# Tax Reform Act #

**Whereas,** a flat tax over taxes the poor and under taxes the rich.

**Whereas,** taxing the wealthiest individuals in our state will allow us to provide government services to those in need.

*Be it enacted by the People of the State of Great Lakes, represented in the General Assembly.*

**SECTION I. Short Title**

(a) This act may also be know as "The Tax Reform Act"

**SECTION II. Definitions**

(a) FPL: Federal Poverty Line

**Section III. Bill Text**

(a) The Great Lakes state tax rates shall be indexed against the Federal Poverty Line

(b) Individuals filling singly shall be indexed to the FPL for individuals.

(c) Married individuals filling separately shall be indexed to the FPL for individuals.

(d) Married couple filling jointly shall be indexed to the FPL for households with 2 persons.

(e) Any individual or couple with dependents may increase the FPL household size they are indexed to by one for each dependent they can claim.

(f) There shall be four tax brackets:

 (i) The first bracket shall include all earned income up to 200% of the filer's FPL; it shall be taxed at 0%.
 (ii) The second bracket shall include all earned income more than 200% and up to 1000% of the filer's FPL; it shall be taxed at 4.95%.
 (iii) The third bracket shall include all earned income more than 1000% and up to 2000% of the filer's FPL; it shall be taxed at 10%.
 (iv) The fourth bracket shall include all earned income more than 2000% of the filer's FPL; it shall be taxed at 20%.

| Tier |       Income       | Percent |
|:-----|:------------------:|:-------:|
|0     | up to 200% of FPL  |0%       |
|1     | up to 1000% of FPL |4.95%    |
|2     | up to 2000% of FPL |10%      |
|3     | over 2000% of FPL  |20%      |

**Section IV. ENACTMENT**
This act shall go into effect at the start of the first fiscal year after its passage.