If I'm going to be taxed, I want the IRS forms to include a section where I can allocate the taxes to causes I believe in.
Discussion
I've been proposing this idea since I was a teen. Freedom to fund.
How about allowing donations to specific Federal Agencies to be counted towards taxes paid? So if we know of certain programs in the Department of Education or the Customs and Border Protection that we want to support we can send our tax dollars there and those specific programs get the money, not the "general fund".
Yea these ideas are good.
But if they print money for programs that dont get donations then its an illusion of choice.
They shouldn't be "printing" money for anything. We should have a balanced budget, indeed we should have a small budget surplus every year so the government can put real money (Bitcoin) into a reserve account. But there are aspects of government that are needed that might not get the support of people. If nobody makes donations to the Supreme Court, should we shut it down? Or the Department of Defense, if they don't get enough donations should they have a bake sale to pay for the maintenance cost on the ships? Getting a bit silly, I know. But unless we are going to completely shut down the ENTIRE government and toss the US Constitution into the trash, we do need to maintain the government departments that are required in the budget.
A complete change in how taxes are collected and applied like this would be a major shock to the system, and I don't think we're ready for that. But doing this with 25% of our taxes would send a message to Congress. And we shouldn't forget that most states have an income tax, so they could do this as well at the state or municipal level. And other countries could do this, like El Salvador.
Anyway, lots of possibilities. we just need to think them through.
The Citizen Directed Tax Act of 2024
Preamble
The Citizen Directed Tax Act aims to empower American citizens by allowing them to designate a portion of their federal income taxes to specific government agencies. This legislation promotes transparency and accountability within the federal government while fostering a more direct connection between citizens and the services they value.
Section 1: Short Title
This Act may be cited as the “Citizen Directed Tax Act of 2024.”
Section 2: Designation of Tax Allocation
(a) Election: In addition to existing tax filing procedures, individual taxpayers filing federal income tax returns shall be provided with the option to designate a portion of their tax liability, not to exceed 60% of their total tax obligation, to a specific federal agency.
(b) Agency Selection: The Internal Revenue Service (IRS) shall develop a secure online platform and/or a designated section on tax return forms where taxpayers can choose from a list of qualified federal agencies to receive their designated tax allocation.
(c) Qualified Agencies: All federal executive departments and independent agencies as defined in Title 5 of the U.S. Code are considered qualified agencies, unless explicitly excluded by subsequent legislation.
Section 3: Allocation Process
(a) Distribution: The IRS shall establish a transparent and secure mechanism for distributing designated tax allocations to the chosen agencies.
(b) Reporting: The IRS shall provide each taxpayer with a statement detailing their designated tax allocation and the agency it was directed towards. Additionally, the IRS shall publish an annual report outlining the total amount of tax dollars allocated to each agency through this program.
Section 4: Transparency and Accountability
(a) Agency Reporting: Each agency receiving designated tax allocations shall be required to submit a detailed report to Congress outlining how these funds were utilized and the impact they had on agency programs and services.
(b) Public Access: All agency reports submitted under subsection (a) shall be readily available to the public through a designated website maintained by the Government Accountability Office (GAO).
Section 5: Implementation
The Secretary of the Treasury shall be responsible for overseeing the implementation of this Act, including the development of the online platform and the distribution mechanism for designated tax allocations. The GAO shall be responsible for monitoring the program's effectiveness and reporting any findings and recommendations to Congress.
Section 6: Effective Date
This Act shall take effect for tax years beginning after December 31, 2025.