The recently elected U.S. Rep. David Jolly announced new legislation Wednesday that would set a national maximum level on personal taxation. Alternative Maximum Tax or “MaxTax,” Jolly’s plan would set a ceiling on how much a person can be taxed for federal, state, local, and other taxing authorities.
“This is a personal freedom issues. The amount of taxes that any one individual is responsible for providing to government collectively ultimately restricts the individual’s freedom to make their own decisions,” Jolly said in a press release Tuesday. “We have easily identified over 40 different taxes that individuals are subjected to, each from different taxing authorities, yet there is no ombudsman looking out for the taxpayer to determine what is the appropriate level of total taxation any one person must be responsible for.”
Under the legislation, no one person could be held responsible for taxation greater than 50 percent of their income. Meaning, if they can prove they’ve paid 50 percent or more in taxes (through any combination of taxing bodies), that would activate the MaxTax provision and that person’s tax obligation would be legally capped and thus satisfied.
“We have a federal government that taxes individuals without a thought to the other tax burdens individuals and families must assume. While I believe the maximum level of individual taxation should be much lower than 50%, the draft legislation sets it at 50% because I believe Congress can swiftly enact such a measure. Who could possibly suggest that an individual should provide to government more than what that individual receives for themselves,” Jolly said. “This is a matter of liberty. No American should be required to pay more than 50% of their income to government.”
Also, under the legislation, a person’s federal income tax would be paid last, and the total of Social Security, Medicare, and non-federal income taxes would be determined first. From there, the marginal federal income tax debt would be paid, subject to a 50 percent level of taxation.
A draft of the legislation will be introduced at the House of Representatives on April 28.