Tax Reform Act
113th Congress
1st Session
S. ____
To amend or repeal certain unconstitutional or unconstitutionally applied legislation concerning taxes and to enact a purchase tax.
IN THE UNITED STATES SENATE
January 25, 2013
Mr. ROLAND of Texas introduced the following bill; which was referred to the Finance Committee.
A BILL
To amend or repeal certain unconstitutional or unconstitutionally applied legislation concerning taxes and to enact a purchase tax.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
- This Act may be cited as the 'Tax Reform Act'.
SEC. 2. FINDINGS AND AUTHORITY.
1. The Congress finds that sections of the United States Internal Revenue Act, codified in 26 U.S.C., was and is unconstitutionally applied to state territory, or to nontaxable objects.
2. The authority for this act is the United States Constitution, Article I, Section 1 and Article I Section 8 Clause 1.
SEC. 3. ENACTMENT.
The United States Internal Revenue Act, as amended and codified in 26 U.S.C., is hereby amended as follows:
1. No tax shall apply outside the territory of the United States, or within non-state territory of the United States, under the exclusive legislative jurisdiction of Congress, in accordance with United States Constitution, Article I Section 8 Clause 17 and Article IV Section 3 Clause 2, where residents are not entitled to be represented by members in Congress.
2. On such non-state territory no tax or other exaction shall be levied on individual compensation for labor, including wages, salaries, or fees, or on gifts, bequests, or inheritances, none of which shall be deemed to be "income".
3. On such non-state territory no tax or other exaction on profit or gain shall be levied on natural or agricultural assets extracted, on any assets held for more than twenty years, or on profit or gain not normalized to its value in megajoules of energy.
4. There is hereby imposed a tax of eight percent on the price, convertible to megajoules of energy, of every purchase of a good or service, other than a financial instrument, for resale or lease or to produce a good or service for sale or lease, due upon first sale or lease of such good or service or any part thereof, and payable by the purchaser.
5. There is hereby imposed a tax on the price, convertible to megajoules of energy, of every purchase of a financial instrument, including any securities, equity shares, notes, bonds, or derivatives, due upon first sale of such financial instrument or any part thereof, and payable by the purchaser, at the rate for each holding period of less than N years, of 0.30 - INT(N - 1)/100. The rate shall be zero for instruments held more than 30 years, but 50 percent on for-profit enterprises enduring for more than 99 years.
6. There shall be a surtax of five percent on all such purcases made by parties subject to the tax who hold assets in excess of the value equivalent of 10,000 terajoules of energy, ten percent for assets between 10,000 and 100,000 terajoules of energy, fifteen percent for assets between 100,000 and 1,000,000 terajoules of energy, and twenty percent for assets in excess of 1,000,000 terajoules of energy. Parties bound by contract to share gains, lasting more than two years, shall be deemed one party for the purpose of this surtax.
7. In no case shall the purchase tax exceed fifty percent of the remainder after selling at a loss.
8. The purchase of gold, silver, energy, information, land, or the legal tender of any country shall not be taxed, but a tangible commodity carrying energy or information may be taxed, under this act.
9. There shall be no tax under this act on any item no part of which is either purchased or sold within the United States or its territories.
SEC. 4. REMEDIATION.
Persons injured by the amended act while it was enacted shall be entitled to just compensation therefor, upon adjudication in the United States Court of Claims, or other court of competent jurisdiction.
END.
