Zero-One-Hundred Tax Plan

THE "0/100 RATE" TAX PLAN (Zero Tax Hundred)  

A Market-Realist Blueprint for Working-Class Tax Relief, American Growth, and Fiscal Sanity
Campaign Policy Whitepaper

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Executive Summary

The current United States Internal Revenue Code spans over 70,000 pages. It operates as a multi-trillion-dollar drag on economic expansion, a sanctuary for special-interest corruption, and an unfair burden on the American working class. By maintaining a convoluted, seven-bracket individual system alongside a corporate code riddled with targeted exclusions, the status quo actively subsidizes multi-national financial engineering at the expense of domestic workers and localized small businesses.

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The "0/100 Rate" Tax Plan completely replaces this broken system. It establishes a broad-based, pro-growth, deficit-neutral tax framework built on three unyielding pillars: absolute relief for the working class, structural tax equity via a pro-manufacturing corporate rate, and radical architectural simplification for businesses.

Crucially, this updated framework embraces Hauser’s Law—the proven economic reality that federal revenues historically hover around 18% of GDP regardless of how high statutory rates are set. Recognizing that excessively high tax rates simply force capital into hiding and reward the tax-shelter industry, this plan sets an ultra-low, highly efficient baseline flat rate of 20% above the threshold.

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To completely insulate the American consumer from inflationary pressures, the plan introduces a Zero-Sum Inflation Shield by baking critical cost-of-living exemptions directly into the import framework. By keeping rates low enough to render loophole exploitation obsolete, and bridging the transition with a Year 1 Legislative and Repatriation Phase, the plan enforces a 6.5% across-the-board spending cut and a multi-year federal government spending freeze.

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To guarantee permanent legislative accountability, (Congress, do your job!) the framework incorporates an aggressive 3-year performance trigger: maintaining a balanced ledger sequentially drops the flat tax rate to a permanent floor of 15%, while running a deficit triggers automatic, universal austerity.

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1. Architectural Design & Rate Structure

The plan consolidates all federal individual income, corporate net income, and capital gains taxes into a single, unified two-tiered marginal system. This eliminates the need for expensive tax-preparation software or armies of IRS auditors tracking down hidden assets.

 Annual Payer Income / Business Net Profit

 ├── $0 to $100,000 ────────────────────────────────► 0% STATUTORY RATE (100% Tax Exempt)

 └── Everything Above $100,000 ─────────────────────► 20% FLAT RATE (Drops to 15% across 3 balanced years)

      ├── Supply Chains & Factories Inside the U.S. ─► 20% BASE RATE (Drops to 15% across 3 balanced years)

      └── Supply Chains & Factories Outsourced Abroad ► 25% NON-COMPLIANCE RATE (Replaces standard rate)

 

Imported Goods & Commodities

 └── Non-Essential Manufactured Finished Goods ─────► 10% AMERICAN MARKET ACCESS FEE (Food & Medicine Exempt)

 

Wall Street & Investment Architecture (Above $100K)

 ├── Long-Term Assets (Held 12 Months or Longer) ───► 20% STANDARD BASE RATE (Subject to the 3-Year Drop)

 ├── Short-Term Speculation (Held Under 12 Months) ─► 25% SHORT-TERM OPPORTUNITY RATE (Fixed premium rate)

 └── High-Frequency Institutional Algorithmic Trades ► 0.5% AUTOMATED FINANCIAL TRANSACTION FEE

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• The Zero-Tax Threshold: By eliminating the tax burden on the first $100,000 of earnings, we provide Central Kentucky's and American families, farms, and small businesses with the financial oxygen to grow, hire, and prosper, while restoring hope to the next generation. This immediately exempts approximately 65% to 70% of American households from federal income tax liabilities.

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• The Flat Marginal Rate: All individual income, domestic corporate profit, and long-term capital gains realized above the $100,000 threshold are taxed at a baseline flat rate of 20% strictly on the portion of income above the line. This rate drops incrementally to a 15% final goal if budget benchmarks are sustained.

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• The Straight Either/Or Corporate Framework: To promote the domestic manufacturing base, global conglomerates are given a clear, uncomplicated choice based on domestic supply-chain compliance:​

  • The 25% Non-Compliance Rate (Non-Cumulative): This rate completely replaces the standard rate. Multi-national conglomerates that choose to operate an entirely offshore supply chain and manufacture overseas opt out of the domestic tier. Their base corporate rate switches to a flat 25% on all profits generated within the U.S. consumer market, alongside a 10% American Market Access Fee levied at the border exclusively on imported non-essential manufactured finished goods (while critical necessities like food, agriculture, and prescription medicine are 100% exempt)

  • The 20% Standard Compliance Rate: Billion-dollar companies that maintain their supply chains, assembly lines, and factories inside the United States pay a base 20% on net profits above $100,000, with eligibility for the 3-year reduction down to 15%.

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​​​​​​​​3. The American Growth Promotion Framework

To prevent the flat rate from stifling economic expansion, the plan establishes a rigid, transparent boundary between Operational Domestic Capital Investment and Financialized Paper Optimization.

[Gross Corporate Revenue]

         │

         ├──► DEDUCTIBLE: Tangible Domestic Reinvestment (US Factories, Equipment, Payroll, 150% R&D)

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         └──► SUBJECT TO TAX (20% to 15%): Net Profit (Banned: Offshore Shifting & Paper Optimization)

4. Dynamic Growth vs. Base Broadening: Achieving Fiscal Balance

Critics often argue that sweeping tax reform creates unsustainable deficits. The "0/100 Rate" plan rejects this conventional view. By combining precise baseline cost-cutting and spending freeze with a clean, dual-rate tax structure, this model achieves complete fiscal balance without adding a single penny to the national debt.

Our approach does not rely on wishful thinking or the political fantasy that tax cuts entirely pay for themselves through growth alone. Instead, the plan utilizes a realistic, three-pronged financial matrix: direct spending cuts and spending freeze, loophole elimination (base broadening), and dynamic economic expansion.

       FISCAL IMPACT MATRIX (ANNUALIZED 6.5% ESTIMATES)

─────────────────────────────────────────────────────────────

Initial Tax Revenue Loss (0% up to $100k)  │  -$850 Billion                                           │

Prong 1: 6.5% Across-the-Board Budget Cuts │  +$448.5 Billion

Prong 2: Base Broadening & Loophole Exits  │  +$250.0 Billion

Prong 3: Dynamic Growth Revenue Reinvest   │  +$170.0 Billion

─────────────────────────────────────────────────────────────

NET ANNUAL SURPLUS                         │  +$18.5 Billion (Fiscal Cushion)

 

1. The Revenue Foundation: 6.5% Spending Reductions

To completely offset the initial revenue shifts and build an intentional safety margin, the plan enforces an across-the-board spending reduction of 6.5%. Out of a standard $6.9 trillion federal budget, this targeted restraint yields $448.5 billion immediate, recurring spending freeze annual savings. This ensures the plan is fully funded on year one, fully covering the remaining net tax-cut obligations while maintaining an $18.5 billion protection cushion against unexpected economic shifts.

2. Base Broadening

The current federal tax code spans thousands of pages filled with special interest carve-outs, offshore tax shelters, and complex corporate deductions. The "0/100 Rate" plan completely eliminates this administrative bloat.

By enforcing a strict 20% flat rate on all individual and corporate earnings above $100,000 with zero exceptions, we vastly expand the federal tax base. High earners and massive corporations will no longer be able to hire armies of accountants to lower their effective tax rates below what Main Street pays. Cleaning up the code and establishing a hard 20% floor brings an estimated $250 billion in static, previously lost revenue back to the Treasury.

3. Dynamic Growth: Fueling the Main Street Engine

Untaxing the first $100,000 of income injects billions of dollars of immediate liquidity directly into the hands of working families, family farms, and small businesses. Mainstream economic history demonstrates that lowering the tax burden increases labor participation, sparks consumer spending, and accelerates private-sector capital investment.

While historical data shows that tax cuts rarely pay for themselves 1:1, a highly competitive and simplified tax code reliably recaptures 20% to 30% of its initial cost through secondary economic expansion. In our model, this conservative 20% dynamic feedback loop generates $170 billion in new, non-inflationary revenue from increased transactional velocity and business formation.

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4. Years 1–4 Spending Discipline & Baseline Caps

A simplified tax system requires an equally disciplined spending framework. To achieve complete budget solvency by Year 4, strict statutory limits are imposed on the federal ledger.

[Year 1: Regulatory & Contract Freeze] ➔ [Year 2: Duplicate Agency Elimination] ➔ [Year 3: Operational Outlay Reductions] ➔ [Year 4: Final Solvency Audit]

• The Baseline Freeze: Total federal spending is capped at Year 1 levels. No agency may increase its net outlays, forcing departments to absorb inflationary costs through operational efficiency.

• The 10% Administrative Reduction: All spending is systematically reduced by 10% by Year 2 through the elimination of duplicate Washington agencies and the reduction of federal contractor overhead fraud detection and overall waste.

• Entitlement Stabilization: Social safety net programs are structurally stabilized to grow strictly in proportion to population growth and true inflation, preventing un-funded deficit expansion.

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5. The Carrot — The Three-Year Step-Down Accountability Trigger

5.1 Objective

To create a binding statutory mechanism that rewards American taxpayers for ongoing national fiscal discipline. This policy establishes a continuous, multi-year mathematical link between federal budget solvency and aggressive tax relief, motivating the federal government to maintain balanced ledgers.

5.2 Legislative Mechanism: The Three-Year Step-Down

The framework introduces a rolling, multi-year incentive structure under the Growth Dividend Act. For every consecutive fiscal year that the federal government achieves a zero-dollar unified deficit, the standard flat tax rate drops sequentially until it hits a permanent floor of 15%:

[Year 4 Solvency: Certified Balance] ➔ Baseline 20.00% drops to 18.33% on Day 1 of Year 5

[Year 5 Solvency: Certified Balance] ➔ Rate drops further to 16.67% on Day 1 of Year 6

[Year 6 Solvency: Certified Balance] ➔ Rate hits permanent floor of 15.00% on Day 1 of Year 7

• The Target: The achievement of a zero-dollar unified federal deficit (or a net fiscal surplus) at the close of Fiscal Years 4, 5, and 6 respectively.

• The Certification: The Government Accountability Office (GAO) and the Department of the Treasury must jointly certify the balanced ledger using strict, cash-basis accounting within 30 days of each fiscal year end. This eliminates the use of "one-time asset sales" or off-budget accounting gimmicks.

• The Reset Clause: If the budget target is missed in any of these incentive years, the step-down halts immediately. The tax rate reverts to the standard 20% baseline for the following fiscal year and will remain there until fiscal balance is restored.

5.3 Strategic & Economic Benefits

• Sustained Legislative Discipline: Congress cannot merely balance the budget once for a temporary political win; they are forced to run a lean, efficient government for a minimum of three consecutive years to unlock the full 15% rate for their constituents.

• Unmatched Capital Accumulation: Culminating in a 15% flat rate makes the United States the absolute most competitive economic environment in the developed world, triggering an unprecedented wave of domestic corporate growth and capital repatriation.

• Permanentizing the Spending Cap: This trigger forces Washington to lock in the spending reductions achieved in Years 1 through 4, ensuring that federal downsizing becomes a permanent structural fixture.

5.4 Risk Mitigation & Guardrails

To protect national security and counter bad-faith political obstruction, the mechanism includes two vital guardrails:

• The Sovereign Emergency Hatch: The automatic trigger can only be paused or delayed in the event of a formal Declaration of War issued by Congress, preventing the suspension of the tax cut for minor or manufactured economic "crises."

• Anti-Sabotage Accounting: To prevent political opponents from artificially inflating spending to block the trigger, the budget baseline will lock in Year 1. Any unauthorized agency spending above the mandated caps will be legally nullified.

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6. The Stick — Fiscal Accountability Fail-Safe & Universal Sequestration

In the event that the unified federal deficit exceeds 3% of Gross Domestic Product (GDP) at the close of Fiscal Year 4, the sequential tax reduction is legally suspended and the rate resets to the baseline 20%. To rapidly restore fiscal stability and enforce total government accountability, an automatic, non-discretionary statutory sequestration will instantly activate on day one of Fiscal Year 5:

• Universal 2% Budget Reduction: An across-the-board 2% budget cut will be automatically applied to all federal departments, with absolutely no exemptions. This mandate explicitly includes the Department of Defense alongside all non-defense civilian agencies.

• Operational Protection Clauses: To ensure national security is not compromised during the defense cuts, the 2% reduction must be achieved strictly by freezing procurement contracts for non-essential weapon systems, eliminating administrative bureaucracy, and reducing civilian contractor overhead. Base pay, active-duty healthcare, and direct combat readiness funding are legally protected from the cut.

• Duration of Penalty: This universal sequestration and the suspension of the tax step-down will remain legally locked in place for each subsequent fiscal year until the Department of the Treasury and the GAO jointly certify that the unified deficit has been successfully brought below the 3% GDP threshold.

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Conclusion: A Mathematically Bulletproof Balance

When these three mechanisms run concurrently, the math is undeniable. The initial $850 billion baseline revenue shift is completely offset by $868.5 billion in combined structural spending corrections, recovered loophole revenue, and dynamic growth. Coupled with the government multiyear spending freeze this is a rock-solid budget that generates a safe $18.5 billion surplus, securing the long-term solvency of our country while liberating the American worker.