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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




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