What is described in this section might be best described as an outline for policy wonks. The attempt is made to provide some insight to the details that might be contemplated should the TDB process ever move beyond being a grass roots citizen preference poll into the legislative venue. Indeed, there is room for discussion of the effects of the TDB as well as the details of the process itself. It should be mentioned, that even as just a poll, the TDB might have an important stabilizing effect on the political process.
It is hoped that this section may answer many questions and concerns that may arise in your contemplation of the TDB from one's "basic" introductory perspective. At the same time, you may find that the simple TDB forms open up numerous other positive visions for the future of our democratic republic -- all within the framework of our existing Constitutional foundation.
If you have additional concerns or observations, feel free to make a comment. Much of the development of the TDB concept has been made by suggestions and questions from interested citizens such as yourself.
By October 1, the President (and any candidates for that office) submits a budget outline to Congress that includes the percentage of the budget that should go to each Activity of the Federal Government for the upcoming fiscal year. The entire Federal Budget must be covered by this proposal. No "off budget" items are allowed. What is included in each Activity must be defined in this proposal. At a minimum, each Cabinet level department will be considered one Activity. The maximum number of Activities shall be twenty. The TDB regular, TDB EZ form and Budget Guide must be included with every 1040 form.
By December 1, the Congress must develop a range for each Activity with the sum of the low ranges equal to three quarters the total budget and the sum of the high ranges being one and one quarter. The ranges may be determined by the average of ranges proposed by individual legislators (elect). Each range must include the president's budget proposal. A bipartisan Balanced Budget Commission shall oversee the entire TDB process. The TDB process shall be advisory to the BBC and Congress.
All taxpayers (who are US citizens) may optionally fill out the TDB form when they pay their income taxes for the previous tax year. Additional non-specific revenues, excess TDBs, invalid TDB filings, and all income tax collected from those not entitled to fill out a TDB form as well as those who choose not to file a TDB are budgeted according to the average budget ratios of the returned valid TDB forms. The TDB process will not increase one's tax liability. The TDB process will allow most individuals to leverage more tax revenue than the amount of taxes that they directly pay. The TDB will also allow those who pay no taxes to leverage this per capita amount of general revenue if they file a TDB. The premise is that everyone pays for these hidden taxes one way or the other when they participate in our economy. The maximum amount of tax dollars that an individual may leverage directly or indirectly via the TDB process is limited to $200,000 (adjusted for inflation).
The taxpayer shall be granted a dollar for dollar tax credit for charity contributions to accredited charities for any activity up to the amount in the TDB for that Activity. Such charity contributions shall be attached to TDB form as a check or money order. Accreditation of charity services shall be made without respect to religious affiliations of such charities. Rather, accreditation shall be judged according to the charity provided by the charity service and success rate achieved. The Balanced Budget Commission will see to the proper distribution of charity funds sent with the TDB. Any funds not directed to a charity, including non specific leveraged revenue, shall remain under the budget supervision of the Congress according to the TDB preferences of that taxpayer.
The TDB process may be overridden in case of national security emergency as voted on by 2/3 of each house of Congress and signed by the President. Inability to pass a Budget shall not be considered a national security emergency. In the case of declared national security emergency, the TDB process may be suspended for Activities necessary to directly support the emergency with bonds being issued to support the activity. Other Activities must stay with their TDB budget. The TDB process shall be reinstated as soon as the emergency is over, or the following year, whichever comes first.
By June 1, Congress must pass a separate Budget Bill for each activity according to the amount provided to that Activity by the TDB process. Each Activity's Budget Bill must be kept free of unrelated Activities and issues or be subject to a line item veto. In the event a Budget Bill for an Activity is unable to be agreed upon, the previous year's budget shall continue within the constraints of the new TDB allotments filed by taxpayers.
Separately funded and fiscally solvent programs, such as Social Security, will not be part of the TDB process. However, any separately funded program with a deficit budget must be made part of the TDB process until its deficit is eliminated.
Revenue increases of any sort (higher tax rates, new taxes, etc) may be passed by majority roll call vote between three to eight weeks prior to general Congressional Elections. A 60% majority is required for revenue increases or new revenue sources at all other times.
In the event a Budget Bill for an Activity is unable to be agreed upon by the appropriate time, the previous year's budget shall continue within the constraints of the new TDB allotments. Salaries and program expenditures shall be adjusted accordingly.
While the Federal Government is in debt, it may not budget to spend any more money that it spent in the previous year after adjustment for population growth plus half of the per capita growth in GDP (after removing any inflationary effects caused by the national debt.) This process (or formula) will allow for a 'fair' system for reduction of deficits and debts. Excess revenue above this spending cap will be immediately used to pay off the principle of the National Debt. Qualified savings in programs and activities below any spending cap due to efficiencies that do not negatively effect quality shall be split between retiring the Federal Debt, a general tax cut, and the workers of that program as a bonus. Interest on the national debt shall be paid from the TDB allotment. Any TDB filings that are above the minimum interest payment must be used to directly pay down the principle of the debt.
User fees and other specific excise taxes or revenue shall be dedicated to the Activity(s) which imposed and collected the fee or tax. i.e. Gas taxes go to transportation (roads, mass transit, etc), cigarette taxes (if placed by the Health Department) go to cigarette related health problems, park revenues go to parks, etc. If appropriate, these activities may split surpluses between directly retiring the Federal Debt and a modest 'rainy day' fund for expected and unexpected future expenses (if appropriate for that activity). Any savings in such programs or activities shall be divided up as defined in section 10 for other federal workers and programs that are able to efficiently perform their duties for less than they are budgeted without sacrificing quality.