This is the same proposal made in the Website Summary and the Tax Reform Essay, where the rationale for these reforms are explained.

In summary, at all levels of government, 1) regressive, inefficient, and hidden indirect taxes are eliminated; 2) the income tax is greatly simplified and its rates are reduced; 3) an annual net-worth (accumulated wealth) tax is substituted for current real estate, capital gains and estate taxes; and 4) corporate taxes are ended (taxes on corporate profits are paid by the investors owning the corporations).

- Eliminate payroll (Social Security, Medicare) taxes (regressive; instead these programs paid from general tax revenue)^
- Eliminate state income taxes in their current form (inefficient; instead states set & receive a surcharge on federal taxes)
- Eliminate sales and use taxes (regressive)
- Eliminate property taxes (very regressive; instead municipalities set & receive a surcharge on federal taxes)
- Eliminate capital gains taxes (currently most gains go untaxed; instead tax all gains indirectly through the Net-worth Tax)
- Eliminate estate taxes (instead collected in manageable bits through the Net-worth Tax)
- Eliminate corporate taxes (currently half are paid by labor; instead the human owners of corporations are taxed directly-below)
- Eliminate tolls and lotteries (regressive and inefficient)

- Reform the Federal Income Tax, eliminating nearly all adjustments and deductions, with a uniform 20% tax
  rate  on all income and compensation, excluding only*:
   - income below a realistic poverty line ($30,000 for a household of three), which is taxed at 2% instead;
   - some large medical expenses and reasonable medical insurance benefits, and
   - limited contributions to tax-free accounts.
   All households pay a minimum $100 tax.
   For a typical family of three, the effective federal tax rate would be 10% on $65,000; 15% on $160,000, 19%
      on $1,000,000.
 
- Institute a new 1½% annual Federal Net-worth Tax on household net-worths (that is, accumulated wealth)
  over about $800,000 (for a typical family).* Only the wealthiest roughly 12% of households would be subject
  to any Net-worth Tax.The effective federal tax rate would range from 0.3% on net-worths of about $1 million
  ($3000 tax) up to 1.5% on net-worths over  $24 million.

-Small businesses and corporations with operations or sales within the US are required to calculate domestic
  US profits* using honest, standard accounting practices (without gimmicks, like accelerated depreciation).
  These domestic profits, excluding up to 30%,* must be distributed annually to each business' owners and
  shareholders in proportion to their ownership stake. These distributions are taxed as ordinary income and
  paid by the owners or shareholders. Taxes on distributions to those who are both non-citizens and
  non-residents are withheld from the distributions at a standard 20% tax rate.

- Add a 6% War Tax surcharge on the Federal Income and Net-worth Taxes (e.g. increasing a $10,000 annual
   federal tax bill to $10,600; minimum $50 tax per household) whenever the nation is at war.

- Fund state and municipal governments through a surcharge on each household’s combined Federal
  Income and Net-worth Tax (excluding any War Tax), with the surcharge rate set by each state and
  municipality. For efficiency's sake the federal government could collect the taxes and pass them directly
  (under law, free of any conditions) to states and municipalities. 

- Retain excise taxes only on actions that society would like discourage, such as fossil-fuel-based energy
  and cigarette purchases. For most poor and middle class households, this would be much more than offset
  by the reduction in their other taxes. For the very poor, a small annual rebate could be given to cover the
  typical costs of excise taxes on items that are now largely not discretionary, like fossil-fuel-based energy.*

- Institute a single, unified, tax-free account with a modest age-dependent cap* for each working adult (with
  opt-out option) and opt-in for all other adults. Maximum annual contribution is the lessor of  10% of income or
  $10,000 per spouse. The account can be tapped tax-free for activities that society would like to promote,
  such as education and saving for retirement.

- Taxes apply to United States citizens and residents. The entire tax code is indexed for inflation. Any change
   to the new tax code must include within the legislation the names of the legislators proposing it. The tax
   code can only be changed with stand-alone legislation and can only be passed with a roll-call votes.

* Federal Income tax: Minimum tax of $100; 20% of household total income and compensation excluding only:
      Income below living wage taxed at 2%=(3+2 if married+1 if single parent+# other dependents) x 5000; phased out with 5 or more
          dependents
      Out-of- pocket medical expenses exceeding sum of 10% of gross income plus taxable net-worth
      Up to $5,000/$10,000  (single/family) in employer-paid medical insurance premiums
      Contribution to individual tax-free accounts (maximum is lessor of 10% of income or $10,000 per spouse)
      Distributions from tax free accounts
  Net-worth tax formula: 1.5% of household net-worth (accumulated wealth) excluding only:
      1.3 x median price of home (now $234,000)
      $20,000 per household member + $60,000 if married
      Tax-free account(s) value
      Up to $40,000 in household and personal item
  All married couples must file joint returns unless legally separated
  Domestic US profits (%) = All profits x [(US sales/All sales)+(US employee compensation/ All employee compensation)] x .5
  Exclusions to domestic profit distribution: Businesses with at least one full-time employee equivalent (e.g. two half-time employees)
      unrelated to the owner may retain up to 5% of profits in a business account for future growth. Businesses may retain an additional
      profits up to 15%, based on the number of additional full-time-employee equivalents (%=((FTE-1)^0.7)x2). Publicly traded
      corporations may retain an additional 10%. Thus, nearly all publicly-traded corporations could retain 30% of profits in corporate    
      accounts and would be required to distribute the remaining 70% to shareholders each year. Owners or shareholders may elect to
      reinvest all or a portion of their distributions (for publicly-traded corporations this could be done automatically), but owners  and
      shareholders remain responsible for income taxes on the full distribution.
  Excise rebate = 600 + 400 if married or with dependent  - .025 x (taxable income) - taxable net-worth OR 0, whichever is larger
  Cap on tax-free account value per individual (ages 17 to 70) = $8000 x (age-16) (e.g. $800,000 for a 66 year old couple). Each
    December 30 any amount exceeding cap due to investment gain moved to taxable account.
  Cap on tax-free account value per individual (over age 70) = $432,000 - (8500 x (age-70)) (e.g. $609,000 for a 85 year old couple).
    Required tax-free annual distribution of 2% of value at time of first withdrawal, which must be after age 62 and before age 70.
    Each December 30 any amount exceeding cap due to investment gain moved to taxable account.

^ Elimination of the payroll (Social Security-Medicare) tax is a savings for employees. However, employers pay a tax equal to the
   employee tax into Social Security and Medicare (7.65% of wages up to about $110,000, lower percentages for higher salaries). This
   would be huge windfall for businesses. Therefore, the elimination of this tax for businesses should be coupled with a mandated 17%
   increase in the minimum wage ($7.25 to $8.50 per hour), a minimum 6% increase in salaries under $110,000, and smaller increases
   in salaries between $110,000 and $250,000. Somewhat greater increases in the minimum wage could virtually the cost to federal
   government of the Earned Income Tax Credit. Currently the federal government (other taxpayers) supplement earned incomes largely
   to the extent that that businesses are allowed to pay a minimum wage that falls far short of a "living wage." Except in the case of "total
   disabilty" that precludes any work government-funded or mandated disability payments should be limited to a single year for recovery
  and retraining.

Under this Fair Share Tax proposal, about 80% of taxpayers would have their total taxes reduced substantially. This essay’s hypothetical working, middle-class family’s total tax bill (federal, state, and municipal) would have been reduced from about $28,000 to about $20,000. The investing-class millionaire couple’s total taxes would have increased from about $32,000 to about $55,000.

Under this Fair Share Tax proposal, total calculated revenue for federal, state, and municipal governments would have been about $5100 billion for 2007, the last year we had a "normal economy." That would have balanced federal, state, municipal government budgets and eliminated borrowing at all levels of government. There would have been a small 4% ($200 billion) surplus, rather than a $100 billion deficit.
 
Under this Fair Share Tax proposal, total government taxes (revenues) would be increased about 7% (above current projected taxes and after the recession, our wars, and War Tax end), although taxes on the typical taxpayer (in fact, the bottom 80%) would be reduced substantially. The proposed spending cuts, once fully implemented, reduce total government spending by about 16% below current projected spending (which is based on simple 3% annual increases from 2007 levels and the end of our wars).
 
If the Fair Share Tax reforms were joined with the Spending Reforms proposed here, deficits could be eliminated by 2015, and the national debt could be entirely paid off by 2040. (see National Debt)

Under the proposal tax system, revenues are derived from:
  Income Tax: 69%
  Net-worth Tax: 18%
  Excise Taxes: 11%
  Tarriffs and Fees: 2%

IF EVERYONE PAID THEIR FAIR SHARE, THE TAXES OF EACH WORKING-POOR AND MIDDLE-CLASS HOUSEHOLD COULD BE REDUCED BY THOUSANDS, WE COULD CUT THE DEFICIT, THE ECONOMY WOULD FLOURISH, AND EVERYONE - POOR, MIDDLE-CLASS, AND RICH - WOULD BENEFIT.