125th Morrison Congress

2nd Session

S. 125-0

Title of the Bill: The Peoples Revenue

Main Author(s): Sen.Henry Lin (R-CA)

Co-Sponsor(s): Rep.Karissa Kimble(R-OH), Rep.Aden Nakashima(R-ID)

BE IT ENACTED BY THE MORRISON CONGRESS

1 SECTION 1: Findings
2 Congress makes the following findings:
3 1) In the United States, the Personal Income Tax Rate refers to the Top Marginal
4 Federal Tax Rate applied on taxable income over USD 406,751 for a single filer.
5 The individuals may be also subjected to an additional state taxes. (i)
6 2) The Personal Income Tax Rate in the United States stands at 39.60 percent.
7 Personal Income Tax Rate in the United States averaged 36.42 percent from
8 2004 until 2016, reaching an all time high of 39.60 percent in 2013 and a
9 record low of 35.00 percent in 2005. (i)
10 3) Productivity declines as the tax rate increases, as people choose to work less.
11 The higher the tax rate, the more time people spend evading taxes and the less
12 time they spend on the more productive activity. So the lower the tax rate, the
13 higher the value of all the goods and services produced. (ii)
14 4) Income taxes in the United States
15 - 0-9,325 (USD) income tax rate (10%)
16 - 9,325-37,950 (USD) income tax rate (15%)
17 - 37,950-91,900 (USD) income tax rate (25%)
18 - 91,900-191,650 (USD) income tax rate (28%)
19 - 191,650-416,700 (USD) income tax rate (33%)
20 - 416,700-418,400 (USD) income tax rate (35%)
21 - 418,400+ (USD) income tax rate (39.6%)
22
23
24
25 SECTION 2: Purpose
26 The bill provides that federal government should reduce the individual income tax
27 rate.
28 - 0-9,325 (USD) income tax rate (5%)
29 - 9,325-37,950 (USD) income tax rate (10%)
30 - 37,950-91,900 (USD) income tax rate (15%)
31 - 91,900-191,650 (USD) income tax rate (18%)
32 - 191,650-416,700 (USD) income tax rate (23%)
33 - 416,700-418,400 (USD) income tax rate (25%)
34 - 418,400+ (USD) income tax rate (29.6%)
35
36 SECTION 3: General Provisions
37 This act will reduce the income taxes of the United States from 0
-9,325 (USD)
38 income tax rate (10%), 9,325-37,950 (USD) income tax rate (15%), 37,950-91,900
(USD) income tax rate (25%), 91,900-191,650 (USD) income tax rate (28%),
 39 191,650-416,700 (USD) income tax rate (33%), 416,700-418,400 (USD) income tax
40 rate (35%), and 418,400+ (USD) income tax rate (39.6%) to 0-9,325 (USD) income
41 tax rate (5%), 9,325-37,950 (USD) income tax rate (10%), 37,950-91,900 (USD)
42 income tax rate (15%), 91,900-191,650 (USD) income tax rate (18%),
43 191,650-416,700 (USD) income tax rate (23%), 416,700-418,400 (USD) income tax
44 rate (25%), 418,400+ (USD) income tax rate (29.6%).
45 This will promote investments and purchases of new equipment and technologies,
46 along with researches and development activities. These investments are key to a
47 more productive and prosperous economy.
48 Income taxes are reputed to have a negative effect on the U.S. labor force. High
49 taxes discourages work and investments. As tax rates increases, the labour effort
50 and productivity would decline. Subsequently, when labour efforts starts to decline,
51 the economic growth would experience a down trend.
52 Cutting taxes and wasteful spending would help the economy because of
53 disincentive effect caused by taxation.
54 By cutting taxes, we could prevent congress from splurging citizens hard earned
55 money to benefit the members of congresss reputation. If we dont cut the income
56 taxes, the congress would spend all of the money. Whether it is social program,
57 infrastructures, or even teachers, the interest groups in congress would want to do
58 something to promote their reputations.
59 Lowering income taxes would reduce the amount of money congress has to deal
60 with. Thus, by lowering income tax, this would promote a smaller federal
61 government.
62 Lowering income tax would ensure more savings for the people. This would provide
63 more purchasing power to the individuals. With more purchasing power, the people
64 could stimulate consumption which would also lead to better business.
65 Better business would affect the economy positively. Since corporates can get more
66 funds, they can use the funds to invest and let other companies grow. In addition,
67 more companies would lead to more employments. Therefore, by lowering the
68 income taxes, the federal government may reduce unemployment rates.
69
70 SECTION 4: Definitions
71 Disincentive - a factor, especially a financial disadvantage, that discourages a
72 particular action.
73 Splurging - Excessive spending
74 Corporate - relating to a large company or group.

Works Cited:
https://tradingeconomics.com/united-states/personal-income-tax-rate (i)
https://www.thoughtco.com/effect-of-income-taxes-on-economic-growth-1146370 (ii)
http://taxsummaries.pwc.com/ID/United-States-Individual-Taxes-on-personal-income (iii)