Policy

TOFU: Taxpayers Optional Federal Use - A Huge Federal Tax Cut

A Connecticut taxpayer opt-out proposal for unconstitutional federal programs, potentially reducing federal income taxes by 55% to 85%.

A HUGE Federal tax cut; or a small one via "TOFU" (Taxpayers Optional Federal Use)

By Mark Stewart – "Stewart for Liberty"

Candidate for CT State House

This proposes a Connecticut taxpayer opt-out from large portions of federal taxation. Literally every un-Constitutional program that a taxpayer pledges not to take part in can and should become optional. This is the way to put federal spending on sounder footing, and save colossal amounts for taxpayers.

The State vs. Federal Tax Comparison

Each election, at least some governor candidates discuss reducing the state income tax. For the last two elections Republican Bob Stefanowski proposed up to 8% state income tax reduction.

Errr. Even an 16% reduction, from CT 7% maximum state income tax rate, leaves payers saving just over 1% of their income. By contrast, a full FEDERAL tax opt-out gives a 55% to 85% reduction in our Federal income taxes. AND it doesn't diminish state services. Yes, it diminishes federal services.

For 40+ days we've experienced a "government shutdown" with minimal federal services. Few suburbanites even noticed. A few more recently noticed their Holiday air travel with no Air Traffic Controllers in place might be in jeopardy.

What's Constitutional?

There are only two areas where we are compelled to fund via federal taxes: the military, and federal justice (including immigration enforcement, patent & copyright enforcement, and federal prisons). The rest is either unnecessary (as in the U.S. post office), or un-Constitutional.

The military plus federal justice comprise 20% of the current federal budget; if veterans' benefits must be included (this is arguable), it's 25%, and if interest on the debt is to be included, it goes to 45%. The taxpayer who opts out of everything else is saving at least 55%.

What About Services People Want?

What about federal government services that are un-Constitutional but some people LIKE? They want their federal flood insurance; they believe in subsidizing mining, they want to use our ports, they want the "comfort" (even though it's a bad deal) of Obamacare.

Fine! They can pay for any or all of these as a non-Constitutional government SERVICE. Their federal taxes will fall SOMEwhat and they'll be in control over what in THEIR view is worthy spending.

Benefits to the Federal Government

Connecticut is small, a mere 1% of America's population. Even our 100% withholding of the non-Constitutional funding would make little difference in the Treasury's overall receipts. But Connecticut could be a model for other, larger states to follow, with many millions more taxpayers opting out.

Is that a benefit to the federal government? It's a colossal benefit. For every $10,000 the government takes in, it currently spends $12,500. Every $10,000 citizen who does not require a federal benefit is SAVING the government $2500. If 100 million taxpayers withheld at this rate, it saves the treasury $250,000,000,000.

That's more than Trump's Tariffs. And unlike tariffs, which cost consumers, an opt-out "un-taxes" us.

The Easy Start: Social Security and Medicare

Here is the easy start: allow the Social Security and Medicare opt out; for every young American off the books, Trump-Vance can proudly tout a savings. Few under 45 expect Social Security and Medicare to pay them fully when they reach 65 anyways. They are the biggest winners of an opt-out.

The largest savings from withholding, and the easiest to quantify, is that from opting out of Social Security. It is also the fairest, especially for those of us concerned with Black civil rights. Since African Americans have shorter average lifespans than whites, and pay into the system longer, the Social Security extraction discriminates viciously against African Americans.

The savings to us is a diminution of government, and an increase in personal freedom. In short, the opt-out is what all states should facilitate; but let it begin in Connecticut.

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Mark Stewart

Political candidate and advocate for liberty-minded governance across New England. Former U.S. Senate candidate and founder of the AMiGo Party (Americans for Minimal Government).