THE CAL SIMPLE TAX PLAN

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UNITED CALIFORNIANS  

FOR TAX REFORM  

info@CalSimpleTax.org   

 

THE CALIFORNIA SIMPLE TAX

Our Group History & Prior Achievements


We approach our 10th Anniversary

United Californians for Tax Reform is approaching its 10th anniversary. We were founded in 1994 to develop, qualify and promote the passage of a flat tax initiative for California, entitled "The Peoples Tax Reform". It limited tax rates to 2.5% and 5.0% on personal Income with the higher rate phased out over a five year period. It also indexed capital gains and offered businesses with annual sales under $5 million the option of paying a tax of 0.25% of their gross receipts rather than the tremendously complex corporate tax forms.

Since our founding, we have been able to influence in significant ways the dialogue of tax reform at both the state and federal levels. Here are some of our major accomplishments.

First, we gave new impetus to the proposal for a 10% flat federal income tax by showing that the federal government's out-of-pocket expenses could be fully paid for by this low tax rate if a separate surcharge were imposed to pay for service of the national debt.

Second, we pioneered the idea of changing and simplifying the tax code, one tax form at a time. In this way we plan to encourage an ever larger number of taxpayers to use simple forms and a standard deduction rather than long forms and itemized deductions. Taxpayers using the simple forms could quickly exceed 75% of all California taxpayers, and each one of them will become accustomed to a simple tax and may well therefore be expected to favor a flat tax. The one-form-at-a-time approach has worked at both the state and federal levels. In California, we advocated broadening the group of taxpayers who could use the simple form (540-EZ). And indeed, the state's taxing authority, the Franchise Tax Board, eliminated the $400 limit on interest income from the 540-EZ in 2002 and promised to eliminate the limit on dividends in 2003. The US Treasury Department, which prepares the federal tax forms, at our request, began to reform the 1040EZ by raising the limit on interest income from $400 to $1500 for 2002, allowing millions of more taxpayers to use this simpler form.

Third, we reignited the idea of indexing capital gains. Unlike other tax reformers, we opposed the elimination of all tax on capital gains, and instead recommended a 15% flat rate, which in fact later was introduced by Congress in 2003. Congress also reduced the tax rate on dividends to the same level, which we had also suggested. Moreover, we believe that our request to do the same for interest on bank certificates of deposit, IRA distributions, and pension income was well received when we presented this idea to key members of Congress.

Fourth, we introduced the concept of a voluntary simple tax for small businesses based on their gross receipts as an alternative to a net income tax (the U.S.'s current system) or a value added tax (common in Europe). This proposal was set forth in our "Peoples Tax Reform" initiative in 1994 and was recently implemented in Russia.

Finally, we broke new ground with our idea for a voluntary 15% flat tax at the federal level as an alternative income tax for individuals who wish to avoid the time, effort, complexity, record keeping and paperwork of the present tax code.

We continue to lobby to simplify taxes at both the federal and state levels. Our most recent project is to qualify for the ballot the Simple Tax Initiative to provide California taxpayers with a simpler, better income tax alternative.

For more information on our past activities and achievements, please review some of the following documents:

1994

Peoples Tax Reform Initiative

Replaced the California tax code with a 2.5% flat tax phased in over five years  and offered small businesses with gross receipts under 5 million dollars the option of paying a tax on 0.25% of gross receipts in lieu of the 8.8% state income tax.

1996

Sales and Use Taxes: Personal Income and Bank and Corporation Taxes Initiative

Replaced the California tax code on personal income with a 2.5% flat tax phased in over five years.  Replaced the California Corporate Tax and State Sales tax with a tax of 1.0 % on Corporate gross receipts.

The 10 Percent Solution 

A presentation by Roland Boucher to the California Reform party convention in Los Angeles California

The 10 Percent Solution - The right tax for the 21st Century

Remarks by Roland Boucher to the Rotary club of Irvine California October 17

AB 1673 (Tagasugi) Index Capital Gains

A revised bill to index capital gains. passed in assembly rev & tax committee

Let Seniors use the short 540-EZ form (Erman & Boucher)

Proposal AP 35, California Senior Legislature was Voted a top ten resolution)

1999

Let Seniors use the 1040EZ tax form (Boucher)

Proposal National Silver Haired Congress

2000

Eliminate the tax on the inflation portion of general savings and long term investment

Proposal SP 84 California Senior Legislature (Boucher)

AB 2347 (Bates) 540EZ - Let seniors use the short form and limit tax rates to 2.5%

Limits tax rates to 2.5% for income to $50,000 single and $100,000 married

2001

"Review of Tax Expenditures"

Testimony. by Roland Boucher before the California Assembly Rev and tax Committee January 7

AB 1370 (Wiggins) Study bill to let seniors use the short tax form. February 23

SB 831 (Poochigian) Let seniors use the short tax form February 23

Align the California tax brackets to the Federal tax code, June 1

Proposal California Senior Legislature (Candia & Boucher)

Proposal for a Voluntary 15% flat tax

Presented by Roland Boucher at the National taxpayers union Conference June 15 through 17 at the Radisson hotel St Louis Missouri

2002

Department of the Treasury will remove restrictions which limit use of Form 1040EZ

A letter From Dale M. Servetnick Office of the Executive Secretary

2003

Alternative income tax rate initiative statute (CA Simple tax)

Read on to learn more about this - our current tax Initiative...

 

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