will go into a fund for spending in years where a deficit is run. This will be held by the Federal Reserve for future use. This fund may not be tapped without an Executive Order when spending is greater than income. This money may not be used in any year where Spending is equal to or less than revenue.

Process for Making Tax Laws

The Process for making a tax law code change lies in the power of Congress. The Internal Revenue Service, Courts, and President may make no change without the approval of a simple majority of both houses of Congress.

Punishments for Tax Fraud

Any American citizen convicted of lying the IRS on their income will have committed a felony and lose the right to vote for the rest of their life. They will lose the right to run for office. They will be incarcerated for 10 years in a Federal Prison with no bail and charged ten times the amount that they owed and didn’t pay. People have one year to correct mistakes.

A business that cheats on taxes will be fined one hundred times the amount of taxes owed from previous years. Companies have one year to correct mistakes.

In case of a balanced budget

If the Budget receives a surplus, the lowest tax bracket will be removed.

Tax code Restrictions

The entire tax code will not be more than 1500 words long.

A note:
Combined with the rest of the Utilitarian Party Platform there is no need for any more deductions for income tax. Education and Health Care will be provided like they are in every other first world measure. People will have enough money to have a house, as they do now, and public transportation will return to America.

In the case of a surplus the money will first pay off the debt early, if there is no debt, it will be sent back to the people.