CALIFORNIA SIMPLE TAX
our growing number of supporters
TAX INITIATIVE IN THE NEWS:
The following articles provide more information about our
initiative to simplify California's income tax calculation:
full text of each article, beginning with the most
recent, has been reprinted below for your convenience.
CHAMBER OF COMMERCE - MEMBER NEWSLETTER
SUPPORTS A NEW INITIATIVE TO SIMPLIFY STATE TAXES
Irvine Chamber of Commerce has a history of working to
make the tax code simpler, more efficient and less
time consuming for its members and their employees.
The Chamber is very proud to endorse an initiative
designed to simplify state taxes. This initiative is
being circulated by United Californians for Tax
Reform, which is chaired by one of the Chamber's
long-standing members, Roland Boucher.
Alternative Income Tax Rate Initiative will give
qualifying taxpayers the option of filing their state
taxes on a one-page form. All that they would need to
do is simply add up their income, subtract an
increased standard deduction, and apply a single 2.5
percent rate to the result.
that choose this method would no longer need to gather
and retain voluminous files and records for state tax
purposes. Taxpayers qualify for this alternative
method if their income consists solely of wages,
salaries, tips, dividends, interest and pensions, and
if their income does not exceed $50,000, for an
individual taxpayer, or $100,000, for a married couple
this measure qualifies for the ballot and is adopted
by the voters, filing and paying state income taxes
would become less burdensome for a significant number
of Californians. Initiative supporters need to collect
roughly 500,000 signatures by mid-August in order to
qualify for the March 2004 primary ballot.
information about the initiative can be found at the
sponsor's Web site at www.CalSimpleTax.org
(which also contains a petition that can be downloaded
and circulated) or by contacting Info@CalSimpleTax.org.
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REVOLT 2003: CALIFORNIA
Taxpayers Union and NTU Foundation
11, No. 4
simplification advocate ... Roland Boucher has hit
upon a unique idea to make state income taxes a lot
less troublesome. Boucher's organization, United
Californians for Tax Reform, is sponsoring a ballot
proposal that would provide taxpayers with incomes of
up to $100,000 (filing jointly) the option to use an
alternative flat-rate state tax system: 2.5 percent on
wages, salaries, tips, taxable interest, dividends, or
pensions, all declared on a single-page tax form. A
standard deduction would apply, equal to the hourly
minimum wage multiplied by 2,090 (currently $14,040
for a joint-filing couple). All told, California's
Legislative Analyst determined that this "Simple
Tax" proposal could save taxpayers $900 million
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PLAN TO "DOWNSIZE" CA TAX FORM EARNS BIG
PRAISE FROM NATION'S LARGEST TAXPAYER GROUP
Taxpayers Union and NTU Foundation
Further Information, Contact:
Sepp or Maureen
Tell, (703) 683-5700
VA) -- As the August deadline to turn-in signatures
for California's March 2004 primary ballot quickly
approaches, a novel idea is steadily gaining momentum
throughout the state. With support continuing to grow,
the 350,000-member National Taxpayers Union (NTU)
today joined the chorus of praise for United
Californians for Tax Reform's Chairman Roland Boucher
and his effort to adopt a postcard-sized state income
tax return through an initiative measure.
Boucher has tapped into a tremendous source of
frustration for taxpayers and proposed a logical
solution: cut the paperwork," NTU Vice President
for Communications Pete Sepp stated.
"Californians are drawn to this plan because it
offers them a visible change to the system. The choice
between sending in a postcard or a pile of forms is an
are sure to be drawn to Boucher's alternative
(although citizens could still choose the old system),
and fortunately numerous tax filers would be able to
opt for the new tax form. According to the guidelines
specified by the "Simple Tax" measure, an
individual's income can consist of wages, salaries,
tips, dividends, interest and pensions. The total
income for an individual may be up to $50,000, or
$100,000 for a couple filing jointly.
addition, the small form will allow for a standard
deduction. To calculate the deduction an individual
would multiply the amount of their state's minimum
wage by $1,040, while a couple would multiply by
$2,080. In California, taxpayers would receive a
deduction of $7,020 per person or $14,040 per couple.
A flat state income tax of 2.5 percent would apply to
the remaining taxable income.
federal or state tax systems should mean less
complexity and lower rates, because taxpayers deserve
to keep more of their time as well as their
money," Sepp observed. "Among many worthy
consumption tax and flat tax proposals, the California
Simple Tax deserves a close look."
support for minimizing paperwork is underscored by
results of a recent NTU study:
is a non-profit, non-partisan citizen organization
founded in 1969 to work for lower taxes, less wasteful
spending, and accountable government at all levels.
Note: NTU Policy Paper 110, A Taxing Trend: The
Rise in Complexity, Forms, and Paperwork Burdens,
is available online at www.ntu.org.
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LIMIT THE TAX RATE IN CALIFORNIA
for a Sound Economy
Update - Member Issue 93
reprinted at http://www.cse.org/california/index.php
California Simple Tax Committee has launched an
initiative petition to limit the outrageous income tax
rate in California. The state’s current tax code
imposes a tax rate of 9.3 percent on middle class
citizens who earn less than $50,000, while loopholes
and tax credits have Californians that earn over
$100,000 paying an average income tax of less than 2%.
The new initiative limits the tax rate to 2.5 percent
for every California family that earns less than
$100,000 a year. In addition, it grants each family a
generous standard deduction equal to one years earning
at the minimum wage ($14,040).
And despite the poor fiscal condition of the state,
the initiative will reduce state tax revenue by less
than 1%! This is because the real problem with
California’s state budget is wasteful spending.
Since Gov. Gray Davis took office, spending has
escalated out of control, leaving the state with a $38
While the legislature may not act responsible,
Californians can. Get involved with the effort to
limit and simplify the state income tax rate by
clicking on the link below and downloading the CA
Simple Tax Petition.
DICK ARMEY'S RELATED ARTICLE: "THIS TAX DAY, GO
FLAT" (April 14, 2003) "Under a Flat Tax
there would be no special treatment, no favoritism, no
tax breaks for corporations and special interests, no
tax tables and no loopholes. A Flat Tax would mean no
tax lobbyists and no tax lawyers. And, perhaps best of
all, it would put an end to an intrusive IRS. The IRS
would revert to its intended purpose as a revenue
collector, functioning as a servant of the people not
a supervisor. That’s why the Flat Tax is so
appealing to taxpayers. It speaks to our basic sense
of fairness, to our desire for a simple an honest
government that has faith in the people who consent to
be governed. And it addresses the underlying arrogance
at the core of the current tax system and the
dependency on government that it creates." (http://www.cse.org/informed/issues_template.php/1356.htm)
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ON THE SIMPLIFIED STATE TAX FORM PATTERNED AFTER THE
County Taxpayers League
(middle of page)
Californians for Tax Reform 2000 has had its statewide petition
approved for circulation to gather signatures to place it on the March
ballot in 2004. The Proposition provides taxpayers the option of
calculating their state 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
married persons filing jointly, or $50,000 in the case of a single
person, and (2) consists only of wages, salaries, tips, 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 ($7,020).
one-page tax form would be patterned after the 540-2EZ by removing the
current restrictions on age and income from dividends and pensions.
proposal was originally introduced by Roland Boucher to the
Legislature, which generated Legislative bills AB 2347, AB 305 and SB
831. Although SB 831 received a unanimous (40) vote on the Senate
floor in 2002, it was never heard in the Assembly. As a result, Tax
Reform 2000 sponsored the petition.
are preparing the petition for direct downloading to gather
signatures. All our members should be in favor of supporting this
attempt to simplify filing state taxes. When petitions are available
we can gather signatures to help Roland Boucher get the Income Tax
Initiative before the voters next March.
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INITIATIVE ENTERS CIRCULATION. ALTERNATIVE
INCOME TAX RATE. INITIATIVE STATUTE.
Secretary of State Kevin Shelley
More Information, Contact:
Carbaugh or Debbie O’Donoghue [916/653-6575]
FRANCISCO --- Secretary of State Kevin Shelley announced today that
the proponent of a new initiative has received clearance to begin
collecting petition signatures for his measure.
Attorney General’s official title and summary is as follows:
INCOME TAX RATE. INITIATIVE STATUTE. Amends California’s income
tax law to provide an alternative standard deduction and tax rate
for taxpayers with adjusted gross income for the taxable year of
$50,000.00 or less for individuals, and $100,000.00 or less for
married couples filing jointly. Qualifying taxpayers may choose to
take a deduction equal to California’s minimum wage effective for
the taxable year, multiplied by 1,040 for individuals, or multiplied
by 2,080 for married couples filing jointly, and pay 2.5% tax on the
adjusted amount. Directs the Franchise Tax Board to prepare a form
for use by taxpayers.
proponent, Roland Boucher (United Californians for Tax Reform), must
collect 373,816 signatures of registered voters for his measure. The
150-day deadline to circulate petitions is October 14, 2003. The
proponent can be reached at (949) 552-9174.
copy of the complete text, title & summary, and circulation
calendar, please contact the Secretary of State’s Press Office at
next? Help us gather signatures to put Form "540-Simple"
on the California ballot!
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