Freedom Dividend from PEA SOUP


A Universal Basic Income Bill


So I've been rather unhappy with the lack of action regarding the push for a UBI... so I decided to write a bill establishing one. It's also going to save the Social Security Trust Fund and the Medicare Part A Trust Fund, to some extent. I know it could use some work, like building a proper definition of recipient/family/individual/other way of saying who gets the UBI. I also don't know if I've written the Statement on Constitutional Authority correctly, but here it is. You could stick whatever you want in the "Some Other Useful Provisions" title, like securitizing federally held Student Loan Debt and parking it on the Fed's balance sheet or whatever you could reasonably get through reconciliation. Upon further review, I didn't establish a "date effective" for this Act, so let's just say it takes effect immediately and we get a UBI from the "Other Revenues" section next year.

Statement on Constitutional Authority:
  • Expenditures are authorized under U.S. Const. Art. I §8 Cl. 1
  • The Value-Added Tax is authorized under U.S. Const. Art. I §8 Cl. 1
  • The Federal Reserve Lending Facility is authorized under U.S. Const. Art. I §8 Cl. 3 and U.S. Const. Art. I §8 Cl. 5
  • Borrowing from the Federal Reserve Lending Facility is authorized under U.S. Const. Art. I §8 Cl. 2 

SEC. 1. SHORT TITLE; TABLE OF CONTENTS; DEFINITIONS
(a) This Act may be cited as “The Poverty Elimination And Some Other Useful Provisions Act” or as “The PEA SOUP Act”.
(b) The Table of Contents of this Act shall be as follows:
Sec. 1. Short Title; Table of Contents; Definitions
TITLE I - POVERTY ELIMINATION ACT
Sec. 101. Federal Reserve Vehicle
Sec. 102. Taxation
Sec. 103. Other Revenues
Sec. 104. Payout Methods
Sec. 105. Payout Schedule
Sec. 106. Benefits
Sec. 107. Administration
Sec. 108. Cost Calculation
TITLE II - SOME OTHER USEFUL PROVISIONS
Sec. 201. Medicare Hospital Insurance Payroll Excise
Sec. 202. Social Security Payroll Excise
(c) For this act, the following terms shall have the following definitions:
(1) “Lending Facility” and “Facility” shall refer to the lending facility established by the Federal Reserve as established under Sec. 101.
(2) “Secretary” shall refer to the Secretary of the Treasury or any administrator appointed to oversee the Program.
(3) “Benefits” shall refer to the payments established under Section 106 of this Act.
TITLE I - POVERTY ELIMINATION ACT
SEC. 101. FEDERAL RESERVE VEHICLE.
(a) The Federal Reserve shall establish a lending facility to provide loans directly to the Department of the Treasury to provide the benefits established under Section 106 of this Act, but loans given to the Treasury shall be no amount greater than the Cost Calculation established under Section 108 of this Act.
(b) Loans provided by the Facility established under subsection (a) shall be given on an annual basis, with these terms of repayment:
(1) The first payment shall be scheduled for no sooner than 500 years after the loan is disbursed;
(2) The annual interest rate on loans provided by the Facility shall be not greater than 0 percent;
(3) Each loan provided by the Facility shall accrue interest during the time before the first payment on the loan, but not during the period of repayment;
(4) Each loan shall be repaid over a period of 50 years, but may be repaid in a time period shorter than 50 years or at any point during the preceeding 500 years as established under Paragraph (1) under subsection (b) in Section 101 of this Act; and
(5) Repayment of the loan at any time before the first day of the Five Hundred and Fifty-First year after the loan is disbursed shall not be construed as to be negatively impacting the reputation or credit of the United States.
SEC. 102. TAXATION.
(a) A Value-Added Tax of 5 percent, performed using the credit-invoice method, shall be levied on all goods and services within the United States, excluding:
(1) Primary and secondary education and other noncommercial services provided by any Federal, State or Territorial, or Municipal government;
(2) Primary and secondary education and other noncommercial services provided by any nonprofit organization for free or for less than $100;
(3) Financial services, but including the sale of assets resulting in taxable Capital Gains income;
(4) Housing services existing at the time this Act becomes effective; and
(5) Goods sold by, and services performed by, small businesses with:
(A) Fewer than 25 employees; and
(B) Annual revenue less than $1,000,000.00.
(b) The Internal Revenue Service shall coordinate with state and local governments to collect revenues from the tax established under subsection (a).
(c) The tax established under subsection (a) shall become effective on the first day of the second full year after is Act is signed into law.
(d) The revenues collected from the tax established under subsection (a) shall be used to capitalize the Lending Facility established under Section 101 of this Act. Any revenues collected by the tax established under subsection (a) exceeding the Cost Calculation reported in Section 108 of this Act shall be deposited into the Federal Old-Age and Survivors Insurance Trust Fund established by Section 201 of the Social Security Act.
SEC. 103. OTHER REVENUES.- If the revenues raised by the tax levied by Section 102 of this Act and the Lending Facility established under Section 101 of this Act is not sufficiently capitalized to provide loans requisite to providing benefits established under Section 106 of this Act, the Secretary may appropriate additional revenues not more than the amount needed to capitalize the Lending Facility and reported by the Secretary in the Cost Calculation established under Section 108 of this Act to provide loans used to provide benefits established under Section 106 of this Act.
SEC. 104. PAYOUT METHODS.
(a) The Treasury shall maintain an up-to-date profile of all families and individuals to be used exclusively for the administration of this Act.
(1) The profile established under this subsection shall have all information collected be encrypted and otherwise appropriately secured and all information collected in subsection (b) shall be kept confidential.
(2) Any person above the age of 18 at tie time of passage of this Act, or who attains the age of 18 after the passage of this Act, shall be considered eligible to be a recipient.
(b) The profile established under subsection (a) of this Section shall contain any of the following that each family or individual recipient may to provide to the Treasury:
(1) Name or names of the individual or members of the family, including all dependents claimed by family or individual and the primary recipient of the benefits established under Section 106 of this Act;
(2) Social Security Number or Individual Taxpayer Identification Number of the persons listed in the previous paragraph;
(3) Mailing Address;
(4) Treasury Direct account information;
(5) Checking, Savings, Money Market, and other Accounts held by the family or individual through a financial institution, including the Routing Number of the institution and the Account Number within the institution;
(6) Information regarding the following platforms requisite to receive payment:
(A) Apple Pay;
(B) Venmo;
(C) Paypal;
(D) Square Cash App;
(E) Samsung Pay;
(F) Zelle;
(G) Google Pay; and
(H) Other ways deemed appropriate by the Secretary of receiving benefits established under Section 106 of this Act.
(7) Preferred method of receiving benefits established under Section 106 of this Act, including via check or debit card sent to the address listed in Paragraph (3), account crediting through the Treasury Direct account listed in Paragraph (4), direct deposit through one of the Accounts listed in Paragraph (5), or one of the platforms listed in Paragraph (6).
(c) Information provided in Paragraphs (1), (2), and (7) of subsection (b) in this Section of this Act shall be considered necessary for a recipient to receive benefits established under Section 106 of this Act.
SEC. 105. PAYOUT SCHEDULE.
(a) The Secretary shall provide the benefits established under Section 106 of this Act in the preferred method chosen in Paragraph (7) of subsection (b) in Section 104 of this Act to the primary recipient identified by such Paragraph.
(b) Benefits disbursed under this Act shall be disbursed on a monthly basis, equal to no more than the following rounded up to the next whole dollar amount:
(1) The total benefits established under Section 106 of this Act; divided by
(2) The months of the year where disbursement of the benefits established under Section 106 of this Act are to be disbursed.
SEC. 106. BENEFITS.
(a) The Secretary shall determine, based on the information provided in Paragraph (1) of subsection (b) in Section 104 of this Act, the appropriate Federal Poverty Level of the family or individual identified within such Paragraph.
(b) The Secretary shall disburse money annually equal to the Federal Poverty Level as established under subsection (a) of this Section to each recipient identified in subsection (a) of Section 104 of this Act in the manner established under Section 105 of this Act.
(c) Benefits disbursed under this Act shall be exempt from taxes levied against income and excises levied against the purchase of labor. Benefits disbursed under this Act shall not be considered income.
SEC. 107. ADMINISTRATION.
(a) The Secretary of the Treasury may appoint a commission of administrators to ensure that this Act is fairly and appropriately enforced.
(b) The administrators of the commission established under subsection (a) of this Section who are appointed by the Secretary of the Treasury shall have staggered terms, such that no terms of two administrators end within the same calendar year.
(c) The administrators of the commission established under subsection (a) of this Section who are appointed by the Secretary of the Treasury shall serve terms not longer than 10 years.
SEC. 108. COST CALCULATION.
(a) The Secretary or commission established under Section 107 of this Act shall produce, in the final month of every year, a report detailing the costs of the benefits established under this Act and the administration thereof.
(b) The Secretary shall borrow money on the credit of the United States from the Lending Facility established under Section 101 of this Act in no amount greater than the cost detailed in the report established under subsection (a) of Section 108 of this Act, with terms for the loan being negotiated by the Secretary in compliance with subsection (b) of Section 101 of this Act.
TITLE II - SEVERAL OTHER USEFUL PROVISIONS
SEC. 201. MEDICARE HOSPITAL INSURANCE PAYROLL EXCISE.
(a) Subsection (b) of Section 3101 of the Internal Revenue Code of 1986 is amended by inserting “, or 3 percent after 2020,” after “1.45 percent” and by inserting “, or 5 percent after 2020,” after “0.9 percent”.
(b) Subsection (b) of Section 3111 of the Internal Revenue Code of 1986 is amended by inserting “, or 3 percent after 2020,” after “1.45 percent”.
SEC. 202. SOCIAL SECURITY PAYROLL EXCISE.
(a) Subsection (a) of Section 3101 of the Internal Revenue Code of 1986 is amended by inserting “, or 7 percent after 2020,” after “6.2 percent”.
(b) Subsection (a) of Section 3111 of the Internal Revenue Code of 1986 is amended by inserting “, or 7 percent after 2020,” after “6.2 percent”.
(c) Section 3101 of the Internal Revenue Code of 1986 is amended by inserting, after subsection (c):
“(d) In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the percentage established in subsection (a) of the wages (as defined in section 3121(a)) received by the individual with respect to employment (as defined in section 3121(b)) in excess of the “contribution and benefit base” established under Section 230 of the Social Security Act. Revenues from such a tax shall be deposited into the Federal Old-Age and Survivors Insurance Trust Fund established by Section 201 of the Social Security Act.
(d) Section 3111 of the Internal Revenue Code of 1986 is amended by inserting, after subsection (c):
“(d) In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the percentage established in subsection (a) of the wages (as defined in section 3121(a)) received by the individual with respect to employment (as defined in section 3121(b)) in excess of the “contribution and benefit base” established under Section 230 of the Social Security Act. Revenues from such a tax shall be deposited into the Federal Old-Age and Survivors Insurance Trust Fund established by Section 201 of the Social Security Act.

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