Taxpayer Dividend Act

Economy
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Proposed Bill Amendment: “The Taxpayer Dividend Act”

Amendment to Title 31 of the United States Code

Section 1. Short Title

This Act may be cited as the “Taxpayer Dividend Act”.

Section 2. Establishment of the Taxpayer Dividend Program

  1. Purpose and Intent:

    • The purpose of this amendment is to establish a Taxpayer Dividend Program, under which the U.S. government shall return a portion of the tax revenue directly to American citizens in the form of a dividend, to promote economic fairness, social welfare, and strengthen the social contract between the government and the people.

  2. Eligibility:

    • All U.S. citizens and lawful residents who are at least 18 years of age and have filed a tax return in the prior fiscal year shall be eligible to receive the Taxpayer Dividend. The amount of the dividend shall be calculated based on the total tax revenue collected by the federal government during the fiscal year and distributed equally among eligible recipients.

Section 3. Funding and Allocation of the Taxpayer Dividend

  1. Source of Funds:

    • The Taxpayer Dividend will be funded through a portion of the federal government’s annual tax revenue. Specifically, 5% of total federal tax revenue shall be set aside each fiscal year to fund this program, ensuring the fair distribution of government resources directly to taxpayers.

  2. Amount of Dividend:

    • The total Taxpayer Dividend for each fiscal year shall be determined based on the following formula:
      [
      \text{Dividend} = \frac{\text{5% of Total Federal Tax Revenue}}{\text{Number of Eligible Taxpayers}}
      ]
    • Each eligible individual shall receive an equal share of this amount.

  3. Disbursement Schedule:

    • The Taxpayer Dividend shall be distributed annually, within 60 days following the filing deadline for tax returns. Payments will be made directly to individuals via direct deposit or paper check, as specified by the recipient at the time of tax filing.

Section 4. Oversight and Accountability

  1. Administration:

    • The Taxpayer Dividend Program shall be administered by the Internal Revenue Service (IRS), in coordination with the Department of the Treasury. The IRS will be responsible for the collection of tax data, calculation of the dividend, and distribution of payments.

  2. Transparency:

    • The IRS shall publish an annual report detailing the total amount of tax revenue allocated to the Taxpayer Dividend Program, the number of eligible recipients, and the total amount disbursed. This report shall be made publicly available and presented to Congress as part of the annual budget review.

  3. Audit and Compliance:

    • The Government Accountability Office (GAO) shall be tasked with auditing the Taxpayer Dividend Program annually to ensure the funds are being allocated and distributed in accordance with the law. Any misallocation or misuse of funds shall result in penalties and corrective action by the responsible agency.

Section 5. Economic Impact Review

  1. Assessment of Program Effectiveness:

    • Within three years of the implementation of the Taxpayer Dividend Program, the Congressional Budget Office (CBO) shall conduct a comprehensive assessment of the economic impact of the program, focusing on its effectiveness in reducing economic inequality, stimulating consumer spending, and enhancing economic stability.

  2. Adjustment of Payment Criteria:

    • Based on the results of the CBO assessment, Congress may adjust the percentage of federal tax revenue allocated to the Taxpayer Dividend, modify eligibility criteria, or introduce other reforms to ensure the program’s continued success.

Section 6. Exceptions and Exemptions

  1. Limitation on Payments:

    • The Taxpayer Dividend shall not be paid to individuals who have been convicted of serious financial crimes, such as tax fraud, within the preceding five years. Additionally, any individual who has been deemed ineligible for federal benefits due to legal or criminal reasons shall be excluded from receiving the Taxpayer Dividend.

  2. Non-Taxable Nature of the Dividend:

    • The Taxpayer Dividend shall be non-taxable income for recipients. It is not subject to federal, state, or local income tax.

Section 7. Effective Date

This amendment shall take effect at the beginning of the next fiscal year following the passage of this Act. The IRS will begin implementation and distribution of the Taxpayer Dividend no later than January 1 of the year following passage.

Section 8. Severability

If any provision of this Act, or the application thereof to any person or circumstance, is found to be invalid or unconstitutional, the remainder of the Act shall not be affected and shall remain in full force and effect.

Summary of the Amendment:

  • The Taxpayer Dividend Act establishes a program where a portion of the federal tax revenue (5%) is returned annually to U.S. citizens in the form of a dividend, aiming to promote economic fairness, alleviate poverty, and stimulate economic growth.
  • The program is designed to distribute funds equally among eligible citizens, with payments made directly to individuals.
  • The program will be administered by the IRS, with oversight from the GAO and CBO to ensure transparency, accountability, and effectiveness.