THE
CALIFORNIA SIMPLE TAX
A New
Plan to Make California's Income Tax Simpler and Fairer for
Working Californians
The Tax Code Is
Unfair
The
first principle of tax fairness is that a taxpayer who earns the
same income as another pay the same tax. The current system is
anything but fair with its numerous special deductions,
exemptions, credits and loopholes, all of which are designed to
benefit one taxpayer at the expense of another.
The
Tax Code Is Overly Complex
The
tax code is so complex that even professional tax preparers can
not always agree on its interpretation. Billions of dollars are
spent each year just to insure compliance. Our present Byzantine
tax system penalizes those who can't afford high priced tax
advisers, requires much too much record keeping and paperwork,
and practically invites an audit by tax agents.
The
Tax Code Over-Taxes the Middle Class
The
U.S. Congress at least reserves the highest federal tax brackets
for those who arguably are fairly well off—taxpayers who earn
twice the salary of a congressman. The California Legislature,
however, imposes the highest state tax rates on everyone earning
over $32,291 if single and $76,582 if married filing jointly,
which captures a large slice of the working, middle class. These
high rates, combined with the fact that most middle income
taxpayers simply don't have access to tax shelters and
loopholes, results in the middle class paying more than its fair
share. This is outrageous.
The
Solution
Our
plan is fair.
For each taxpayer who opts to use our alternative California
Simple Tax, he or she will pay exactly the same tax as every other
taxpayer with that income. No special tax-shelter deductions, no
special-interest credits, no loopholes. And every taxpayer pays
the same rate of tax—2.5%.
Our
plan is simple.
Taxpayers choosing the California Simple Tax will file their taxes
on a one page form patterned after the current 540-2EZ. They will
not be required to keep financial records for state income tax
purposes. Forms W2 and 1099 are all they need, and these forms are
supplied by employers and financial institutions.
The
middle class will not be over taxed.
Single taxpayers who earn less than $50,000 and married taxpayers
who earn less than $100,000 will have the option to use the
California Simple Tax. These taxpayers will take a standard
deduction of $7020 if single, or $14,040 if married filing
jointly, and pay a 2.5% tax on the adjusted amount.
Please
read more ABOUT US, our PROPOSED
540-SIMPLE, its ECONOMIC IMPACT, NEWS
& ENDORSEMENTS found in this website for a
thorough discussion of our proposal.
Then
be sure to download our PETITION,
CONTRIBUTE or CONTACT
US for more information about our Initiative!
Thank
you!
United
Californians for Tax Reform
14252
Culver Drive #728
Irvine
CA 92604
949-552-9174
info@CalSimpleTax.org
