Sustainable Taxes Act – Center for the Advancement of the Steady State Economy

A BILL

To establish sustainable Federal taxation principles and processes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

(a) SHORT TITLE.— This Act may be cited as the “Sustainable Taxes Act.”

SEC. 2. FINDINGS AND DECLARATIONS.

(a) The Congress finds that—

(1) The relative progressivity of the federal tax code is a critical factor in meeting the objectives of a fair and sound tax system;

(2) Tax incidence is a determining factor of the ratio of national income expended on luxuries or necessities; and

(3) Tax incidence is a determining factor of the level of economic output congruent with full employment and ecological sustainability.

(b) The Congress declares that—

(1) Federal tax policy must effect sufficient redistribution of income to sustain full employment and the prosperity of its citizens at the lowest possible level of national economic output;

(2) It is the policy of the Federal Government to manage its tax system in a manner conducive to the establishment and maintenance of a socially prosperous but readily sustainable steady state economy; and

(3) The Federal tax structure must be conducive to an optimal steady state economy that is neither too large to be ecologically sustainable nor too small to be socially acceptable.

SEC. 3. DEFINITIONS.

(a) In this Act—

(1) The term “Act” refers to the Sustainable Taxes Act;

(2) The term “coal” means any of the recognized classifications and ranks of coal, including anthracite, bituminous coal, subbituminous lignite, and peat;

(3) The term “Department” means the Department of the Treasury;

(4) The term “derivative” means any contract (including any option, forward contract, futures contract, short position, swap, or similar contract), payment, or other transfer, the value of which is (directly or indirectly) determined by reference to one or more of the following:

(A) Any share of stock in a corporation;

(B) Any partnership or beneficial ownership interest in a partnership or trust;

(D) Any real property;

(E) Any commodity which is actively traded;

(F) Any currency;

(G) Any rate, price, amount, index, formula, or algorithm; or

(H) Any other item as the Secretary may prescribe.

(5) The term “eligible individual” means any living person who has a valid Social Security number or taxpayer identification number and is a citizen or lawful resident of the United States;

(6) The term “gas” means any fuel consisting in whole or in part of natural gas, including components of natural gas such as methane and ethane, liquefied petroleum gas, synthetic gas derived from petroleum or natural gas liquids, or any mixture of natural gas and synthetic gas;

(7) The term “mining operator” means a company that extracts ores or metalliferous minerals from a natural deposit, or a secondary source including tails, slag, waste dumps, or other similar secondary source, whether in solution or otherwise;

(8) The term “oil” means oil, regardless of gravity, produced at a well head in liquid form and any other hydrocarbons, except coal and gas, and hydrocarbons that may be extracted or recovered from deposits of oil sand, bitumen, bituminous sand, oil shale, or from any other types of deposits on the subsoil;

(9) The term “extraction company” means any company which extracts oil, coal, gas, or other hydrocarbon substances;

(10) The term “sale” refers to the transfer of ownership of an item pursuant to an agreement between a seller and a purchaser, the item being delivered or made available in the United States in relation to the agreement;

(A) In this Act, a seller transfers ownership of a subject item to a purchaser even if, at the time ownership is transferred, the seller retains partial ownership or transfers partial ownership to any third person; and

(B) In this Act, the sale of a subject item to a purchaser is completed at the earlier of:

(i) The time at which possession of the subject item is transferred to the purchaser or to another person; or

(ii) The time at which ownership of the subject item is transferred to the purchaser.

(11) The term “Secretary” means the Secretary of the Treasury;

(12) The term “security” means:

(A) Any share of stock in a corporation;

(B) Any partnership or beneficial ownership interest in a partnership or trust;

(D) Any derivative; or

(E) Any digital asset.

(13) The term “timber harvesting company” means a company that cuts down trees or removes logs for the primary purpose of sale or commercial processing into wood products and the preparation of the site, exclusive of tree marking, for such harvesting; and

(14) The term “water delivery company” refers to a private company that delivers water for the purposes of irrigation.

SEC. 4. GRADUATED INCOME TAX.

(a) A tax shall be imposed on all income, including salaries, wages, capital gains, dividends and retirement/social security benefits based on the following schedule of income levels and (31) graduated rates:

(1) Individual Returns:

(A) $0-10,000, at a rate of zero

(B) $10,001-$15,000, at a rate of .5%

(D) $20,001-$25,000, at a rate of 1%

(E) $25,001-$30,000, at a rate of 1.25%

(F) $30,001-$35,000, at a rate of 3%

(G) $35,001-$40,000, at a rate of 5%

(H) $40,001-$45,000, at a rate of 7%

(I) $45,001-$50,000, at a rate of 9%

(J) $50,001-$60,000, at a rate of 11%

(K) $60.001-$70,000, at a rate of 13%

(L) $70,001-$80,000, at a rate of 15%

(M) $80,001-$90,000, at a rate of 17%

(N) $90,001-$100,000, at a rate of 19%

(O) $100,001-$125,000, at a rate of 22%

(P) $125,001-$150,000, at a rate of 25%

(Q) $150,001-$175,000, at a rate of 28%

(R) $175,001-$200,000, at a rate of 31%

(S) $200,001-$225,000, at a rate of 34%

(T) $225.001-$250,000, at a rate of 37%

(U) $250,001-$275,000, at a rate of 40%

(V) $275,001-$325,000, at a rate of 43%

(W) $325,001-$400,000, at a rate of 46%

(X) $400,001-$500,000, at a rate of 49%

(Y) $500,001-$750,000, at a rate of 52%

(Z) $750,001-$1,000,000, at a rate of 55%

(AA) $1,000,001-$3,000,000, at a rate of 58%

(AB) $3,000,001-$5,000,000, at a rate of 61%

(AC) $5,000,001-$10,000,000, at a rate of 64%

(AD) $10,000,001-$20,000,000, at a rate of 67%

(AE) $20,000,001 and above, at a rate of 70%

(2) Joint Returns:

(A) $0-20,000, at a rate of zero

(B) $20,001-$30,000, at a rate of .5%

(D) $40,001-$50,000, at a rate of 1%

(E) $50,001-$60,000, at a rate of 1.25%

(F) $60,001-$70,000, at a rate of 3%

(G) $70,001-$80,000, at a rate of 5%

(H) $80,001-$90,000, at a rate of 7%

(I) $90,001-$100,000, at a rate of 9%

(J) $100,001-$120,000, at a rate of 11%

(K) $120,001-$140,000, at a rate of 13%

(L) $140,001-$160,000, at a rate of 15%

(M) $160,001-$180,000, at a rate of 17%

(N) $180,001-$200,000, at a rate of 19%

(O) $200,001-$250,000, at a rate of 22%

(P) $250,001-$300,000, at a rate of 25%

(Q) $300,001-$350,000, at a rate of 28%

(R) $350,001-$400,000, at a rate of 31%

(S) $400,001-$450,000, at a rate of 34%

(T) $450.001-$500,000, at a rate of 37%

(U) $500,001-$550,000, at a rate of 40%

(V) $550,001-$650,000, at a rate of 43%

(W) $650,001-$800,000, at a rate of 46%

(X) $800,001-$1,000,000, at a rate of 49%

(Y) $1,000,001-$1,500,000, at a rate of 52%

(Z) $1,500,001-$2,000,000, at a rate of 55%

(AA) $2,000,001-$6,000,000, at a rate of 58%

(AB) $6,000,001-$10,000,000, at a rate of 61%

(AC) $10,000,001-$20,000,000, at a rate of 64%

(AD) $20,000,001-$40,000,000, at a rate of 67%

(AE) $40,000,001 and above, at a rate of 70%

SEC. 5. GRADUATED CORPORATE INCOME TAX.

(a) In place of the current 21% flat rate, a tax shall be imposed on all corporate income based on the following schedule of income levels and graduated rates:

(1) Taxable Income:

(A) Between $1 and $100,000: 10%

(B) Between $100,001 and $250,000: 18%

(D) Over $1,000,000: 25%

(b) For Controlled Foreign Corporations, the Global Intangible Low Tax Income (GILTI) exemption of income subject to the GILTI “top-up” rate shall be changed to 25%, and the percentage of foreign tax paid allowable for U.S. tax credit, for any corporations subject to GILTI requirements, shall be limited to 75%.

SEC. 6. PAYROLL TAX ELIMINATION.

(a) On 1 January, of the first calendar year that arrives after passage of this bill, the payroll tax will be eliminated. Henceforth, Social Security OASDI benefits, modified by a separate Social Security Benefits Reform bill, will be paid from general fund revenues, enhanced significantly by Section 5 of this bill, above.

SEC. 7. ESTATE TAX.

(a) An estate tax shall be imposed on the estates of decedents in the following manner:

(1) Estates valued between $0 and $100,000: exempt from taxation.

(2) Estates valued between $100,001 and $10,000,000: taxed as regular income at Personal Income Tax Rates.

(3) Estates valued over $10,000,000: taxed as regular income at Personal Income Tax Rates, plus a 15% surcharge, based on this marginal value.

(b) For purposes of estate tax assessment, a real estate exemption shall be allowed on the following basis:

(1) For all single-family residential property, an exemption shall be allowed for all property valued at or under 300% of the median value for the state in which it is located, as determined by the United States Census Bureau.

(2) For all commercial property on which 25 or fewer persons are employed, an exemption shall be allowed for all property valued at or under 300% standard defined above in Section 7.b.1.

(3) For all commercial property on which more than 25 persons are employed, the exemption defined in Section 7.b.2. shall be increased by 5% for every 25 employees above the 25-person threshold in Section 7.b.2.

(4) If the inherited property is sold for a gain, heirs will incur a personal income tax liability equal to the marginal tax on the full amount of the gain.

(5) For any real estate sale subject to the personal income tax provision in Section 7.b.4., no stepped-up basis will be permitted.

(6) For any real estate sale subject to the personal income tax provision in Section 7.b.4., for which a historical basis cannot be affirmed, a 50% basis shall be substituted for this indeterminate basis.

SEC. 8. FAMILY SIZE TAX CODE.

(a) Earned income tax credits shall be expanded relative to family size only up to a maximum of two household members.

(b) Child tax credits shall apply to a maximum of two qualifying children.

SEC. 9. ENERGY DEPLETION TAX.

(a) IN GENERAL.—There shall be a resource depletion tax imposed on the net income and royalties of all companies that extract coal, oil, and gas in the United States.

(b) DECLARATION.—Each extraction company shall report their annual net income and royalties to the Department no later than January 1 of each year.

(1) The Department shall notify extraction companies of the depletion tax due by June 1 of each year.

(d) RATE.—The tax rate shall be set at 10% of annual net income and royalties.

(e) PAYMENT DATE.—The extraction company shall pay their owed taxes to the Department by August 1 of each year.

SEC. 10. TIMBER DEPLETION TAX.

(a) IN GENERAL.—There shall be a tax on the harvesting of all timber, lumber, and pulpwood in the United States.

(b) DECLARATION.—Each timber harvesting company shall report the value of timber and pulpwood harvested to the Department no later than January 1 of each year.

(1) The Department shall notify timber harvesting companies of the depletion tax due by June 1 of each year.

(d) RATE.—The depletion tax rate shall be set initially at 5% of current stumpage value.

(e) PAYMENT DATE.—The timber company shall pay their owed depletion taxes to the Department by August 1 of each year.

SEC. 11. MINERAL TAX.

(a) IN GENERAL.—There shall be a tax on the net income and royalties of metal and ore mining properties and activities in the United States.

(b) DECLARATION.—Each mining operator shall report net income and royalties annually to the Department no later than January 1 of each year.

(1) The Department shall notify mining operators of the depletion tax due by June 1 of each year.

(d) RATE.—The depletion tax rate shall be set at 5% of net income and royalties.

(e) PAYMENT DATE.—The mining operator shall pay their owed depletion taxes to the Department by August 1 of each year.

SEC. 12. GROUNDWATER TAX.

(a) IN GENERAL.—There shall be a tax on the excess extraction of groundwater for irrigation purposes in the United States.

(b) DECLARATION.—All water delivery companies shall report their annual water delivery to the Treasury.

(1) Water volume shall be calculated in units of Acre-feet, each of which equals the volume of water covering one acre at one foot deep.

(1) The Department shall notify water delivery companies of the tax due by June 1 of each year.

(d) RATE.—The tax rate shall be set at $30 per acre-feet of water delivered above a portion determined by the U.S. Secretary of Agriculture to be consistent with national and regional water usage and conservation standards.

(e) PAYMENT DATE.—Water delivery companies shall pay their owned water fees to the Department by August 1 of each year.

SEC. 13. TAX ON FINANCIAL TRANSACTIONS.

(a) IN GENERAL.—To dampen excessive speculation and the resulting economic inefficiency, there shall be a tax on the transfer of ownership in each eligible transaction with respect to any security.

(b) DECLARATION.—Covered entities under this section shall report all eligible liabilities and transactions to the Secretary by January 1 of each year.

(c) DETERMINATION AND NOTIFICATION.—The Department shall determine the tax due from each covered entity under this section.

(1) The Department shall notify entities covered under this section of the taxes due by June 1 of each year.

(d) RATE.—The tax rate shall be set at 0.5% of annual net income and royalties.

(e) PAYMENT DATE.—Covered entities under this section shall pay taxes owed to the Department by August 1 of each year.

SEC. 14. SUSTAINABILITY TRUST FUND CREDIT/REBATE.

(a) ESTABLISHMENT.—There is hereby established in the Treasury of the United States a trust fund to be known as the “Economic Sustainability Trust Fund” consisting of such amounts as may be appropriated to such trust fund as provided for by the total revenue collected in Sections 9, 10, 11, and 12 of this Act.

(b) APPROPRIATIONS.—There is hereby appropriated to the Fiscal Sustainability Trust Fund amounts equal to the fees received into the Treasury under Sections 9, 10, 11, and 12 of this Act.

(c) REBATE.—From the amounts in the Fiscal Sustainability Trust Fund made available, the Secretary shall, for each month beginning more than 270 days after the date of the enactment of this Act, credit Sustainability Trust Fund dividend payments to each eligible individual.

(1) PRO-RATA SHARE.—A Sustainability Trust Fund dividend payment is one pro-rata share for each adult and half a pro-rata share for each child under 19 years old (no more than two per family) of amounts available for the month in the Fiscal Sustainability Trust Fund. This payment shall be received as a refundable IRS Form 1040 Schedule 3/Line 20 tax credit, with AGI limits of $60,000 for single filers and $120,000 for joint filers.

SEC. 15. OPERATION.

(a) INFLATION ADJUSTMENT.— The tax credit thresholds established by this Act may be adjusted annually based on an inflation index as determined by the Secretary.

(b) COMMENCEMENT.— The Secretary shall implement the taxes established by this Act no later than January 1, 2027.

(c) ENFORCEMENT.—On request of the Secretary, the Attorney General may bring a civil action in a court of competent jurisdiction to enforce compliance with this Act.

(d) PENALTIES.—Any person who fails to comply with the requirements of this Act, or any person who willfully and knowingly makes or reports false statements in any documents or reports required under this Act, shall be liable for payment to the Secretary of a penalty in the amount equal to 3 times the applicable amount specified by this Act for the same tax year as the year in which the person failed to comply with such requirements.