Freedom from Income and Property Tax Act: A Federal Law to End Income and Property Tax, Disband the IRS, Abolish the Federal Reserve, and Establish a Fair Consumption-Based Revenue System
Title: The Freedom from Income and Property Tax Act
Preamble
Whereas the Founding Fathers intended that personal liberty, financial sovereignty, and the right to property remain free from government encumbrance, this law shall permanently protect U.S. citizens from income and property taxes at both the federal and state levels. This act enshrines the principles of limited government and personal freedom by establishing a consumption-based revenue system that funds necessary government functions without infringing on individual wealth and property.
Section 1: Permanent Prohibition of Income and Property Taxes on U.S. Citizens
The federal government, all state governments, and local governmental bodies shall impose no taxes on the income or real property of American citizens. All existing income and property tax laws are hereby repealed and permanently prohibited. This law affirms that individual wealth and property are private, unencumbered rights, securing financial independence for all citizens.
Section 2: Disbandment of the Internal Revenue Service (IRS)
To enforce the prohibition of income tax, the Internal Revenue Service (IRS) is hereby disbanded. All functions and responsibilities previously held by the IRS concerning income tax collection, enforcement, and auditing are permanently dissolved. Any remaining administrative duties related to federal tax collection shall be managed by the Department of the Treasury, limited solely to the administration of tariffs, sales, and luxury taxes.
Section 3: Abolition of the Federal Reserve and Exclusive Issuance of Treasury-Controlled Currency
The Federal Reserve is hereby abolished. All authority and responsibilities associated with currency issuance, interest rate control, and monetary policy are permanently removed from the Federal Reserve and transferred to the Department of the Treasury. Only the Department of the Treasury shall issue U.S. currency, exclusively in the form of Treasury Notes, backed by tangible assets to ensure stability and value. This measure restores control over the nation’s currency directly to the people’s government and ends inflationary currency manipulation by private banking entities.
Section 4: Implementation of a Consumption-Based Revenue System
In place of income and property taxes, a fair consumption-based revenue system shall be implemented to fund government operations:
1. Sales Tax: A uniform federal sales tax shall be applied to non-essential goods and services. Essential items such as basic food, medical supplies, and utilities shall be exempt, ensuring fairness and minimizing the impact on low-income households.
2. Luxury Tax: Higher rates shall be applied to luxury goods and non-essential items, ensuring that high-consumption individuals contribute proportionally more to government funding.
3. Road Tolls and User Fees: Public infrastructure, including roads and highways, shall be maintained through tolls and user fees, distributing the cost of upkeep to those who use it.
This consumption-based model aligns government revenue with the level of consumption, ensuring that those who consume more contribute more, while those with modest spending maintain a larger share of their income.
Section 5: Corporate Income Tax Reform and Domestic Job Incentives
All corporations operating within the United States shall be subject to a corporate income tax, with no exemptions for foreign entities or multinational corporations. Tax breaks and incentives shall only be available to corporations that maintain production, manufacturing, and service operations within the United States. This measure promotes job creation and economic growth within U.S. borders, in line with President McKinley’s protectionist policies to prevent other countries from undermining American jobs, companies, and workers.
Section 6: Fiscal Responsibility and Spending Control
The federal government shall adhere to a balanced budget funded exclusively through tariffs, sales taxes, luxury taxes, and voluntary bonds, as outlined in Sections 3 and 4. Government spending must align with collected revenue, and no funds shall be expended beyond available resources without a supermajority vote in Congress. This requirement enforces fiscal discipline, preventing excessive debt and promoting accountability in government spending.
Section 7: Protection of Personal Financial Freedom and State Sovereignty
No government entity, federal or state, shall impose taxes on the income or property of U.S. citizens. This law secures personal financial freedom as an inalienable right, reinforcing the foundational principle that government shall not infringe upon personal wealth or property ownership.
Each state retains the authority to determine its own revenue sources, such as sales taxes and service fees, as long as these do not infringe upon income or property. States may fund their operations through consumption-based taxes aligned with local needs, preserving their sovereignty and rights under the Tenth Amendment without encumbering individual wealth or property.
Section 8: Enactment and Transition Period
This law shall take effect immediately upon the signature of the President, with a transition period of one year for federal and state governments to phase out all income and property tax systems, disband the IRS, abolish the Federal Reserve, and establish the necessary infrastructure for tariffs, sales taxes, luxury taxes, and bond offerings in accordance with this act.
Section 9: Permanent Protection Against Repeal Without State Ratification
This law shall remain in effect indefinitely and may not be repealed or altered without the ratification of three-fourths of the states. While states do not need to ratify this law initially, any future attempt to reintroduce income or property taxes on U.S. citizens, or to modify its core provisions, shall require approval by three-fourths of the states, ensuring enduring protection for individual liberty, financial sovereignty, and the rights enshrined by this law.
Rationale and Historical Precedent
This law draws upon the economic principles of President William McKinley, who advocated for a government funded by tariffs and domestic-focused policies without burdening citizens with income or property taxes. By returning to a consumption-based revenue model, we align government funding with individual choice and economic fairness, reducing the burden on those who consume less while ensuring that high earners and high-volume consumers contribute proportionally.
The Federal Reserve, created in 1913, introduced inflationary practices and debt cycles that have destabilized the economy and encumbered citizens with debt. By abolishing the Federal Reserve and restoring currency issuance to the Treasury, this law reestablishes a stable and transparent monetary system directly accountable to the American people. Disbanding the IRS and eliminating income and property tax reinforces the privacy, autonomy, and financial freedom of U.S. citizens.
Conclusion
The Freedom from Income and Property Tax Act removes the burdens of income and property tax on U.S. citizens, abolishes the IRS and the Federal Reserve, and implements a fair consumption-based revenue system that respects personal financial freedom. Through tariffs, sales taxes, luxury taxes, and voluntary bonds, the government will maintain its essential functions without infringing upon individual wealth or property. By promoting domestic job creation and protecting personal sovereignty, this law reinforces the principles of a limited and accountable government, aligning with the ideals of the Founding Fathers and the economic strategies of President McKinley.