| April
13, 2003
FOR
IMMEDIATE RELEASE
Contact
Roland Boucher
14252
Culver Drive #728, Irvine CA 92604
949-552-9174
or Roland@CalSimpleTax.org
GOVERNMENT:
CALIFORNIA
SIMPLE TAX PROPOSAL
IRVINE,
CALIF. - United Californians for Tax Reform (UCTR) announces plans to
circulate a petition, via the Internet, to place the following
initiative statute before the voters for the March 2004 primary
election. The California Attorney General has confirmed receipt of the
proposed initiative which has been assigned file No. SA2003RF0010. We
expect to receive the final Title and Summary as well as permission to
circulate petitions on or before May 16, 2003.
Suggested
Title
California
Simple Tax
Suggested
Summary of the Measure
Taxpayers
will have the option of calculating their income tax by using a single
rate of 2.5% after applying a standard deduction and filing a simple,
one-page return, if their income (1) does not exceed $100,000 in the
case of a married person filing jointly, or $50,000 in the case of a
single person, and (2) consists only of wages, salaries, tips, taxable
interest, taxable dividends or taxable pensions. The standard
deduction for taxpayers filing jointly shall be equal to the hourly
minimum wage multiplied by 2080 (currently $14,040) or one-half that
amount for taxpayers filing singly ($ 7020).
The
Simple Tax is Simple
The
California Simple Tax gives taxpayers the opportunity to compute their
taxes on a simple, one page tax form and following a simple six page
instruction set instead of being forced to interpret the 63 pages of
nearly unintelligible instruction provided with today’s 540 form.
The
Simple Tax Reduces Record Keeping
No
longer would taxpayers be forced to waste a tremendous amount of time
and effort to keep financial records just to protect themselves from
the government in case of future audit. All data needed to comply with
the proposed tax would come from a third party such as banks,
employers, etc. eliminating the need for an audit.
The
Simple Tax May Reduce your Taxes
This
Measure will allow taxpayers who do not claim itemized tax
deductions to pay no more than the average tax imposed at their income
level. Since taxpayers will now have the choice of selecting the tax
form which provides for the lowest rate of tax, the revenue to the
State from the Personal Income Tax may be reduced two or three
percent. There will be a slight reduction in the cost of tax
collection and many taxpayers will no longer require assistance in tax
preparation.
The
Simple Tax builds on Existing Tax Reforms
In 2000
California State Controller Kathleen Connell introduced the 540-2EZ
postcard sized Tax Form which was well received by the 2 million
taxpayers who were allowed to use it. We build on this reform by
allowing the 3.5 million Seniors over 65 and the nearly 8 million
Taxpayers who claim the Standard Deduction to use our new tax form.
The
Simple Tax provides relief to over 10 million Taxpayers
Today
30 percent of tax filers chose to itemize their deductions. these
Itemized deductions increase in value with increased income. The
current Tax Code imposes ever increasing tax brackets (4%,6%, 8%,
& 9.3%) on these taxpayers to counteract the benefits of the
itemized deductions allowed them. We expect to induce many of these
taxpayers to use the CA Simple Tax Form by raising their standard
deduction allowed and limiting the tax rate to 2.5 percent.
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