For Our People Act

WRITTEN BY PRESIDENT KEVIN O’LEARY (LC-CA) AND SECRETARY IRIS STANFORD (LC-WI)

99th Congress of the United States

IN BRIEF

To reduce the size of government in order to secure the liberty and economic freedom of the American people.

## Section 1. Name of Bill

This Bill will be known as the For Our People Act for the duration of this bill, in all debates, and following enactment by the executive branch will carry the same title.

## Section 2. Findings and Definitions

FINDINGS

1. Whereas, taxes on Americans can be reduced and streamlined to supercharge economic growth and boost incomes for all Americans.
2. Whereas, higher incentivization of investment shall spur innovation and create hundreds of thousands of good paying jobs.
3. Whereas, a series of common sense adjustments to America’s financial structure will lessen burdenful regulation on small business and increase access to home ownership for the average American.
4. Whereas, moving Americans from welfare to work shall boost productivity and emphasize the American dream.
5. Whereas, a national lottery and a series of other structural changes shall boost government revenue.

DEFINITIONS

1. Commercial bank - a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit.
2. Investment bank - An investment bank is a financial services company that acts as an intermediary in large and complex financial transactions.
3. Thrifts - Loans and savings banks. They can be owned by shareholders ("stock" ownership), or by their depositors and borrowers ("mutual" ownership).
4. Nonresidential Mortgage - A mortgage, security interest or the like which is not a residential mortgage. If a mortgage document includes separate tracts or properties, those portions of the mortgage document covering the non-residential tracts or properties are considered a non-residential mortgage.
5. Variable Rate Mortgage - A variable-rate mortgage, adjustable-rate mortgage, or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.
6. Due on sale provision - A requirement in a mortgage or other loan agreement that the loan be paid in full if the house or asset is resold.
7. Dwelling unit - A housing unit, or dwelling unit, is a structure or the part of a structure or the space that is used as a home, residence, or sleeping place by one person or more people who maintain a common household.
8. Trust - a legal arrangement in which you can place your money, possessions, and other assets so they can later be used by you or your future heirs.
9. Immigrant - Any individual who has moved their permanent residence to the United States from another country after the passage of this legislation who is not a US citizen
10. Non operating foundation - your foundation's primary goal is to make grants to nonprofits, not run by your own programs
11. Marital deduction - tax law that allows a person to give assets to his or her spouse with reduced or no tax imposed upon the transfer.
12. Small or medium sized business - a business with 999 employees or less
13. Invest - a payment of money in exchange for shares of a publicly traded company
14. Full time job - a job or at least 30 hours of service per week, or 130 hours of service per month.

## Section 3. Budget Reform Act

1. The 1987-89 federal budget and all future federal budgets shall have the following income tax brackets:
	1. $0-$20,000
	2. $20,000-$35,000
	3. $35,000-$65,000
	4. $65,000+
2. A national sales tax shall be established
	1. This tax shall be initially set to 0%, increasing by 0.5% every six months until 2% is reached
	2. This tax shall be adjustable in the 1987-89 federal budget and all future budgets

## Section 4. Empowering Investment Act

1. The adjusted gross income (AGI) limit for gifts of cash or ordinary income property to donations made to private nonoperating foundations shall be raised from 20% to 30%
2. There shall be unlimited marital deduction
	1. To clarify, there shall be no tax imposed upon transfers between two spouses
3. Estate credit shall exempt from tax all estates of $600,000 or less
4. Maximum estate tax rate shall be reduced from 70 to 50 percent.
5. If an individual’s net losses in taxable investment exceeds net gains for the year and therefore has no reportable income from security sales, that individual may then deduct up to $3,000 worth of net losses from their income tax
6. The FART (Financial Accelerating Retribution Credit) tax credit shall be created. Individuals who invest into small and medium sized businesses shall be granted deductions on income tax, ranging from elimination of 15% income tax on the individual to a 1% write off. This shall be determined by the following indexes (all of these dollar values are to adjust by inflation):
	1. $500 - 1% writeoff
		1. The total deductible amount based on this provision for an individual shall be no more than $1,000
	2. $1000 - 2% writeoff
		1. The total deductible amount based on this provision for an individual shall be no more than $2,000
	3. $10,000 - 3% writeoff
		1. The total deductible amount based on this provision for an individual shall be no more than $20,0000
	4. $25,000 - 4% writeoff
		1. The total deductive amount based on this provision for an individual shall be no more than $50,000
	5. $50,000 - 5% writeoff
		1. The total deductible amount based on this provision for an individual shall be no more than $100,000
	6. $100,000 - 8% writeoff
		1. The total deductible amount based on this provision for an individual shall be no more than $200,000
	7. $1,000,000 - 10% writeoff
		1. The total deductible amount based on this provision for an individual shall be no more than $2,000,000
	8. $50,000,000 - 15% writeoff
		1. The total deductible amount based on this provision for an individual shall be no more than $100,000,000

## Section 5. Economic Freedom Act

1. Commercial and investment banking shall no longer be separated
2. It shall be legal for Thrifts to make nonresidential and variable-rate mortgage contracts
3. Due-on-sale provisions in mortgage contracts shall be legal
4. Any individual may place real estate, consisting of one to four dwelling units, into their own trust without triggering a due-on-sale clause.
5. The interest rate differential that allows thrifts to offer depositors a one-quarter percent higher interest rate is hereby abolished.
6. Sections 20 and 32 of the Glass Steagall Act are hereby repealed
7. There shall be a new kind of financial institution: the financial holding company (FHC)
	1. An FHC is a bank holding company that can offer non-banking financial services
	2. Services that FHCs can offer include insurance underwriting, securities dealing, merchant banking, securities underwriting, and investment advisory services.
	3. To form a FHC, a company must file a written declaration with the Federal Reserve Board that it elects to be a FHC, and must also certify that it meets the requirements.
		1. The requirements to form an FHC shall be determined by the Federal Reserve Board
	4. If any of the subsidiaries cease to be well managed or capitalized, the FHC shall face corrective supervisory action and be prohibited from undertaking new financial activities until the problems are addressed.
	5. The federal reserve board shall enforce these provisions

## Section 6. Work Opportunity Act

1. Welfare recipients shall stop receiving benefits after a two consecutive years of unemployment
	1. To be eligible for benefits again, an individual must become employed in a full time job for at least two weeks consecutively
2. Welfare recipients shall become ineligible to receive further benefits after three consecutive years of receiving welfare benefits
	1. To become eligible for benefits again, an individual must have been off welfare for at least two months
3. Any individual who has been a welfare recipient for an aggregate time of five years in their life shall be ineligible for further federal welfare benefits permanently
4. Welfare recipients must pass monthly drug tests in order to remain eligible to continue receiving benefits
	1. The drug tests will be administered by municipalities and results will be reported to the Department of Justice
	2. Failure to pass a drug test shall make an individual ineligible to receive welfare benefits for two months post the failed test
5. Welfare recipients who are unmarried parents under 18 years old shall receive one half of the benefits an individual of their same age and income status would receive
6. Drug felons shall be ineligible to receive food stamps
7. Immigrants shall be ineligible to become welfare recipients. Qualified immigrants to receive welfare benefits shall include:
	1. Cuban and Haitian entrants
	2. Lawful permanent residents (people with green cards)
	3. Refugees (1 year for refugee status)
	4. Immigrants granted asylum or those with conditional entrants
	5. Immigrants granted parole for at least one year
	6. Immigrants whose deportations are being withheld

## Section 7. Revenue and National Lottery Act

1. There shall be a 16 cents per pack cigarette excise tax
2. The $5,000,000,000 currently in NASA’s biannual budget shall be cut to $3,000,000,000
3. The ASS(American Success in Space) Grant is created and funded $1,000,000,000 per budget cycle
4. Corporations shall apply with a concrete plan to advance America’s exploration of space including but not limited to development of space technology, training and recruitment of space exploration personal, research relating to advancing knowledge and technology of space exploration and travel, and conducting their own exploration missions (manned or unmanned) into space
5. The Office of Science and Technology Policy will review said applications and approve an amount it deems appropriate for the specific municipality to achieve the goal of the grant
6. The National Lottery shall be created and hereafter referred to as the Executing Vanquishing Impoverishment Lottery (EVIL). It shall be under the management of the US Department of Commerce.
7. EVIL shall be funded $500,000,000 per year
	1. $375,000,000 of this fund shall go into marketing and management of the lottery while $125,000,000 shall go directly into prizes
	2. The US department of Commerce shall be responsible for creating a tiered reward system for the lottery to follow
	3. The US department of Commerce is to conduct a thorough marketing campaign of EVIL
	4. The US department of Commerce shall distribute lottery tickets to be sold in retail stores nationwide

## Section 8. Severability and Effective Date

1. Each provision in this bill is severable. If any provision is declared unconstitutional by a court, the other provisions of the bill shall remain intact and enacted.
2. This act shall come into force immediately upon enactment with the exception of Section 3. Section 3 shall come into force January 10th, 1987

## Section 9. Funding

TOTAL BILL IMPLEMENTATION COST - -$10,767,000,000

* Section 3 - -$3,267,000,000
* Section 4 - $0
* Section 5 - $0
* Section 6 - $0
* Section 7 - -$7,500,000,000

FUNDING SPECIFICS

Section 3

In 1982, $163,351,166,666 was total manufactured goods sold, meaning a 2% sales tax is projected to generate approximately $3,267,000,000.

Section 4

The deductions in Section 4(f) are to be deducted from income tax. There are a series of deduction and regulation changes in section 4 that may affect revenue.

Section 7

$2,000,000,000 shall be raised by raising the excise tax on cigarettes to 16 cents. The national lottery utilizes $500,000,000 in funds but is projected to generate $5,000,000,000, netting $4,500,000,000 in revenue. $1,000,000,000 is generated from the partial privatization of NASA.