The Constitutional Support Tax

The Constitutional Support Tax

• Introduction
• Welcome
• State by State
• The Constitution
• How it Works
• Pressure Points
• Thank You
• Video

 

 

 

The CST system starts with a five-step accounting process that will create the formula for dividing the Federal Budget among the States. The design of this formula makes it fair to all States. These steps are:

 

1. 1.The CST starts with a yearly census of income by State. To determine income-by-state, a form much the same as the first page of the current long-form 1040 will be prepared by all income earners.  This “CST 1040”, however, will stop at the line that shows total income. (On the 2009 1040 this is line number 22.) The elimination of the Income Tax and selected other Federal taxes will mean that there will be no Federal tax liability calculated from the income data on the CST 1040s.
2. 2.Each individual or married couple will report his, hers or their CST 1040 total income to a designated tax agency in their state of residence and to the Internal Revenue Service. The CST 1040 itself will not be submitted to the government.
3. 3.The designated state tax agency of each State will calculate a TOTAL STATE INCOME dollar amount from the incomes reported on the CST 1040s they receive. The IRS will do the same for each of the 50 States.  The State tax agencies and IRS will cross check their totals to verify accuracy.
4. 4.The IRS will add the TOTAL STATE INCOME amounts for the 50 states to determine a TOTAL NATIONAL INCOME dollar amount.
5. 5.With the TOTAL NATIONAL INCOME dollar amount calculated in step 4 of 5 being 100%, the percentage that each State’s TOTAL STATE INCOME contributes to the TOTAL NATIONAL INCOME will be computed.  The use of these percentages will be explained shortly.

 

Before using the percentages just calculated in step 5 of 5, our attention now shifts to the development of the yearly Federal Budget by Congress.

 

Under the CST system, the expenditures in the Federal Budget will be divided into two categories. 

 

1. 1.The first category is DEDICATED EXPENDITURES. User fees will pay for these expenditures.  A few examples of user fees are (1) charges to ranchers for grazing cattle on Federal land; (2) campsite rental fees in National Parks; and (3) fuel taxes to pay for highway construction and maintenance. User fees will be used only for covering the costs of the associated activity. The CST will not allow user fees collected to be spent for other purposes. User fees will be infrequent under the CST.
2. 2.The second category will be GENERAL BUDGET EXPENDITURES. These will be all non-dedicated expenditures including Social Security and Medicare. GENERAL BUDGET EXPENDITURES each year will be determined by the same budget development process Congress and the Executive departments use today.

 

Now, take a look again at step 5 of 5 of the five-step accounting process. The percentage that each State’s TOTAL STATE INCOME contributes to the TOTAL NATIONAL INCOME as determined in step 5 of 5 now comes back into the picture. The total dollar amount of GENERAL BUDGET EXPENDITURES for the year will be divided among the States by the percentage each State contributes to the TOTAL NATIONAL INCOME. This will result in a proportional distribution of the Federal Budget to the States. It will then be up to the People in each State, by whatever process they select, to decide how their State will make its mandatory payment of its allocated portion of the Federal Budget to the Internal Revenue Service.

 

A 28th Amendment to the Constitution will:

1. 1.repeal the Federal Income Tax (the 16th Amendment);
2. 2.eliminate a series of other Federal taxes;
3. 3.eliminate Congress’ current power under Article 1, Section 8, paragraph 1 of the Constitution to lay and collect Taxes, Imposts and Excises;
4. 4.eliminate Congress' power under Article 1, Section 8, paragraph 2 to borrow money on the credit of the United States: and
5. 5.implement the CST system.

 

The 28th Amendment will also have a series of safeguards to prevent any “end run” attempts to implement new Federal taxes and/or fees. The 28th will include language, if necessary, to eliminate existing Federal fees, similar to those placed on medical devices under the Patient Protection and Affordable Care Act (i.e., “ObamaCare”.)

 

Deficit spending by the Federal Government will end because all funds to pay GENERAL BUDGET EXPENDITURES will come from the States after applying the CST formula.

 

As mentioned before, the CST will put in place a series of currently non-existent political “pressure points” that will work as a unit to place multiple constraints on the growth of Federal spending.

Click HERE to learn about the political “pressure points”.